In turbulent economic times, having a degree of control over costs, productivity and employees is important. With varying needs and priorities each business will have a different approach to what is considered acceptable as a ‘place of work.’ The important consideration is, who can decide the ‘place of work,’ the employee or the employer?
Covid-19 acted as a compulsory experiment for many businesses to test out flexible and remote work options. However, as Covid’s shadow recedes many businesses can now re-evaluate whether working from home remains an appropriate model to meet the needs of the business, both internally and externally. Large global companies including Tesla, Twitter, Disney, Lyft and Uber have rolled back their work-from-home policies and are now requiring employees to return to the office. Communication was listed as a core concern, followed by the impact on creativity, culture, productivity, and employee supervision.
On the other hand, with rising costs, recession concerns and employee shortages being front of mind for many employers the benefits of work-from-home arrangements may outweigh any concerns. Flexible working arrangements are a highly desired yet low-cost benefit that can be offered to entice potential employees and retain current employees. With fluctuating priorities and different circumstances, it is important that the changing needs of the business are considered when drafting employee agreements and policies. Ensuring these documents are drafted in a way that allows for future change and does not lock the employer into fixed terms is important to prevent employment issues later down the track.
The employment agreement must state the ordinary place of work for the employee. Any changes to the terms of the employment agreement must be through mutual agreement of the employer and employee. Therefore, the ability for the employer to insist on the employee’s return to work or to change the employee’s place of work will be dependent on what the terms of the employment agreement allow. For an employee, it is important to know and understand the terms of the employment agreement as they are binding on both parties and can prevent the employer from making changes which are central to your employment without consent.
Workplace policies can be more flexible and are generally easier to change if drafted appropriately. Underestimating the importance of the wording in both the employment agreement and workplace policies can cause costly employment implications for businesses further down the track.
Please contact DTI’s specialist employment team should you require a review, and corresponding advice on your current or proposed employment documentation or if you require assistance drafting these documents to best meet the needs of your business.
With Hayley Willers – Dti Lawyers
