Homeworking: the dangers of a blanket ‘return to the office’ policy
The shift towards remote work has been one of the most significant workplace changes in recent years and recently, the topic has been back in the headlines with several high-profile companies now requiring employees to return to the office. Many employers have now reviewed their own work arrangements to check that they’re still meeting the needs of their business. So, we’re here to explore the advantages and disadvantages of remote work and the potential pitfalls and legal risks of imposing a blanket policy in this area.
Homeworking can bring many benefits to both businesses and employees, for example:
Attracting and retaining talent
Finding the right talent for your business is one of the key challenges for employers, and remote working means you can recruit more widely rather than being limited to a specific geographic area. This can be particularly beneficial for small businesses struggling to find skilled workers locally. Recruitment agencies consistently report that flexible working arrangements are one of the top priorities for candidates and this can help with employee retention.
Improved employee wellbeing
Employee wellbeing continues to be a concern for employers with the Health and Safety Executive data showing that in 2023, 17.1 million working days were lost due to work-related stress, depression or anxiety. Homeworking arrangements can contribute to better work-life balance, which can lead to increased job satisfaction, lower stress levels, and improved mental health – and happier employees are often more engaged and productive.
Reduced absence levels
Employees who have the option to work from home are less likely to take sick days, as they can continue working even if they are feeling slightly unwell but still capable of performing their duties.
Increased productivity
Many employees report being more productive when working from home due to fewer distractions and reduced commuting time.
Cost savings
Businesses can significantly cut costs on office space, utilities, and other overhead expenses when employees work remotely.
However, despite these benefits, many employers are increasingly concerned at the downsides to homeworking. These could include:
Reduced collaboration between colleagues
The sparking of ideas and team bonding which come from working alongside colleagues is more difficult to achieve when teams are working remotely, and creativity and problem-solving can sometimes suffer as a result.
Learning and development
Working alongside colleagues provides learning opportunities which you might struggle to replicate when teams are working remotely. This can be particularly impactful for employees who have recently joined the business.
Impact on employee engagement
Remote working can pose challenges to keeping up high levels of engagement as employees could feel disconnected from their colleagues and the business.
IT and security challenges
Working from home raises IT security challenges, leaving businesses exposed to cyber threats and potential GDPR data risks. Remote work needs robust IT infrastructure and security measures and small businesses may struggle to put systems in place to manage these risks.
Employers who are struggling with some of these challenges may be tempted to bring an end to home working arrangements but in doing so, could expose their business to several serious risks:
Legal risks
There are many potential legal risks involved in bringing homeworking arrangements to an end without the contractual right to do so. Firstly, the place where an employee can be required to work should be set out in their contract of employment and if this states that the employee works from home, then requiring them to work elsewhere would involve a change to their terms and conditions – this would need consultation and the employee to agree to the change. If 20 or more employees are involved, a collective consultation process would be required.
If employees refuse to consent, you could potentially dismiss and offer to re-engage on the new terms, but this would risk unfair dismissal claims, and you’ll also need to comply with the Statutory Code on Dismissal and Re-engagement.
Employers should also be mindful that even if the contract of employment says that the employee is office based, if this has been superseded by a subsequent agreement that they can work from home, this would still potentially involve a change in terms.
Discrimination claims
Requiring employees to return to the office could give rise to discrimination claims if it would have a greater impact on an employee because of their childcare arrangements or long-term health conditions.
Often employers will fall into the trap of thinking that applying the same rules to everyone, regardless of personal circumstances, is the fairest approach – however, tribunals would expect you to consider an individual’s specific circumstances.
In all cases it’s important for you to have a clear business rationale as to why a change is necessary, communicate this to employees, carry out meaningful consultation and consider the needs of individuals in each case.
Reduction in retention and difficulties in recruitment
Given the value employees often place on flexibility, bringing an end to homeworking arrangements could lead employees to vote with their feet and leave the business to join employers with a more flexible approach. A lack of flexibility could also create barriers to recruiting new talent.
Detrimental impact on employee engagement and wellbeing
Even where employees don’t leave, forcing them back to the office can have a significant effect on their engagement and wellbeing which in turn can lead to multiple issues such as lower productivity and morale and higher levels of sickness absence.
If current work arrangements are causing problems in your business, it’s important to take advice on the best way to tackle this without leaving your business exposed to legal risks. An open, collaborative approach which takes into account both the needs of the business and employee preferences is likely to deliver the best outcomes.
