What is a remote work policy?

A remote work policy is a formal document that sets out a company’s rules, expectations, and procedures for employees working from locations other than the traditional office. This might include working from home (WFH), a co-working space, or any other location outside the company’s physical premises. In the context of global employment, a remote work policy is essential for managing teams spread across different countries, ensuring everyone is treated consistently and fairly, and that the company complies with all relevant laws.

Think of it as the company’s “rule book” for remote working. It aims to provide clarity, manage expectations, and address the potential challenges that can arise when employees aren’t working in the same physical location.

A well-drafted remote work policy offers numerous benefits, particularly for companies with international operations:

Clarity and consistency: A clear policy ensures that all employees, regardless of where they are based, understand the rules and expectations surrounding remote work. This promotes fairness and helps avoid misunderstandings, which can be particularly important when dealing with cultural differences across different countries.

Legal compliance (UK and international): Remote work has significant legal and compliance implications. Different countries have different employment laws, tax regulations, and data protection rules. A robust policy, often developed with the help of an Employer of Record (EOR), helps ensure the company complies with all applicable laws, both in the UK and abroad. This includes things like working time regulations, health and safety obligations, and tax liabilities.

Risk management: Remote working introduces certain risks, such as data security breaches, potential issues with employee well-being, and challenges in maintaining productivity. A well-thought-out policy helps to mitigate these risks by proactively addressing them.

Productivity and performance: Clear guidelines on communication, availability, and performance expectations help to maintain productivity and ensure accountability in a remote working environment. This is especially important when teams are working across different time zones.

Employee morale and retention: A well-structured policy that supports a healthy work-life balance and employee well-being can significantly boost morale and improve employee retention rates. Flexible working arrangements are often highly valued by employees.

Attracting talent: A flexible remote work policy can be a major advantage in attracting and retaining top talent, particularly in today’s competitive global job market. Many employees now prioritise flexibility when choosing an employer.

Defining working hours and availability: The policy clarifies whether there are set working hours required or if employees have flexibility in managing their time (within reasonable limits). It also outlines the process for requesting and taking time off, including annual leave (holiday) and sick leave, ensuring compliance with UK and international employment laws.

A strong remote work policy, particularly one designed for a globally distributed workforce, should address the following key areas, with specific consideration for UK and international regulations:

• Clearly define which roles and employees are eligible for remote work. Not all jobs are suitable for remote working. For example, roles requiring hands-on interaction with physical equipment or in-person customer service may not be eligible.
• Specify any criteria employees must meet to be eligible. This could include factors like performance ratings, length of service (tenure), the nature of their job responsibilities, and successful completion of any required training (e.g., data security training).
• Outline the process for requesting and approving remote work arrangements. This should include who employees need to apply to (e.g., their line manager, HR), what information they need to provide, and the timeframe for a decision.

Trial periods: Consider including a provision for trial periods for remote work arrangements, to assess suitability before making a permanent change

• Define acceptable remote work locations. This typically includes the employee’s home, but could also include approved co-working spaces.
• Address any restrictions on working from specific countries or regions. This is crucial for global operations. Restrictions might be due to legal reasons (e.g., employment law complexities), tax implications (e.g., permanent establishment risk), data security concerns, or practical considerations (e.g., significant time zone differences).

Permanent establishment risk: Explicitly address the risk of creating a permanent establishment in another country. If an employee works remotely from a foreign country for a significant period, it could inadvertently create a taxable presence for the company in that country, leading to corporate tax obligations. An Employer of Record (EOR) can significantly mitigate this risk by employing the worker directly in that country.

Right to work: Verify the employee’s right to work in the proposed remote location, especially if it’s outside the UK.

• Establish expectations for working hours and availability. Will employees be required to work specific core hours, or do they have flexibility in setting their own schedule? This needs to be clearly defined, especially when managing teams across different time zones.
• Address time zone differences. Provide clear guidance on how to schedule meetings and collaborate effectively when team members are in different time zones. Consider tools and strategies to minimise disruption to employees’ work-life balance.
• Outline procedures for tracking work hours (if required). This may be necessary for compliance with working time regulations or for specific roles (e.g., hourly-paid employees).
• Clarify policies regarding overtime and time off in lieu (TOIL). Ensure compliance with UK working time regulations and any applicable international laws.

Holiday and sickness reporting: Clearly define the procedures for requesting and recording annual leave (holiday) and reporting sickness absence.

• Specify preferred communication channels. This might include email, instant messaging (e.g., Slack, Microsoft Teams), video conferencing (e.g., Zoom, Google Meet), and project management software.
• Set expectations for response times and communication frequency. How quickly should employees respond to emails or messages? How often should team meetings be held?
• Provide guidelines for virtual meetings. This could include best practices for using video conferencing, ensuring accessibility, and managing meeting etiquette.
• Encourage regular check-ins between managers and remote employees. This helps to maintain communication, address any concerns, and provide support.

• Specify what technology and equipment the company will provide. This could include a laptop, monitor, keyboard, mouse, headset, software licences, and potentially a contribution towards internet costs (an internet stipend).
• Outline employee responsibilities for maintaining and securing company-provided equipment. This includes keeping software updated, protecting against damage or theft, and following data security protocols.
• Address data security protocols for accessing and handling company data remotely. This is crucial for protecting sensitive information and complying with data protection regulations (e.g., GDPR). This might include using a VPN, strong passwords, and multi-factor authentication.
• Provide guidelines for using personal devices for work purposes (Bring Your Own Device – BYOD policy). If employees are allowed to use their own devices, the policy should address security requirements, data ownership, and liability.

Technical support: Outline how employees can access technical support if they encounter issues with their equipment or software.

• Reinforce data security policies and procedures for remote work. This is absolutely critical. Remote workers are often more vulnerable to cyberattacks and data breaches.
• Address compliance with data protection regulations, particularly the UK GDPR (General Data Protection Regulation) and the Data Protection Act 2018. The policy should explain how employees must handle personal data securely and comply with data subject rights.
• Provide training on data security best practices. This should cover topics like phishing scams, password security, secure Wi-Fi usage, and data encryption.

Data loss prevention (DLP): Consider implementing DLP measures to prevent sensitive data from leaving the company’s control.

Incident reporting: Establish a clear process for reporting data breaches or security incidents.

• Outline how performance will be measured and evaluated for remote employees. This should be based on clear, objective criteria and agreed-upon goals.
• Establish clear performance goals and expectations. These should be aligned with the company’s overall objectives and the employee’s role.
• Provide guidelines for regular performance reviews and feedback. This should include both formal appraisals and informal check-ins.
• Consider using performance management software to track progress and provide feedback.

Adapt management styles: Managers may need to adapt their management styles to effectively manage remote teams, focusing on results rather than direct supervision.

• Specify which expenses related to remote work will be reimbursed. This could include internet costs, mobile phone bills, office supplies, and potentially a contribution towards electricity costs.
• Outline the process for submitting expense claims. This should include what documentation is required (e.g., receipts), the approval process, and the timeframe for reimbursement.

Tax implications: Be aware of the tax implications of expense reimbursements, both in the UK and in any other countries where employees are working.

• Provide guidance on creating a safe and ergonomic home office environment. This could include advice on desk setup, chair posture, lighting, and taking regular breaks.
• Address any relevant health and safety regulations, including the Display Screen Equipment (DSE) regulations in the UK. Employers have a legal duty to ensure the health and safety of their employees, even when they are working remotely.
• Outline procedures for reporting work-related injuries or illnesses.
• Encourage employees to take regular breaks and maintain a healthy work-life balance.

Mental well-being: Address mental well-being and provide resources for employees who may be struggling with isolation or stress.

• Address compliance with local employment laws in each country where employees are working remotely. This is a complex area, and professional advice (e.g., from an EOR) is strongly recommended. Laws vary significantly between countries.
• Explain tax implications for both the company and the employee. This includes income tax, national insurance contributions (in the UK), and any equivalent social security contributions in other countries.
• Clarify how the company will handle payroll and benefits for remote employees in different countries. This is a key area where an Employer of Record (EOR) is invaluable.

Right to work checks: Ensure that all employees, regardless of location, have the legal right to work in their respective countries.

The policy should clearly define the process for ending the remote work arrangement. This could be at the request of the employee (e.g., they want to return to the office) or at the request of the employer (e.g., due to performance issues or changes in business needs).

Notice periods: Specify any notice periods required for terminating the remote work arrangement.

Return of equipment: Outline the process for returning company-provided equipment.

• Indicate that the policy will be reviewed and updated periodically. This is essential to ensure it remains compliant with changing laws and regulations, and reflects best practices in remote work management.
• Communicate any updates to employees clearly and promptly.