The researcher depends on the analytical, inductive, deceptive and the deductive legal search syllabus. The study aims to recognize the legal principles that organize the legal judicial and administrative rehabilitation and to cope with penal, reformatory, administrative and the commercial legal developments related to the research topic. To consider the effect of such legal principles on the convicted person and his family members, from socially and economically point of view, and the effect of the same on the society from a cultural and economical, humanitarian Security and legal view points taking into account that the rehabilitation system, has no distinct backing evident in the Islamic Law, which is considered as the base of legislation in the Sultanate. The rehabilitation has been extracted from the laws of Western countries which adopt it along with a package of legal system that mitigates its negative impacts i.e, social insurance security system which covers the cases of jobless people and their families whether such people could not get a job or are legally prohibited to work The main research recommendations are as follow: Extending the scope of exemption for rehabilitation by adding felonies to misdemeanors in the event of first incident. . Abolition of punishment aggravation in the event of recharging of crime. To consider the amendment of the concept of parole, so that the final release shall be as of the date of such release. To consider the total abolition of the rehabilitation system and satisfy with execution of prison term only. To amend the employment conditions to read as whoever is nominated to hold an employment should have not been convicted in a crime violating honour or honesty unless he was rehabilitated. Establishing an incentive system for the abolition of punishment imposed on employees by Force of Law if the employee receives a certificate of appreciation after his punishment. Finally, the study came up with a package of recommendations and suggestions that may contribute to the development of legal work in the field of rehabilitation for those who are concerned with it.