Introduction

Oman's Ministry of Labour has issued Ministerial Decision No. 390/2026, promulgating a new Regulation Governing the Practice of Recruiting Non-Omani Manpower. Published in Official Gazette No. 1669 on 11 October 2026, the Decision repeals the previous recruitment framework under Ministerial Decision No. 1/2011 and introduces a revised regime for licensing, recruitment operations, contractual safeguards and the protection of workers and employers.

The regulation represents a significant development for manpower recruitment offices, domestic-worker recruitment agencies, employers and businesses that depend on expatriate labour. It establishes more prescriptive requirements for ownership, licensing, financial security, accommodation, insurance, recruitment timelines and the handling of complaints and refunds.

The new framework takes effect on 1 January 2027. Existing licences remain valid until their respective expiry dates, but subsequent renewals must comply with the new regulation.

1. Licensing and eligibility requirements

Articles 2 and 8 establish that recruitment activity may be carried on only with a licence issued by the Ministry of Labour. The Ministry may also temporarily suspend the grant of new licences where the public interest requires it.

The principal eligibility conditions include:

• Omani ownership: The establishment's owner, partners and authorised signatories must be Omani nationals.

• Dedicated management: The owner or at least one partner must devote themselves to the activity and be registered with the Ministry as an employer.

• SME registration: The establishment must be registered with the Small and Medium Enterprises Development Authority.

• Minimum age: The owner and each partner must be at least 23 years old.

• Qualifications or experience: The owner or partner dedicated to management must hold at least a General Education Diploma or have at least five years of practical experience in non-Omani manpower recruitment.

• Financial security: A financial guarantee of OMR 5,000 must be deposited in the designated Ministry account.

• Licence fee: The prescribed licensing fee is OMR 300.

The regulation also establishes restrictions concerning existing or previously cancelled recruitment licences and certain criminal convictions. The Ministry may assess the applicant's competence through an interview or a prescribed training programme.

These conditions have important implications for investors considering entry into the recruitment sector. General company incorporation or foreign-investment eligibility should not be treated as sufficient authority to undertake a specifically regulated recruitment activity.

2. Premises, accommodation and license renewal

Article 10 requires recruitment offices to maintain premises measuring at least 80 square metres, including adequate space for workers to rest. Suitable accommodation must be provided separately for male and female workers, with the applicable occupational health and safety requirements observed.

Under Articles 12 and 13, the licence is issued following satisfaction of the prescribed requirements, including the provision of premises and worker accommodation within the stipulated period. The licence remains valid for two years and may be renewed for further two-year periods.

Renewal applications must be submitted at least 30 days before expiry.

Article 16 permits an application for a branch after the recruitment office has held its licence for at least one year. The branch must satisfy the prescribed conditions, including a separate OMR 5,000 financial guarantee, a fee of OMR 300 and the appointment of an Omani branch manager. Additional accommodation requirements apply where the branch is more than 50 kilometres from the nearest accommodation maintained by the office.

Changes to approved premises or worker accommodation require prior written approval. Transfers of licences and changes in partners are also subject to the competent authority's approval.

3. Temporary recruitment of domestic workers

Articles 19–22 introduce a structured temporary work-permit mechanism for non-Omani workers in domestic-worker occupations and equivalent categories, pending transfer of their services to an employer.

Each temporary permit is valid for 180 days, cannot be renewed and is subject to a maximum of 25 permits per branch. The prescribed fee is OMR 26 per permit.

Recruitment offices must provide a monthly allowance while the worker remains with the office awaiting transfer:

• Days 1–60: 60% of the monthly wage stated in the job offer.

• Days 61–180: 100% of the monthly wage stated in the job offer.

The office must also provide accommodation, food and necessary healthcare without charge.

Trial periods and transfer of services

Article 22 permits a seven-day trial period before the worker's services are formally transferred to an employer. This enables the employer to assess professional suitability and conduct while allowing the worker to assess the working environment.

The combined trial periods for an individual worker cannot exceed 28 days during the temporary stay, and the worker cannot be placed on trial with more than four employers. A worker may not be trialled more than once by the same employer.

At the end of the trial, the employer must complete the transfer formalities or bear the applicable departure costs if the employment is not proceeding.

These provisions require recruitment offices to manage temporary placements carefully, particularly the associated wage allowances, accommodation, healthcare and repatriation obligations.

4. Mandatory contracts and pre-arrival disclosures

Article 5 requires recruitment offices to use the prescribed forms for job offers and contracts relating to recruitment or transfer of services. Contractual terms inconsistent with the prescribed forms are void unless they are more favourable to the employer.

Article 27 requires workers to receive written information before arriving in Oman concerning the nature of their duties, employment conditions and agreed remuneration. The job offer must be signed by the employer, and the worker's prior agreement must be obtained before the recruitment office concludes the service contract and secures the competent authority's approval.

This framework is intended to reduce discrepancies between the occupation or remuneration offered during recruitment and the conditions ultimately encountered at the workplace.

Employers should ensure that their recruitment instructions, written offers and employment documentation accurately reflect the actual position being offered.

5. Recruitment deadlines and compensation for delay

Articles 29 and 30 establish a maximum recruitment period of 45 days from the conclusion of the service contract, unless the parties agree to a shorter period.

Where the recruitment office fails to meet the applicable deadline, the employer may terminate the contract or grant an additional period of up to 30 days by written agreement.

Subject to the regulation's conditions, the employer may claim compensation equivalent to 5% of the service fee. Amounts due must be refunded within 15 days of termination.

An exception applies where the delay results from force majeure or an emergency, provided the recruitment office gives written notice supported by documentary evidence within three days of the event. If the impediment continues for more than 30 days without recruitment, the service fee must be refunded. A refund is also required where the worker dies before arriving in Oman.

These provisions give employers a clearer contractual mechanism for addressing delays and recovering payments.

6. Mandatory insurance for recruitment contracts

Article 28 requires recruitment offices to maintain insurance coverage for each service contract. The prescribed coverage includes compensation to the employer for all or part of the service fee, where applicable under Article 32, and the worker's return-ticket costs.

The regulation specifies different commencement rules for certain categories of insurance coverage. Accordingly, the policy wording, applicable exclusions and relevant statutory provisions must be reviewed together rather than assuming that every risk is covered from the same date.

A copy of the insurance policy must be provided to the employer when the service contract is concluded.

Recruitment offices should review their insurance arrangements before the regulation takes effect. Employers, in turn, should obtain and retain the policy documentation and verify that the relevant contractual risks fall within its coverage.

7. Refunds and the service-guarantee regime

Article 32 identifies circumstances in which a recruitment office must refund the service fee, or the relevant portion, within 15 days of the worker's return to the office, unless the parties agree in writing to a replacement.

The specified circumstances include:

• A material discrepancy between the worker's actual occupation and the occupation or requirements agreed in the offer, subject to the applicable trial-period conditions.

• Refusal to work without an acceptable excuse or departure from employment without a lawful reason.

• Certain established medical or physical unfitness conditions.

• Specified assault or criminal conduct supported by the required evidence.

• Return requested by the overseas recruitment agency for a reason not attributable to the employer.

• Natural death during employment while the employment contract remains valid.

• Qualifying total or partial disability arising from a health condition occurring after arrival in Oman.

The applicable refund entitlement depends on the particular circumstances and the statutory conditions.

Employer notification obligations

Under Article 33, the employer must notify the recruitment office within 30 days of the relevant event. Failure to comply may permit a deduction of up to 5% of the service fee.

Employers should therefore establish an internal process for documenting complaints, medical findings, abandonment of work, return requests and other events that may trigger a refund.

Circumstances excluding refund rights

Article 34 excludes the employer's right to recover the service fee in specified circumstances, including deception by the employer concerning working conditions, non-payment of wages for more than two consecutive months or three non-consecutive months within a year, certain forms of harassment or violence, and knowingly failing to address a serious threat to the worker's safety or health.

The refund mechanism is therefore not an unconditional guarantee. Both parties must comply with their respective legal obligations.

8. Operational obligations of recruitment offices

Article 23 imposes continuing obligations beyond the initial licensing process. Recruitment offices must, among other things:

• Display their licence prominently at the approved premises.

• Restrict their operations to the licensed activity.

• Maintain direct management and supervision by the owner or dedicated partner.

• Notify the Ministry of agreements with overseas recruitment agencies and provide certified Arabic translations.

• Retain receipts for payments to overseas agencies for five years.

• Maintain receipts for amounts collected from employers until the relevant employment contract ends.

• Provide employers with available information concerning workers' skills and experience.

• Arrange required pre-arrival medical examinations.

• Inform workers about their rights, obligations, local customs and available complaint channels.

• Refrain from retaining workers' passports or official documents without their written consent.

• Refrain from charging workers recruitment or employment fees.

• Avoid placing returned workers with another employer before the required transfer formalities are completed.

Article 24 also requires an updated electronic register recording worker details, occupations, wages, nationalities, employers, overseas recruitment agencies and information concerning workers returned to the office.

These obligations require appropriate recordkeeping, staff training and documented internal procedures.

9. Penalties and enforcement

The regulation provides for administrative fines and, in specified circumstances, suspension or cancellation of a recruitment licence.

Examples of prescribed penalties include:

Violation	Prescribed consequence
Changing approved premises or accommodation without prior approval	OMR 500
Transferring a licence without approval	OMR 500 and licence cancellation
Allowing a non-Omani to manage the recruitment office	OMR 500 and removal of the offending manager at the office's expense
Conducting another business from the licensed premises	OMR 300
Failure to insure a service contract	OMR 200 per uninsured contract, together with applicable refund consequences
Failure to pay the prescribed temporary-worker allowance	OMR 100 per affected worker
Failure to carry out the required medical examination	OMR 200 per affected worker
Recruitment through unapproved overseas agencies	OMR 500 per worker

These examples are not exhaustive. Other violations carry their own penalties, and repeated breaches may attract increased fines or more serious licensing consequences.

Recruitment offices should review the complete schedule of violations rather than treating the above examples as a comprehensive statement of potential liability.

10. Transitional considerations and recommended action

The Decision takes effect on 1 January 2027. Existing licences remain valid until expiry, but renewals must satisfy the new framework.

Recruitment offices should use the period before commencement to undertake a structured compliance review. Priority actions include:

1. Verifying ownership, management eligibility and SME registration.

2. Reviewing premises, worker accommodation and branch arrangements.

3. Updating service contracts and job-offer forms.

4. Arranging the required insurance for each service contract.

5. Establishing procedures for recruitment deadlines, refunds and employer notifications.

6. Auditing overseas recruitment agency approvals and related documentation.

7. Updating electronic records, receipts and document-retention procedures.

8. Training staff on worker protection, complaints, temporary permits and repatriation obligations.

Employers should also review recruitment agreements, confirm that agreed occupations and wages are documented accurately, obtain copies of insurance policies and establish procedures for reporting events that may trigger a refund.

Conclusion

Ministerial Decision No. 390/2026 introduces a more detailed regulatory framework for recruiting non-Omani manpower in Oman. Its principal effects concern the eligibility of recruitment-office operators, financial security, accommodation, temporary recruitment, mandatory insurance, contractual transparency and defined refund mechanisms.

For recruitment offices, compliance requires more than obtaining or renewing a licence: it requires appropriate operational systems, records, insurance and worker-management procedures. For employers, the new provisions offer more clearly defined contractual protections while making timely notification and accurate documentation particularly important.

Businesses should assess their existing arrangements against the regulation before 1 January 2027 and seek advice where licensing eligibility, contractual exposure or the application of a particular refund provision is uncertain.

Legal source: Ministerial Decision No. 390/2026, promulgating the Regulation Governing the Practice of Recruiting Non-Omani Manpower, published in Official Gazette No. 1669 on 11 October 2026.

This article is for general legal information and should not be treated as a substitute for advice on the facts of a particular matter.