As remote and hybrid work becomes commonplace, Canadian employers may be unknowingly putting themselves at risk by overlooking key compliance obligations, says Natalka Haras, senior counsel at ADP Canada.
“Although there are certain employers for which remote work is not new as an idea, certainly with technology, it’s easier than it’s ever been [and] I think the discussion and some of the issues related to remote work sped up because of the pandemic.”
Indeed, a March survey by WTW found while more than two-thirds of global companies said they’ve implemented a formal policy requiring employees to be in the office for a minimum number of days each week, fewer than five per cent of organizations said they completely prohibit remote work.
Read: Fewer than 5% of global employers completely prohibiting remote working: survey
The survey also noted most companies require employees to be onsite between one and four days per week, with 28 per cent of companies opting for three in-office days. Notably, more than half of organizations said they have no set rules to determine days onsite, with employees free to choose the days they work remotely.
For employers looking to craft a remote working policy, Haras suggests it’s important to establish which roles qualify for remote or hybrid work, as well as required work hours for remote employees, communication requirements and eligible remote-working locations. “Because even if you’re letting someone work remotely, does that mean you’re letting them work anywhere in the world? Or does that mean only their home office?”
Employers with remote workers also need to consider their health and safety responsibilities, which extend to employees’ home offices and other remote locations, she adds. These include ergonomic considerations, such as proper workstations, as well as the increased risk of domestic violence that some employees may face as a result of spending more time at home.
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“There’s a misconception you sometimes see from employers that remote employees are solely responsible for their own safety. But employers actually need to support them actively by providing resources, regular check-ins and addressing reported hazards or concerns.”
Haras also recommends that employers consider how provincial and federal legislation impact their approach to hybrid working arrangements. In Ontario, provincial legislation requires employers with 25 or more workers to have a written policy on the electronic monitoring of employees, including those working remotely.
In January 2024, the Canadian Revenue Agency established that employers must use the type of income, residency status of the employee and the establishment of the employer where the employee reports for work to determine the province of employment for full-time remote working staff.
A remote worker’s province of employment has several tax implications, she adds, including whether an employee pays into the Canada Pension Plan or Quebec Pension Plan and determining eligible income tax deductions, such as office supplies.
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