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Working from Home: Contracts & Clauses

Megan Thompson · September 21, 2021

Remote working was originally hailed as a temporary solution during COVID-19, but as it becomes permanent many employers must understand working from home contracts & clauses.

There is a reason why contracts or terms and conditions are known as the small print – a smaller font takes up less space and is easier to scroll through!

No one really wants to read through an extended contract, and this can be dangerous.

An irreverent survey by the website ProPrivacy.com left some unusual items in the small print of a document sent to survey recipients. The result was that 99% of respondents unwittingly agreed to conditions such as giving up naming rights to their firstborn child, allowing access to the airspace above their property for purposes of drone traffic, and inviting a personal FBI agent to Christmas dinner for the next 10 years!

A breach of contract can be very serious. For an employee it can mean dismissal. For an employer it can mean being taken to a tribunal. Contract breaches on either side can result in legal recourse.

Understandably, a lot of thought goes into drafting a contract, but what happens when circumstances change in an unexpected way? At the start of 2020, no-one could have imagined a situation when millions would find themselves suddenly working from home. Yet, this is what happened. The likelihood is that few companies had a ready-made home working contract clause.

Do you need working from home contracts & clauses?

Although organisations had a reasonable excuse for not updating contracts in time for the rush to home working last Spring, an argument citing lack of time no longer applies. With hybrid or home working now becoming commonplace, contracts need to reflect the new ways of working.

There is a good chance that a standard employment contract will not cover home or hybrid working.

So how do contracts need to change and where do working from home clauses in employment contracts need to be added?

The sections of the contract most like to be affected are listed below:

The right to work from home

Firstly and fundamentally, there should be a clause that defines the home working arrangement. This is important for clarity in respect of both parties.

Guidelines from Unison state that an employee would be classified as a regular homeworker when they spend 50% of their contracted hours working from home. The contract should ideally define the parameters for home working, although there may be a preference for a loosely worded clause, such as home working being permitted at the discretion of the line manager.

The contract should affirm that both employer and employee have the right to terminate the home working arrangement at any time.

For instance, Unison suggests a clause such as:

“Agreed home working arrangements are reviewed regularly and can be withdrawn if it is demonstrated that:

• The performance of an employee suffers as a result of home working;
• The effectiveness of the team in which the employee works is compromised; the business needs are not being met.”

A trial period can be specified, for instance, a clause can specify that a home working arrangement will be reviewed after three months.

Place of work / where the employee is based

A standard employment contract will specify the employee’s place or places of work and any relocation provisions.

The contract may need to be updated if the normal place of work will become the employee’s home. A straightforward amendment will simply comprise of adding a clause stating that the home address is named as a place of work, in addition to the office or usual workplace.

The new clause may be added by writing a variation of contract letter, which the employee needs to agree to and countersign to confirm their agreement.

Hours of work

Homeworkers are covered by the Working Time Regulations , which set a limit of 48 hours on the working week. There is also a requirement to take breaks. So, there should be no change to the existing contract in this respect.

However, many homeworkers will work flexible hours (e.g. childcare may be the reason why they requested home working), so there may be a need to outline the core hours when the employee will be working.

An employee working from home will incur expenses. They may be using their internet and phone for work purposes. They will need light and heat in their home when working. The contract should clearly outline what the employee can and cannot claim for.

Provision of equipment

Will the company be providing a workstation/desk and an ergonomic chair? What computers will be provided? Will broadband be upgraded?

The business needs to define which equipment is provided, and also how it is to be used. The equipment remains the company’s property, so what is the policy on using the computer for private purposes? Such questions need to be considered and incorporated into the contract.

It is advisable for work to be saved directly onto the employer’s system, maybe using a secure virtual private network (VPN). The company should implement data security measures, such as firewalls and anti-virus software.

The employee has a duty to adhere to the security policies which keeps the company’s data safe. Security policies will likely already be on the existing contract – but make sure you check!

Not everyone copes well with working from home. Away from the office, people can feel isolated or anxious. Employers have a duty of care to all their employees regardless of where an employee is based.

The employer should have a homeworking policy in place to help people adapt. An effective way of monitoring the mental health and concerns of home workers is to conduct regular employee surveys . It may be worth considering adding a requirement to take part in such surveys as a working from home contract clause.

Health & Safety

Office health and safety requirements also apply to employees who work from home. It is therefore important that initial risk assessments are performed. It may be that the home worker does this themselves, in which case, they will need advice and guidance. Online ergonomic assessments are available.

The assessment should include ensuring the seating and workstation are set up correctly, testing electrical equipment and ensuring there is adequate ventilation. This assessment may be required to validate the employer’s liability insurance.

The contract should include health and safety policies for home workers.

Visiting rights

Do you want the right to enter an employee’s home? Why would you want to do so? For instance, you may need to install, maintain, or even retrieve company owned equipment. You may want to do a risk assessment. Or maybe the employee’s manager will need to do regular performance or health reviews.

If so, you should add a clause to this effect. You may want to specify how home visits would be organised, e.g. giving a week’s notice in writing. Employees should have the right to safeguard against unexpected, impromptu visits to their home.

Contract clauses – the process

A contract cannot be changed without consulting the employee first. Imposing changes without consultation could mean a claim by employees for damages in a civil court, industrial tribunal, or a constructive dismissal claim.

Adding clauses to allow homeworking shouldn’t be contentious, so the best way to proceed is to talk to your employees and explain the changes. They have the right to challenge the changes, so there may be the need to negotiate.

Any agreed changes to the contract should be confirmed in writing and kept on file.

Amending contracts can be time-consuming, but it is essential to ensure they are up to date and fit for purpose. They are there to protect all parties.

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An Employer’s Guide to Homeworking Policy

The years 202o and 2021 saw a dramatic increase in homeworking due to COVID – 19. Homeworking is a valuable tool for the employer and also employees.

This is an effective home working guide for employers. 

What is Homeworking?

Homeworking is a form of flexible working policy that involves the use of technology to enable employees/home workers to work away from the employer’s office. In this system, employees can either be mobile, based at home, or work from home occasionally. Homeworking has benefits to the employers but it requires policies and procedures to run smoothly and that is what this guide is about.  

Types of Homeworking

Occasional homeworking.

This type of homeworking is frequent and is done on an ad-hoc basis. This can happen when there is a specific task the employee needs to do that requires concentration without regular office interruptions. This can also occur in cases of illness or adverse weather conditions. To authorize such a request the needs of the company has to be considered.

Regular Homeworking

Regular homeworking is an agreement where the employee or home worker spends more than fifty percent of their contracted time working from home. The regular homeworker is to meet certain targets that have been agreed upon with the employer. To become a regular homeworker the employee has to put in a formal request to the employer. This formal response has to be reviewed and carefully considered by the employer or HR.

Permanent Homeworking

For this type of work, the employee spends a hundred percent of their time working from home. This also includes employees that permanently visit sites from their home base. This should be included in the employee contract. This kind of contract works best where the employee has an autonomous job. A formal request has to be filed before a permanent homeworking contract can be granted.

Benefits of Having Homeworkers for the Employer

Homeworking increases productivity.

Working from home helps the homeworker to avoid the possible distractions that can occur in the office. This improves output and increases productivity. It can also improve the quality of work of homeworkers who value working from home as their work-life balance is improved. This can also lead to a greater commitment from homeworkers.

Homeworking Reduces Overhead

Having homeworkers can reduce overhead costs. If employees work from home, less office space will be used. This will, in turn, lead to a reduction in rent, utility bill and business rates. Also, if the business is expanding and needs more space it may be cost-effective to have where possible some employees work from home in order to create more space.

Homeworking for More Diverse Workforces

Having a flexible system where employees can work from home means that the firm will be able to capture a diverse group of employees. Disabled people for example or a mother will be able to get involved. This means that your firm is open to more ideas and talents. Each individual has their unique way of doing things and this may help the company grow.

Improvement in Company Reputation

Having a reputation for flexibility might be a plus and be attractive to talented employees. Having this reputation may also help attract more customers to your firm as well as stakeholders. There are benefits to being seen as a flexible firm and it may help with word-of-mouth advertisement.

Flexibility 

Having a rigid system means that you are restricted to a particular region and territory. But with a flexible system, you do not have to consider geography as you can employ bright minds in a completely different country or continent. The flexibility of home working also helps you retain current employees. If for example, an employee has to move they can continue working for the company.

Reduced Carbon Emissions

Employees having to show up at work every day means that they contribute daily to pollution in society. Allowing some employees to work from home may be a way of showing that you care about the environment by reducing the number of pollution employees cause daily through commuting.

Some Possible Pitfalls of Homeworking

It is important to know the possible things to consider so you watch out for them and deal with them properly.

Separating home life from work life may be hard for the homeworker

The homeworker may easily let their work-life take over their home life and this can begin to affect their wellbeing. It may be necessary to produce a working guide for the employee or give regular breaks. It is also important to regularly check on the homeworkers.

Homeworker management 

For homeworking to function effectively there has to be proper management in place. This is more demanding than it would have been in an office building. There has to be greater trust between the homeworker and management. Also, effective communication tools should be set up for easy communication between the homeworker and the manager.

Homeworking costs

There may be some initial cost for setting up homeworking. This might include the cost of setting up communication tools, video calls but this initial cost will eventually even out with the cost saved from overheads due to reduced staff in the office. So, the savings may be greater in the long run for the company.

Access to employee representatives

Even though employees are working from home they still need to be able to communicate with their representatives i.e. trade union. As an employer, you should take reasonable steps for this to happen. You can have a space in the office for employees to meet with their representatives for example.

Homeworkers as carers

When a homeworker is also a carer you have to ensure that they know work time should not be used for caring for dependents. You should inform them that they are to create alternative arrangements for their dependents to be looked after by someone else during work time. This should be arranged before the employee becomes a homeworker.

The Legal Issues Around Homeworking

Health and safety of the homeworker

The health and safety requirements apply to homeworkers; therefore, you owe your homeworkers a duty of care. As an employer, you have to conduct an appropriate risk assessment to ensure that the ventilation, lighting, chair, table, computer, or any other work essentials in the proposed workplace is suitable for the work needed to be done.  

This risk assessment must be carried out with the proposed homeworker’s task in mind. You are required to supply the employee with essential equipment. If there is any dysfunction to be rectified after the home assessment, it is the role of the employee to rectify this. It is also the role of the homeworker to keep the workplace safe after it has passed the risk assessment and they are required to inform you of any change in the workplace.

Handling an employee’s flexible working request

Employees with 26 weeks of service can request to work flexibly. You are not obligated to accept such a request but there has to be a reasonable reason for refusing it. You have to properly communicate and explain this reason to the employee. The law sets out eight possible reasons for refusal:

• It will place a burden of additional costs on the firm
• It will have a detrimental effect on the company’s ability to meet its customer’s demands
• The company is unable to reorganize work among its current employees
• The company is unable to take on new employees
• Homeworking will affect the quality of work produced
• It will affect the performance of the employee
• There is insufficient work during the employee’s proposed work period
• There are planned structural changes

Supervision and support of homeworkers

A homeworker is still subject to the same support and supervision given to an on-site worker. There should be regular daily appraisals with the supervisor. The supervisor should also be quick to pick up on signs of stress or difficulty and it should be dealt with immediately. The appraisal, reporting, and support system should be agreed on from the onset. There should also be enough opportunity for the homeworker’s work to be reviewed and a system in place to track the progress of the homeworker. If a homeworker complains that their health is being affected this should be raised immediately and the homeworker referred to appropriate care. As well as a risk assessment it may also be important to carry out a stress risk assessment and issues raised should be addressed.

Confidentiality and data security

Data security obligations do not change simply because an employee is now a homeworker. Regardless of the location, work is carried out by the employer and the employee is still; bound by GDPR and other data security laws. The homeworker must be reminded of this. It is also important to assess equipment provided to homeworkers during a risk assessment to see if they comply with data protection laws.

The tax status of an employee does not change simply because they are now a homeworker. The income tax and national insurance contribution should still be removed from the employee’s salary. It is important to inform your employees about the possible tax implications involved with homeworking. In the course of carrying out their job, the homeworker may need to purchase additional equipment. You can pay tax-free payments to employees to cover the additional cost involved with homeworking. 

Working time

Under the Working Time Regulations 1998, the time an employee spends commuting to work does not count as working time. However, for a homeworker, the time spent commuting to the employer’s premises counts as working time. It is important to agree on the working times with the homeworker from the onset. It should be agreed if it will be a strict working time or flexible. If it is flexible core hours should be agreed and if it is fixed then breaks should be agreed on. This will help you ensure your employees are not overworking. Whilst agreeing on the working time it is important to ensure that homeworkers do not exceed the 48-hour limit on their working week and remember the traveling time adds to this. The only exception is if they have opted out of the maximum hours’ limit.

Mortgage provider

There is some mortgage agreement that prohibits the use of the property for business purposes without consent. It is important to remind employees to check their lease and obtain consent from their mortgage provider to work from home where stated. The homeworker should also get confirmation of cover from their home insurer in case a piece of work equipment causes damage. It should also be agreed from the onset if you will cover the extra premium.

Is Homeworking the Right Choice for Your Organization? 

One effect of COVID-19 is the increase in homeworking. This type of flexibility has many benefits to the employer. It reduces cost, increases the quality and quantity of work, gives the company a good reputation, and gives the employer a wider range of choices. Before deciding to allow home working, it is important to consider the initial cost involved, if you can manage employees from home, how to give homeworkers access to their representative and how to handle a homeworker that is also a carer.

You should also be aware of the legal issues involved such as data security, health and safety of homeworkers, support of homeworkers, and basic things that should be agreed on from the outset. With the advancement of technology and the flexibility the 21 st century brings, homeworking is definitely something to consider and implement where appropriate.

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Amends to your employment contract for your home workers….and ensuring you have the right systems in place for a remote workforce…

As the coronavirus pandemic persists, employees are getting used to working from home and many are noticing benefits including avoiding stressful, time-consuming commutes; saving money on travel and food; managing work more efficiently; fewer interruptions; and seeing their children more often.

After the pandemic passes, it is expected there will be a cultural shift towards working from home as a norm and many employees will want to do this, at the very least for part of the week. Equally many employers, having seen the benefits of their staff remote working, are deciding to give notice on their offices and get their heads around running teams of remote workers.

As an employer, you need to make sure that you have the right systems in place to properly support employees who work from home.

Contracts for employees who work from home

Where an employee’s ‘place of work’ is changing to their home address some changes are required to their contract. A new contract may not be necessary but may be simpler if the contract is due for a refresh. If the contract is relatively new and fit for purpose then the new clauses may be added in using a variation of contract letter which the employee needs to agree to and countersign to confirm their agreement.

The new clauses, relevant to homeworking, may include the following:

• where the employee will be based. • hours of work and the requirement to take breaks. • that both employer and employee have the right to terminate the homeworking arrangement at any time. • reimbursement of expenses and/or contribution towards utility costs. • that the company will supply and insure the necessary equipment. The equipment remains the company’s property and is not to be used for private purposes. • that the company will supply and pay for a telephone and internet connection for business use. • that the employee must comply with relevant health and safety and security guidelines. The company will pay any costs involved. • confidential information and data protection. • that there is no change to other employment terms and conditions such as pay, hours of work, holiday entitlement and pension contributions.

The home office

A good home office should meet minimum requirements:

• a suitable workspace and a reasonable working environment. • secure premises and a lockable cupboard or desk. • compliance with health and safety regulations, including suitable desk and chair and display screen equipment assessment. • a business telephone line and broadband access. • a computer with internet and email access, office software and access to a printer. Access to a secure virtual private network (VPN) can allow your staff to connect to your company network from home. • adequate insurance. Home contents insurance normally excludes business equipment but most employers’ insurance policies cover any place of business.

Health and safety in the home

Normal office health and safety requirements apply equally to employees who work from home.

An initial risk assessment must be carried out, although this can be done by the employee. Employers need to give homeworkers simple, specific health and safety advice and record what has been done.

Areas to consider are:

• the seating and layout of the employee’s computer workstation. • electrical equipment – has it been tested and certified? • extension leads and cables for telephones, computers and printers – there should be no trailing leads. • adequate lighting levels, ventilation and room temperature.

Planning permission is not normally required

Permission is unlikely to be required if all the following are true:

• only one room is used for homeworking; • only those who live in the house work there; • the work does not lead to a substantial volume of visitors, nuisance to neighbours or extra car parking.

Tax and business rates are not usually a problem

Homeworkers can ensure the room used has a secondary purpose (eg as a guest bedroom) to avoid paying:

• business rates; • capital gains tax on the sale of the property.

Using technology for employees who work from home

It is safer for employees who work from home to save their work directly onto the employer’s system, rather than their own equipment. This reduces the risk of a data security breach and limits the employer’s exposure to the provisions of the General Data Protection Regulations.

You can create a secure virtual private network (VPN):

• this enables employees who work from home to connect to your existing computer network online, from any computer with internet access. • it gives them access to relevant files and systems on the company network, and to resources on the company intranet. • a fast broadband connection makes it easy to exchange information • the major cost, for an existing network, is the connection fee.

Understand the pitfalls

• there is a danger of people gaining unauthorised access to your systems. Your computers should be protected with passwords, firewalls and anti-virus software. All data and files should be saved to your intranet where it can be backed up and protected. • faster technology costs more money. • homeworkers may need training. • employees may not use the technology productively. • employees may fail to back-up information stored on home PCs and laptops.

If you need any help at all with revising your employment contract, or drafting a variation of contract letter, please do get in touch [email protected] or +44(0)7917878384

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Working from home legal questions, answered

What legal issues around working remotely do startup founders and their employees need to be aware of? Deborah McGargle answers the important questions.

Do employees require a new contract and what would it cover?

Temporary working from home can be addressed by a simple written variation to the employee’s existing employment contract, where the ability to work from home isn’t already recognised.  The variation might also cover a temporary adjustment to working hours. For example, some employees might favour an earlier start which would ordinarily be used as commute time. An employer should try to be as flexible as possible.

Where working home from becomes a more permanent change, it might be prudent to issue a new contract so that provisions such as place of work, hours of work, benefits, expenses, reporting illness, confidentiality, the use of equipment, the right to enter and the right to revert might be considered in more detail and specifically tailored on a case-by-case basis.

Do employees’ legal rights change in any way?

Homeworking does not result in a change to an employees’ legal rights. Their usual terms and conditions still apply, apart from the place of work reference. Employers should take care so that the salary and benefits package provided to a homeworker are not less favourable than those provided to comparable employees. If they are treated less favourably, a homeworker may have a claim under discrimination legislation.

Homeworkers should have the same amount of holiday as comparable office-based workers and will be entitled to a full time minimum of 5.6 weeks' paid leave (regulations 13, 13A and 16, WTR 1998) (pro-rated if they work part time). The employer should make clear that its usual arrangements for requesting and approval of holiday will apply. 

Should you create a new remote working policy and what should it address?

Remote working guidelines in the form of a policy might not have been at the top of an employer’s list in the past, but there is no time like the present to implement this.  The policy should cover off matters such as:

• Home environment and working arrangements
• How to apply for home working
• Working at home: equipment
• Working at home: data security and confidentiality
• Working from home: Health and Safety

The top three legal issues an employer should be aware of about employees working from home

Health and safety

By law, employers are responsible for the health and safety of all employees, including those working from home. Employers should check that:

• each employee feels the work they're being asked to do at home can be done safely employees have the right equipment to work safely
• managers keep in regular contact with their employees, including making sure they do not feel isolated
• reasonable adjustments are made for an employee who has a disability

It's important for employees to take regular breaks, for example to avoid sitting at a computer for too long. They should also try to do other things to stay mentally and physically active outside of their working hours. It is crucial to establish the boundaries of working time, and, in particular, when the homeworker will be available. The Working Time Regulations 1998 (SI 1998/1833) (WTR 1998) lay down, among other things, maximum weekly working hours and minimum rest breaks. Since no one will oversee whether homeworkers take their breaks, the employer should make it clear that homeworkers are responsible for regulating their own working time and taking breaks as appropriate.

Equipment and technology

Employers are responsible for the equipment and technology they give employees so they can work from home.

The employer should:

• discuss equipment and technology with the employee
• agree what's needed
• support the employee to set up any new equipment or technology

If a homeworker is to be using computer equipment supplied by the employer and will have access to the internet and/or email facilities, the employer will need to consider the application of any systems it has in place for policing the use to which the homeworker might put the facilities at their disposal. The employer will also need to satisfy itself that the risk of a data security breach is low, possibly by way of a data privacy impact assessment.  

Any equipment provided by the employer will need to be covered by the employer's insurance policy, if that is possible. If this is not possible, the employer should require the employee to take out and maintain satisfactory insurance cover. If this involves additional cost (over and above that of a standard home insurance policy), the parties may agree that the employer will reimburse the costs involved.

If an employee also has some work tasks that can be done safely away from their home, the employer should make sure they have access to the right equipment for those duties.

Setting clear expectations

Changing to homeworking may be a challenge for many managers and employees, particularly if they're used to working together face-to-face. It's important to build up a healthy relationship of trust and confidence. Employers and managers should make sure that everyone working from home knows what's expected of them.

This includes agreeing:

• when employees will be available to work
• how they will keep in touch
• how work-life balance will be managed, for example taking regular breaks and switching off from work at the end of the day
• rules around storing information and data protection
• how performance will be managed and measured - taking into account people's circumstances where necessary
• who employees should contact if they have any problems or their circumstances change

It's important to recognise that some employees may find it hard to motivate and organise themselves when working from home. If this happens, the manager and employee should talk about practical steps that might help.

Employers and employees should keep in touch regularly. This should include regular communication between:

• individual employees and their managers
• employees who need to work together
• team members

This article was written by an independent third party and the views contained within are not necessarily the views of Barclays. This article is designed to help you with your independent research and business decisions. This page contains [link(s) to third party websites and resources that we (Barclays) are not providing or recommending to you. The information contained in this article is correct at the time of publishing. We recommend that you carry out your own independent research before you make any decisions that will impact your business.

Barclays (including its employees, Directors and agents) accepts no responsibility and shall have no liability in contract, tort or otherwise to any person in connection with this content or the use of or reliance on any information or data set out in this content unless it expressly agrees otherwise in writing. It does not constitute an offer to sell or buy any security, investment, financial product or service and does not constitute investment, professional, legal or tax advice, or a recommendation with respect to any securities or financial instruments.

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Remote Work Agreement

Option: Help from a lawyer

This Remote Work Agreement (also known as a home-working agreement , or a flexible work agreement ) can be used by an employer in the United Kingdom to create an agreement for a current employee to work remotely .

At the start of an employee's employment , their employment contract will take the form of a written contract. This contract will contain the particulars of employment . The particulars of employment will ordinarily cover the place or places of work where the employee shall be required to work .

The contract of employment may provide sufficient flexibility/mobility regarding the employee's place of work. For example, it may say that the place of work is subject to change (although any such clause cannot be unreasonable in order to protect the employee from unfairness). In the event that there is no such flexibility within the contract of employment, the employer will need to take steps to address the formalities of the remote working agreement .

Where there are changes to the employee's contract of employment, the employer is required to provide the employee with a "statement of changes" (This requirement is set out in law: at section 4 of the Employment Rights Act 1996 in England, Wales and Scotland; or Article 36 of the Employment Rights (Northern Ireland) Order 1996 in Northern Ireland). The statement should be provided to the employee within one month of the change to contract of employment (i.e within one month after remote working has commenced).

However , it is important to note that a statement of change acts only as evidence of a change to the contact but will not formally vary the existing contract . An employer will therefore need to either: -

1. provide to the employee with a written document setting out the new terms and specifically amending the contract ; or

2 . an employer may choose to create a brand new contract of employment to cover remote working, which the employee and employer would then re-sign as a new contract .

This document can be used for the first option set out above, where an employer wishes to amend the existing contract of employment . The document can therefore be used to set out the details of the remote work agreement in order to formally and expressly amend the terms of the contract so that the place of work can be changed .

A remote work agreement may provide for an employee to work exclusively from home or alternatively it may provide for the employee to work at home in addition to their usual place of work .

It is also useful for an employer to have a working from home business policy , which outlines the approach an employer shall take in the management of remote working . It is also important for employers to consider how data protection/processing and confidentiality can be maintained during a Remote Work Agreement. Businesses may wish to have an additional specific Confidentiality Agreement to address this specific issue.

How to Use this Document

The change to flexible working may have been initiated by the employee making a request for flexible working . An employee has the legal right to make a request for flexible working (including remote working) after twenty-six weeks of employment .

Where an employee has made a formal request for remote working in writing, a meeting should usually be held to discuss this . The process may also include discussions with a trade union representative where applicable. Similarly, meetings and discussions should be held where an employer has initiated the shift to remote working. An employer should not unilaterally ( i.e without the consent of the employee ) change the terms of an employee's contract of employment, as this could result in them being in breach of contract.

Care should therefore be taken to follow the ACAS guidance and code of practice in England, Wales and Scotland or the Labour Regulations Agency guidance in Northern Ireland to ensure the process is handled fairly and properly . Whilst discussing and reaching an agreement, both the employee and employer should maintain a relationship of 'mutual trust and confidence' and care should therefore be taken to ensure the amendments to the contract are reflective of this relationship.

It is vital that the agreemen t must be, as the name suggests, an agreement . Any changes to a contract of employment have to be agreed and should follow the process as outlined above.

Once a fair and proper agreement has been reached between the employer and the employee regarding Remote Work Agreement, this document can be used to contain the new terms concerning the employee's place of work . Thought should be given in particular to the following details which can be included within the document:-

• the employee's use of equipment ;
• insurance ;
• any trial period to assess the success of the remote work period;
• how confidentiality and data processing shall be properly conducted.

Matters which are not specific to the employee's new remote working pattern, such as their salary and annual leave entitlement, should ordinarily remain the same as per their original contract.

Once the relevant details have been completed, the employer should sign two copies of the document . The two signed copies should then be provided to the employee . The employee should then sign and date their acceptance on the bottom of both copies , retaining one for their records and returning the other to the employer . The employer should then retain the signed copy .

Relevant Law

The key piece of law which is relevant to remote working in England, Wales and Scotland is the Employment Rights Act 1996 .

The key piece of law which is relevant to remote working in Northern Ireland is the Employment Rights (Northern Ireland) Order 1996

Help from a lawyer

You can choose to consult a lawyer if you need help.

The lawyer can answer your questions or help you through the process. You will be offered this option when you complete the document.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.

Guides to help you

• How to Organize Remote Working for your Employees
• Signing Documents in England and Wales

Other names for the document:

Remote Work Contract, Home-working agreement, Homeworking agreement, Contract of home working, Work from home agreement

Country: United Kingdom

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A Complete Guide to Homeworking the Legal Requirements

Employer obligations for employees working from home.

Homeworking is on the rise. According to the Office of National Statistics, by 2020, 50% of the UK workforce will be working flexibly and working from home.

Right now, 4.2 million people call their house their office and the expectation for flexible working is becoming more and more in demand. Is your business ready?

Before you can offer such a benefit, you need to understand the legal requirements for working from home. You also need to make sure that your staff have the tools they need to work effectively while out of the office.

Legal Considerations for Homeworkers

• Employment contracts
• Staff Benefits
• Public Liability Insurance
• Health & Safety
• Data Security & GDPR
• Reporting & Performance
• Working Time
• Mortgage Provider Consent

Employment Contracts – These Must Reflect Homeworking

A standard employment contract will not cover homeworking arrangements. To protect your staff and your business, you need to outline:

• Place of work
• Hours of work
• Tax exemptions
• Confidentiality & data protection
• Rights to enter
• Trial periods & review

1. Place of work

If the employee will be working from home, the normal place of work will be the employee’s home. However, include a provision that the employee can be required to attend the office. This gives you the flexibility to call them in when you need them.

You should also include a provision that homeworking is subject to change if the employee moves house. As an employer, you are responsible for your staff, so changes in the place of work must be given due consideration.

2. Hours of work

As well as how many hours they should work, specify when the employee will need to be available for work. Many homeworking employees work flexible hours, so outline their “core hours” and never assume they are doing a normal 9-5.

3. Expenses

Working from home means that employees will be using their internet, electricity and phone for work purposes. So be explicit with expenses.

As an employers, will you cover…?

• Home upkeep costs (Lighting, internet etc.)
• Courier/postal costs

Outline the things your employee can and cannot claim for in their contract. In certain circumstances, payments by employers to reimburse employees for reasonable costs incurred as a result of homeworking can be tax-exempt.

3b. Tax exemptions for employee expenses

To be eligible, the employee must be working under homeworking arrangements . Employers can pay £4/week and the employee doesn’t have to record expenses. Alternatively, employees can choose to seek tax relief arrangements.

4. Confidentiality and data protection

To protect your business, your staff and your intellectual property, make sure your employee contracts set clear provisions for data security.

These should cover:

• Use of devices
• Means of access
• Your commitments to security

If the employee is using their own computer/phone, ensure you have a right to monitor work communications on those devices.

Make sure they have a password in place to limit access. Also, include in the contract terms that allow you to provide them with any security equipment you deem necessary (shredders, CCTV, filing cabinets etc.)

5. Rights to enter

Consider whether you need to include a licence to enter the employee’s home. You may need to install, maintain or service company equipment, or retrieve it on termination. A right to enter will also allow you to carry out risk assessments for health and safety purposes.

6. Trial periods & Review

Homeworking might not be a good fit for you or your employee. A set trial period and review baked into the contract will give both parties an opportunity to be flexible about homeworking.

Staff Benefits & Homeworking

If you offer on-site benefits as part of your employment contracts you must offer those benefits to homeworkers too. Failure to do so can result in discrimination allegations and breach of contract.

Ensure, for example, that they have access to work related benefits (such as the staff canteen or workplace gym) even though they may not use them regularly.

Public liability insurance

Check your employer’s liability insurance covers employees working from home. Make sure that any lack of action does not invalidate the insurance.

Health and safety at work extends to the home

As an employer, you are responsible for the health, safety and welfare of your employees. You must exercise all reasonable means of ensuring this.

• Conduct risk assessments on homeworking environments
• Create a policy for regularly reviewing home environments

Data protection and security

Most homeworking employees move data (or devices that can access that data) into public spaces. That opens up the risk of data being mislaid. Many breaches have occurred from documents being left on trains, USB sticks falling out of pockets, or laptops being stolen.

But you can’t just monitor all your employees’ personal dealings. They have the right to privacy.

As the  Article 29 Working Party states : “Technologies that monitor communications can […] have a chilling effect on the fundamental rights of employees.”

Stay compliant by setting clear boundaries and responsibilities for all parties. Carry out a risk assessment of the data protection implications of homeworking. This would include consideration of the following:

• Access to the employee’s computer and home
• Encryption and data transfer
• Storage of data

Employees working from home does not change their tax status. You still deduct income tax and national insurance contributions as normal.

However, you may advise the employee:

• to check any potential council tax liability due to homeworking;
• that some of their homeworking expenses may be tax-deductible;
• if computer equipment provided by the employer is used for anything more than “insignificant” private use, a tax charge may arise.

Reporting and performance reviews

Out of sight does not mean out of mind. If you are implementing homeworking, you need to review performance and quality policies. Employees working from home can feel isolated and without support. This can affect morale and company culture.

Working time

Under the Working Time Regulations 1998, time spent travelling to work does not count as “working time”.

However, where the employee’s normal place of work is their home and they travel to their employer’s premises or to see clients/customers, this could count as “working time”.

You will need to ensure that homeworkers do not exceed the 48-hour limit on their working week when travel is taken into account (or that they have opted out of the maximum hours’ cap).

Mortgage provider consent

Remind your homeworker that they must have consent from their mortgage provider to work from home.

Remember…Equip your staff

There is no legal obligation on an employer to provide the equipment for homeworking. But it only benefits your business to make sure your staff have the tools they need to do the job.

Most employers will provide basic equipment at least. This usually means providing a phone and computer.

If the employee will be using their own computer equipment, agree on whether or not you will pay for maintenance, repairs and software updates.

Benefits of letting employees work at home

Being able to work at home isn’t just handy for employees. It has can benefit your business, too.

20% of employees that work from home find themselves more productive. With no commute and fewer workplace distractions, your staff get more work done. Giving them the flexibility to choose where they work is considered a benefit. You can attract and retain critical skills and talent.

No commute also means a lower overall carbon footprint for your business. The average commute is 15 miles to work and the same back. If your employee drives an average car, that commute puts 4.6 metric tons of carbon dioxide into the atmosphere every year.

That doesn’t include the cost of heating and lighting a workspace. Letting employees work from home reduces your overheads and frees up office space. In places like London where office space is at a premium, many businesses are opting for hot desking and getting rid of permanent desks altogether.

In order to gain these benefits, you need to make sure you meet certain legal requirements. This includes changes to employment contracts, setting policies for health and safety, data security, tax, public liability and making sure you’re meeting the training and development needs of your staff.

• Higher productivity
• Skill retention
• Better work-life balance
• Lower carbon footprint
• Reduced overheads
• More space in the office

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Contract Clauses for Homeworking

Mills Selig

Where a business employs homeworkers, it should ensure that contracts of employment reflect the changes involved in working at home and any additional obligations involved for the protection of both employee and employer. Where the employee becomes a homeworker during their employment, perhaps following a flexible working request, their contract should be reviewed and updated to ensure it contains any relevant clauses or amended clauses to cover their amended circumstances.

Implementing Homeworking

Employers should reserve the right to monitor homeworking arrangements and performance in the probation clause for new employees. For existing employees, reference to a trial period should be

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More on Employment Contracts by Mills Selig

• The Validity of Unsigned Employment Contracts in Northern Ireland
• Using Settlement Agreements to Prevent Future Claims: A Thing of the Past?
• Unlawful Deductions From Wages
• Territorial Issues - What Law and Jurisdiction Applies to Employees Who Work Partly Outside NI?
• Income Protection Policies and Dismissals

Disclaimer:

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

The main content of this article was provided by Kiera Lee . Contact telephone number is 028 9024 3878 or email [email protected]

• Practical Law

Homeworker and hybrid worker clauses

Practical law uk standard clause 5-202-1606  (approx. 18 pages).

• Design policies and processes
• Legal operations, technology and people management: practice management
• Managing ethics and culture
• Atypical Working

Homeworking and hybrid working: the legal aspects

There’s plenty of content out there dealing with the approach employers can take to home or hybrid working. But what does home or hybrid working mean for contracts and policies? Both will need tailoring – here we consider some of the key points to keep in mind.

Over-arching approach to home and hybrid working requests

Changing contracts of employment, place of work, salary and benefits, confidentiality, intellectual property, equipment and communications systems, special equipment, trial periods and right to revert, right to enter, reporting and appraisals, health and safety, discipline and grievances, data protection, tax and computers.

• Consider the overall approach to ensure that requests are treated in a consistent manner . Looking at each request in isolation could cause problems and so is best avoided.
• Consider the practical considerations of agreeing. For instance, if hybrid working is allowed, will members of a team have the flexibility to choose which days are worked from home or will there be specific days that the entire team must be in the workplace?
• In a workplace containing multiple teams, how will the logistics be managed to ensure there is sufficient desk space on the days when several teams are working from the workplace? And how will different teams keep connected?
• Note home or hybrid working which starts on a non-contractual and discretionary basis could, depending on its nature and duration, become an implied term of the contract .
• While there is no automatic right to work from home or from another remote working location, employment law provides various protections , including the right to request flexible working, indirect discrimination, indirect sex discrimination, disability and age discrimination, and the rules on part-time working. All will need to be kept very clearly in mind.

A change from workplace-based working to home or hybrid working will likely require a change to the contract. The rest of this note looks at the various component parts which will require consideration.

If the change has been instigated by the employee, they will likely consent to a variation. However, if the change is to be imposed, employees may be less willing to consent.

Flexibility clauses are unlikely to assist, and employers should consider their options in advance if they want to make changes to ways of working.

The employee’s place of work or, where the employee is required or permitted to work at various places (including their home), must be set out, together with an indication of that and the address of the employer.

It would also be sensible to include a requirement to attend the workplace from time to time, for example, for meetings, training, and team building. Linked to this might be a requirement to live within a commutable distance of the workplace.

Establishing when the employee will be available when working from home is a must. Will there be complete flexibility, strict working hours, or “core” hours? Can the employee be required to work outside these hours? Commitments such as childcare or other dependants are likely to impact on this and will need to be addressed.

Employees cannot opt out of rest breaks and employers should ensure that home or hybrid workers comply with the limits on working time and that adequate records are kept. No one will oversee whether such worker take their breaks, so the contract or a policy should make it clear they are responsible for regulating their own working time and taking breaks.

It is also important to have a clear distinction between working time and personal time at home – employee well-being depends on it. The longer-term nature of these agreements increases the importance of getting this right.

If the salary and benefits provided to those working from home are less favourable than those provided to comparable workplace-based employees discrimination claims could arise and any differences would have to be objectively justified.

Depending on where the employee lives, employers may consider that a location-related salary band (for instance, London weighting to take into account increased cost of living) is no longer appropriate for an employee who moves from being workplace-based to home-based. Changes to an employee’s salary, will amount to a contractual change and must be agreed. However, it may be something the employee is willing to consent to in exchange for homeworking. Consider though the discrimination risks if employees are required to take pay cuts as a condition of home or hybrid working.

Such expenses may include travel expenses to attend the workplace, telephone, broadband, heating and lighting costs, and any increased insurance premiums.

There is no legal obligation to reimburse expenses incurred by an employee working from home. Employers may contribute a specific sum towards the homeworker’s expenses or reimburse actual reasonable expenses incurred. Alternatively, employers may decide not to provide a contribution or make any reimbursement. Consider the approach and whether amendments are required to existing expenses policies (or whether a new policy should be introduced).

Confidentiality is more difficult to police when an employee is working from home, and even more so if the employee can work from remote locations that the public has access to. Carefully consider therefore where staff are permitted to work from and ensure this is reflected in the employment contract and any associated policy.

Additionally, those working from home or other remote locations should be required to keep confidential information secure. Include precautions for keeping confidential information secure, such as forbidding access by household members, passwords and encryption, secure storage, and shredders.

An express obligation to return confidential information on termination should also be agreed.

Where employees work from home, employers will have less physical control over the work output and will therefore need to carefully consider the measures in place to protect IP.

Consider what equipment will be required by a home or hybrid worker, who will provide and pay for it, and who can have access to it.

If an employer supplies computer equipment, it will need to consider the systems in place for policing its use. The employer will also need to satisfy itself that the risk of a data security breach is low and that appropriate data privacy impact assessments are carried out.

Employee monitoring may require a different approach and employers should discuss any changes with employees.

Employers should also consider whether policies capture the issues that typically affect homeworkers. For example, providing guidance to employees on the appropriate use of social media and their obligations to protect the employer’s reputation.

These issues can be addressed by ensuring policies to make fit for home or hybrid workers.

There is no legal obligation to provide the equipment necessary for home or hybrid working, though one may arise if such working is at the employer’s request. However, ensure compliance with all duties owed to individuals. For example, if a homeworker has a disability, the provision of equipment may be required as a reasonable adjustment.  Such equipment may need to be available both at home and in the workplace.

Consider whether it is sensible to have a trial period and a right to require the employee to revert to conventional working at the end of that trial. If there is to be a trial, the duration and the measures used to identify success or failure should be clearly set out in the contract. 

Remember exercising a contractual right to revert will be subject to the implied term of mutual trust and confidence and discrimination rules will apply. So good reasons to revert will be required.

Reserve a right to enter the employee’s home, for example, to carry out risk assessments or install, maintain and service equipment. Plus recovering property on termination.

Home and hybrid workers should be appraised like any other workers. They might worry that managers and colleagues think they work less effectively, so consider how to measure the quality and quantity of such. A suitable reporting and appraisal system should be agreed, building in sufficient opportunity for formal and informal reviews of work, projects, performance, expectations, and any difficulties which arise.

Home and hybrid workers should not be denied promotional opportunities open to comparable workers merely because they work at home all or part of the time. All decisions on this must be capable of objective justification.

There is likely to be increased scrutiny of compliance with health and safety obligations as home or hybrid working models become more prevalent and long term. So, revisit all health and safety risk assessments and act on them.

Also review existing polices and consider whether amendments are needed to reflect changed working practices.

Home and hybrid workers will have the same entitlement to sick pay as other employees but reporting mechanisms may need to be different. Interestingly, sick leave among home workers over the past 12 months have fallen. There could be various of reasons for this, and employers should monitor it and formulate their approach to when an employee should be “off sick” and not “working while sick”.

Disciplinary and grievance rules can be amended to set expectations around using work time (from home) for domestic, family, or other commitments – such as chores, running another business and childcare. Alternatively, consider whether rules setting out expectations for those working from home would be helpful.

Significant data protection implications arise with home or hybrid working. Employers will need to take technical and organisational measures (including training) to protect against unauthorised or unlawful processing of data and data breaches.

A home or hybrid employee may be entitled to claim a deduction against taxable income for certain household expenses and travel costs.

For a household expense to be tax deductible, the expense must be incurred wholly, exclusively and necessarily in the performance of the duties. There are HMRC Guidelines on this which are applied restrictively.

The fact that an employee does some work at home because there is no time to complete it during the working day or because the employer’s premises are too far away, is not sufficient. Similarly, relief is not available where an employee simply chooses to work from home some of the time.

If an employee can satisfy the tests various deductions can be claimed.

Payments to reimburse reasonable additional household expenses incurred while working at home under homeworking arrangements have been exempt since 6 April 2003. The exemption only applies where the employee works at home regularly by agreement with the employer, instead of working on the employer’s premises. It does not apply if the employee simply takes work home from time to time. The payments are intended to meet reasonable additional household expenses; as a general guideline, HMRC will approve a payment of £6 a week to an employee working at home, without supporting evidence of the cost, but a greater amount can be approved if there is evidence to justify it.

If a computer is provided to an employee to use at home in the course of their employment, no income tax charge will arise provided any private use is insignificant.

To ensure a tax charge does not arise, consider prohibiting the use of the computer equipment for non-business purposes or require it to be kept to a level which is “insignificant”.

Any equipment provided by the employer will need to be covered by insurance if possible.

Working from home will not normally require planning permission, provided no structural alterations are required and any business use remains ancillary to the use of the house as a home. However, if there are structural changes, or if the house is used for wider business purposes (such as meetings) planning permission may be required. There would generally be no obligation on the employer to fund this.

Please feel welcome to contact Paul Seath with any queries you may have around hybrid or home working.

Download our Homeworking and hybrid working interactive map.

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Homeworking and the law FAQs

22 FAQs about homeworking and the law

• Do we have to give employees a new employment contract if we ask them to work from home?
• Can we require people to work from home?
• Can we cut the pay of people who work from home?
• Do we have to pay new homeworkers the same rate as employees who worked originally in the office that now work from home?
• How do we work out whether 'piece rate' homeworkers are earning the minimum wage?
• How do we prevent home workers using their time and our equipment to work for other people?
• Can we force a home worker we want to promote to return to the office?
• Can we turn down a request to work at home?
• Can we sack an employee who refuses to work from home?
• How long is reasonable to give home workers the opportunity to change their minds?
• Is there a time limit on issuing a revised statement of employment particulars?
• What are the legal implications, if we ask current employees to work from home on a self-employed basis?
• If we employ people to work from home on a freelance basis, do we have to pay their tax and NI?
• Who is responsible for the health and safety of home workers?
• Do we have to have health and safety inspections for home workers?
• Are home workers entitled to sick pay?
• How do we ensure home workers don't work in excess of 48 hours a week?
• Are home workers entitled to a break after six hours?
• Are we responsible for data kept at a worker's home, or accessible on a home worker's computer?
• If we provide the home worker's equipment, who insurances it?
• If a home worker travels to the office, do we have to cover their expenses?
• If we contribute to a home worker's extra costs (eg heating), what is the tax and National Insurance position?

1. Do we have to give employees a new employment contract if we ask them to work from home?

Not necessarily, although normally it would be advisable to do so unless such a change is provided for in the wording of the existing contract. It depends on how specific you have been in their existing contract. If it involves a significant change in their terms and conditions of employment - for example, a place of employment different from that specified in their contract - you will need to record the amendment to their contract. If you have left matters such as the place and time of work to management discretion, you may not need to worry about issuing a new contract.

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2. Can we require people to work from home?

It depends on what their employment contract says. Employers have no general right to require this.

3. Can we cut the pay of people who work from home?

Yes, if the contract of employment permits you to do so, or you reach agreement with the employees concerned. Otherwise no, unless you are willing to risk a claim for constructive dismissal. It could be seen as a fundamental breach of contract - although if your employees continued to work, an Employment Tribunal might hold that they had effectively accepted the change of terms and conditions.

4. Do we have to pay new homeworkers the same rate as employees who originally worked in our offices who now work from home?

Not necessarily. But take advice before you pay them differently, because it could be risky. For example, you risk breaching the equal pay legislation, particularly if the employees you are relocating include a higher proportion of one sex than the employees you are recruiting at a lower rate.

You also run the risk of a case being brought against you under the Equality Act 2010 if the employees you are taking on have another of the 'protected characteristics' that is not shared by the people you are moving to work from home. Protected characteristics are age, disability, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and gender reassignment.

In any case, you will have to show that your decision to pay less can be objectively justified (ie, there is an acceptable business reason for doing so).

5. How do we work out whether 'piece rate' home workers are earning the minimum wage?

Under the 'fair piece rate' system, you may choose to pay the minimum wage for every hour worked, or bring in a 'rated output' system.

Under this system you must calculate the average production speed of the people doing this form of work, and use the resulting figure as the basis for calculating how long piece workers should take to do the work given them. Provided you fulfil certain conditions, the average production speed may be used as the basis for calculating whether workers are paid the minimum wage. This is done by multiplying the number of hours piece workers should take to do the work by 120%.

6. How do we prevent home workers using their time and our equipment to work for other people?

You could put an appropriate term in their contract of employment, expressly forbidding such activities. But even in the absence of such a term, all contracts contain implied terms - terms which may not be spelt out, but which are nonetheless binding. One of them is a duty on employees to serve their employer honestly and faithfully, and work with due diligence, skill and care.

If you can prove that a home worker is in breach of this term, you will certainly have grounds for disciplinary action, and may - if they are working for your rivals, or the offence is repeated - have grounds for dismissal.

7. Can we force someone we want to promote to return to the office?

In theory, yes - unless you have given them a contract which says otherwise, or have reached a different agreement verbally, or have by your conduct given them reason to think they can work at home indefinitely. It is up to you as employer to decide where the work shall be performed. In practice, however, you have to ask yourself whether it is worth it.

If your employee has decided that the ability to work from home is worth more to them than promotion, at best you are going to end up with someone who is unhappy in the job. You could alternatively aim for a compromise, under which they work two or three days a week in the office, or even better, leave it to them to organise their work in a way to guarantee your overall objectives.

8. Can we turn down a request to work from home?

Almost all employees have the right to ask for flexible working from day one. This can include working from home.

You must consider requests in a reasonable and timely manner (within two months). You can only refuse a request for one of the eight business reasons allowed by the legislation:

• The burden of additional costs.
• A detrimental effect on the ability to meet customer demand.
• An inability to reorganise work among other employees.
• An inability to recruit additional employees.
• A detrimental effect on quality.
• A detrimental effect on performance.
• Insufficient work at the times when the employee proposes to work.
• Planned structural changes.

If you do refuse, you must give your reasons in writing, dating the letter and giving details of your appeals procedure. An employee has no statutory right to appeal but it is considered good practice. If the employee is going to appeal, they must do so in writing, and you must arrange a meeting without undue delay.

All requests, including any appeals, must be decided and communicated to the employee within two months from receipt of the flexible working request. This period can be extended by mutual agreement and confirmed in writing to the employee.

If you refuse again, the employee might decide to involve Acas or another mediator. If your procedure was incorrect, or your decision based on incorrect facts, the employee might decide to take you to an Employment Tribunal. If the Employment Tribunal finds against you, you will have to reconsider the application, and may have to pay compensation - so it obviously pays to get it right the first time around.

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9. Can we sack an employee who refuses to work from home?

In certain circumstances, yes, particularly if the contract of employment permits you to change the employee's place of work and the power is exercised reasonably. However, if your employee has been employed continuously for two years, they might be entitled to bring a case against you for unfair dismissal.

Assuming that you have no grounds other than the reorganisation for the sacking, you will have to rely for your defence on 'some other substantial reason' - which means demonstrating the necessity of the change. Depending on how good your case is an Employment Tribunal might or might not accept your reasons. If it does not, you could be liable for a basic award of up to £20,000, and a compensatory award of up to £115,115 from April 2024. Take legal advice.

10. How long is reasonable to give home workers the opportunity to change their minds?

There is no legal obligation on you to keep the option open. If you have used the opportunity provided by home working to scale down your premises, the law accepts that the change may have to be permanent.

However, it may pay you to leave the option open indefinitely if you can. Even with employees who are long established as home workers, circumstances may change, and the reasons for opting for home work in the first place may cease to exist. If you cannot offer them the option to come back to work, they may decide to work elsewhere. You might be able to reach an acceptable compromise by offering a 'hot-desking' arrangement, or providing for the employee to come into work for two to three days a week.

11. Is there a time limit on issuing a revised statement of employment particulars?

A revised statement of particulars should be issued within one month of the change in question.

(A 'written statement of employment particulars' includes the main conditions of employment - read more on the GOV.UK website.)

12. What are the legal implications, if we ask current employees to work from home on a self-employed basis?

You are effectively dismissing them from your employment, so you will have to have good reason, or those who have two years' continuous employment will be able to sue you for unfair dismissal.

Of the acceptable reasons for dismissal (conduct, capability or qualifications, illegality, redundancy, or 'some other substantial reason'), most are inappropriate if you wish to continue to use these people on a self-employed basis. You will probably have to rely on 'some other substantial reason'.

You will also have to persuade HM Revenue & Customs that your employees are genuinely self-employed, otherwise you will still be liable for their income tax and National Insurance contributions. One of the factors HMRC is likely to take into account is the extent to which their income comes from a variety of sources, so you will not be able to rely on using them on a full-time basis.

One way and another, this is a more difficult move than it might at first appear. Think long and hard, and take good legal advice before you make it.

13. If we employ people to work from home on a freelance basis, we have have to pay their tax and NI?

If they are genuinely freelance, no. However, HM Revenue & Customs decides this on a case-by-case basis, looking at a range of factors such as:

• who controls when and how the work is done
• who carries the financial risk if the work is not up to standard
• who provides and maintains items of equipment
• who decides where the work shall be done
• who carries the losses, if any
• to what extent do the workers work exclusively for you

If you control what the workers do, when they do it and how they do it, and if you carry the financial risks of the business, HMRC is likely to find that you employ them, whatever their employment contract (or lack of an employment contract) says about the matter. And if you employ them, you are responsible for their tax and National Insurance.

Read more about employment status on the HMRC website.

14. Who is responsible for the health and safety of home workers?

You are. All the normal health and safety legislation (including the Health and Safety at Work Act 1974, the Display Screen Equipment Regulations, and the Provision and Use of Work Equipment Regulations) continue to apply, and you have the usual duty of care to your home-based employees.

15. Do we have to have health and safety inspections for home workers?

You need to be able to show that you have discharged your duty of care. If possible, it is good practice to get your health and safety officer (or a manager trained in health and safety) to make an initial inspection, and at regular intervals thereafter to get your home-based employees to complete self-assessment forms which are reviewed by your health and safety officer, or by a manager trained in health and safety.

16. Are home workers entitled to sick pay?

Yes. Apart from the change in their place of work, their terms and conditions will, in most cases, remain the same.

17. How do we ensure home workers do not work in excess of 48 hours a week?

With difficulty. It is your responsibility to ensure that they do not breach the Working Time Regulations, and a recent case at the European Court of Justice has emphasised that this is a positive rather than a negative duty - ie you must ensure that your workers take rest breaks, and not just that they can if they want to.

Consider using time-tracking software and apps to monitor working time. At the very least get them to do time sheets - which are checked - and look out for obvious signs of an inability to switch off (such as emails sent out in the middle of the night). Alternatively, you may wish to agree with the employee that the 48-hour limit does not apply (although you may then have to keep more extensive records of working time, and ensure that no employee exceeds 65 hours a week).

18. Are home workers entitled to a break after six hours?

Yes, although it will be difficult for you to manage this, other than by relying on time sheets. You should make sure they know that they are entitled to such breaks; after that you will have to rely on them.

19. Are we responsible for data kept at a worker's home, or accessible on a home worker's computer?

Yes. If your employees will be dealing with information on other people, you should make data security an issue in the initial checks you make on employees, to find out whether they would be suitable as home workers. You should have a policy on data security which should cover home workers. You will certainly want to ensure that they can lock their work away when they are not working on it.

20. If we provide the home workers equipment, who insurances it?

This is a matter to be decided between you and the home worker: it could be either. However, if it is to go on the home worker's home insurance policy, you should ensure that the insurer has been informed, and ask whether there will be any premium variation. If there is a premium variation, it would be reasonable for you to pay it.

21. If a home worker travels to the office, do we have to cover their expenses?

This is a matter for negotiation. Some organisations do; some don't. They could reasonably argue that they are travelling between one place of work and another.

22. If we contribute to a home worker's extra costs (eg heating), what is the tax and National Insurance position?

In theory such payments are taxable, and they will have to be declared. In practice HM Revenue & Customs may allow a local dispensation, of up to £300 a year, on expenses incurred for work and related purposes, including heating, lighting, the metered costs of increased water usage, increases in the cost of home contents insurance, business telephone calls, etc. The expenses must be 'reasonable', and may not include the costs of alterations to the premises, or purchase of furniture.

If you do not make such payments, the worker can claim the cost against their tax liability, though this means less than full recovery. They can also claim for setting aside one room for working at home. This may give rise to a capital gains tax (CGT) liability, but in many cases this can be offset by the annual CGT exemption.

Working from home and hybrid working | Acas guide

All eligible employees have the right to request flexible working - which can include working from home on a full-time or hybrid basis.

Read this guide to homeworking and hybrid working from Acas.

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WAGE AND HOUR DIVISION

UNITED STATES DEPARTMENT OF LABOR

Fact Sheet #24: Homeworkers Under the Fair Labor Standards Act (FLSA)

Revised July 2008

This fact sheet provides general information concerning the application of the FLSA to homeworkers.

Characteristics

Under the FLSA, industrial homework (as defined in 29 CFR 530.1(d) ) means the production by any person in or about a home, apartment, tenement, or room in a residential establishment, of goods for an employer who suffers or permits such production, regardless of the source (whether obtained from an employer or elsewhere) of the materials used by the homeworker in such production.

The FLSA applies to homeworkers who are covered on an "individual" basis or whose employer is covered on an "enterprise" basis. The enterprise coverage test requires a specified annual dollar volume of business. However, in most instances, a homeworker is covered under the FLSA on the basis of individual coverage (i.e. production of goods for out of state shipment and/or receipt of out of state materials or goods used in the production process).

Requirements

Homework requires certification in only seven specific industries: women's apparel, jewelry manufacturing, knitted outerwear, gloves and mittens, button and buckle manufacturing, handkerchief manufacturing and embroideries. Certification occurs when the employer obtains an employer certificate, or homeworkers obtain individual certification, from the Department's Wage and Hour Division, authorizing such work. Certified employers of homeworkers in these industries will be required to renew their certificate every two years. Employer certification is not available for women's apparel and certain hazardous jewelry manufacturing operations; only individual certification is permitted. Homework under the FLSA is not restricted in any industry other than those listed above. However, all individually covered homework is subject to the FLSA's minimum wage, overtime and recordkeeping requirements.

Homeworker employees must be paid the Federal minimum wage . This rate must be met regardless of whether the worker is paid by time, piece, job, incentive, or any other basis. The cost of tools, tool repair, or other similar requirements, may not be borne by the worker where such cost would reduce the wages paid below the required minimum wage or in any way reduce wages due for overtime hours. Overtime must be paid at one and one-half times the employee's regular rate of pay for each hour worked in excess of 40 hours in any workweek. The regular rate includes all remuneration for employment, such as piece rate earnings and commissions paid. Time and one-half of the average piece rate of pay is to be paid for hours worked over 40 per week, if the average is greater than the employee's regular rate of pay (never less than the required minimum wage ).

Records which must be kept for all employees include: name, social security number, home address and telephone number, date of birth (if under 19 years of age), hours worked each day (including time spent transporting), total hours worked each workweek, basis of pay computations, regular pay, overtime premium pay, total gross pay, deductions (specifying the nature and amount of each), and net pay. All employees who have been hired since November of 1986 must also fill out the I-9 form, required by INS.

When employing homeworkers, a separate homeworker handbook is required. These handbooks are available through Wage and Hour offices. Employers are responsible for insuring that handbooks are completed as required. The handbooks require homeworkers to also list business related expenses, such as equipment and supplies.

In the case of clerical workers who may perform duties at home on only an occasional or sporadic basis, employers are not required to follow homework regulations. However, all hours, including the time worked at home, must be recorded and compensated as required by the FLSA for every employee.

Typical Problems

(1) Employer improperly treats homeworkers as "independent contractors".

(2) Employer fails to maintain required record of hours, production, etc., or fails to instruct the employee to record the required data in the DOL homeworker handbook.

(3) Employer fails to assure that homeworker paid on piece rate basis has earned the minimum wage .

(4) The employer must bear the cost of tools purchased as well as tool maintenance and repair to the extent that these costs cut into the minimum wage or overtime wages required.

(5) Employer fails to count as hours worked preparatory and concluding activities, time spent at the shop, travel time and training time.

(6) Employer fails to ensure proper certification for the restricted industries.

Where to Obtain Additional Information

For additional information, visit our Wage and Hour Division Website: http://www.dol.gov/agencies/whd and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243).

This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations.

The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.

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How to Create a Homework Contract With Your Tween

Tony Garcia / Getty Images

If your tween is struggling with homework or just can't seem to keep themself organized, a homework contract can help. This simple agreement between a kid and their parents can help the tween stay on task and give the parents peace of mind, knowing they've laid out their expectations for schoolwork.

What Is a Homework Contract?

A well-written contract points out your child's homework responsibilities point by point. It also helps them understand how you can help guide and work with them in order to keep their assignments under control.

There are also some good reminders for parents. Simple things like designating a distraction-free homework zone in the house and maintaining a healthy, balanced schedule with extra-curricular activities are important.

Sample Student-Parent Homework Contract

Use the contract below as a guide and edit it as necessary. Just remember that a homework contract isn't about punishing a child for failing to complete assignments. Rather, it's a tool that both you and your child can use to stay organized.

It's also a reminder to you both that your child's school experience and success depends on both of you.

Student Responsibilities

• I will keep track of my homework assignments every day and write them on an agenda or my binder before leaving each class.
• I will bring home all books and workbooks needed to finish my homework assignments.
• If I don't understand a homework assignment, I will ask my teacher for more information.
• I will make sure I know when my assignment is due.
• I will obey classroom and school rules and follow along when the teacher is teaching.
• I will let my parents know when I need school supplies that will help me complete assignments. This includes pencils, pens, paper, graph paper, poster board, glue, markers, calculators, etc.
• I will find a quiet location to finish my assignments so that I'm not distracted by the television, computer or my cell phone.
• I will complete my assignments before I watch television, text my friends or play on the computer.
• I will let my parents know if I do not understand an assignment or if I am having trouble keeping up in class.
• I will allow my parents to quiz me, tutor me or help me understand any material I am struggling with.

SIGNED _________________________________ (Tween's Signature)

DATE ___________________________________

Parent Responsibilities

• I will provide my child with a quiet place to study that's free from distractions.
• I will stay up-to-date on my child's progress in school.
• I will provide a calendar for my child to keep track of assignments, projects, and other school demands. We will display this calendar in a visible spot such as the kitchen or family room.
• I will make sure that my child has the supplies they need to finish their assignments.
• If my child is struggling with a homework assignment, I will offer suggestions and advice, but will not complete the assignment for them.
• I will be patient with my child when they do not understand an assignment, and I will keep my emotions in check.
• I will communicate with my child's teacher if they are struggling with a particular subject.
• If necessary, I will find a tutor for my child or enlist them in an after-school tutoring program.
• I will encourage my child to read every day.
• I will encourage my child to do their homework when they're the most alert (such as in the afternoon or early evening).
• I will not over-schedule my child with so many extra-curricular activities that they cannot keep up with their homework assignments.
• I will monitor my child's television time, computer time and time spent texting so that they have ample time to complete their assignments.
• I will talk with my child every day about their school experience.
• I will offer my child positive encouragement and will acknowledge thier efforts.
• I will adjust this homework contract as necessary to meet my child's school needs.

SIGNED _______________________________ (Parents' Signatures)

DATE _________________________________

By Jennifer O'Donnell Jennifer O'Donnell holds a BA in English and has training in specific areas regarding tweens, covering parenting for over 8 years.

Homeworker Employment Contract

Notification.

Homeworkers

Industrial workers are those who perform work in or about a home.

1. Concepts

“Employer of homeworkers” – includes any person, natural or artificial who, for his account or benefit, or on behalf of any person residing outside the country, directly or indirectly, or through an employee, agent contractor, sub-contractor or any other person:

1) Delivers, or causes to be delivered, any goods, articles or materials to be processed or fabricated in or about a home and thereafter to be returned or to be disposed of or distributed in accordance with his directions; or

2) Sells any goods, articles or materials to be processed or fabricated in or about a home and then rebuys them after such processing or fabrication, either by himself or through some other person. (Article 153, Ibid.)

“Industrial homeworkers” – refer to workers who:

2) Sells any goods, articles or materials to be processed or fabricated in or about a home and then rebuys them after such processing or fabrication, either by himself or through some other person.

3. Regulation of Industrial Homeworkers

The employment of industrial homeworkers and field personnel shall be regulated by the government through the appropriate regulations issued by the Secretary of Labor and Em...

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Feds pull Medicaid funding from Fort Worth nursing home. What’s next for its residents?

The federal government will no longer pay a Fort Worth nursing home to care for adults who need long-term nursing or rehabilitative care, according to a notice from the federal government .

Remarkable Healthcare of Fort Worth, at 6649 N. Riverside Drive, is expected to close April 18 after being booted from the Medicaid and Medicare programs, according to a spokesperson for the Texas Health and Human Services Commission. About 80 residents who live there are scrambling to find new homes before the facility shuts its doors.

Residents at the nursing home were informed of the news Wednesday, when they were told by nursing home co-owner Jon McPike that the state of Texas had mandated the shutdown, said resident Nona Taggart.

Jennifer Ruffcorn, a spokesperson for the Texas Health and Human Services Commission, said in an emailed statement that the nursing facility was not closed by by the state.

“HHSC did not mandate this closure,” Ruffcorn said in an email. “The Centers for Medicare & Medicaid Services is terminating the facility’s contract due to its poor record of survey/inspection performance. This means the facility can no longer receive federal funding.”

McPike did not immediately respond to a phone call asking for comment .

In a notice to the public posted April 3 , CMS said that starting on April 18, the agency would terminate its agreement with Remarkable Healthcare of Fort Worth. For residents who have been living at Remarkable before March 2, CMS will continue to pay for their care for up to 30 days after the contract ends on April 18. The majority of nursing home residents receive long-term care through Medicaid, the joint state and federal health insurance program that provides benefits not always covered by Medicare.

“We won’t be homeless technically, but realistically this is our home,” said Taggart, who has lived at Remarkable for more than seven years.

Taggart said she knew the nursing home had issues, but that she considers her fellow residents and the staff to be her family and was upset that they had to relocate so quickly.

Ruffcorn said the state agency has staff on-site at the nursing home to monitor the situation, and that the agency “will continue to closely monitor” the situations as residents determine where to live next.

The nursing home has been on the federal government’s watch list for months. Last year, it was named a Special Focus Facility by CMS , considered a last-ditch effort to encourage troubled nursing homes to improve their safety and quality or else be terminated from the program.

The nursing facility is one of four owned or operated by companies linked to Laurie Beth and Jon McPike of Southlake. The parent company that operates all four nursing homes filed for bankruptcy last month.

Related stories from Fort Worth Star-Telegram

Fort worth nursing home hosted a weekly happy hour. it didn’t end well, ‘i still pray every night.’ troubled fort worth nursing home faces uncertain future.

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