A dynamic model featuring multiple job tasks shows the fundamental role of human capital associated with Information and Communications Technology (ICT) in shaping firms’ remote work practices, asset prices, and labor policies. In the model, ICT human capital enables firms to adopt remote work policies by sustaining high labor productivity despite the associated adoption costs. Consequently, firms with high ICT human capital are more likely to adopt the remote work policy, which in turn makes their firm value, labor policies and output less affected by the pandemic shocks. Empirically, consistent with the model’s predictions, we demonstrate that ICT human capital is a key driver of the dynamics of firms' remote work policy. Furthermore, industries with high ICT human capital have higher fractions of remote work adoption and experience smaller declines in asset prices, employment, and output levels during and after the pandemic.