Remote Work Policy

With over 32.6 million Americans working remotely, remote work has proven itself to be more than just a passing fad. Companies across the globe are adopting flexible work models, not only to attract top talent and keep employees happy, but also to cut down on carbon emissions from commuting.

Although this model offers a lot of positives for companies, managing a distributed team spread across remote work locations isn’t exactly straightforward. How do you keep everyone on the same page? How do you protect confidential information? That’s where a solid remote work policy – sometimes called a work from home agreement – comes in.

It’s the blueprint that outlines the guidelines and expectations for employees working outside of a traditional office setting. The policy clarifies everything from working hours and communication expectations to data security and the handling of sensitive confidential information. Having a clear policy makes sure everyone knows what’s expected, no matter where they’re working from.

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Do All Remote Companies Need a Remote Work Policy?

With 98% of professionals wanting to work at least part of the time remotely for the rest of their careers, not offering a remote or hybrid model will likely put your company at a disadvantage, if not now, then certainly in the future.  

Even if you have just a few remote employees or operate a hybrid model where staff work from home on some days and in the office on others, having a remote work policy is still crucial.

Here’s why:

• Sets Clear Expectations: A policy sets clear boundaries for employees working remotely around work schedules, availability, communication, and performance expectations.
• Keeps You Legal: Without a proper policy, you risk missing important regulations related to taxes, workers' compensation, and data security, especially for businesses with international teams.
• Protects Your Data: With remote workers accessing systems from home, you need rules to safeguard proprietary information. You can use mandate tools like a virtual private network (VPN) to keep things secure.
• Ensures Fairness: A clear policy levels the playing field, so all remote employees know what’s expected, which can help build trust and encourage teamwork.

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With Playroll’s comprehensive EOR services, your policy becomes a tool to streamline operations and grow confidently, no matter how global your team gets.

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Sample of a Remote Work Policy

Sometimes it’s easier to understand a concept with a practical example. Below is a sample of a remote work policy that you could customize for your own company:

[Your Company Name] Remote Work Policy Overview

• Purpose: This policy outlines the guidelines for employees who are working remotely, helping ensure a productive and secure remote working environment.
• Eligibility: Remote work is available to employees whose roles allow for it. This will depend on individual responsibilities and business needs.
• Work Hours: Employees are expected to work [Standard Hours], with flexibility for time zone differences. Core hours for team collaboration may also be required.
• Communication: Team communication should take place via [Company's preferred communication tools]. Responses should be made within [X] hours during working hours.
• Data Security: Employees are required to use secure networks and VPNs when accessing company data. All sensitive information should be stored on secure, approved platforms.
• Equipment: [Company Name] will provide employees with the necessary tools (laptops, software licenses, etc.). Employees are responsible for maintaining a functional home office setup.
• Performance: Employees will be evaluated based on the same performance metrics as in-office employees. Regular check-ins will be scheduled to ensure that performance stays on track.

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What Should Be Included in a Remote Work Policy?

Creating an effective remote work agreement goes beyond simply setting working hours and communication protocols. It should cover key areas that ensure work is done efficiently, without disruptions, while also safeguarding sensitive company information and protecting against security risks.

Here are the key sections to consider:

1. Eligibility for Remote Work

Not every job can go remote, and not every employee qualifies. Setting clear guidelines ensures everyone knows what’s expected and keeps everything fair across the board.

Who Can Work Remotely?

Clarify which roles are eligible for remote work. For instance, a position that requires in-person collaboration (like a customer service role or a warehouse worker) might not be suitable for remote work. Whereas a role focused on writing or data analysis might be ideal for remote setups.

How to Request Remote Work

Define how employees can apply for remote work. Should they submit a formal request to HR? Does it need manager approval? Will there be a trial period or performance evaluation involved? Make the process clear.

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2. Work Hours and Schedules

Remote work offers flexibility, but that doesn’t mean anything goes when it comes to scheduling. Establishing clear work hours helps keep teams coordinated and productive, even when they’re spread across different time zones.

Standardize Working Hours

Even though remote work offers flexibility, it’s important to set standard working hours (e.g., 9 AM–5 PM). If your team is scattering across different countries, you’ll need to consider how time zones may affect scheduling, and naturally ensure that work schedules accommodate these differences. Clear guidelines on availability will help ensure that your team can collaborate effectively across different regions. Part of making that happen could be setting out overlapping hours if you have teams in different time zones, where everyone is online between certain times of the day.

Flexibility

One of the biggest advantages of remote work is the flexibility it offers employees. Allow them to adjust their hours as needed, but be sure to set core availability times where the team can come together for meetings and collaborate on projects when they need to.

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3. Communication Protocols

With team members working from various locations, it’s important to set up channels that keep everyone in the loop. Clear communication helps maintain a sense of connection and ensures that work flows smoothly without missing a beat. Putting in the work and policies to combat poor communication will also help your company mitigate some of the common downsides of remote work, like isolation and disengagement.

Tools to Use

Specify which communication tools your company uses, whether it's Slack, Zoom, or other platforms. It’s important to set expectations around these tools, including when and how employees should check in.

Response Time Expectations

In these fast-paced environments, you might want to set expectations around response times. For example, asking employees to reply within 2 hours during work hours. This keeps the ball rolling on decisions and ensures that communication doesn’t slow down the momentum, whether your team is across the street or across the globe.

Regular Check-Ins

Whether it’s through daily standups or weekly team meetings, having regular check-ins ensures that everyone remains aligned and engaged. It helps keep your remote workers connected with the team and the business’s objectives.

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4. Performance Expectations

While remote work doesn’t change the need for high performance, it does mean you have to be more intentional about clearly communicating expectations and checking in regularly. When you don’t interact in-person every now and then or at all, it’s easier for tasks to slip through the cracks or for progress to go unnoticed.

Job Responsibilities

Be very clear about job responsibilities, including expectations around work quality, project deadlines, and communication, and make sure you’re regularly checking in to ensure things are on track.

Performance Metrics

Setting up performance metrics, such as KPIs, project deadlines, and feedback from peers, gives both you and your team measurable goals to work toward. Frequent check-ins allow for adjustments and ensure everyone stays aligned and motivated

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5. Technology and Equipment

From providing employees with the necessary tech to offering support for their home office setups, making sure your team is fully equipped is really important when it comes to preventing frustration and keeping your team performing at their best.

Company-Provided Equipment

List the equipment you’ll provide for employees, including laptops, software, or access to a VPN. Make it clear what tools are required for remote work, and clarify who is responsible for maintenance or replacements.

Reimbursement Policies

If employees are expected to buy any tools or equipment (such as office chairs or home office desks), outline your reimbursement policies. If you're offering stipends for internet costs or other work-related expenses, provide details on how employees can submit for reimbursement.

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6. Data Security and Confidentiality

Remote work raises the stakes when it comes to protecting confidential information. You’ll need to set clear guidelines around data security, secure networks, and confidentiality in order to safeguard sensitive information and ensure HR compliance with any and all privacy laws.

Data Protection Guidelines

With remote work comes the increased risk of data breaches. Make sure to include guidelines on using secure networks, VPNs, and encrypted communication. Clearly outline the importance of data security to protect confidential information.

Confidentiality

With employees working from different locations, securing company data is more important than ever. Your policy should lay out clear expectations for using secure networks, VPNs, and encrypted communication when accessing company systems. It’s also key to remind employees to keep proprietary and client data confidential, with clear consequences for any breaches.

After you have put all of these regulations and guidelines in place, you’ll then need to train your team how to meet them!

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7. Legal and Compliance

From a business perspective, legal compliance and data security are arguably the two most important areas to get right when you’re putting your remote work policy together. If not done correctly, both can result in costly recovery exercises for your company.

Legal Considerations

Things can get particularly complicated if you’re hiring remote workers in the U.S. where laws like the Fair Labor Act (FSLA) sets rules for minimum wage, overtime, and record-keeping for remote employees.  

Alternatively if you’re hiring in Europe, the General Data Protection Regulation (GDPR) imposes strict rules on how personal data should be handled, which can affect how you store and process information related to employees or clients.

Your policy will have to be reviewed on a case-by-case basis depending on jurisdiction-specific or local labor laws, especially if you're employing remote workers in multiple countries.

• Tax Implications: Certain regions may require you to withhold and remit taxes differently depending on the employee’s location.
• Workers' Compensation: Some areas mandate that remote workers must be covered by workers' compensation insurance, even if they’re working from home or a non-traditional office space.
• Employment Law: Whether it’s paid time off, family leave, or termination procedures, different regions may have varying labor law standards that you’ll need to follow.

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8. Health and Safety

Wellbeing in a remote setting can be a balancing act for some employees who may overwork themselves or feel isolated from the rest of the team. Encouraging a healthy work-life balance and offering mental health resources will help keep your employees healthy and happy.

Workspace Setup

Employees should set up a safe and ergonomic remote workspace. If your company provides stipends for home office equipment, make sure employees understand what qualifies for reimbursement. It’s important that employees are comfortable and have a safe space to work.

Mental Health Support

Two-thirds of employees find remote work occasionally isolating, with 17% feeling lonely constantly, making it incredibly important that your company conduct regular check-ins, organize an occasional social (in-person or virtual), and provide your employees with mental health resources.

If your organization offers voluntary benefits, access to wellness programs or mental health support as part of the offering can go a long way in supporting your remote teams’ overall well-being.

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9. Compensation and Benefits

Remote employees deserve the same level of compensation and benefits as those in the office, plus a few more specific benefits, some of which are required by law. These can include home office stipends and reimbursements and worker’s compensation.

Fair Compensation

Remote workers should receive the same compensation and benefits as in-office employees, including paid time off (PTO) and health insurance. If your company offers remote-specific benefits, like home office stipends, make sure to outline them clearly.

Adjustments for Remote Work

If remote workers have expenses related to working from home, such as increased internet costs, make sure to specify whether the company will reimburse them for those expenses or not.

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10. Policy Review and Termination

As remote work evolves, so should your policies. Regularly reviewing and updating your remote work policy will keep it relevant and compliant with changing business needs and regulations.

Review Process

As business needs and local laws evolve, your policy should too. Consider reviewing your policy on a regular basis, ideally bi-annually or annually, to keep it up to date.

Termination Conditions

Be clear about the conditions under which a remote work arrangement might be terminated. For example, if an employee fails to meet performance expectations or violates company policies, the remote work arrangement could be adjusted or terminated entirely.