The importance of arbitration as the easiest and fastest way to settle various civil and commercial disputes, and the arbitration agreement is an agreement in which the parties decide to resort to arbitration to settle all or some of the disputes that have arisen or may arise between them on the occasion of a particular legal relationship whether contractual or non-contractual. The arbitration ordinance here is devoted to labor disputes between the employer and the worker, when it concerns the employment of the worker, the conditions of his service or the conditions of his work. The problem is that arbitration as a means of settling labor disputes is not mentioned in the Omani Labor Law because of the recent Omani legal legislation, which dealt with labor disputes inadequately from the personal and practical point of view of the researcher, as well as the role of arbitration and its practical importance in settling labor disputes. The reality of labor disputes in Oman's courts is therefore time consuming. The objectives of the research is to discuss the arbitration types, It is intended to deal with labor disputes, to clarify the extent of arbitration in labor disputes and to diagnose the position of the legislator and the Omani judiciary on arbitration. The researcher adopted a number of methods; the descriptive approach by combining the inductive method and the deductive analysis. The research reached several findings: the permissibility of arbitration in labor disputes for the absence of a legislative text prohibiting arbitration, and the absence of a labor court specialized in labor disputes. Arbitration in labor disputes is characterized by speed and abbreviation in the length of time to fulfill the worker's rights contrary to the judicial reality, which extends the labor case to years. Arbitration in labor disputes shall be governed by the terms and conditions contained in the Omani Arbitration Law in civil and commercial disputes. The researcher recommended that the arbitration agreement be subject to the supervision of the Omani judiciary