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Our Eyes on 2025 publication provides essential insights and practical guidance on the key legal updates shaping the year ahead—equipping you with the knowledge to stay ahead in this dynamic market.
On 8 September 2025, the Ministry of Labour (“Ministry”) issued Ministerial Decision No. 523/2025, (“Decision) introducing the long-anticipated regulation of remote work. The Decision came into effect on 9 September 2025. Until now, companies in Oman have adopted remote work practices on an ad hoc basis, largely as a byproduct of the Covid-19 pandemic, with each organisation developing its own policies in the absence of regulation. This Decision marks a significant regulatory development by formally defining and standardising remote work arrangements across the private sector for the first time.
Remote work refers to tasks or duties performed by an employee, either full-time or part-time, using technology within Oman but away from the employer’s premises. The Decision does not address circumstances where employees relocate cross-border, whether temporarily or permanently, during their period of employment, although, the definition implies that such employees would fall beyond the scope of the Decision considering it is strictly prohibited for employers to engage employees who work remotely from abroad.
Under the general civil laws of Oman, employers are permitted to hire individuals residing abroad for services or to enter into contracts for specified deliverables, although such individuals are classified as contractors operating independently and fall outside the remit of the Labour Law of Oman.
Obligations on the employer and employee Companies who implement remote work systems are required to do the following:
The Ministry has also made it mandatory for employers to formalise remote work contracts in writing. Remote work contracts these specify the type of technology and equipment used for the work and the person responsible for their installation and maintenance, mechanisms for supervision, follow up and performance evaluation and obligations relating to information security and privacy.
The Ministry has placed increasing importance on performance evaluation systems since the introduction of the employer’s right to terminate for poor performance under the Labour Law of 2023 and more recently in 2025, the annual increment that Omani employees are entitled to has been staggered from a previously fixed 3% to a range between 2% to 5% of the basic wage, based on the results of performance evaluation. Employees rated as underperforming are no longer entitled to receive the increment, underscoring the importance of robust and transparent evaluation systems.
Remote work does not fundamentally alter the obligations of employees, which remain consistent with those of the traditional workplace and focus on performance, confidentiality, safekeeping and proper use of company property.
To combat potential risks of remote work in the context of the employer-employee relationship, the Decision emphasises the importance of privacy and prohibits monitoring systems that violate employee privacy. Employees are entitled to disconnect from employer systems where it is proven that the employer uses tools, systems, or programmes that violate privacy or use personal data for purposes other than work, without obtaining prior consent.
Partial remote work arrangements
The Decision also addresses partial arrangements of remote work, which consist of a hybrid model of working both from the workplace and remotely on designated days or intervals. Employers have sole discretion to approve or reject employee requests for partial remote work and are under no obligation to provide any technology or equipment for the respective employee.
This arrangement expires naturally at the end of the agreed upon period, although it may be terminated earlier by the employer in the following circumstances:
Conclusion
The Decision establishes a clear legal framework for remote work in Oman’s private sector, balancing flexibility with accountability by setting out specific obligations for both employers and employees, particularly around performance, privacy, and supervision. Companies implementing remote work practices must swiftly adapt their internal policies to ensure compliance with the Decision.
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