Although working from home experienced its greatest expansion during the COVID-19 pandemic as a necessity, it has remained present even after the return to regular business operations. Today, this model of work organization continues to be widely represented in practice; in some cases, it is applied as a standard mode of work organization, while in others it represents a benefit for employees, significantly accommodating the needs of both employees and employers.

This work regime is primarily regulated by the provisions of the Labour Law, through the institute of work outside the employer’s premises, which encompasses two forms: remote work and work from home.

Work from home implies that an employee performs work from the premises in which they reside, while remote work implies performing work from other locations.

In practice, employers most commonly apply a hybrid work model, where an internal act of the employer determines the number of days an employee spends working on the employer’s premises and the number of days working outside the employer’s premises, along with other rights and obligations arising from such a work regime.

Mandatory elements of the employment contract

The Labour Law treats work outside the employer’s premises as a specific type of employment contract, containing additional elements compared to a standard employment contract.

In addition to the general elements prescribed by the Labour Law, an employment contract for work outside the employer’s premises must also include the following: 

• duration of working hours

Provisions governing working hours under regular circumstances, organization and schedule of working time, overtime work, redistribution of working hours, night work, as well as rights to rest periods and leave, apply equally to employees working outside the employer’s premises, unless otherwise provided by a general act of the employer or the employment contract. In practice, various solutions are applied for monitoring and recording working hours and absences (e.g. logging into the employer’s system, etc.);

• method of supervision of the employee’s work

In this form of work, the method of supervision is defined, i.e. how employee performance will be monitored. In practice, this is most often carried out through regular reports, use of activity-tracking software, video conferences, meetings, etc., depending on the needs of the work process and the nature of the job;

• work equipment to be provided, installed and maintained by the employer

The employer typically provides the equipment necessary for work, such as computers, peripheral equipment, mobile phones, software and other tools depending on the nature of the job and is responsible for their installation and maintenance. The contract specifies the equipment in detail, as well as the rights, obligations and responsibilities of the parties regarding its use, maintenance, safekeeping and return;

• use of the employee’s own work equipment and reimbursement of related costs

In practice, employees often use their own resources (internet, electricity, mobile phone, etc.) for work purposes. Therefore, the employment contract must regulate compensation for such use, either through a fixed monthly amount or reimbursement based on invoices, ensuring that the amount corresponds to actual costs incurred. In the absence of such compensation, employees may claim these costs through court proceedings;

• compensation of other costs and the method of their determination

This refers to all other costs arising from this form of work. Although the Labour Law does not define their scope, amount, or method of determination, it is recommended that these issues be regulated in detail by the employment contract to avoid potential disputes;

• other rights and obligations

These relate to additional rights and obligations specific to this form of work, depending on the nature of the job and the employer’s needs.

Employee rights

Regarding to fundamental rights and obligations of employees working outside the employer’s premises, the Labour Law is based on the principle of equal treatment.

This means that such employees are entitled to the same rights and obligations as other employees of the employer, regardless of the place where the work is performed. The provisions of the employer’s general acts primarily apply, while matters not regulated therein are governed directly by applicable labour law regulations, including mandatory norms.

This particularly applies to:

• salary – an employee working from home is entitled to the same base salary as an employee in the same position working on the employer’s premises;
• working hours and rest periods – the right to daily, weekly and annual leave, as well as provisions on overtime, night work, redistribution of working hours and absences, apply equally regardless of the place of work, unless otherwise provided by a general act or the employment contract.

Particular attention should be given to compensation for commuting costs. An employee working outside the employer’s premises, by nature of things, does not incur commuting costs in the same way as an employee who regularly works on-site, and therefore is generally not entitled to such compensation for days worked from home. In a hybrid model, compensation is granted proportionally to the number of days spent working on the employer’s premises.

Finally, this type of work arrangement also gives rise to occupational health and safety considerations, for which the Occupational Safety and Health Administration has issued the Guide for Safe and Healthy Work from Home as early as 2021. The Law on Occupational Safety and Health of 2023 recognizes this form of work and specifically regulates it, providing that these matters are to be arranged in cooperation with the employee. The employer is obliged to establish conditions for safe and healthy work, provide work equipment, define the work process related to the tasks assigned to the employee, and prescribe preventive measures.

Practical challenges and open issues in practice

Although working from home is regulated by the Labour Law through the institute of work outside the employer’s premises, practice shows that many issues remain insufficiently regulated and are left to contractual arrangements between the employer and the employee.

In this regard, the Ministry of Labour generally takes the position that employees working from home must have the same rights as those working on the employer’s premises, particularly regarding salary and working conditions. On the other hand, case law in this area is still not sufficiently developed, so disputed issues are typically resolved through the application of general principles of labour law.

Accordingly, guided by these principles, it is recommended that the conditions of this form of work engagement be regulated in detail by the employer’s general acts and employment contracts, to prevent potential disputes and uncertainties in practice.

This text is for informational purposes only and does not constitute legal advice. If you require additional information, please feel free to contact us.