Oman to Tighten Rules for Foreign Worker Recruitment Agencies From 2027
New Omani regulations require recruitment agencies to provide insurance, post financial guarantees and complete hiring within 45 days, with refunds available to employers in specified cases.
Oman has announced a stricter regulatory framework for agencies that recruit foreign workers, introducing financial guarantees, licensing requirements and insurance obligations aimed at bringing greater oversight to the recruitment sector. The new rules are set to take effect on January 1, 2027, according to the Ministry of Labor.
Under the framework, employers will be able to claim a full refund of recruitment service fees in certain circumstances during a worker's first 90 days of employment. Alternatively, an employer may agree with the agency to receive a replacement worker instead of a refund. For domestic workers, employers may also qualify for a partial refund after the initial 90-day period, for a period of up to two years, depending on the circumstances outlined in the regulations.
Recruitment agencies will be required to bring recruited workers into Oman within 45 days of signing the recruitment service contract. If both parties agree to a shorter timeline, the agency must meet that earlier deadline. Agencies will also have to provide insurance coverage under the new framework.
On the financial side, each agency must deposit a guarantee of 5,000 Omani rials with the Ministry of Labor, along with a fee of 300 Omani rials for a recruitment license that remains valid for two years. The measures are intended to regulate the recruitment industry and protect the rights of both employers and workers.
The rules are part of a broader effort by Oman to formalize its labor recruitment market and improve accountability among agencies that place foreign workers in the country. Similar regulatory moves across the Gulf have drawn attention from labor-sending countries, including Pakistan, which relies heavily on Gulf states as a destination for migrant workers.
The regulations will apply from the start of 2027, giving agencies and employers time to adjust to the new licensing, insurance and refund requirements.
With inputs from regional reports.
