Home Alone

Homeworking allows highly skilled employees in the business and leisure sector who have taken a career break, particularly women to return to the workplace.  Getting back on the traditional career path is not always easy given child care requirements.  Whilst employees with young children can apply for “flexible working”, and employers must consider any request - which could include a request to work from home, there is no obligation on the employer to do this.  Modern technology, more than any other development has allowed some business sectors to recruit a skilled workforce from those willing to work based at home, which better fits their childcare and other domestic arrangements.  The latest national statistics indicate that 10% of the working population in London and the South East work mainly from home.  62% of self employed people are homeworkers.  A total of 3.1 million workers are involved. 

There are clearly benefits, and drawbacks to homeworking.  Responsible employers will prefer to avoid “self employed” homeworker status.  There are important considerations to ensure equal employee rights, adequate health and safety and the protection of client’s data and confidential information for those working from home.

The Contract of Employment for Homeworkers

Particular considerations are:

• Place of Work - if the employer wants the home worker to attend the office or meetings from time to time then a specific clause should be put in the contract to ensure this can happen.
• Hours of Work - this is particularly crucial, as there may be no means of monitoring the homeworker’s availability.  The contract should make it clear that homeworkers are responsible for regulating their own time at work, taking breaks where appropriate and specifying times when the homeworker will be available.
• Salary and benefits  - particularly as the majority of homeworkers will be women, employers have to take considerable care in ensuring that salary and benefits are the same as other employees.
• Voluntary Framework Agreement on telework - this was produced by the European Social Partners and proposes that regular home working should require the employer to cover all direct costs, particularly those related to communications.
• Absence through illness and holidays - the entitlement should be the same as for office based workers.
• Confidentiality and data protection - the home working environment may be less secure than the office and particular care needs to be taken to ensure that there is an express confidentiality clause and employers should consider who might have access to the employees computer, whether their home might be left unattended, the confidentiality of passwords, how paper documents are stored and kept locked up and adequate insurance to cover loss of data.
• Right to enter the homeworkers home - this is important to maintain any equipment installed, and to recover it and data and confidential information when the relationship terminates. 
• Provision of equipment - the employer will want to be able to install, maintain and recover any equipment provided, together with all appropriate software and data.  It will be particularly important to ensure the integrity of IT systems installed that it is only used for business and kept virus free.
• Discipline and grievance procedures - these should be the same as for normal employees.

The Health and Safety legislation requires the employer to be responsible for its employees welfare, health and safety “so far as is reasonably practicable”.  Employers must conduct a suitable risk assessment of all work activities.  Some particular problems with homeworkers have been the increased risk of stress arising from isolation and managing work and home life in the same location.  The employer needs to consider the safety of the equipment  suitable lighting and that electrical points are safe.  First Aid provisions and accidents at home should be considered with proper accident reporting procedures. 

Tax Breaks

An employed homeworker can claim certain household expenses and travel costs against his taxable income.  This would include the additional costs of lighting, heating, the cost of business telephone calls, business internet connection and broadband, and additional water rates. 

Self Employed Home Workers

Many “self employed” arrangements may well in fact be contracts of employment, particularly where there is an obligation on the employer to provide work, an obligation on the homeworker to work himself for payment,  and where there is a right of control over the work and how it is carried out.  Major difficulties can be experienced with tax and employee rights where employment is dressed up as something else.

Homeworking should be a win/win situation.  Employees can work through the problems of early parenting, keep up to date with their careers and be much better placed to return to full time employment.  For the employer, it can retain its quality staff with reduced overheads and need for office space.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. Piper Smith Watton cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.