This would include consideration of the following: Employees working from home does not change their tax status. 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. In certain circumstances, payments by employers to reimburse employees for reasonable costs incurred as a result of homeworking can be tax-exempt. The average commute is 15 miles to work and the same back. Homeworking is on the rise. If you do not make such payments, the worker can claim the cost against their tax liability, though this means less than full recovery. You need to be able to show that you have discharged your duty of care. 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. Do home workers have to be permitted breaks after six hours, like people who work on our premises? The legal employment status of home workers is defined by the following tests of whether they are a ‘worker’ or ‘employee’: • Mutuality of obligation – is the person legally obliged to carry out some work in return for some payment (contract) With difficulty. What are the legal implications, if we ask current employees to work from home on a self-employed basis? New IR35 tax rules are coming but are businesses ready? (A 'written statement of employment particulars' includes the main conditions of employment - read more on the GOV.UK website.). Favourite answer. You need a proper chair, something that's not going to cause back problems if it's going to be regular that somebody's going to be working from home. This is done by multiplying the number of hours piece workers should take to do the work by 120%. As an employer, you are responsible for the health, safety and welfare of your employees. As well as how many hours they should work, specify when the employee will need to be available for work. 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. Apply to Home Based Legal jobs now hiring on Indeed.co.uk, the world's largest job site. Working from home means that employees will be using their internet, electricity and phone for work purposes. You must exercise all reasonable means of ensuring this. Employers must carry out a suitable and sufficient risk assessment of all the work activities you do at home. The expenses must be 'reasonable', and may not include the costs of alterations to the premises, or purchase of furniture. We employ home workers on piece rates. This is known as ‘ making a statutory application ’. 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. You can attract and retain critical skills and talent. Are home workers entitled to sick pay, like other employees? If your employee drives an average car, that commute puts 4.6 metric tons of carbon dioxide into the atmosphere every year. ), Conduct risk assessments on homeworking environments, Create a policy for regularly reviewing home environments, Access to the employee’s computer and home. Make sure that any lack of action does not invalidate the insurance. This usually means providing a phone and computer. You can only refuse a request for one of the eight business reasons allowed by the legislation. It includes a list of questions for organizational leaders to answer, and checklists for the equipment, tools, and technology employees need to be successful when working remotely. We use cookies to give you the best online experience. Get our essential newsletters for small and growing businesses. We will never put at risk, share or sell your information. 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. Failure to do so can result in discrimination allegations and breach of contract. 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 first time round. Working from home Planning Permission. Registered company number: 02784650 Some employees who work from home can claim tax deductions related to their home workspace. Yes, although it will be difficult for you to manage this, other than by relying on time sheets. Tax and social security. Relevance. Within 14 days of the meeting you must write either to agree a new work pattern or to refuse the request. 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, to what extent do the workers work exclusively for you. Working from home has not been a choice for the organisations that have implemented it, nor was it a choice for the workers who are practising it. It may well be better to keep a good, reliable and experienced employee working some or all of the time from home, than to be left trying to recruit and train someone else for the job. It depends on how specific you have been in their existing contract. If you prefer the choice when it comes to assets, then binary options give you this. 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 must: To protect your business, your staff and your intellectual property, make sure your employee contracts set clear provisions for data security. But take advice before you pay them differently, because it could be risky. If we employ people to work from home on a freelance basis, are we likely to find ourselves paying their tax and NI? Health & safety requirements working from home. You can carry this out yourself, but the responsibility remains with the employer. Under the model WHS laws, each employer has a duty of care for the health and safety of their workers and others at the workplace. With no commute and fewer workplace distractions, your staff get more work done. If the employee is using their own computer/phone, ensure you have a right to monitor work communications on those devices. Check our Privacy Policy for details. Home working can cause work-related stress and affect people’s mental health. Take legal advice. That opens up the risk of data being mislaid. An employee’s pay and other terms and conditions of their employment stay the same, apart from having to work from home on a temporary basis. As the Article 29 Working Party states: “Technologies that monitor communications can […] have a chilling effect on the fundamental rights of employees.”. Alternatively, employees can choose to seek tax relief arrangements. You cannot refuse, however, unless you can demonstrate one or more of the following eight clear business reasons for doing so: If you do refuse, you must give your reasons in writing, dating the letter and giving details of your appeals procedure. Outline the things your employee can and cannot claim for in their contract. There is no legal obligation on an employer to provide the equipment for homeworking. Many homeworking employees work flexible hours, so outline their “core hours” and never assume they are doing a normal 9-5. Is your business ready? Think long and hard, and take good legal advice before you make it. Depending on how good your case is an Employment Tribunal might or might not accept your reasons. Right now, 4.2 million people call their house their office and the expectation for flexible working is becoming more and more in demand. Make sure they have a password in place to limit access. Neil. Provided you fulfil certain conditions, the average production speed may be used as the basis for calculating whether workers are paid the minimum wage. Remind your homeworker that they must have consent from their mortgage provider to work from home. You should have a policy on data security which should cover home workers. 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 emphasized 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. 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. This is a matter to be decided between you and the home worker: it could be either. Can we sack them? If we contribute to a home worker's extra costs (eg heating), what is the tax and National Insurance position? A revised statement of particulars should be issued within one month of the change in question. A right to enter will also allow you to carry out risk assessments for health and safety purposes. It is up to you as employer to decide where the work shall be performed. A detrimental effect on the ability to meet customer demand. If you have refused again, it is open to the employee to take further steps, for example, by involving Acas or another mediator, or - if your procedure was incorrect, or your decision based on incorrect facts - by going to an Employment Tribunal. 3 Answers. Some organisations do; some don't. Check your employer’s liability insurance covers employees working from home. What protection do we have against home workers using their time and our equipment to work for other people? Yes. If we get an employee to work from home, do we have to cover their expenses when they travel in to the office for meetings? The employee is responsible for resolving any home-related issues highlighted in the assessment. However, HM Revenue & Customs decides this on a case-by-case basis, looking at a range of factors such as: 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. NOTE: Due to the ongoing coronavirus outbreak, the government has made several announcements relating to statutory sick pay. 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. Read more about employment status on the HMRC website. 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. In theory such payments are taxable, and they will have to be declared. Otherwise no, unless you are willing to risk a claim for constructive dismissal. Legal Requirements For Working From Home Uk from the investment factor, is whether you will find it enjoyable and comfortable to trade and which one suits your style. Turning a room in your home into a mini-salon may sound like a great business idea – but it’s not as straightforward as it sounds. How long is it reasonable to give workers who have opted to work from home the opportunity to change their minds? One of them is a duty on employees to serve their employer honestly and faithfully, and work with due diligence, skill and care. Each employee can only make one request, in writing, in each 12-month period. Protected characteristics are age, disability, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and gender reassignment. Stay compliant by setting clear boundaries and responsibilities for all parties. It is therefore always prudent to take advice on the immigration requirements of the particular jurisdiction where the work will be undertaken. An inability to recruit additional employees. If you are implementing homeworking, you need to review performance and quality policies. Working from home laws: Employees who have worked for the same employer for 26 weeks have a legal right to flexible working (Image: GETTY) Current legislation in place regarding working from home Normally, the two parties work together, with some kind of agreed checking and review mechanism. 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. But it only benefits your business to make sure your staff have the tools they need to do the job. 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. This Work from Home Policy template can be tailored to your company’s needs and is designed as a starting point for establishing employment policies on working from home. 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. You should also include a provision that homeworking is subject to change if the employee moves house. You must then respond by arranging a meeting within 28 days to consider the request. Carry out a risk assessment of the data protection implications of homeworking. Under UK health and safety legislation, the employer is has a legal responsibility to protect the health and safety of all workers and that includes home workers. Employers can pay £4/week and the employee doesn’t have to record expenses. If we buy and install the equipment at a home worker's home, whose insurance covers it? And if you employ them, you are responsible for their tax and National Insurance. Before you can offer such a benefit, you need to understand the legal requirements for working from home. Those who are continuing to work from home are contributing to the public health effort, just as those returning to the workplace are. About Planning Portal adverts. Read more 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. Letting employees work from home reduces your overheads and frees up office space. Giving working at home a try may have some upsides. Consider whether you need to include a licence to enter the employee’s home. An employee can refuse to work from home, but unless the employee has an agreement in writing or a contract that provides he or she is not obliged to work from home, the employer may add this as a new requirement. Those not normally entitled to SSP (such as the self-employed) will receive Employment and Support Allowance. Whether you see working from home as efficient and productive or regard it as an excuse to watch daytime TV, there’s no denying it’s becoming increasingly popular. You will need to ensure that homeworkers do not exceed the 48-hour limit on their … Giving them the flexibility to choose where they work is considered a benefit. Do we have to pay new workers, recruited to work from home, at the same rate as employees moved from our offices to work from home? If the employee is going to appeal, they must do so in writing within 14 days, and you must then arrange another meeting within 14 days of receiving this letter. Those affected by COVID-19 and those who are self-isolating will receive statutory sick pay from day one. 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). Someone who has been working from home is refusing to accept promotion because it means coming back into the office. A set trial period and review baked into the contract will give both parties an opportunity to be flexible about homeworking. 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. Under the Fair Work Act 2009, the right to request flexible working arrangements is an entitlement only for employees in certain circumstances, such as those who have the care of a child under school age, are a carer, are 55 years or older, are experiencing family or domestic violence or provide care or support to a member of their household or immediate family who requires care and support because of family or … How do we ensure that employees who work from home do not do in excess of 48 hours a week? Read the Acas coronavirus guidance and find further information and guidance for employers and businesses on the GOV.UK website. increased agile working in the workplace or moving their employees towards working at home. Can we force them to come back in? 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. 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. If they are genuinely freelance, no. 1 decade ago. Being away from managers and colleagues could make it difficult to get proper support. If you cannot offer them the option to come back to work, they may decide to work elsewhere. By using our site you agree to the use of cookies. A Work from Home Policy may also be referred to as a If there is a premium variation, it would be reasonable for you to pay it. Most employers will provide basic equipment at least. Normally, time spent by an employee travelling to their place of work would not count as “working time” under the Working Time Regulations 1998. You also need to make sure that your staff have the tools they need to work effectively while out of the office. There are a number of factors to consider, as legal expert Julian Sampson explains. 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. Working from home, telecommuting, flexible hours, – whatever you call it, it is part of the Gen Y paradigm of focusing on work product rather than work process. Are we responsible for data kept at a worker's home, or accessible on a home worker's computer? You will certainly want to ensure that they can lock their work away when they are not working on it. What they do have to ensure is if somebody is being allowed to work from home, they have adequate materials and desks and equipment that won't injure themselves. Employer Obligations For Employees Working from Home, Employment Contracts – These Must Reflect Homeworking, Health and safety at work extends to the home, Benefits of letting employees work at home, Home upkeep costs (Lighting, internet etc. Who is responsible for the health and safety of employees who work from home? Typically, a disabled worker would not be able to claim a home office deduction because the arrangement benefits the worker, not necessarily the employer. 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. 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. They could reasonably argue that they are travelling between one place of work and another. This sample policy should be modified according to your company’s specific values. You are. 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. If you have more than five employees, you have a legal requirement to assess potential risks to their work environment before employment begins and record any significant findings. There’s now even a National Work from Home Day – it’s next Friday, May 16. Flexible working might include working for some or all of the time from home. No fees for first-time users until 15 January 2021 (terms apply). Next Building Regulations; Advertisement. Letting employees work from home reduces your overheads and frees up office space. They can also claim for setting aside one room for working at home. Legal Advice for Hairdressers Working from Home Last updated December 4, 2018. PagoFX is the reliable way to transfer business money overseas. This is a matter for negotiation. You should make sure they know that they are entitled to such breaks; after that you will have to rely on them. If a link has a * this means it is an affiliate link. 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. Many homeowners choose to convert an existing room, such as a box room, loft room or garage into a habitable space. You are effectively dismissing them from your employment, so you will have to have good reason, or those who have been on the payroll for more than one year and who commenced employment with you before 6 April 2012 (two years' continuous employment if they started working for you after 6 April 2012) will be able to sue you for unfair dismissal. It has can benefit your business, too. Website and online marketing by MRS Digital, We use cookies to make your experience better. 4th Floor, Heathrow Approach, 470 London Road, Slough, England, SL3 8QY. Major City bank BNY Mellon came under fire from employees recently after announcing that it was ending its work from home scheme. This Work From Home Readiness Checklist is for organizations and teams who are preparing their employees to work from home. In order to gain these benefits, you need to make sure you meet certain legal requirements. You must consider requests in a reasonable manner. However, include a provision that the employee can be required to attend the office. A standard employment contract will not cover homeworking arrangements. 4.1 Working from home arrangements require a high degree of trust, together with open and honest communication. Website: www.atomcontentmarketing.co.uk, Working time: hours, leave, flexible working, Managing homeworkers, remote workers, lone workers, Planning permission and building controls, Carrying out a health and safety risk assessment, Probate, executors and estate administration, Managing home workers remote workers lone workers, information and guidance for employers and businesses. Employees with at least 26 weeks' service have the right to request flexible working Qualifying employees can request a change in hours, the times or the location of their work. Not necessarily. If it does not, you could be liable for a basic award of up to £16,140, and a compensatory award of up to £88,519. So, if you're going to allow it, you have to make sure … Most homeworking employees move data (or devices that can access that data) into public spaces. This gives you the flexibility to call them in when you need them. 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. Almost all employees with at least 26 weeks' service have the right to ask for flexible working which can include working from home. Do we have to have health and safety inspections? However, it may pay you to leave the option open indefinitely if you can. I wish to start working from home and wish to know if there are any legal restrictions as to what I may do (it would be a legal occupation I may add). Under the Working Time Regulations 1998, time spent travelling to work does not count as “working time”. To find out more, see our FAQs. No commute also means a lower overall carbon footprint for your business. You cannot claim tax relief if you choose to work from home. You still deduct income tax and national insurance contributions as normal. By continuing to using our site you agree to the use of cookies Cookie Policy But you can’t just monitor all your employees’ personal dealings. Many employees vented that this was a huge step backwards in employment working practices with issues such as mental health and childcare being amongst the key concerns. Recruitment and employment contracts (16), Working time: hours, leave, flexible working (16), Managing home workers, remote workers, lone workers (9), Five ways blockchain will change the legal profession. Home arrangements require a high degree of trust, together with open honest. Heating ), what is the tax and NI staff, so their... Issues highlighted in the place of work and the expectation for flexible working might include working for or! Attract and retain critical skills and talent that can access that data ) public! The time from home Last updated December 4, 2018 by relying on time sheets people... 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