Ask an Expert: How SMEs Can Write a Work From Home Policy

Corporations the world over are grappling with creating hybrid working policies that suit both employers and employees. But this is an issue for small businesses, too. Whether it’s for flexible, fully remote or hybrid arrangements that combine ‘work from anywhere’ with office hours, SMEs (small-to-medium enterprises) also need to consider how to create a Work From Home (WFH) policy that suits them and their teams.

“It doesn’t have to be a 20-page document,” says Workplace Partners CEO Arvin Bisbal (above), who has helped more than 500 SMEs manage human resources, industrial relations and health and safety. "Whatever arrangement you adopt, the main thing to consider is what the model will look like for your business, team and clients, and have something properly recorded so employer and employee are clear on their rights and obligations.”

Here, Arvin explains why setting up a WFH policy is a smart move, and answers your burning questions about ‘working from anywhere’ policies for small and medium-sized businesses.

Why Have a Formal WFH Policy?

A Work From Home policy sets out the ground rules and expectations for both the employer and employee, so there is less scope for misunderstandings later. WFH might not be appropriate for all positions, so the policy sets out some of the reasonable business grounds when considering a request.

What Needs to Be in the Policy?

Any wording should be clearly defined. If you use the term ‘workspace’, explain what a good workstation setup looks like: desk, suitable chair, computers, lighting. Also, who is eligible for Work From Home requests or arrangements? Will approval be granted as a regular arrangement or on an ad hoc basis? Does it include partly working at the employer’s site or is the arrangement fully remote?

I strongly recommend there’s a written agreement, especially if employers are testing the waters. Have an agreement in place that says: okay, this is a six-month trial, and if everything goes well, we'll continue. If not, it’s back to the office.

Is Flexible Working Different From Remote Work or WFH?

Flexible work arrangements and working from home arrangements are two separate things, but there’s crossover. Under the Fair Work Act and some awards, qualifying Australian employees can request flexible working arrangements for changes to their days, hours or location of work, which includes working from home. But outside of those legal obligations, employers and employees can also come to a mutual arrangement, and that would be where a dedicated Work From Home policy comes in.

Should Employees Co-Write the WFH Policy?

Any policy should ideally involve some level of consultation. The employer might initially draft the ideal policy arrangement, but it's important to consult with employees before implementing any major change in the workplace.

How Do I Distribute the Policy?

It should be a live document that's constantly reviewed and updated as necessary and located centrally so employees can access it at any time. It’s critical employees read and understand it and that they respond by saying they've read and understood it.

What Can a Small Business Learn From Other Companies?

Workplace Partners CEO Arvin Bisbal says technology is key to managing remote workers.

The key is using technologies so no one feels disengaged. I particularly like [fully remote software company] Hotjar’s approach. They have a short “core hours” window where everyone must be available; the employees have flexibility but know when they can communicate with each other and align their work.

What Are the Benefits of Remote Work?

Employees with remote jobs work their own schedule, within a reasonable agreement, which makes them productive. An employer can tap into a larger talent pool, even globally. Communication can be streamlined through technology; projects and tasks can be managed and tracked on one channel in one location with platforms such as Microsoft Teams, Trello or Monday.

What Are the Risks of Working From Home?

An employer has a duty of care beyond the actual physical worksite; it extends to Work From Home arrangements. The employer could be liable if an employee suffers an injury or illness that's directly related to their employment, especially if the employer hasn't done their due diligence and safety assessments beforehand.

If it's not possible to do so physically, get employees to do virtual walkthroughs with a safety-inspection checklist. It's important to question things and address potential issues immediately – fix the home office chair that’s not ergonomic – ideally before the remote working arrangement starts. And keep in mind that a bathroom or kitchen could also fall within the workspace. Safe Work Australia has lots of resources around safety checks.

What Do I Provide Employees in a WFH Arrangement?

The business owner needs to provide the tools and equipment the employee needs to safely do their work: this may include desktop or laptop; connection with the appropriate software and IT support; printer-copier-scanner, if required, and office supplies; safety equipment such as a fire extinguisher and first aid kit; office furniture and a lockable filing cabinet if there’ll be confidential files.

What To Try

What if the Employee Chooses to Do Their Work in a Cafe?

The employer has a duty of care if they've allowed remote working. You need to establish what is a safe, ergonomically suitable workspace and give the employee tools to conduct a self-assessment.

Hot Tip: Learn more about your legal responsibilities as a business owner to manage health and safety in the workplace.

What Are My Obligations Regarding Employees’ Mental Health?

Regular communication is important for employees’ mental health when remote working.

Employers need to seriously consider workloads and isolation, especially extended periods of isolation. In WHS (Work Health and Safety) legislation, an employer must do all that is “reasonably practicable” to ensure the health and safety of their workers, both physically and psychologically. Communication should be regular and timely. Employers need to create opportunities for social interaction and make sure channels are open so employees can communicate with each other and especially with management.

Will Employees Work as Hard if They're Working From Home?

You can't monitor every minute of an employee's work hours but you are likely monitoring output. It's hard to fake productivity. A person either achieves targets or they don’t.

Should the Policy Include Rules That Aren’t Task-Related?

It's best practice to include guidelines on expectations around time recording, dress code and video meeting etiquette. Workplace Partners provides a free agreement, which allows employers to confirm the arrangement, end date, hours of work, when employees will be on site, when they can work from home, their location and what equipment will or will not be provided.

Can I Allow Some People to Work Remotely and Not Others?

Workplace Partners CEO Arvin Bisbal says a WFH policy should include eligibility criteria.

Working from home is not an employee entitlement. This is where a WFH policy becomes relevant as it provides eligibility criteria. If someone is new, or a junior, the employer may wish for them to be on site. It would also not be unreasonable for an employer to refuse a WFH request from an underperforming employee who’s being performance-managed.

However, if the employee believes working from home will allow them to perform better, the employer may want to approve a two- to four-week trial with expectations set out.

Do I Pay Wages According to Where Staff Live?

An employer can determine what wage they wish to pay as long as it doesn’t fall below the relevant industrial instruments. But it is always better to consider the market and the right rate to attract the best people for your business. Paying a lower wage may not be the right strategy.

Will Staff Leave if I Don't Provide WFH Opportunities?

Surveys show most employees prefer a working from home or hybrid arrangement. You could absolutely lose talent if you're not flexible on this.

This is general information only and does not constitute financial or legal advice. Other requirements under the law apply. Seek professional financial and/or legal advice to determine the right outcomes for your business.