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Page updated:
13 September 2000

Teleworking/Telecommuting: Contracts of Employment

Teleworking/Telecommuting: Contracts of Employment

These are provided for illustration only, not as models to be followed. Its important that a particular teleworking arrangement reflects the local ethos and environment of the company concerned. However, looking at these examples will provide employers, teleworkers and unions with a wide variety of perspectives and good ideas about what to include and what to leave out when making a contract of employment for teleworking/telecommuting.

Some aspects are controversial. For example some of these contracts stipulate that a company representative will conduct a survey of the employee's proposed "home office" to ensure that it meets required health and safety, security and other standards. In some countries and industry sectors this is regarded as quite normal, in others it would be regarded as an invasion of privilege. However, to give an example of how a good contract can address such issues, the contract might alternatively stipulate that when working at home the employee not the employer is responsible for safe working environment and practice. In this case the company would probably wish to provide clear guidance on safe and unsafe practice, and perhaps some training. Making the employee responsible for their own environment and practices within their own home appears to be common sense; whether such a contract clause is legitimate would depend on employment law in the country concerned. Much of our employment law has been framed in the context of a factory, where the employer controls the environment; it takes little account of the idea that the employee may effectively control the situation, for example at home or when driving on business but in the employee's own car.

Here are the example, culled from work by the MIRTI project:

British Gas (UK)

Teleworking (home based working) agreement for field engineers, representatives and managers. It includes a statement that "regular health and safety checks will be undertaken by management and by accredited health and safety representatives ".

Cooperative Bank (UK)

Teleworking contract agreed with the Banking and Finance Union. It includes an adjustment to tax arrangements to make allowance for "reasonable household expenses".

Deutsche Telekom (Germany)

Agreement on alternating home-work (partly at home, partly at an office) negotiated with Deutsche Postgewerkschaft (DPG, German Post Union). "The domestic working place has to be located in a room within the employee's home (no garage, no basement)". The equipment (provided by the company) cannot be used for private (non work) use. Teleworking "can be terminated by both parties without the need of mentioning any reasons" [Note: we think this means unilaterally, by either party. This is a contract term generally required by German unions].

IBM Germany

Agreement with the works committee. Participation is voluntary. All work time must be recorded by the employee. Costs are reimbursed at an agreed monthly flat rate. Three months notice by either party to end the teleworking.

Lufthansa (Germany)

An agreement used as part of experimental testing of telework. Distribution of time between home and office is mutually agreed by the employee and immediate manager.

Siemens-Nixdorf (Sweden)

Employee tasks must be carefully specified "in order to avoid any doubts about what to do, when the result should be presented, or expected quality of the work". Employee should spend at least one day a week at the conventional workplace. In addition to technology, the company will provide "a desk or a PC table, a chair and lamp, in order to achieve a working environment as acceptable as in the normal working-place"

TCO Union (Sweden) (proposed model for company agreements)

teleworking should be voluntary. "The extent of tele-commuting shall be such that it does not impede the employee's social contacts with colleagues nor his/her competence and career development". For employees who get reimbursed for business travel, the home is the start point on days when telecommuting, the office is the start point when based in the office. "Compensation for telephone costs, electricity consumption, cleaning of the work space and other expenses". [Note: In some agreements the cost of cleaning is specifically excluded from compensation]. "The employer shall remain responsible for providing the tele-commuter with a safe work environment."

Telstra (Australia)

Agreement with the Communication Workers Union of Australia, with some characteristics that suggest deeper thinking than most such agreements. "Teleworking is not an entitlement or a right nor an obligation and may only be entered into by agreement between Telstra and an employee.". . . "Where a teleworking arrangement is proposed by an employee, Telstra, has the right to refuse to consent to the arrangement. similarly where a teleworking arrangement is proposed by Telstra the employee can withhold his or her agreement." This agreement describes types of work that are suitable for teleworking, for example: "work which involves a high degree of face-to-face interaction, such as work which involves supervisory or tranning responsibilities or team based work which requires constant contact with other members of staff or customers is not appropriate." . . . "[not] less than an average of five working days in twenty working days will be worked by the employee in the primary office to perform general activities." . . . "Employees will undertake in paid work time appropriate work related training and staff development to keep them up to date with changes to work design and organisation or technical development in their Field of employment. This training should not be undertaken at the employee' s home-based office other than for specific/specialised on-the-job training." Teleworking "is not a substitute for child care or any other form of dependant care . . . Employees are responsible for ensuring that appropriate child care or dependant care arrangements are in place whilst engaged in teleworking." . . . "The parties agree that management has a right of access to an employee to discuss work related issues with the employee. It is a pre-condition of moving to teleworking arrangements that the employee agrees to management having right of access to the employee at the home-based office." [Note: The agreement stipulates at least one day's notice of such a visit and that the employee may require to have a third person present during such meetings.]