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Labour status correction grace period extended till December 31

Labour status correction grace period extended till December 31

Observer04-08-2025
Muscat: The Ministry of Labour on Monday has officially announced an extension to the grace period for correcting legal employment status in the Sultanate of Oman.
Originally set to conclude on July 31, 2025, the adjustment period will now continue until December 31, 2025, in response to overwhelming requests from individuals, employers, and workers seeking more time to complete the required legal procedures.
The extension follows an earlier circular issued on July 8, 2025, which confirmed the end date for the grace period. However, the Ministry has now decided to grant additional time to allow the largest possible number of beneficiaries to benefit from the exemptions and regularize their legal standing without facing fines or penalties. This measure is part of a broader labour market reform initiative first introduced in January 2025.
The initiative, which began on February 1, 2025, includes waivers and exemptions amounting to more than OMR 60 million. These include the cancellation of fines for expired labour cards that have been inactive for over seven years, waivers for repatriation ticket obligations dating back to 2017 and earlier, and the removal of financial liabilities against liquidated companies where workers have been repatriated or transferred.
With this final extension in place, the Ministry is urging all concerned parties to take advantage of the remaining time to renew expired labour cards, cancel work abandonment reports, transfer worker services, and settle outstanding obligations. The Ministry stressed the importance of utilizing this opportunity to comply with existing laws and regulations.
All departments and entities have been directed to ensure the effective implementation of the extension in alignment with public interest. The Ministry has reiterated that no further applications will be accepted after the new deadline of December 31, 2025. Beneficiaries are advised to complete their procedures through the Ministry's official website and approved service delivery channels.
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