Employment issues arising out of homeworking

This guide is based on UK law. It was last updated in March 2005.

Introduction

Over two million people in the UK work at least one day a work from home. Employers in the IT sector have always been well placed to make the most of the benefits of this type of flexible working, such as reduced overheads and improved recruitment and retention of staff but the publicity surrounding the introduction of the Flexible Working (Eligibility, Complaints and Remedies) Regulations 2002 has forced even the most recalcitrant of employers to reflect on whether their business might be able to accommodate new ways of working. With these changes however, come new legal challenges and in this Guide we examine how employers can benefit from home-working whilst avoiding some of the pitfalls and some of the issues they should consider when drafting new terms and conditions of employment.

Trial arrangement?

Before allowing staff to work from home, employers should take a close look at their employment contracts to check they contain the protections needed to make the new arrangement work. It is essential that employees are asked to sign up to new contracts before any home-working arrangement begins. It is also advisable to make the switch to home working conditional on a time limited trial arrangement so that the employer can see whether or not home working is a satisfactory way of working from a business perspective. Before going down this route however, the employer should make it clear in writing that any such trial is temporary and should agree an definite end date with the employee. The employee must understand that if both sides do not agree that it is a success, their old contract and working arrangements will come back into force.

Hours of work

The home worker's contract should specify what days the employee is permitted to work from home and whether they need to get approval from anyone before changing those days. If the employee is expected to work at certain times, these should be specified in the contract which should also state how the employee must record their time in accordance with the Working Time Regulations 1998.

Equipment

If the employer is providing equipment for the employee, such as a computer, they must ensure that the employee has been trained to use it and that it is safely maintained. The parties must also agree who bears any costs arising from the new arrangement such as any telephone, internet or electricity charges. The contract should specify who is responsible for insuring the employer's equipment and the employee should also check whether they need to inform their household insurer of the new arrangements. If higher premiums result because the house is being used for home-working, the parties should agree who bears the cost of this.

Health and safety

As with any office based employee, the employer has an obligation to carry out a health and safety risk assessment of the employee's work activities at home. This could be done by the employee themselves (after proper training) using a questionnaire, rather than by the employer actually visiting their home. However, the employer would be wise to ensure they still have a contractual right to visit the employee's home under certain circumstances for example to resolve any problems identified in the risk assessment. Likewise, the employer should include a contractual right to insist that the employee comes into the office if need be.

Confidentiality and Data Protection

Individuals working remotely may have access to a considerable amount of information belonging to their employer and that information should be properly protected in the employment contract by clear rules on the use of company computer systems and confidentiality undertakings. In particular, the contract should make it clear what happens to company information and any other company property on termination of the employee's employment. Employees should also be made aware of their obligations in terms of managing information under the Data Protection Act and if they need training on this, the employer should provide it.

Communication

More generally, out of sight should not mean out of mind. Home-workers should continue to feel involved in the business. Whilst email is undoubtedly useful to convey information to a diverse workforce, it can come a very poor second to face-to-face discussion, particularly if the issues concerned are sensitive, perhaps involving the employee's health or performance. It is therefore essential that managers continue to involve home-workers in team meetings, outings and training and do not simply leave home-workers "home alone".