Deadline Nears to Correct Expat Worker Status in Oman: What It Means for Your Business and Workforce Compliance

• By Oman Market
• July 28, 2025July 28, 2025
• labor card exemptions Ministry of Labour workforce regularization
• With 0 comments

The Ministry of Labour has issued a clear directive for individuals, employers, and workers to regularize their legal status by July 31, 2025. It is important to note that any requests submitted after this deadline will not be entertained.

In line with its commitment to improve workforce conditions and safeguard the rights of both individuals and employers, and with the approval of the Honorable Council of Ministers, the Ministry announced in January a waiver and financial settlement package exceeding RO60 million. The key components of this package include:

1. Cancellation of all fines and financial dues owed to the Ministry related to expired labor cards inactive for more than seven calendar years. Additionally, individuals and employers are exempt from paying financial obligations (such as the cost of a worker’s repatriation ticket) for the year 2017 and prior.

2. Cancellation of labor cards that have remained unused for over 10 years, provided that their holders have not requested any related services. However, these cards can be reactivated under specific conditions, including renewal requests, departure, service transfer, or the registration of a work abandonment report.

3. Waiver of financial obligations recorded against companies that have been liquidated, contingent upon the repatriation of workers or the transfer of their services.

4. A grace period to regularize the status of workers and employers during which fines related to labor cards will be waived. Conditions for this waiver include:
   • Renewal of the labor card and payment of renewal fees for the next two years.
   • Cancellation of any work abandonment reports.
   • Transfer of worker services.
   • Payment of the repatriation ticket cost by either the employer or worker in cases of final departure.

This initiative aims to facilitate the regularization process while balancing the interests of all parties involved.

Special Analysis by Omanet | Navigate Oman’s Market

The Ministry of Labour’s deadline to regularize workforce status by July 31, 2025, alongside a generous waiver package, presents a critical opportunity for businesses in Oman to cleanse their labor records and avoid costly penalties. For entrepreneurs and investors, this regulatory push signals a move towards a more transparent and compliant labor market, reducing hidden risks related to undocumented employment. Smart operators should act swiftly to capitalize on this grace period for legalizing labor status, ensuring sustainable operations and enhanced reputation in the evolving Omani market.