Having employees that work a mix of in the office and at home or from a co-working space, is more prevalent than ever since the pandemic and it has changed the way workplaces need to operate. Businesses are becoming more open to employees working outside of the office (remotely) or even working from a combination of in the office and at home each week. 

This major shift in work arrangements has led to a need for a change in how employment agreements for new employees are set out and how work-from-home agreements are documented for existing employees. These considerations are relevant for large and small businesses alike.

I regularly draft work-from-home employment agreements and in doing so over the past year, in particular, I have found there are many aspects that are important to keep in mind when considering how to effectively hire and manage hybrid employees - or those that work from home some or all of the time. This article explores the key reasons why a new or revised work-from-home employment agreement is necessary.

Considerations for work-from-home or hybrid work arrangements

If you’re thinking about processes for how to effectively manage and hire work-from-home or remote employees, the most important things you should consider are:

• Is the employee going to be in an office environment, such as a co-working space or branch office, or working from home?

• Are they going to work in your office for half the week and the other half at home (hybrid work arrangement)? 

• How will you onboard new staff who will not work from your office or if you don’t operate a bricks-and-mortar office?

• What type of equipment does your work-from-home or hybrid employees need?

• How are you going to set up all of the IT systems for your distributed team to cover the needs of in office and work-from-home team members?

• Do you have enough user licenses for software?

• Can you afford to pay the right tax and superannuation?

• What are the position duties?

• Are they paid superannuation on top of their package or is that part of their package?

• Does your employee need to have a driver’s license?

• If they are required to travel to and from head office or to see clients, do you give them an allowance or is that something they are to cover?

• Do they pay for stationery or electricity and internet expenses at home?

This list of factors you must consider is about making sure that if you bring someone on that you’re covering yourself as an employer and that you are setting out key items in the employee engagement documents. 

It is also important to look at remote communication in your employment or work-from-home agreement to make sure that everyone in your organisation uses the same platform or channel. That way everyone will know where to go for information, updates and downloads.

Why is a remote or work-from-home employment agreement necessary?

Being able to employ people who work from home or another town, city or even country can be hugely beneficial to both businesses and employees, it expands the talent pool exponentially. But it does come with some risks. Many people aren’t aware of the risk this type of employment can have on their business. The following are just some of the reasons why having a remote employee agreement is so important. 

Work Environment

Whether your employee is working in your office, from home, in a co-working space or in a hybrid arrangement by combining two or more of these elements, it’s important to have the setup clearly laid out for insurance purposes. Ideally, a separate workspace is best, but if you can’t have an office make sure it is delineated somehow. You’ll also need to make sure that their workplace is safe and they’re not, for example, working from the kitchen bench near an oven or stove or near trip hazards

For example, there has been a case recently where an employee fell on the stairs while working from home and the employee wanted to claim worker’s compensation. The Court held that she was doing her work duties because her employer had instructed that she had to keep her front door locked at all times while she worked in her office upstairs. She had gone downstairs to let her son out for school and lock the door behind him and then fell up the stairs when she was going back to her office. She was granted workers' compensation because she was following her employer’s directions. 

But there are other cases where people have tried to claim workers' compensation and failed. An example of this was a lady who, while on her lunch break from working at home, went out riding her bike, fell off and injured herself. She wasn’t successful because the court held that she was on a break and the bike ride wasn’t part of her work-from-home duties. So, there is a real question of where an employee’s work duties begin and end that needs to be addressed and outlined in a formalised agreement, detailing core hours, what the duties are and when the employee will do them.

Confidentiality of Business Information

There could also be confidentiality issues with employees who work from home or away from the office. With someone who is not in front of you, it is harder to supervise them. There is a chance they could be sharing confidential company information with their family or friends, even if it is not intentional, by working in a common space in the home or having confidential calls in an open space in front of other people. 

That’s why detailing elements such as who is allowed to use the work computer while at home and whether the employer supplies a laptop or the employee uses their own laptop, must also be documented. Thought should also be given as to whether you require two-factor login or require that employees do not use free wifi (including using a free cafe or shopping centre wifi) as these things can all have security and confidentiality risks for employers.

Setting Expectations

Employee agreements need to be prescriptive around core working hours, particularly because many remote employees will work flexibly. Some people like the flexibility so they might choose to do a little bit of work on the weekend or in the evening, which is usually okay. Most employers are happy with this type of arrangement, but this does lead to the question of core hours and how this is managed, particularly where modern awards come into play with penalty rates and overtime (should they apply to your employee).

For example, if clients are calling on the phone, you will need your employee to be available during some core hours or days to take these calls and that can be a juggle. There is no right or wrong answer and the most important thing is just making sure everyone is on the same page. Because, with awards in play, you could find yourself having to pay an employee for working on a Sunday when they swapped it for a Thursday because penalty rates apply. These things can be worked around, but they need to be out in the open and the parties may need to enter into an Individual Flexibility Agreement in addition to an employment agreement to document the flexibility arrangements.

The flexibility of hiring work-from-home employees having hybrid employees can be a huge advantage, it can mean less commercial rental expenses for a business and a bigger talent pool. But, there are also some risks that can come with this form of employment that need to be recognised and mitigated. Having a work-from-home or remote employment agreement written up by a lawyer will help to eliminate some of the concerns you might have about this type of arrangement. 

Remote work employment agreements, when clearly and thoughtfully drafted, will protect both you and your employee. An agreement will also clearly lay out what is expected from both employer and employee. Ultimately helping to provide a straightforward and healthy working relationship.

Related: Keeping it confidential: When to use a non-disclosure agreement

Work-from-Home Agreements for Your Employees

If you have a permanent employee (full time or part-time) who will be working away from the office some or all of the time, take a look at our Remote Work Employment Agreement template or make a time to speak with Emma to see if this is the right agreement for your specific needs.