Key content:
This guidance is aimed at employers and supports with assessing whether a role could be suitable for home or agile/hybrid working.
It also includes guidance on tax implications/considerations and potential contractual implications.
Overview
This guidance is intended to support employers with the ongoing implementation and updating of local policies following the introduction of section 35: home and agile/hybrid working (England & Wales) of the NHS Terms and Conditions of Service (TCS) Handbook in October 2023.
This guidance should be read in conjunction with section 33 of the NHS TCS Handbook, and the joint guidance for considerations when defining a work base. It should also be used alongside our suite of resources on flexible and agile working.
Assessing whether a role is or could be suitable for home and agile/hybrid working
There are a number of reasons why home and agile/hybrid working may be considered, and this can be an employer-led initiative or a request by an individual employee.
Any requests should be carefully considered to assess the potential impacts or positive effects these could have on the organisation and individuals to enable informed decisions to be made and find mutually agreeable solutions.
When assessing whether a role is suitable for home or agile/hybrid working some of the key considerations include:
- balancing employee and employer requirements
- working in partnership with local union representatives
- approaching requests with an open mind and consider alternative ways of working and/or finding ways to compromise
- using trial periods to test new ways of working
- considering the health, safety and wellbeing implications
- considering contractual and cost implications (some worked examples set out below).
The CIPD website has a useful flowchart which may assist employers in making these assessments. If unsure whether a role or part of the role can be done from home, undertake a role review exercise using the questions outlined in the CIPD guidance above. These include:
- How much face-to-face interaction is needed?
- Which location best supports effective work, and why?
- What are the employee’s work environment preferences and suggestions on how this can work in practice?
- What percentage of work is flexible in time and location?
- Can the work be restructured for different working arrangements? How much supervision, support or collaboration is needed?
- Are there any cost implications? This could be savings or additional costs for both employer and/or employee. Ensure any additional costs are clearly identified and assess the feasibility and impact on the request.
Tax implications/considerations
The government’s definition of a homeworker is much narrower when used for the purpose of determining eligibility for tax relief provisions.
For home to be a workplace and to be able to claim the tax relief for expenses, the employee must be able to demonstrate that homeworking is an objective requirement of the job, rather than personal choice.
Employers can use a wider definition, including for the purposes of allowances and reimbursement of costs. However, it should be made clear whether or not any payments will be treated as taxable earnings.
Tax rules relating to homeworking, claiming expenses and tax relief are complex areas and we recommend that employers seek their own professional tax advice on a case-by-case basis.
Contractual considerations
The section below details the potential contractual implications to be used alongside section 35 of the NHS TCS Handbook particularly sections 35.32 to 35.36.
Local policies for agile/hybrid and homeworking should set out clear principles and processes for agreeing and processing contractual variation/change.
