What Is a Remote Work Agreement?
A remote work agreement is a contract between an employer and an employee who works outside the main business office. It outlines the terms of the remote arrangement, including guidelines on communication, confidentiality, and data security. By setting professional boundaries, the agreement ensures the employee’s compliance with the company’s standard policies. Plus, it establishes performance expectations to help maintain high productivity.
A telecommuting agreement is customizable for each employee to accommodate the company’s needs. The parties can negotiate terms while still being required to adhere to the company-wide remote work policy.
What to Include in a Telecommuting Agreement
A remote work agreement sets up the arrangement for an employee to work somewhere other than the main office. This agreement can let them work from a home office, a coworking space, or from multiple locations. Here are the key elements to include in your telecommuting agreement.
- Company name. List the name of the employer.
- Company representative. Provide the name and title of the person representing the company in the work-from-home agreement. This person is often the head of human resources. They can also be a manager or director of a specific department.
- Employee’s details. Provide the employee’s full name who is entering the virtual work agreement. Remote work agreements are individualized, so it’s essential to indicate the applicable party.
- Requirements to be in the physical office. A telecommuting agreement allows remote work, but the company may still need the employee to come into the primary office at times. Specify what days and times the employee must be present in the main business location. Our hybrid work agreement template clarifies that the remaining time allows for remote work.
- Requirements to attend training events in person. Indicate whether the employee can attend training and company events remotely or must be present in person. This requirement may vary based on the employee’s experience, seniority with the company, and role.
- Time zone basis. List what time zone the employee’s hours should be based on. These hours may vary depending on whom the employee typically collaborates with, including coworkers and clients in different regions.
- Monitoring and privacy. Specify how the employer will track the employee’s work, including through the use of computer monitoring software.
- Security. When an employee uses a personal computer, there may be risks of password and data leaks. Establish that the employer will provide virus protection software and additional encryption methods that comply with the company’s policies.
- Equipment and supplies. Specify whether the employer will provide the equipment necessary for the employee’s job duties.
- Governing law. Specify which state’s laws will oversee this contract. If a dispute arises, the laws of that state will govern it. Employment laws, including those related to wage, hour, and benefit requirements, will apply depending on the state where the employee is working from.
- Agreement date. Write the effective date of the telework agreement. On this date, the employee must adhere to the established rules regarding their remote work schedule and duties.
- Parties’ signatures. The employee and the employer must sign the telecommuting agreement. Their signatures formalize the terms and make the contract legally binding.
Expectations Under a Flexible Work Agreement
Remote employees are held to the same standards as in-office employees. If a remote employee breaches a company policy, you can fill out an employee incident report, just as you would with a traditional employee.
Sample Remote Work Agreement
View our sample remote work agreement to see how to create a flexible work contract that allows for work from different spots. Create yours with our guided form, then download a copy in PDF or Word format. Provide copies to the employee for their reference, and store one in your company’s records as well.
Laws for Expense Reimbursements
Remote employees don’t have access to company equipment in a traditional office setting. They must either get the equipment and services from the company or pay for them themselves.
Record whether the remote employee will be reimbursed for expenses related to business operations, including internet bills, phone bills, and access to company software apps. You must comply with relevant laws.
The Fair Labor Standards Act (FLSA) only requires reimbursement if business expenses would drop an employee’s pay below the minimum wage. Multiple states have stricter requirements you must follow if the employee will perform work from that state:
- California: Must reimburse employees for necessary expenditures, including a “reasonable percentage” of personal cell phone or internet bills if required for work.
- Illinois: Must reimburse employees for all “necessary expenditures or losses” within the scope of employment.
- Iowa: Only requires reimbursement for any expenses specifically authorized by the employer.
- Massachusetts: Must reimburse employees for all unavoidable expenses so that wages do not fall below the state minimum.
- Minnesota: Must reimburse employees for specific costs upon termination of employment.
- Montana: Must reimburse employees for all necessary expenses or losses related to job duties.
- New Hampshire: Must reimburse employees for necessary job-related expenses within 30 days of proof of payment.
- New York: Must reimburse expenses if they have promised to do so in a policy or agreement.
- North Dakota: Must reimburse employees for expenses resulting from job duties or employer direction.
- South Dakota: Must reimburse employees for all necessary expenditures or losses related to job performance.
Research the rules in your area, as there may be local ordinances you’re required to follow.
