Remote Work Agreement
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A remote employment contract is a powerful legal tool for employers who plan to hire virtual staff or employees working partly on-site.
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What is a remote work agreement?
A Remote Work Agreement is a legally binding contract that defines the legal framework for remote employment relations between an employee and an employer.
A remote worker agreement is a special type of employment agreement when an employee performs their work outside the employer’s physical office. Sometimes this contract is also being referred to as a remote employment agreement.
Same as a general employment contract, a remote employment agreement template contains traditional clauses, including details of the parties, termination, duration, working schedule, and termination clause. However, considering the special nature of remote arrangements, a remote contract should also define:
- communication methods and reporting requirements;
- remote location and its requirements;
- confidentiality obligation; and
- usage of employer’s equipment.
A remote working arrangement could be inserted as a remote work clause in an employment contract. However, it is always better to have a separate remote work contract specifically tailored to such a situation.
The parties to a remote worker agreement are the employee and the employer. An employer is a business, organization, or self-employed person that is based inside or outside the United States and seeks a remote employee. An employee is an individual 18 years of age or more (depending on the state) who is willing to work remotely.
How to draft a remote work agreement sample?
Creating a legal document from scratch is a challenging task even for lawyers. When drafting a remote work agreement sample from scratch, it is vital to address all key elements at once. Omission of any of those elements may lead to future disputes between the parties or a contract not being legally enforceable.
Job Duties
The clause number one that every employment contract should have is the detailed list of job duties. This clause helps to measure an employee’s performance in the future and evaluate their progress. Failure to perform job duties on a regular basis may result in an employment agreement being terminated.
Place of Work
A remote worker agreement allows an employee to perform their working duties from the place of their choice. This could be their home, favorite coffee shop, or any other place. At the same time, the contract may impose the following additional restrictions regarding the location for remote work.
Firstly, for the sake of confidentiality, the work in public places like shopping malls or airports may not be allowed. Secondly, the contract may prohibit performing caregiver duties for children or the elderly during working hours (e.g., to pick up a child from a nursery or to cook dinner).
Equipment Provided
If performance of job duties requires an employee to have special working equipment, a remote employment agreement sample should define:
- the list of equipment that should be provided;
- rules regarding the return of the equipment; and
- rules regarding the compensation in case of equipment loss.
Supervision of work
A good remote employment agreement example shall include an extensive supervision clause. A supervision clause defines how an employee shall report about their work performance under the contract.
This clause should also lay out the full name and position of an authorized person within the employer’s organization to whom an employee shall report. Such reporting may have various forms, including check-in meetings, progress reports, participation in virtual sessions, etc.
Working schedule
Even if an employee works remotely, they have to follow a specific working schedule within the employer’s organization. Therefore, a remote employment agreement template should define:
- exact days and times when an employee shall work (e.g., Monday-Friday from 9 am to 6 pm);
- time zone (e.g., UTC, AST); and
- number of paid days of annual holidays.
Duration and Termination
Every sample remote work agreement should define the date of an employee’s first working day. This could be the same date on which the parties sign a remote employment contract between them. Or, it could be any other date agreed upon between the employee and the employer.
The remote working relationships may last for a fixed period of time or indefinitely. A fixed remote working contract may last from several months to several years.
If a remote employment agreement template is for a fixed period of time, the text of a contract should also define the last working day.
Either party may terminate employment relationships with or without cause, provided a prior written notice is given to the other party. The notice period could be 10, 15, or 30 days. Immediate termination of a remote worker agreement is possible at the employer’s discretion if an employee fails to pass a probation period.
Compensation and Benefits
A compensation under a hybrid work agreement template does not differ from a compensation paid for the same scope of work done at the office under a normal employment contract.
A remote employee’s compensation consists of the following elements:
- basic salary (annual, monthly, or weekly);
- additional bonuses (e.g., annual cash bonus, performance bonus);
- other benefits (e.g., family insurance).
A basic salary includes an employee’s mandatory compensation for the work done remotely. The federal law defines that an employee’s compensation for the work should not be less than the required minimum of USD 7.25.
The payment of additional bonuses and other benefits is a good business practice, though neither federal nor state law obliges employers to do so.
How to customize an agreement template at Faster Draft?
To personalize a remote employment agreement template on our website, follow a few easy steps below:
- Click the button “Create Document.”
- Answer simple questions in the questionnaire.
- Select a document’s format—Remote Work Agreement PDF or Word.
- Make a payment.
- Download a customized document template.
Table of content
Frequently Asked Questions (FAQ)
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1. What is the difference between a telework and remote work agreement?
It is common to refer to a remote work agreement as a telework. This is so because under both contracts an employee is allowed to perform their job duties outside of the employer’s official place of business (i.e., office).
At the same time, under a teleworking contract, an employee has to report regularly about their working progress. Such a regularity should be frequent and might occur every week or even every other day. Under a remote worker agreement, the reporting duty of an employee is less frequent.
A teleworking contract does not allow an employee to choose the place where they want to work. Usually, a teleworking agreement implies that an employee has to perform their working duties from a specific workstation. Such a workstation should be equipped with all necessary equipment for the work performance.
In a remote work agreement template, an employee is free to pick any location they wish to work from. Besides that, an employee may change such a location at any moment without notifying the employer.
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2. What is a typical remote work policy?
The remote work policy may vary depending on the industry and the company’s goals. While neither federal nor state laws define any minimum regulation regarding remote work, employers are free to establish their own rules.
A typical remote work policy usually includes the following provisions:
- Usage of working equipment;
- Confidentiality duty;
- Place of work;
- Reporting requirements; and
- Conditions of remote work (i.e., some companies may offer remote work only under certain circumstances, like pregnancy or disability).
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