Employment contracts are supercritical for remote workers. This blog explains, why. Read on!<\/p>\n\n
Within any organization, there may be a need for remote workers. Due to the recent pandemic of COVID-19, the percentage of people working remotely <\/span>has increased to 34.4%<\/span><\/a> in 2021.<\/span><\/p>\n It\u2019s important that businesses are still playing by the book when it comes to employment contracts and the laws in place to protect themselves and the employees in question.<\/span><\/p>\n But why are employment contracts so critical for remote workers? In this article, we\u2019ll be exploring what a typical employment contract looks like and why it\u2019s useful to have them in place for your employees.<\/span><\/p>\n Also Read: Team meeting agenda | A how-to guide for everyone<\/a><\/span><\/p>\n Whether you have a lot of employees working remotely as a result of the pandemic, or it\u2019s perhaps one or two, a new employment contract might be needed. That or you\u2019ll want to update the existing one to cater to the new surroundings and structure to the working day. <\/span>A typical employment contract for remote workers will have the following,<\/span><\/p>\n This will mention where the employee will be based and the number of hours that are necessary to work. A requirement to take breaks should also be included in this section. Both employee and employer have the right to terminate this home working agreement should they deem it applicable at any point.<\/span><\/p>\n With remote working, it\u2019s very easy for office hours to become blurred, so this is an important part of the contract to focus on in detail.<\/span><\/p>\n There should be a mention of reimbursement of expenses when it comes to that of the employee\u2019s utility costs. As employees will be working from home, they\u2019ll need to rely on their own utility services. Typically, there will be a certain amount mentioned that the employee gets to reimburse their bills.<\/span><\/p>\n The company has the responsibility to provide all the work equipment and tools needed for the employee to work successfully from their remote location. This also includes ensuring the equipment too.\u00a0<\/span><\/p>\n Providing the right equipment for your staff is critical to them doing their job effectively and with fewer issues.<\/span><\/p>\n The employee should be made aware of compliance when it comes to relevant health, safety, and security guidelines that are in place. Confidential information and data protection must be provided, particularly when remote working has more vulnerabilities to its security.<\/span><\/p>\n And finally, there should also be a mention of no other changes when it comes to the employment terms and conditions, for example, pay, holiday, and pension contributions.\u00a0<\/span><\/p>\n Knowing exactly what\u2019s needed in the new or updated contract can help protect the company\u2019s interests and the employee\u2019s too. There are plenty of <\/span>employment agreement template<\/span><\/a> options available online to utilize if you\u2019re having trouble defining the contract\u2019s layout.<\/span><\/p>\n Also Read: How to quit a job | An ultimate read for best results<\/a><\/span><\/p>\n With the content of the contracts themselves now understood, why is it so important to have updated or new employment contracts? Remote working is a different environment from the traditional workplace and therefore certain assurances need to be made.\u00a0<\/span><\/p>\n By not having something in place that assists both the employer and employee, it\u2019s likely to cause a lot of trouble should something go horribly wrong.<\/span><\/p>\n As both parties sign the employment contract, it\u2019s protecting both under a legally binding agreement. <\/span>Now if it were necessary to do so, either party as mentioned above, could choose to terminate this contract if homeworking was no longer needed. <\/span><\/p>\n Without this type of legally binding agreement in place, you\u2019re risking a lot and an opportunity for either party to take advantage of the other. <\/span><\/p>\n This is why having a detailed contract is also important and care must be taken to include anything and everything that\u2019s required to protect the rights of both the employee and employer. There\u2019s also the opportunity to dispute anything that either party may have a problem with.<\/span><\/p>\n It\u2019s wishful thinking to expect that communication within a business is clear and concise, 100% of the time. In fact, <\/span>57% of employees<\/span> report not being given clear directions in the workplace.\u00a0 <\/span>Miscommunication leads to mistakes and things going wrong, which ends up having a direct impact on the business in some way or another. <\/span><\/p>\n Whether that\u2019s through the quality of your customer experience or a loss in finances. It pays to be attentive to communication in business, not just for the business but for your remote workers too.<\/span><\/p>\n With that being said, an employment contract will help provide all the information clearly to the remote worker. There might be a remote working situation in place already and so sending over a contract is better than having a brief chat over the phone or going back and forth on emails.<\/span><\/p>\n A contract in general can provide little room for miscommunication because both parties should have read the terms carefully before signing. If they signed without reading it properly, then that accountability for not doing so lies with them.<\/span><\/p>\n Confidentiality is a big one because there have been occasions where data breaches have occurred. Whether it\u2019s the company\u2019s own data or that of their customers, it can often lead to a big fallout and a lack of trust in the company when customers are affected. <\/span>According to Cobalt, there are over <\/span>2,200 attacks that happen every day<\/span> in the US alone.<\/span><\/p>\n That\u2019s nearly one cyber attack every 39 seconds. <\/span>Employment contracts especially in the case of remote workers are essential to maintain confidentiality with everything they access. As the employer, it\u2019s the responsibility of this party to ensure all equipment and security measures are secure and that the same level of security\u00a0<\/span><\/p>\n According to SnackNation, an employee that\u2019s happy within the workplace is likely to be <\/span>12% more productive<\/span> as a result. Keeping your workforce happy and supported is a must and it\u2019s one of the benefits that come from having this type of contract in place.<\/span><\/p>\n Employees want to feel properly supported, particularly when it comes to a new working environment that perhaps they\u2019re not used to. In the US alone, the percentage of people working from home reached heights of 44%, <\/span>according to Statista<\/span>.<\/span><\/p>\n Although some employees have experience working remotely, others might be completely new to the situation. A legal contract that both the employer and employee have signed, can certainly provide some reassurance that everything is being done legitimately.<\/span><\/p>\n By keeping your workforce happy and supported, you\u2019re going to keep staff turnover rates low. This is going to be something you want to be wary of during these uncertain times in particular. Losing staff is only going to mean more time, effort and financial burdens are incurred as a result.<\/span><\/p>\nWhat does an employment contract for remote workers look like?<\/strong><\/h2>\n
1. Employee location and working hours<\/strong><\/h3>\n
2. Reimbursements<\/strong><\/h3>\n
3. Equipment supply<\/strong><\/h3>\n
4. Health, safety, and confidentiality<\/strong><\/h3>\n
Why are employment contracts so important for remote workers?<\/strong><\/h2>\n
1. Protects both parties under a legally binding agreement<\/strong><\/h3>\n
2. Avoids miscommunication by outlining everything clearly<\/strong><\/h3>\n
3. Maintains confidentiality and data safety<\/strong><\/h3>\n
4. Keeps your workforce happy and supported<\/strong><\/h2>\n