Remote working: Risk, reward, and the road ahead for employers

August 19, 2025

Remote working: Risk, reward, and the road ahead for employers

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By Ramyar Hassan

Read time: 4 minutes

Remote working has become a mainstream expectation in the 2020s, with many employees asking or expecting to be allowed to work from home or even from abroad. While some employers have embraced this, others are still grappling with whether and how it can work in the long term.

We’ll be covering this topic further in a free upcoming 45-minute webinar: Bridging the Gap: Employment Law Insights for Managing a Multi-Generational Workforce. This webinar forms part of our wider free Autumn webinar series: Employment Law Unpacked. More information here.

As this option becomes a more widely-expected benefit, employers must consider how well-equipped they are to manage these requests and new styles of working. Our employment law expert Ramyar Hassan discusses what employers need to think about in order to get this right.

Legal position: Is remote working a legal right?

There’s no statutory right to be allowed to work remotely. Whether employers are obliged to offer this will depend on:

• Contractual provisions – If an employer’s employment contracts say that homeworking is permitted, employers may be bound by this.
• Custom and practice – Even if not written into contracts, remote or hybrid working may have become an implied contractual right through “custom and practice” if an employer has been allowing this without challenging it for a long time.
• Discrimination – It may be a reasonable adjustment to allow employees with disabilities to work remotely or flexibly, and may also protect from indirect discrimination claims from employees with childcare or other caring responsibilities.

The law also changed in 2024 by increasing employees’ rights to make flexible working requests, which employers will need to consider carefully.

Opportunities of remote working

As hybrid working becomes a common expectation of job applicants across the UK, many employers will be following the trend. In addition to the ability to be competitive when it comes to recruiting and retention, it’s widely recognised that remote working can bring other benefits for many employers: 

• Increased productivity – Employees working from home can save time and reduce stress associated with commuting, which can lead to higher work output.
• Reduced overhead costs – Employers may be able to reduce expenses related to office space, relocation, and other overheads.
• Better motivation – Many employees experience increased job satisfaction due to the flexibility that remote working provides.
• Skills retention – Remote working allows employees who might otherwise leave due to family relocation, caregiving responsibilities, or disability to remain in the workforce through temporary or permanent homeworking arrangements.

Challenges of remote working

Remote working won’t be suitable for all employers or all roles. Many employers are still struggling to get the balance right. The challenges arising out of remote working arrangements can include:

A two-tier workforce – A mix of remote and on-site employees, if not managed properly, can sometimes create disparities in work allocation, training opportunities, and career progression and can foster resentment.

• Impact on culture and wellbeing – Face-to-face interactions are important for innovation, social connection, and employee wellbeing, and may be limited in remote setups. Remote working can sometimes weaken team cohesion and company culture.
• Management challenges – Supervising remote workers often requires different management styles, and managers may find it harder to support employees effectively.

Legal considerations of homeworking in the UK

Remote working brings many additional considerations for employers. Organisations must ensure that contracts and policies adequately address remote working arrangements. These will include:

• Contracts of employment – By law, contracts should set out the employee’s normal place of work. They should also set out the details of any remote or hybrid working arrangements in order to avoid disputes later.
• Hours of work – Boundaries for working hours should be clearly defined, including when the employee is expected to be available, to safeguard wellbeing and ensure compliance with the Working Time Regulations 1998.
• Salary and benefits – Employers should ensure that remote employees receive compensation and benefits that are as favourable as those provided to comparable on-site employees.
• Confidentiality – Employees have an implied duty to protect confidential information. Remote working can introduce additional risks, such as working in public spaces, which contracts and policies should address.

Legal considerations of working from abroad

Remote work in another country introduces additional complexities for employers. If you receive a request from an employee to be permitted to work from abroad, you may need to consider issues such as:

• Mandatory laws of the host country – Regardless of the governing law of the employment contract, mandatory rules in the country where the employee works may apply automatically and may not be overridden by a UK contract.
• Insurance – Employers should check whether their insurance policies cover the possibility of their employees working abroad.
• Data protection – The UK GDPR contains strict rules on when personal data (whether of an employer’s workforce, or its customers) can be transferred outside of the UK.
• Health and safety – It may be more difficult for employers to comply with their health and safety obligations to employees who are working overseas.
• Costs of travel – Employers will need to consider to what extent they will cover the cost of business travel for any employees working abroad.

How can I find out more?

Our employment law experts will be discussing this topic in the second session of our free 8-part Autumn Webinar Series on 24 September 2025 at 11am. The series of 45-minute sessions will help HR professionals, in-house legal teams, line managers, and business leaders navigate key developments in UK employment law with confidence. You can book your free place for one or all of the series here.

You can also reach out to our employment law experts on 02920 829 100 or via our Contact Us form.