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Home working vs. remote working | Understanding the difference and why it matters

Written by Tracey Burke on 13 May 2025

In today’s flexible working world, the terms home working and remote working are often used interchangeably. However, they’re not synonymous – and as an employer, your choice of terminology can have practical and legal consequences.

The distinction between home and remote working becomes especially relevant during the warmer months, when employees may be tempted to take their work outdoors or to a different location. Whether it’s working from a second home, a co-working space, or a local coffee shop, the wording of your policy could determine whether such flexibility is permitted – or not.

Home working vs remote working: What's the difference?

  • Home working typically refers to employees who work from their permanent home address during their contracted hours of work. Their home becomes their official place of work, and this should be reflected in their employment contract.
  • Remote working, on the other hand, refers to a more flexible arrangement where employees can work from various locations: their home, outdoor spaces with Wi-Fi, or even while travelling. It’s less about where they are and more about the ability to work outside of a fixed office.

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Why does this distinction matter?

The distinction between ‘home working’ and ‘remote working’ directly affects where employees can work – and your responsibilities as an employer. Confusing the two comes with hidden risks.

On a practical level, if your policy allows for ‘remote working’, you may be offering more flexibility than intended. As outlined above, ‘remote working’ implies the ability to work from a broader range of locations – something you may not want to permit by default. While this freedom can boost morale and performance, it also introduces legal and logistical challenges that require careful management.

For example, without clear boundaries, employees might choose to work from places that pose risks – such as noisy cafés or areas with unreliable Wi-Fi. If your policy unintentionally permits ‘remote working’ rather than ‘home working’ – or fails to define acceptable locations – this could lead to unforeseen challenges.

Key areas that could be impacted include:

  • Health and safety obligations: Employers have a duty of care that varies depending on the employee’s working arrangement. Home workers may require specific safety measures for their home office set-up, such as ergonomic furniture or fire safety protocols. Remote workers, on the other hand, might work from less controlled environments. In these cases, employers must ensure workers understand their safety responsibilities, even when working from alternative locations.
  • Expenses and allowances: Home workers may be entitled to allowances for heating, electricity, or broadband usage since their home serves as their primary workplace. However, remote workers may not qualify for these allowances unless your policy explicitly covers expenses for working from different locations. Clear guidance on this will help avoid confusion about what’s covered under your policy.
  • Data security: Remote working can introduce security risks, as employees may use personal devices or work in less secure locations, such as crowded cafés or public Wi-Fi networks. Employers must ensure that remote workers follow strict security protocols, including using encryption, VPNs, and secure access to company systems to protect sensitive data.
  • Insurance implications: If employees are working outside of their designated place of work – especially in locations not covered in your policy – you may find your insurance doesn’t cover incidents such as equipment damage or liability claims. Defining permitted working locations in your contracts and policies can help ensure your organisation remains protected.
  • Productivity: Remote working can lead to productivity struggles, as employees working from public places or other non-office settings might experience distractions or poor internet connectivity. While these challenges are a natural part of remote work, they can be exacerbated without clear policies on where work can and can’t happen.

Best practices for employers

1

Check you’re using the correct terminology

Be specific in your employment contracts and HR policies. If the employee is expected to work only from home, define them as a home worker. If they are allowed to work from multiple locations, use remote worker and outline any limitations or expectations.

2

Set clear expectations

Clarify hours of work, availability, communication protocols, and performance metrics. Remote working policies should also cover areas such as collaboration tools, and data protection.

3

Monitor and support

Monitoring doesn’t mean surveillance. It’s about ensuring productivity and wellbeing. Use regular check-ins, performance reviews, and feedback sessions to keep remote and home workers engaged and supported.

4

Review your health and safety obligations

Conduct risk assessments for home workers. For remote workers, ensure they understand their responsibilities when working from alternative locations.

5

Train managers

Equip leaders with the skills to manage dispersed teams, including how to engage with employees, track performance, maintain morale, and ensure legal compliance.

Final thoughts

As hybrid and flexible work models continue to evolve, it’s crucial for organisations to use precise terminology and take a proactive approach. Getting the wording right – and aligning your contracts and policies accordingly – isn’t just about legal protection; it fosters trust, clarity, and accountability across your workforce.

In turn, this helps prevent misunderstandings and reduces the risk of issues and disputes later down the line, such as employees claiming they didn’t know certain locations were off limits.

Clear wording now means fewer headaches later.

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