As an employer, you are responsible for your staff, so changes in the place of work must be given due consideration. Can we sack them? In places like London where office space is at a premium, many businesses are opting for hot desking and getting rid of permanent desks altogether. Major City bank BNY Mellon came under fire from employees recently after announcing that it was ending its work from home scheme. You can carry this out yourself, but the responsibility remains with the employer. If you are considering setting up a home office, then it should be both functional and comfortable. What are the legal implications, if we ask current employees to work from home on a self-employed basis? Outline the things your employee can and cannot claim for in their contract. Working from home Planning Permission. You may need to install, maintain or service company equipment, or retrieve it on termination. You should also include a provision that homeworking is subject to change if the employee moves house. Most homeworking employees move data (or devices that can access that data) into public spaces. If you are implementing homeworking, you need to review performance and quality policies. Employers should talk to their employees and any representatives about who will cover any extra costs employees might have when working from home. Homeworking might not be a good fit for you or your employee. We want some employees to work from home, but one is refusing. It is up to you as employer to decide where the work shall be performed. PagoFX is the reliable way to transfer business money overseas. 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. To find out more, see our FAQs. 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 … Typically, a disabled worker would not be able to claim a home office deduction because the arrangement benefits the worker, not necessarily the employer. This can affect morale and company culture. 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. Almost all employees with at least 26 weeks' service have the right to ask for flexible working which can include working from home. 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). 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. A detrimental effect on the ability to meet customer demand. Almost all employees with at least 26 weeks' service have the right to ask for flexible working which can include working from home. 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. You could put an appropriate term in their contract of employment, expressly forbidding such activities. 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). One option I have is clerical but another is more manual (fashion construction). Relevance. 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. There are several pieces of legislation that apply to farm shops. Of the acceptable reasons for dismissal (conduct, capability or qualifications, illegality, redundancy, or 'some other substantial reason'), most are inappropriate if you wish to continue to use these people on a self-employed basis. Do home workers have to be permitted breaks after six hours, like people who work on our premises? Next Building Regulations; Advertisement. You still deduct income tax and national insurance contributions as normal. 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. If we employ people to work from home on a freelance basis, are we likely to find ourselves paying their tax and NI? The employee is responsible for resolving any home-related issues highlighted in the assessment. Being able to work at home isn’t just handy for employees. Those not normally entitled to SSP (such as the self-employed) will receive Employment and Support Allowance. If a link has a * this means it is an affiliate link. 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. Apart from the change in their place of work, their terms and conditions will, in most cases, remain the same. However, it may pay you to leave the option open indefinitely if you can. You must write, giving details of the outcome of the appeal, within 14 days of this meeting. 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. Stay compliant by setting clear boundaries and responsibilities for all parties. Many breaches have occurred from documents being left on trains, USB sticks falling out of pockets, or laptops being stolen. 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. 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) In certain circumstances, payments by employers to reimburse employees for reasonable costs incurred as a result of homeworking can be tax-exempt. There is no legal obligation on you to keep the option open. If we buy and install the equipment at a home worker's home, whose insurance covers it? Homeworking is on the rise. Insufficient work at the times when the employee proposes to work. If you cannot offer them the option to come back to work, they may decide to work elsewhere. 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. 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. Make sure they have a password in place to limit access. In theory such payments are taxable, and they will have to be declared. Get our essential newsletters for small and growing businesses. You must consider requests in a reasonable manner. If we ask some people to work from home, do we have to offer them a new employment contract? But even in the absence of such a term, all contracts contain implied terms - terms which may not be spelt out, but which are nonetheless binding. Letting employees work from home reduces your overheads and frees up office space. A right to enter will also allow you to carry out risk assessments for health and safety purposes. You are not at present obliged to consider home working for other employees, but it might make sense to do so, particularly if there are good reasons for the request (such as care of elderly dependants). We use cookies to give you the best online experience. This includes changes to employment contracts, setting policies for health and safety, data security, tax, public liability and making sure you’re meeting the training and development needs of your staff. 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. There’s now even a National Work from Home Day – it’s next Friday, May 16. 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. 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. Click "Unsubscribe" in any email to opt out. You need to be able to show that you have discharged your duty of care. Find out more about our services and software or speak to a member of our team, Company Registration Numbers: Payroll Services 09855245 - HR & Payroll Software 09811970. This usually means providing a phone and computer. One of our employees has asked to work at home, but we object. About Planning Portal adverts. This may give rise to a capital gains tax (CGT) liability, but in many cases this can be offset by the annual CGT exemption. Accept & Continue. Some employees who work from home can claim tax deductions related to their home workspace. 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. Working From Home Can Result in Tax Deductions. Are we responsible for data kept at a worker's home, or accessible on a home worker's computer? With a few exceptions, an employer can set any work requirements. You should at the least get them to do time sheets - which are checked - and look out for obvious signs of an inability to switch off (such as emails sent out in the middle of the night). Normally, time spent by an employee travelling to their place of work would not count as “working time” under the Working Time Regulations 1998. Yes. To be eligible, the employee must be working under homeworking arrangements. Under the Working Time Regulations 1998, time spent travelling to work does not count as “working time”. There is no legal obligation on an employer to provide the equipment for homeworking. Alternatively, employees can choose to seek tax relief arrangements. 4.1 Working from home arrangements require a high degree of trust, together with open and honest communication. A guide to business insurance for start ups, Risks that are endangering your business (and how to manage them), 250,000 small firms plan to close their doors. Yes. Hairdressers Working from Home … Also, include in the contract terms that allow you to provide them with any security equipment you deem necessary (shredders, CCTV, filing cabinets etc.). Employers have no general right to require this. You will probably have to rely on 'some other substantial reason'. Someone who has been working from home is refusing to accept promotion because it means coming back into the office. By using our site you agree to the use of cookies. Letting employees work from home reduces your overheads and frees up office space. Telephone: 0117 407 0227 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. Failure to do so can result in discrimination allegations and breach of contract. 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. Yes, if the contract of employment permits you to do so, or you reach agreement with the employees concerned. If the employee will be using their own computer equipment, agree on whether or not you will pay for maintenance, repairs and software updates. No commute also means a lower overall carbon footprint for your business. Are coming but are businesses ready an appropriate term in their contract that your staff, so changes in assessment! House their office and the home worker 's home, but we object comes to,... Retrieve it on termination any home-related issues highlighted in the place of,. 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