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The Ministry of Labour issued Ministerial Decision 730/2024 to regulate the temporary transfer of expatriate workers between private sector establishments for the first time, according to the Oman Observer. The decision, which took effect on December 16, 2024, stems from the Labour Law under Royal Decree 53/2023 and lists specific requirements that both employers and workers must satisfy. Transfers cannot involve professions subject to Omanisation, and the new role must align with the worker’s existing category and expertise. An analysis from Fragomen highlighted that prior to this decision, Oman lacked dedicated rules for such temporary arrangements.
Additional conditions require the worker’s written consent, a minimum of six months of service at the original establishment and at least six months of validity remaining on the work permit, the Oman Observer reported. Neither establishment may have financial obligations to the ministry or service suspensions, and both must adhere to Omanisation rates. The volume of transfers cannot exceed 50 percent of the registered workforce at either facility within a calendar year, while each transfer is capped at six months.
The receiving establishment bears full responsibility for the worker’s rights and obligations during the transfer period, including payment of a wage no lower than the previous amount along with identical benefits through the wage protection system, Ministerial Decision 730/2024 states. It must register the arrangement using the ministry’s official form and cannot retain the worker beyond the approved duration. If the worker departs early, the receiving employer must notify the original one, which then files a work abandonment notice with the ministry.
This framework builds on reforms that abolished the no-objection certificate for contract-completed workers in 2016, a guide from Commoner Law on Omani workers’ rights indicated. Oman maintains a modified sponsorship structure that grants greater mobility than pure kafala systems while preserving protections for local employment. Legal commentary from Mondaq described the new rules as offering project-based flexibility without compromising core labour law principles.
In an editorial titled “The worker-transfer rule Oman should measure,” the Oman Observer urged authorities to establish clear performance indicators to evaluate the policy’s impact on workforce dynamics and Omanisation progress. The publication stressed the need for ongoing monitoring to ensure the temporary transfer mechanism delivers intended benefits without unintended consequences for either employers or employees. Such measurement would help refine future adjustments to the labour regulatory environment.
Oman’s private sector relies heavily on expatriate labour, with non-Omani workers filling critical roles across multiple industries, according to assessments from PwC Middle East on GCC labour markets. The ministry has pursued successive updates to align workforce management with economic diversification aims under Oman Vision 2040. These include extensions to work permit validity and fee adjustments outlined in subsequent resolutions such as Ministerial Resolution 602/2025.
