Home Working: Employer Duties & Best Practice (England)

Home working has truly become part of the new normal for businesses across England. Whether you’re leading a growing startup or running an established small business, chances are you’ve had to support employees who split their time between home and the workplace – or who now work from home full-time.

But even when your team is spread out across kitchens, living rooms and spare bedrooms, your legal duties as an employer remain just as important as ever. That means getting the formalities right, updating policies, and making sure everyone – whether at home or in the office – is kept safe, supported, and treated fairly.

Failing to keep up with legal requirements can leave your business vulnerable to claims, disputes, or even fines from regulators. So, how can you make sure your remote work arrangements are compliant, fair, and set up for success? Read on for our complete guide to home working employer duties and best practice in England.

Why Is Home Working a Legal Issue for Employers?

During lockdowns, many businesses had to transition to home working at short notice. But now, remote work has stuck around – and what started as a temporary solution has become a permanent arrangement for many companies.

That’s why it’s crucial to remember: Employing home workers isn’t just about sending people home with a laptop. It triggers a range of legal and HR obligations, touching everything from employment contracts and health and safety rules to reporting expenses and preventing discrimination.

Let’s break down the main areas you need to cover when staff work from home in England.

Do I Need To Update Employment Contracts for Home Working?

It’s vital to review employment contracts when someone’s usual workplace shifts to their home (in England or elsewhere). Why? Because contracts often contain clauses about the employee’s normal place of work, working hours, supervision, and more.

• Place of Work: Many contracts will specify the company’s office or premises as the normal work location. If an employee moves to permanent or regular home working, you may need to formally amend their contract or issue a side letter confirming the new arrangement.
• Hours & Flexibility: If working from home changes an employee’s core hours (e.g. allowing compressed or flexible time), these should be written into the contract or agreed separately in writing.
• Supervision & Monitoring: Make sure your contract or home working policy sets out how performance, communication and supervision will work in a home working England scenario.

It’s not always necessary to rewrite the entire contract. However, any arrangement for regular home working should be properly documented, even if only by a formal letter or agreement. This helps avoid disputes down the line.

Want a quick guide to the process? Check out our step-by-step on how to make contract amendments the right way.

What Are My Health and Safety Duties for Home Workers?

One of the most common myths about home working in England is that employers are off the hook for health and safety if staff are out of sight. This isn’t true! Your responsibilities to keep employees safe, well, and protected from harm are just as important wherever they’re working – including their home.

The UK’s Health and Safety at Work etc. Act 1974 makes it clear: it’s an employer’s legal duty to “ensure, so far as is reasonably practicable, the health, safety and welfare at work of all employees.” This applies equally to home as well as traditional workplaces.

For home workers, that means you need to:

• Carry Out Risk Assessments: Identify any risks in the home work environment (e.g. poor ergonomic set-up, electrical safety, fire hazards, stress from isolation).
• Provide Suitable Equipment: Supply safe, appropriate office furniture or IT (like chairs, monitors, secure laptops) – and maintain it.
• Check Mental Health & Wellbeing: Support staff’s mental health; regular check-ins are essential, and so is clear communication of support resources.
• Respond to Staff Needs: Employees have a duty to communicate if there are risks or issues. This includes physical health (e.g. back pain from a poor chair) and mental health (e.g. anxiety, isolation). If someone flags a problem or requests adjustments (especially for disabilities or caring responsibilities), you should respond promptly and reasonably.

Our detailed guide to legal issues when working from home breaks down the key H&S steps to take.

What About Accidents at Home?

If an employee is injured while working from home (for example, tripping over work equipment), this can count as a workplace injury. Reporting procedures and appropriate insurance must still be in place.

Failing to take reasonable steps around health and safety for remote staff can expose your business to claims or enforcement from the HSE (Health and Safety Executive).

Do I Need a Homeworking Policy?

We strongly recommend that every employer adopting home working in England puts in place a clear, written homeworking policy.

This isn’t just good HR sense – it’s best legal practice. A well-drafted homeworking policy:

• Clarifies when and how employees can work from home
• Sets out what equipment or expenses the company will provide (or reimburse)
• Explains lines of communication, reporting, and performance management
• Reminds everyone about expectations and responsibilities for data security, confidentiality and use of company property
• Helps prevent accusations of unfairness or discrimination, especially if not all employees can (or want to) work from home

This policy should work alongside (not replace) staff contracts, health & safety guidance, and your core HR handbook. For more on structuring workplace guidance documents, see our article: Workplace Policy vs Staff Handbook – What’s the Difference?

Do Employers Have to Provide Equipment and Cover Expenses?

Many employees assume all expenses for home working (like broadband, electricity, heating, or office chairs) must be paid by the employer. In reality, there’s no blanket legal requirement to cover all costs – but your duty of care means you must provide what’s reasonably necessary for the person’s role.

At minimum, this usually means:

• Safe and ergonomic equipment for the job (chair, desk, monitor, etc.)
• Any specialist kit (for disabilities or health conditions)
• Secure and maintained IT (e.g. laptop, headset, secure VPNs, software)

If you agree to cover extra home costs, make sure this is clearly written in the employment contract or homeworking policy. You’ll also need to deal with tax and National Insurance implications – more on that below.

What Are My Tax and National Insurance Duties Around Home Working?

When you provide equipment, reimburse expenses, or make payments for home working, there are specific rules about what is (and isn’t) taxable for employees and what you must report to HMRC.

Key points for employers include:

• Providing equipment for business use (e.g. a laptop or desk) is usually not a taxable benefit, provided any personal use is insignificant.
• Direct cash payments or expense allowances (for heating, internet, etc.) may need to be reported via P11D and can attract income tax or National Insurance (see our VAT in the UK guide).
• Employees working at home can claim a flat-rate allowance from HMRC to cover additional household costs – but only in certain situations and provided they have to work from home.

It’s smart to get bespoke guidance from an accountant or legal adviser to ensure full HMRC compliance, particularly for long-term, large-scale remote working arrangements. For more advice, our article Comply With Business Regulations has the basics covered.

How Can I Prevent Discrimination and Ensure Fairness?

One of the biggest risks around long-term home working is creating (even unintentionally) a “two-tier” workforce – with some staff getting more support, career opportunities, or inclusion than others simply due to where they work.

UK employment law (primarily the Equality Act 2010) makes it unlawful to treat employees less favourably because of protected characteristics (such as disability, sex, age, or caring responsibilities). It also requires you to make reasonable adjustments for disabled employees, which can include specific IT or home working arrangements.

• Promote Equal Opportunities: Ensure remote staff have the same access to training, promotion, support, and team meetings as office-based colleagues.
• Prevent Loneliness & Isolation: Regular “check-ins”, team calls and clear communication lines help make home and workplace staff feel equally valued.
• Monitor Performance Fairly: Avoid assumptions (good or bad) based on where someone works. Make sure performance management remains objective and evidence-based.
• Care For Parents & Carers: Be flexible and consistent when responding to employees’ requests for flexible or altered working arrangements owing to family or caring needs. Keep in mind the right to request flexible work under UK law.

Create a culture of fairness by setting clear rules and making sure your homeworking policy is accessible to all staff – for more on inclusivity and disputes, see our guide to unfair dismissal.

How Should I Document and Communicate Home Working Arrangements?

Clarity and documentation are essential, even if you don’t formally rewrite employment contracts. For the sake of transparency and legal protection, always:

• Record the key terms of any home working set-up in writing (including any trial periods or review dates)
• Document the risk assessment and any health and safety equipment provided
• Confirm performance, supervision and reporting lines in writing
• Keep all relevant records of policy updates, health and safety checks, expenses and tax arrangements

This isn’t about creating paperwork for the sake of it; it’s about keeping everyone on the same page and heading off confusion or future disputes. For more guidance, check our rundown on employer documentation best practice.

Does Data Protection Still Apply If Staff Work From Home?

Absolutely. If your employees handle sensitive data, customer information or business files at home, you remain fully responsible for compliance with the General Data Protection Regulation (GDPR) and the Data Protection Act 2018.

This means you must:

• Ensure home workers understand data security requirements and use secure systems (e.g. password protection, encrypted emails, secure storage and disposal of files)
• Provide training and clear guidance on handling confidential information at home
• Be able to detect and respond to data breaches, wherever the employee was working

For a practical checklist, see our guide on quick tips for GDPR compliance and how to respond to data breaches in remote teams.

What Else Should I Consider When Managing Home Working?

Beyond the legal must-dos, it pays to keep an eye on a few other best practice areas:

• Insurance: Check that your employer’s liability and business insurance policies still cover employees working from home (and their work equipment).
• Confidentiality: Remind staff to keep confidential info secure – for example, not discussing sensitive business matters in shared households or public spaces.
• Home Working Abroad: If employees request to work from another country, additional legal, tax and immigration complications will apply. Always take specific advice.
• Avoiding Presenteeism: Remote work should be about results, not sitting at a screen all day. Focus on outcomes and wellbeing, rather than hours “logged in”.

And if you’re hiring new team members for home-based roles, remember you have all the usual legal duties around recruitment fairness, contract setup, right to work checks and onboarding – more on that in our employee onboarding guide.

Key Takeaways: Home Working Employer Duties in England

• Review and update employment contracts or formally document any switch to remote working – even if just in a side letter.
• Continue to meet health and safety duties for employees working from home, including risk assessments and equipment provision.
• Adopt a clear homeworking policy that spells out expectations, support, and processes for both employers and staff.
• Handle expenses, equipment, tax and National Insurance compliance when supporting staff at home.
• Treat home workers fairly, avoid discrimination, and ensure equal opportunities for remote and office-based staff.
• Keep GDPR and data security front of mind for all remote workers handling sensitive or confidential information.
• Document everything – from arrangements to equipment, policies and expenses – to stay protected and avoid disputes.
• Seek tailored advice where needed to keep your business compliant and manage legal risk from the start.

Need Help With Home Working Legal Requirements?

If you’re reviewing your home working policies, updating contracts, or just want peace of mind you’re meeting your legal duties, our team can help. Contact Sprintlaw for a free, no-obligation chat on 08081347754 or email team@sprintlaw.co.uk for expert support in setting up your home working England arrangements the right way from day one.