Oman Introduces Formal Remote Work Regulations for the Private Sector

Oman has introduced its first comprehensive regulations on remote work, requiring formal contracts, clear performance evaluation systems, and strict privacy protections. The framework enhances flexibility while ensuring compliance, efficiency, and alignment with the country’s digital transformation goals.

On September 8, 2025, Oman’s Ministry of Labor issued Ministerial Decision No. 523/2025 (hereinafter, the “Decision”), establishing the country’s first comprehensive framework for remote work in the private sector.

Effective from September 9, 2025, the Decision provides clarity for employers and employees, formalising practices that have largely been ad hoc since the COVID-19 pandemic.

Overview of Oman’s Decision on remote work

Official scope and definition of remote work in Oman

Under the new rules established within the Decision, remote work refers to tasks performed within Oman, either full-time or part-time, away from the employer’s premises using technology provided by the company.

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Cross-border remote work is explicitly excluded; employers are prohibited from engaging employees who work from abroad. Individuals residing outside Oman may still provide services as independent contractors, but they remain outside the ambit of Oman’s Labor Law.

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Employer obligations

Businesses implementing remote work must now meet several formal requirements, including:

• Maintaining an updated list of all remote employees;
• Providing the necessary technology and equipment, such as installation and maintenance costs, unless agreed otherwise with employees;
• Granting employees the authorities required to perform their delegated tasks; and
• Establishing supervision systems to monitor and evaluate performance.

Importantly, remote work agreements must be formalised in writing, detailing technology and equipment usage, supervision and evaluation mechanisms, and obligations relating to data security and confidentiality.

Employee obligations

Employees’ responsibilities remain consistent with traditional workplace expectations, including:

• Maintaining performance standards;
• Safeguarding company property; and
• Upholding confidentiality.

The Decision also recognises privacy concerns: employers are prohibited from monitoring practices that violate employee privacy or misuse personal data, and employees may disconnect from systems if privacy is compromised.

Performance evaluation and incentives

The Decision aligns with recent Labo

r Law updates that tie employee performance to compensation. Since 2025, annual wage increments for Omani employees range from 2 to 5 percent of the basic salary based on performance evaluations, replacing the fixed 3 percent increment, according to Ministerial Decision 317/2025.

Employees deemed underperforming are no longer entitled to these increments, reinforcing the need for robust and transparent evaluation systems in remote work setups.

Partial or hybrid remote work

The Decision also addresses hybrid arrangements, where employees split time between the office and remote work. Employers have full discretion to approve or reject hybrid work requests and are not obliged to provide equipment.

Hybrid arrangements may be terminated early under specific circumstances, such as:

• Cybersecurity threats;
• Policy breaches; or
• Failure to comply with agreed working hours.

Implications for businesses and investors in Oman

The introduction of these regulations provides clarity and legal certainty for private sector companies, particularly those exploring flexible work models. For businesses and investors, the Decision underscores several key considerations:

• Compliance: Companies must update internal policies, employment contracts, and IT infrastructure to meet regulatory requirements.
• Talent management: Clear frameworks for remote work can enhance employee retention and attract skilled professionals, particularly in technology and knowledge-based sectors.
• Performance oversight: Businesses must implement structured evaluation and supervision systems to align performance with compensation and compliance standards.
• Risk mitigation: Cybersecurity, privacy, and data protection policies must be strengthened to minimise legal and operational risks.

Conclusion

Oman’s new Decision on remote work marks a significant step in formalising flexible work arrangements in the private sector. For companies, adapting to these regulations is now essential—not only to ensure compliance but also to protect employees and maintain operational efficiency. Remote workers must carry out their duties personally during agreed hours, uphold confidentiality, and report issues affecting performance, while retaining the right to disconnect if employer practices infringe on their privacy.

Full-time remote work contracts must be documented in writing, covering core terms such as the nature of work, remuneration, working hours, evaluation methods, and obligations related to occupational safety and information security. Employers also retain the authority to require part-time remote workers to return to the office in cases of serious breaches or threats to information security.

By embedding these safeguards, the Ministry of Labor has ensured that remote employees remain subject to the rights and obligations of the Labor Law, while granting businesses greater flexibility to manage their workforce. The Decision not only sets out a framework for accountability and supervision but also supports Oman’s broader goals of digital transformation, efficiency, and productivity—positioning the country as a forward-looking environment for modern workforce innovation.

Read more: Oman’s New Special Economic Zones and Free Zones Law: Implications for Investors

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