Home Working Agreement Template

Home Working Agreement


A growing number of people rather than working within the confines of a traditional work place are opting to work from their homes. The number of home workers in the UK has risen to 4.2 million since 1998, now representing 13.9% of the UK workforce.

This employment contract has a General Data Protection Regulation (GDPR)-compliant data processing clause. After 25 May 2018, employers must use this clause, as employers will not be able to rely on the existing generic consent clauses.

This Home Working Agreement is designed to be used where either a new or existing employee has agreed that their main place of work will be elsewhere than the employer’s office, or in any event in a location which is not under the control of the employer.

With the right to request flexible working now extended to all employees, not just parents or carers, home working may well become more popular amongst employees seeking greater flexibility. As such, as well as utilising this agreement, it is advisable that employers have a Home Working Policy setting out how any requests by employees will be dealt with.

This template is drafted to ensure that employers meet all of their legal obligations to their employees whilst ensuring that the work they receive is still of the standard that they might expect if the employee was in a more controlled environment.

There is a unique ‘Right to Enter’ clause which entitles the employer to enter the employee’s premises at reasonable times in order to inspect company property and carry out risk assessments, a form for which can also be found within our Home Working documents subfolder. Additionally, this clause allows for the recovery of company property following termination of employment. Another clause sets out any equipment the company will provide to the employee, how it should be installed and serviced and also covers insurance aspects. There is also an expenses option which sets out reimbursement of pre-approved expenses or alternatively a fixed monthly allowance to cover expenses. This clause specifies that the company shall not pay expenses incurred in travelling from the employee’s home to the employer’s office.

The Pensions Act 2014 introduced a new state pension for people reaching state pension age on or after 6 April 2016, replacing the previous basic state pension and additional state pension and ending contracting out for defined-benefit schemes. This employment contract has been updated accordingly with the removal of the clause referring to the contracting out certificate.

All businesses should undertake a Risk Assessment for employees working from home.

This Home Working Agreement includes the following sections:

  1. General
  2. Employee Name, Address and Duties
  3. Date of Commencement/Continuous Employment
  4. Place of Work
  5. Hours of Work
  6. Remuneration
  7. Right to Enter
  8. Equipment, Health & Safety and Insurance
  9. Outside Interests
  10. Expenses
  11. Holidays
  12. Sickness
  13. Maternity and Paternity
  14. Pension
  15. Mobility
  16. Non-Compulsory Retirement
  17. Grievance Procedure
  18. Disciplinary Procedure
  19. Termination of Employment
  20. Confidentiality
  21. Employment Policies
  22. Collective Agreements
  23. Data Protection
  24. Changes to Terms and Conditions of Employment
  25. Governing Law and Jurisdiction

Optional and alternative clauses appear in blue font. The way in which this document is designed ensures that it will make sense with or without the optional clauses. Tailor this agreement by removing all phrases and clauses which are not relevant to your business. Once you have finished, please remember to highlight the whole document and switch the font colour to black.

This document is in open format.

Once you have purchased access to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.