Telecommuting and Remote Work Agreements

Need Help Creating a Telecommuting or Remote Work Agreement?

With the forced closing of business doors during the pandemic, many employers had no option but to offer employees a more flexible way to complete their work responsibilities. Telecommuting and remote work options became the norm for many businesses. The flexibility this new way of working provided in many instances became a preferred work arrangement for many employees and a number of employers adopted this new way of working on an ongoing basis. While telecommuting and remote work arrangements don’t work for all types of employers or all employee positions, it is reported that approximately 16% of organizations are now fully remote and approximately 50% allow some extent of remote work opportunities.

While the terms telecommuting and remote work are often used interchangeably, the term telecommuting refers to a work arrangement through which an employee is permitted to perform some work remotely, but still expected to report to or work at the employer’s business location part of the time. In a remote work arrangement, it is expected that essentially all of an employee’s work will be performed outside of the employer’s business location.

The importance of having a written agreement through which employees are provided a clear understanding of what to expect and what is required when working under this type of arrangement should not be overlooked. The terms and conditions under which telecommuting or remote work is available and permitted should be specified and defined in a written agreement.

Research reports provide the following data and conclusions:

• Happy, loyal employees – Up to 74% of employees report being happier working from home and 39% would be willing to resign if they could not work from home.
• Less sick time – When employees have the flexibility to work remotely, they may be less stressed, get sick less often, need less time off and miss fewer days of work.
• More productive employees – Research suggests remote workers are more dedicated and end up working more and being more productive.
• Expanded employee candidate pools – Options for hiring individuals located in distant locations provides employers with greater opportunities for hiring the best employees.
• Good for the environment – By working from home, employees can help reduce harmful emissions and pollution.
• Less congestion on roadways – Fewer vehicles on the road reduces traffic and can help reduce the number of automobile accidents.
• Save money – Employers can save money on rent, utilities, insurance expenses and more. A recent study shows the average business can save more than $10,000 per employee per year. Employees save on transportation costs and expenses.

The Importance of a Properly Drafted Agreement

To help ensure a successful work arrangement, it is essential that a clear understanding of performance, productivity, safety, security and confidentiality standards is communicated and acknowledged. By establishing guidelines, expectations and requirements, a telecommuting or remote work agreement can benefit both the employer and employee. A properly drafted agreement helps prevent misunderstandings, performance issues and employee claims.

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