In today’s rapidly evolving business landscape, remote work is becoming an increasingly popular and viable option for companies and their employees. As a manager overseeing remote employees, it’s essential to understand the key components of a Remote Work Agreement to ensure a seamless and productive working relationship. A well-structured agreement can provide clarity, set expectations, and foster a positive work environment for both the employee and the organization.
Below, I’ll break down the critical elements of a Remote Work Agreement, covering aspects such as position, salary, work hours, equipment and workspace, data security, and more. By familiarizing yourself with these components, you’ll be better equipped to manage and support your WFH/remote team members effectively.
Sample Remote Worker / WFH Template
Below is an example of an agreement/contract that can be used for work-from-home and remote work individuals. It has several elements that you are likely to not need, so feel free to remote whatever sections that you see fit. First, I’ve included a description of each section that’s included in the template itself.
- Position: The job title and responsibilities the employee will have within the company.
- Salary: The amount of money the employee will be paid annually for their work.
- Annual Bonus: The potential extra money the employee could earn each year based on their performance and the company’s success.
- Remote Work Arrangement: The agreement that the employee will work from a location outside of the company’s office, such as from home.
- Work Hours and Time Zone: The specific hours the employee is expected to work each day, based on a particular time zone.
- Equipment and Workspace: The tools and space the employee needs to work effectively in a remote environment, and any related expenses that may be reimbursed by the company.
- Data Security and Privacy: The steps the employee must take to protect the company’s sensitive information and maintain privacy while working remotely.
- Business Travel/Expenses: Any required travel for work purposes and the process for getting related expenses reimbursed by the company.
- Benefits/Vacation: The various additional perks offered by the company, such as health insurance and paid time off.
- Stock Options: The possibility for the employee to obtain company stock as part of their compensation package.
- At-Will: The employment relationship can be ended by either the employee or the company at any time, for any reason or no reason.
- Termination Benefits: Any financial or other benefits provided to the employee upon ending their employment with the company.
- Termination of Employment: The circumstances under which the employee’s employment may be ended, such as death, disability, or resignation.
- Confidential Information and Restricted Activities: The employee’s obligation to protect the company’s private information and avoid engaging in activities that compete with or harm the company.
- Performance Evaluation and Goals: The process of assessing the employee’s job performance and setting targets for their work.
Feel free to copy the Google Doc at this link and edit how you see fit!
[Letterhead should go here]
This Remote Work Agreement (“Agreement”) is entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between [COMPANY NAME] (“Company”) and [EMPLOYEE NAME] (“Employee”).
Employee’s Position: [EMPLOYEE TITLE]
Employee will perform the duties and responsibilities associated with the [EMPLOYEE TITLE] position, as outlined in the attached job description, and any other duties as may be reasonably assigned by the Company. Employee will report to [SUPERVISOR NAME], [SUPERVISOR TITLE], or such other person as the Company may designate from time to time. Employee’s employment and performance of services under this Agreement shall be subject to the general supervision, direction, and control of the Company.
Employee’s base salary will be [SALARY] per annum, payable in accordance with the Company’s standard payroll practices, and subject to all applicable federal, state, and local withholdings and deductions. The Company reserves the right to review and adjust the Employee’s salary from time to time, as deemed necessary by the Company in its sole discretion.
- Annual Bonus
Employee may be eligible for an annual performance-based bonus, as determined by the Company in its sole discretion. The target bonus amount will be [TARGET BONUS PERCENTAGE]% of Employee’s base salary, but the actual bonus amount, if any, will depend on Employee’s performance and the Company’s overall performance, as well as any other factors deemed relevant by the Company. Any earned bonus will be paid in accordance with the Company’s standard bonus payment schedule and practices, subject to all applicable federal, state, and local withholdings and deductions. The Company reserves the right to modify or discontinue its bonus program at any time without prior notice.
- Remote Work Arrangement
As a remote employee, Employee agrees to work from a location outside of the Company’s premises, which may include a home office or other suitable remote workspace (the “Remote Workspace”). Employee is responsible for providing and maintaining the Remote Workspace in compliance with the Company’s remote work policies and guidelines, as may be updated from time to time. Employee is also responsible for ensuring a reliable internet connection and phone service at the Remote Workspace.
Employee shall maintain regular communication with the Company and other team members, and promptly respond to phone calls, emails, and other forms of communication during agreed-upon work hours. Employee is required to attend and actively participate in all necessary meetings, whether in-person, via video conference, or other means, as determined by the Company.
The Company reserves the right to require Employee to temporarily or permanently return to an on-site work arrangement, with reasonable advance notice, as deemed necessary by the Company in its sole discretion. Employee’s failure to comply with such a request may result in termination of this Agreement and Employee’s employment.
- Work Hours and Time Zone
Employee’s standard work hours will be [WORK HOURS] per week, with a work schedule of [START TIME] to [END TIME], [DAYS OF WEEK], unless otherwise agreed upon with Employee’s supervisor. Employee shall adhere to the agreed-upon work schedule and promptly notify the supervisor of any necessary changes to the schedule. The Company understands that flexibility may be required due to the remote nature of the work arrangement and may approve occasional variations in the work schedule, as long as it does not negatively impact the Company’s operations or Employee’s performance.
Employee’s work hours shall be based on the [TIME ZONE] time zone, and any required meetings or collaboration with team members in other time zones shall be scheduled with consideration for all parties’ availability.
- Equipment and Workspace
The Company shall provide Employee with the necessary equipment, such as a computer, software, and other tools, required to perform the duties and responsibilities associated with the [EMPLOYEE TITLE] position. Employee is responsible for the proper use, care, and security of the provided equipment and must promptly notify the Company of any technical issues, damage, or loss.
Employee may be eligible for reimbursement of certain expenses related to the Remote Workspace setup and maintenance, as specified in the Company’s remote work policy. To receive reimbursement, Employee must submit an expense report with all required documentation, in accordance with the Company’s expense reimbursement procedures.
- Data Security and Privacy
Employee must comply with the Company’s data security and privacy policies and procedures, including the use of secure networks, virtual private networks (VPNs), and encryption software, as required by the Company. Employee shall not access, transmit, or store sensitive Company information or data on personal devices, unauthorized cloud storage, or other unsecured platforms.
Employee is responsible for protecting the confidentiality, integrity, and availability of Company data and must promptly report any actual or suspected security breaches or incidents to the Company. Failure to comply with the Company’s data security and privacy policies and procedures may result in disciplinary action, up to and including termination of this Agreement and Employee’s employment.
- Business Travel/Expenses
Employee may be required to travel for business purposes, including attending meetings, conferences, or training sessions. The Company will provide reasonable advance notice of any required travel. Employee shall be reimbursed for reasonable and necessary travel expenses, in accordance with the Company’s travel and expense reimbursement policies. Employee must submit an expense report with appropriate documentation to receive reimbursement.
Employee will be eligible for the standard benefits package offered by the Company, including health insurance, dental and vision insurance, retirement savings plans, and other benefits as applicable. Details regarding benefits eligibility, enrollment, and coverage will be provided separately by the Company.
Employee will accrue vacation days and paid time off (PTO) in accordance with the Company’s vacation and PTO policies. Employee must request and obtain approval for any vacation or PTO in advance, following the Company’s established procedures.
- Stock Options
Employee may be eligible for stock options, subject to the terms and conditions of the Company’s stock option plan and any applicable stock option agreements. The number of stock options, if any, and the terms and conditions of such options, will be determined by the Company in its sole discretion.
Employee’s employment with the Company is at-will, meaning that either Employee or the Company may terminate this Agreement and Employee’s employment at any time, with or without cause, and with or without prior notice. This at-will employment relationship cannot be changed except in writing and signed by both parties.
- Termination Benefits
In the event of termination of Employee’s employment, Employee may be entitled to certain benefits as outlined in the Company’s severance policy or as required by applicable law. Any such benefits will be subject to the terms, conditions, and eligibility requirements set forth in the relevant policies or legal provisions.
- Termination of Employment
In the event of Employee’s death, disability, termination by the Company for cause, or resignation without good reason, this Agreement will automatically terminate. The Company may provide any legally required payments or benefits in the case of death or disability. Termination for cause will be subject to the Company’s policies and procedures.
- Confidential Information and Restricted Activities
Employee acknowledges and agrees to protect the Company’s confidential and proprietary information, including trade secrets, customer lists, pricing strategies, and other sensitive information, both during and after employment with the Company. Employee shall not engage in any activities that may compete with the Company or solicit the Company’s customers or employees during the term of this Agreement and for any applicable period thereafter, as outlined in any non-compete or non-solicitation agreements entered into between the parties.
- Performance Evaluation and Goals
Employee’s performance will be evaluated periodically by the Company, in accordance with the Company’s standard performance evaluation process. Employee will work with their supervisor to establish performance goals and objectives, and to develop a plan for achieving those goals. Employee will be expected to actively participate in the performance evaluation process and to take appropriate steps to improve performance as needed.
To successfully manage remote employees and foster a thriving remote work environment, it’s crucial to implement a comprehensive Remote Work Agreement. This agreement should clearly outline expectations, responsibilities, and the terms of the remote work arrangement. By addressing critical aspects such as work hours, equipment and workspace, data security, and performance evaluation, you can create a solid foundation for remote employees to excel in their roles.
As a manager, take the time to review and adapt your company’s Remote Work Agreement to ensure it meets the unique needs of your team. With open communication and ongoing support, you can empower your remote employees to reach their full potential, ultimately driving the success of your organization.
Jared has worked remotely for 15 years in various marketing capacities, and has managed hundreds of marketing campaigns along the way. He has held freelance, agency, and in-house positions for companies large and small.