MUSCAT — Oman’s Ministry of Labour has clarified how recruitment agencies will handle refunds and insurance claims under new rules for hiring expatriate workers, following talks with agency owners over their financial obligations.
Dr Saif bin Mohammed Al Busaidi, adviser to the labour minister for labour welfare, said the ministry held a workshop with agency owners to explain the rules and hear their concerns. Ministerial Decision No. 390/2026 sets out the responsibilities of agencies and employers, including when employers can claim a refund of recruitment fees.
Under the rules, employers are entitled to a full refund of the recruitment service fee in specified cases during the first 90 days after a worker starts the job, unless they agree with the agency on a replacement. For domestic workers, employers can still claim a partial refund in qualifying cases after the first 90 days and up to two years.
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Agencies must insure recruitment service contracts. Coverage starts on arrival or transfer for certain claims, including natural death and qualifying disability. For cases in which a worker refuses to work without an acceptable excuse or leaves without a lawful reason, coverage begins after 90 days.
Al Busaidi estimated the insurance cost at around 1% of the contract value. He said insurers involved in the talks had also indicated they were willing to offer coverage options for the initial 90 days.
Agencies must bring workers into Oman within 45 days of signing the service contract, unless a shorter period is agreed. If an agency misses the deadline, the employer can cancel the contract or agree in writing to an extension of up to 30 days.
The regulations require agencies to deposit a RO 5,000 financial guarantee with the ministry and pay RO 300 for a two-year licence. Owners, partners and authorised signatories must be Omani, and owners and partners must be at least 23. The owner or full-time managing partner must hold at least a General Education Diploma or have five years of experience in recruiting non-Omani workers.
Responding to reports of agency closures, Al Busaidi attributed them mainly to management problems. He said the ministry remained open to feedback and could review provisions where necessary.
