Compliance
Embracing Remote Work - Legal Implications for Employers

The global discourse surrounding remote work has intensified, as a substantial number of employees express a strong preference for continued remote work, while employers grapple with uncertainties about returning to traditional office setups. Notably, some countries are on the verge of enshrining the right to work from home into law.

One such example is the Netherlands, where the Lower House of Parliament passed a resolution in July, awaiting approval from the Senate to make remote work a legal entitlement. Interestingly, the Dutch had a pre-existing inclination towards remote work, with 14% working from home before the pandemic, a figure that has now risen to 22%, according to Eurostat data cited by TOI.

This legislative move comes as many employers face challenges persuading employees to return to the office post the COVID-19 pandemic. If approved, the Netherlands would pioneer the global landscape in making remote work a legal right. Steven Van Weyenberg, a key proponent of the proposal from the D-66 party, remarked, "We have the green light for this new law, thanks to the support we received from both employees and employers' union," according to Bloomberg.

As the debate on remote work intensifies globally, a recent McKinsey survey of 25,000 Americans indicates that 87% would opt for remote or hybrid work if given the choice. This raises the question: Are we approaching a juncture where a universally enforceable legal right to work from home is conceivable, or should employers retain the authority to mandate office presence for tasks that can be performed remotely?


Granting Legal Recognition to the Right to Work from Home


Despite existing opposition to the advantages of remote work, there are compelling reasons for it to be legally recognized as a right.


1. Enhanced Efficiency


Instead of rigidly imposing work hours, employers should allow employees to work when they are most productive, even if it means working outside conventional hours, as long as they meet company obligations.


2. Revolutionary Flexibility for Caregivers


Research by McKinsey highlights that a significant portion of those leaving jobs during the Great Attrition are parents. Remote work provides flexibility for parents and caregivers to manage childcare responsibilities, reducing burnout.


3. Achieving Work-Life Balance


Working from home enables employees to stay connected to their local community and spend quality time with family. If location doesn't impact job performance, employers should reconsider having a say in employees' residential choices.


4. Cost Effectiveness


Remote work results in cost savings for employees, eliminating expenses related to commuting, car maintenance, wardrobes, and outside meals. This creates a mutually beneficial situation for both employers and employees.

Navigatin

g Legal Challenges Associated with Remote Work: Insights for Employers


The adoption of remote work policies brings forth various legal and compliance considerations for employers. As more countries contemplate making remote work a legal right, employers must be aware of the complexities involved:


1. Corporate Taxation


Employers may face additional tax obligations based on the remote work location of employees.


2. Discrimination Lawsuits


Failure to provide equal access to remote work may lead to workplace discrimination lawsuits.


3. Ergonomic Compliance, Health, and Safety


Employers are obligated to conduct workplace assessments for remote employees to ensure a healthy and safe working environment.


4. Compensation and Benefits


Determining suitable salaries and benefits for remote employees can pose challenges.


5. Mobility Concerns


Employees moving to different countries while working remotely may encounter immigration issues without proper remote work visas.


6. Employee Classification


Employers must navigate different legislations and rules to correctly classify globally dispersed employees.

Employers should designate a fixed work location for remote employees, even though they work from home. Written employment documentation should specify the employee's place of employment, and employers could be held accountable for mishaps during remote work.


Efficiently Building and Sustaining a Remote Team within Legal Frameworks


To seamlessly build and sustain a remote team while adhering to legal considerations, employers should:

  • Clearly communicate the remote work model, specifying time zones and jurisdictions, when hiring for remote roles.
  • Exercise caution in describing the remote work model in written documentation.
  • Consult with an Employer of Record (EOR) to understand legal implications and ensure compliance.


Nurturing the Remote Work Revolution


While some professions may not be conducive to remote work, the momentum of the remote work revolution is undeniable, justifying its recognition as a legal right. Employers should proactively assess the impact of remote work arrangements on their business and address challenges, whether related to contributing to home costs or providing equipment.

From a policy standpoint, organizations should adapt to the evolving landscape by removing prerequisites related to minimum service qualification for remote work requests. Marcel Molenaar, Country Manager at LinkedIn for the Netherlands, Belgium, and Luxembourg, emphasizes the need for employers to evaluate remote work permissibility while fostering a supportive organizational culture.

In conclusion, the question of whether work from home should be a recognized legal right gains traction. As the corporate culture evolves, embracing remote work as a legal right seems to be a logical progression.