Oman Tightens Rules for Expat Recruitment Agencies From January 2027

The Ministry of Labour explained the requirements, set out in Ministerial Decision No. 390 of 2026, at a workshop with recruitment agency owners who had raised concerns about their financial obligations. Dr Saif bin Mohammed Al Busaidi, adviser to the Minister of Labour for Labour Welfare, said the session was held to clarify the agencies' responsibilities.

Under the regulations, employers are entitled to a full refund of recruitment fees in specified circumstances during the first 90 days after a worker starts, unless they agree with the agency to take a replacement worker. For domestic workers, employers may also qualify for a partial refund after the first 90 days and for up to two years, subject to conditions.

Agencies must insure their service contracts. Cover for risks such as natural death and qualifying disability starts when the worker arrives in Oman or is transferred to the employer. Cover for workers who refuse to work without an acceptable excuse, or who leave without lawful justification, begins only after 90 days. Al Busaidi said premiums should be about 1 per cent of the contract value, and that insurers taking part in the talks were willing to offer extra cover for the first 90 days.

Agencies must bring workers into Oman within 45 days of signing a contract unless a shorter period has been agreed. If they miss the deadline, the employer can cancel the contract or agree in writing to an extension of up to 30 days.

Licensing requirements are also tighter. Agencies must lodge a RO5,000 financial guarantee with the ministry and pay RO300 for a two-year licence. Owners, partners and authorised signatories must be Omani nationals, and owners and partners must be at least 23 years old. The owner or full-time managing partner needs at least a General Education Diploma or five years' experience in recruiting non-Omani workers.

Asked about reports that some agencies had closed, Al Busaidi said the closures were mainly due to management problems rather than the new rules. He said the ministry was open to feedback and would review provisions where needed.

For employers in Oman, and for regional businesses that hire there, the rules move more of the cost and risk of a failed hire onto agencies. Recruitment fees may rise as agencies pass on the costs of insurance and guarantees.