By Oman’s Ministry of Labour has promulgated Ministerial Decision No. 390/2026, issuing the Regulation Governing the Practice of the Activity of Recruiting Non-Omani Manpower, according to the Times of Oman. The Regulation, based on the Labour Law issued by Royal Decree 53/2023, sets licensing requirements and obligations for recruitment offices and employers. It takes effect on 1 January 2027 and repeals the Regulation issued by Ministerial Decision No. 1/2011.
The framework makes a Ministry of Labour licence mandatory for recruitment offices. Dr. Mohammed Ibrahim Al Zadjali, Chairman of Mohammed Ibrahim Law Firm, told the Times of Oman that eligibility conditions include Omani ownership, partners and authorised signatories, registration with the Small and Medium Enterprises Development Authority, and a financial guarantee of OMR5,000. Existing licences remain valid until expiry, provided they are renewed in accordance with the Regulation.
What the licensing framework requires in practice
Recruitment offices must meet prescribed requirements for their premises and workers’ accommodation. Licensed offices must use prescribed forms for job offers and service contracts, and must give employers workers’ personal details, skills and experience before placement. Pre-entry medical examinations are mandatory, as is insurance coverage for each service contract.
The Regulation also addresses cross-border recruitment mechanics. Offices must use external agencies accredited by the relevant diplomatic mission in Oman and attested by the Ministry of Foreign Affairs. Where a source country has no diplomatic mission in Oman, recruitment requires coordination with the Ministry of Foreign Affairs and the Royal Oman Police.
Two prohibitions stand out for HR and payroll teams. Offices must not collect any amounts or fees from recruited workers for recruitment or employment. They must also not retain workers’ passports or official documents except with their written consent. These provisions align with broader Gulf Cooperation Council efforts to reduce worker-paid recruitment fees, which have been linked to debt bondage and forced labour risks in domestic work sectors.
Deadlines, guarantees and refunds employers should note
The Regulation introduces specific timeframes that employers should build into workforce planning. Recruitment offices must recruit workers within 45 days of the service contract, unless a shorter period is agreed. Temporary labour authorisations are valid for 180 days and are non-renewable.
Service guarantee periods vary by worker category. Under the prescribed contract forms, the guarantee period is two years for domestic workers and their equivalents, and 90 days for workers recruited for establishments, calculated from the commencement of work. In specified circumstances, offices must refund employers or, if agreed in writing, provide replacement workers.
The right to a refund is forfeited in certain cases: fraud by the employer about the conditions of work; non-payment of wages for more than two consecutive months or three non-consecutive months in a year; or harassment or violence against the worker. Employers should review their payroll and conduct policies against these forfeiture triggers, since a single substantiated harassment complaint could extinguish refund rights for that placement.
Compliance risks and transition planning
Non-compliance may result in a warning, administrative fines, suspension or cancellation of a licence, without prejudice to criminal penalties under the Labour Law. The Ministry of Labour has not published a schedule of fine amounts in the Times of Oman report, so employers and recruitment offices should monitor for implementing guidance before January 2027.
For HR teams in Oman, the transition period matters. Existing licences remain valid until expiry, provided they are renewed in accordance with the Regulation. Employers using recruitment offices should confirm that their providers have renewal plans and updated contract forms ready. Payroll teams should also verify that service contracts reflect the correct guarantee period for the worker category, since the two-year domestic worker guarantee and 90-day establishment worker guarantee differ materially in cost exposure.
The repeal of Ministerial Decision No. 1/2011 means older contract templates and agency arrangements may no longer be compliant after 1 January 2027. Employers with ongoing recruitment pipelines should ask their agencies for written confirmation of Regulation-compliant forms and insurance coverage before the effective date.
Sources: Times of Oman
Photo: Meeting of Dr. Asif Nazrul (Adviser Expatriate Welfare) and Dr. Mahad bin Saeed by Press Information Department , Public domain
