How does working from home change my employment rights?

09 September 2022

Working from home has become steadily more popular over recent years with the digital age making it increasingly achievable. Many companies already have home-working policies in place to help facilitate this. But the sudden and complete shift to homeworking for most of the country in the first half of 2020 has left many employers and employees in unchartered waters.

Now, as companies weigh up the benefits of a long term home-working structure, employees may be wondering how this might affect their employment rights. This article does not seek to be legal advice, but addresses a few of the common questions surrounding home-working employment rights.

Do I need a new employment contract?

Although a change in employment contract for home-working is not a legal requirement it is common practice to do so – especially if an initially short term scenario becomes more permanent. The change in job location will need to be recorded on your new contract, but various other terms may be included to take into account the differences between office working and home-working.

Will my pay change?

Whether or not home-working has an effect on your pay will depend on your employment contract. If you continue on your previous contract despite moving to home-working and if a change in pay is not specified then your employer should not be able to cut your pay without mutual agreement. However, if you are transferred onto a home-working contract, this new contract may include a change in salary.

An employer may opt to pay home-workers a different salary from office based workers, perhaps due to a perceived reduction in effectiveness, inconvenience for the employer, or even to reflect lower costs of living for home-workers outside of prime city locations. So if you are starting a new job in a home-working capacity, your contract may not offer the same terms as other office-based colleagues.

Can my employer force me to return to the office?

Most employees with a minimum of 26 weeks’ of continuous service have a right to request flexible working, including home-working. However, employers are not obliged to agree to this if they have a reasonable cause not to. The accepted grounds for refusal include:

  • Additional costs being incurred
  • Detrimental effect to work quality, performance or the ability to meet customer demand
  • Proposed working hours not being at times when work is available
  • The business is unable to pass on work to other colleagues or hire additional staff to cover the reduction in hours
  • Planned structural changes within the business

Since new regulations have come into place, employers are now required to ensure that any working environment is Covid-secure and cannot force workers to return to work in unsafe working conditions. In the event of subsequent lockdowns where all workers are required to work from home, your employer would need to make allowances for this.

Can my employer ask me to work from home on a self-employed basis?

Changing your working status from a PAYE employee to self-employed worker would essentially be a termination of your employment contract. Therefore your employer would need a legitimate reason for ending your employment, unless it is by mutual agreement.

For some employees, changing to self-employed status may appear attractive for tax or personal reasons. However, if you are still working exclusively for the same employer in the same capacity as an employee, you will almost certainly fall within IR35 regulations. This will mean you must still pay tax and national insurance at the same rate as an employee, without the benefits of an employee such as sick pay or holiday pay.

Is my employer still responsible for my health and safety if I work from home?

Even if you are working from your own home, your employer is still responsible for your health and safety as an employee. The same duty of care applies to all workers, so your employer should carry out a risk assessment to ensure your working environment is not harmful or unsafe. This could include use of display screen equipment, lighting, ventilation and detrimental impacts on your mental health as a lone worker. Be sure to communicate to your employer any issues you are having as they arise, to avoid things getting worse if left unresolved.

Does my employer have to provide me with a desk and computer?

Providing equipment such as a desk or computer is dependent on each employer. Some choose to provide an allowance for homeworkers to buy the equipment they need, whilst others may provide screens or laptops. If the employer does choose to provide equipment, they will need to ensure it is safe and fit for purpose.

Does my employer have to contribute to heating or other costs of working from home?

Your employer is not obliged to pay for the additional costs of home-working, or travel expenses if you have to come into work for a meeting, although some employers may choose to do so. You can, however, claim back some tax relief to cover these costs.

Conversely, your employer is still required to have insurance to cover your home-working.

What about GDPR rules?

If you are dealing with sensitive data from your home computer, it is still your employer’s responsibility to take appropriate steps to protect sensitive data according to GDPR legislation. This includes providing encrypted software and training for staff on how to keep data secure. It is your duty as employee to follow your employers guidelines in how you handle sensitive data at home.


The contents of this article do not constitute legal advice and are provided for general information purposes only.

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