The Current Landscape
Remote and hybrid working is now a permanent feature of UK working life. According to the CIPD, around 40% of UK workers work from home at least some of the time, and that figure has held steady since the post-pandemic adjustment period.
For SMEs, this presents both an opportunity and a challenge. Offering flexible working arrangements can be a genuine competitive advantage when it comes to attracting and retaining talent, particularly when competing against larger employers with bigger salary budgets. However, without a clear policy in place, hybrid working can quickly become inconsistent, unfair, and legally risky.
This guide covers everything you need to include in your remote and hybrid working policy, along with the legal requirements you need to be aware of.
Flexible Working as a Day-One Right
Since April 2024, all employees have had the right to request flexible working from their very first day of employment. Previously, this right only applied after 26 weeks of continuous service.
Under the current rules, employees can make 2 flexible working requests in any 12-month period. Employers must respond within 2 months and can only refuse a request on one of 8 statutory grounds, which include burden of additional costs, inability to reorganise work among existing staff, and detrimental impact on quality or performance.
Looking ahead, further reforms expected in 2027 will require employers to demonstrate that any refusal is "reasonable" in the circumstances. This raises the bar and means that blanket refusals without proper consideration are increasingly likely to be challenged.
What Your Policy Should Cover
A good remote and hybrid working policy needs to address several areas clearly and specifically. Here is what to include.
Eligibility
Not every role can be performed remotely, and your policy should explain which roles are eligible and why. Be objective and consistent. If two similar roles are treated differently, you need a defensible reason. Avoid making eligibility decisions based on personal preference or trust rather than the nature of the work.
Working Patterns
Set out the expected balance between office and home working. Will you require a minimum number of days in the office? Are there specific days when the whole team should be together? Do you have core hours when everyone must be available, regardless of location? Your policy should explain how employees can request changes to their pattern.
Communication
Remote and hybrid teams need clear communication norms. Your policy should cover expected response times during working hours, which tools to use for different types of communication (video calls for meetings, instant messaging for quick questions, email for formal matters), expectations around meeting attendance, and how employees should flag their availability to colleagues.
Equipment
Clarify what the employer will provide. Typically this includes a laptop, and you may also supply a monitor, keyboard, or headset. There is no legal obligation to pay for employees' broadband or electricity, but it is good practice to make a contribution, and many employers do. State clearly who is responsible for maintaining and repairing equipment, and what happens if something breaks.
Health and Safety
Your duty of care as an employer extends to the home workplace. This is an area many SMEs overlook. You should require employees to complete a home workstation self-assessment and provide guidance on ergonomic setup. For anyone working from home regularly, consider formal Display Screen Equipment (DSE) assessments. Our health and safety service can help you put these arrangements in place.
Data Security
Working from home introduces data security risks that your policy must address. Consider whether employees need to use a VPN. Set clear password policies and rules around locking screens. Require secure handling of confidential documents, both physical and digital. Address the use of personal devices and clarify GDPR responsibilities. Discourage working from public spaces unless employees use privacy screens.
Performance Management
One of the biggest concerns managers have about remote working is whether people are actually working. The answer is to focus on output, not presenteeism. Set clear objectives and key performance indicators. Schedule regular check-ins, whether weekly one-to-ones or fortnightly reviews. If performance issues arise, address them in exactly the same way you would for office-based staff. Do not assume the problem is remote working when it may be a skills, motivation, or workload issue.
Insurance
Employees who work from home regularly should notify their home insurance provider, as some policies exclude business use. On the employer side, your liability insurance should cover home workers. Check with your insurer to make sure this is the case.
Right to Disconnect
While there is no statutory right to disconnect in the UK yet, many employers are proactively introducing guidelines on not contacting employees outside working hours. This is widely expected to become a legal requirement in the coming years, and getting ahead of it now shows good practice. Your policy could state that employees are not expected to respond to emails or messages outside their agreed working hours unless in genuine emergencies.
Tax Implications
The tax position on home working changed in April 2022 and many employees and employers are still unclear on the rules. Employees can only claim tax relief for working from home if the employer requires them to do so, not merely allows it. Choosing to work from home when office space is available does not qualify.
Employers can pay employees up to £6 per week (£26 per month) tax-free to cover additional household costs, without requiring receipts. Alternatively, you can reimburse actual additional costs with evidence, but this is more administratively burdensome for both sides.
Common Pitfalls to Avoid
Inconsistency across teams. If one manager allows full remote working while another insists on five days in the office for a similar role, you are creating a fairness issue and potentially a discrimination risk.
Not updating contracts. If an employee's working location has permanently changed, their employment contract should reflect this. A written statement of particulars must include the employee's normal place of work.
Neglecting health and safety. Just because you cannot see the employee's workspace does not mean your obligations disappear. Failing to assess home workstations can leave you exposed.
Having no policy at all. This is the most common mistake for SMEs. A remote working policy is one of the essential HR policies every small business needs. Without a written policy, decisions are made ad hoc by individual managers, creating inconsistencies that become difficult to unwind.
Proximity bias. Research consistently shows that office-based employees are more likely to be considered for promotions, pay rises, and development opportunities. If your business operates a hybrid model, make a conscious effort to evaluate all employees on the same basis, regardless of where they work.
Hybrid Meetings
If your team splits between office and home, hybrid meetings need thought. Invest in decent audio and video equipment so remote attendees can participate fully. Rotate who is physically present if possible. Share materials in advance so everyone starts on equal footing. Consider recording meetings for those who cannot attend.
The goal is to avoid creating a two-tier experience where office-based attendees have a natural advantage in being seen and heard.
Getting Your Policy Right
A well-drafted remote and hybrid working policy protects your business, sets clear expectations, and helps you attract the talent your business needs. If you do not have one yet, or if yours needs updating, now is the time to act.
Our policies and procedures service covers the drafting and review of all employment policies, including remote and hybrid working arrangements. We can tailor a policy to your specific business needs, making sure it is legally compliant and practical to implement.
Book a free consultation to discuss your requirements and get started.
