Oman tightens expat worker recruitment rules from January 2027; agencies must provide insurance, refunds

Oman will tighten regulations governing the recruitment of expatriate workers from January 1, 2027, requiring recruitment agencies to provide insurance coverage, refund employers in specified circumstances and complete recruitment procedures within 45 days.

The rules are part of Ministerial Decision No. 390 of 2026, which aims to strengthen oversight of the recruitment sector and clarify the financial and contractual responsibilities of agencies.

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The Ministry of Labour explained the provisions during a workshop with recruitment agency owners.

Dr Saif bin Mohammed Al Busaidi, adviser to the Minister of Labour for Labour Welfare, said the workshop was organised to address concerns raised by agencies and explain their obligations under the new framework.

Refunds and insurance coverage

Under the new rules, employers can receive a full refund of recruitment service fees in specified circumstances during the first 90 days after a worker starts employment. However, employers can agree with the agency to receive a replacement worker instead.

For domestic workers, employers may also qualify for a partial refund after the initial 90-day period and up to two years, subject to regulatory conditions.

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Recruitment agencies must obtain insurance for their service contracts to cover specified risks. Protection against certain claims, including natural death and qualifying disability, begins when the worker arrives in Oman or is transferred to the employer.

Coverage for workers refusing to work without an acceptable reason or leaving employment without lawful justification starts after the first 90 days.

Al Busaidi said the estimated insurance premium would be approximately 1 per cent of the recruitment contract's value.

Recruitment deadline and agency requirements

Agencies must bring recruited workers into Oman within 45 days of signing the recruitment service contract, unless a shorter period has been agreed.

If they fail to meet the deadline, employers can terminate the contract or agree in writing to extend the period by up to 30 days.

Agencies must also deposit a financial guarantee of RO5,000 with the ministry and pay RO300 for a licence valid for two years.

Agency owners, partners and authorised signatories must be Omani nationals. Owners and partners must be at least 23 years old. The owner or full-time managing partner must also have a General Education Diploma or at least five years of experience in recruiting non-Omani workers.

Addressing agency closures, Al Busaidi attributed them primarily to management-related problems rather than the new regulations. He added that the ministry remained open to feedback and could review provisions where necessary.