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Oman Launches New Labor Licensing Regulations to Support Employers and Citizens

Oman Launches New Labor Licensing Regulations to Support Employers and Citizens
Image Source: Oman News Agency Website
  • Oman extends work permit validity for non-Omani workers from 15 to 24 months, reducing administrative and financial burdens.
  • New exemptions, discounts, and simplified procedures aim to protect employers, workers, and vulnerable groups, enhancing labor market stability.
  • Employers can now upgrade workers’ occupations and access digital services, supporting efficiency, flexibility, and workforce planning in Oman.

Oman

Oman’s Ministry of Labor issued a comprehensive package of facilitations, reductions, and exemptions related to work permits and work practice licenses. 

The aim is to enhance the regulation of employer–employee relations, safeguard rights, and reduce violations without affecting domestic worker recruitment fees. These fees are unchanged to protect both employers and workers. This is while ensuring that families or employers are not burdened with any additional costs.

The new decision exempts certain groups from work permit fees, including the disabled, elderly, and those needing special healthcare support. These exemptions apply to the recruitment of domestic workers, child caregivers, private drivers, private nurses, and home health aides.

The package extends work permit validity, increasing the duration of recruitment and work practice licenses for non-Omani workers from 15 to 24 months.  This extension responds to employer demands and aligns work permits with workers’ residency periods. By reducing administrative and financial burdens, it aims to provide employers with more stability in workforce planning and more effective labor management.

Additionally, employers can now upgrade a worker’s occupation category on their work practice license by paying the difference in the fee, without needing to issue a new license. 

Compliance

The reforms also introduce incentives for compliance. Employers meeting Omanization quotas enjoy a 30% discount on licensing fees, while non-compliance leads to doubled fees. Community organizations and humanitarian institutions see reduced fees for non-Omani workers, reflecting the Ministry’s commitment to social responsibility.

Late penalties are capped at OMR 500 per worker, and exemptions apply in cases such as worker or employer death, illness, visa issues, or repatriation. Refunds or new licenses cost only OMR 1 per worker under specific circumstances.

Overall, the reforms aim to create a more organized, secure, and efficient labor market. They support employers in workforce planning, reduce costs, and protect worker rights—all while enhancing Oman’s competitiveness as a business destination.

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