Back to blog

Payroll and HR · April 20, 2026 · 4 min read

Home office and how to set it out in the employment contract

A Bilvao team meeting

Working from home has become an ordinary part of working life, and with it comes the need for clear rules. Setting out home office in the employment contract protects both the employee and the employer – it defines where and how the work is done, who pays the costs and how working time is recorded. Without a written agreement, there is room for misunderstandings and for disputes over availability and the reimbursement of costs.

What home office means under the Labour Code

The Labour Code distinguishes between home work and telework, while ordinary occasional home office has its own, looser regime. What matters is whether the work is performed from home on a regular basis or whether it is only an occasional option by agreement. This determines the obligations of both parties, the employee’s entitlements and the amount of administration that comes with the given regime.

  • regular home work or telework,
  • occasional home office,
  • definition of the place of work.

What the employment contract should contain

The provisions on home office in the employment contract or in a separate agreement should clearly define the place of work, the extent of working from home, the method of recording working time and the rules for communication between the parties. It is also advisable to set out the terms of availability, the provision of work equipment and the protection of personal data. The clearer the rules agreed in advance, the fewer disputes arise in practice.

Costs and allowances when working from home

For regular home work, the employee may be entitled to reimbursement of demonstrably increased expenses, for example for energy consumption. The method and amount are usually agreed in advance so that it is clear what the company reimburses and what it does not. As the rules and any limits change, always check the current conditions and set them down in an internal policy or in the contract.

Recording work and safety

The obligation to record working time and to ensure occupational health and safety applies when working from home as well. The employer should set up a clear method of reporting hours worked and familiarise the employee with the rules on safety and on the protection of company data.

  1. agree on the place and extent of home office,
  2. set up working time records,
  3. settle the reimbursement of costs,
  4. deal with safety and data protection.

Why the rules should be in writing

Clear contractual provisions prevent disputes over overtime, availability or costs and protect the company in the event of an inspection. Having employment contracts and payroll administration set up professionally ensures that home office runs smoothly and in compliance with the law.

Advantages and limits of working from home

Home office brings several advantages to both the company and the employee – time saved on commuting, greater flexibility and often better concentration on independent work. At the same time, it places greater demands on trust, communication and a clear definition of working time, so that work does not spill over into private life. The employer should also keep in mind the so-called right to disconnect, meaning that the employee does not have to be available outside the agreed hours. When setting up the regime, it is therefore wise to decide in advance how tasks will be assigned and checked, how work will be handed over and what happens in the event of technical problems. Balanced rules make home office a sustainable benefit rather than a source of tension.

Do you need to set up home office correctly in your contracts? The Bilvao team will help you with the contract provisions and with payroll administration.

Related articles: Social fund: creation and use, Employee benefits and their tax treatment, Onboarding a new employee: the employer’s obligations.

Frequently asked questions

Does home office have to be stated in the employment contract?

For regular home work or telework, the conditions should be agreed in writing in the contract or in an agreement. For occasional home office, a clear definition of the rules is enough to prevent disputes.

Is the employee entitled to reimbursement of costs when working from home?

For regular home work, the employee may be entitled to reimbursement of demonstrably increased expenses if the parties agree on it. The rules and limits change, so check the current conditions and set them down in a policy.