Case Study Insight: Why Working from Home Policies Matter

Working from home is here to stay, reshaping how businesses operate and offering employees greater flexibility. Yet, this shift comes with challenges that employers cannot afford to ignore. From physical injuries in makeshift home office setups to the growing impact on mental health, remote work introduces risks that demand thoughtful solutions.

Clear and effective work-from-home policies are essential, not just to mitigate these risks but to safeguard employee well-being and ensure business success. While working from home has become increasingly common, especially since the COVID-19 pandemic, many businesses had already embraced the concept before then. A pre-pandemic case highlights why these policies matter and how they can address the unique challenges of remote work.

The Case of Hargreaves v. Telstra Corporation Limited [2011] AATA 417.

Dale Hargreaves, an employee of Telstra, worked two days a week from home and three days in Telstra’s city office. To support her remote work, Telstra provided her with necessary equipment, including a laptop, cabling, and a mobile phone, as well as internet access at the company’s expense.

On two separate occasions in 2006, Ms. Hargreaves fell down the stairs in her home, sustaining injuries to her shoulder. On both occasions, she had logged into Telstra’s computer system before the incidents occurred. The first fall happened when she got up from her workstation to take cough medicine, while the second occurred when she went to check that the front door was locked after her son left for school. The injuries eventually required surgery and contributed to mental health challenges, including depression and anxiety.

Telstra denied liability for the worker’s compensation claims, arguing that the injuries did not arise out of, or in the course of, Ms Hargreaves employment.

The Tribunal subsequently determined that both incidents were connected to Ms. Hargreaves’ employment. In the first instance, retrieving cough medicine was considered a necessary interruption similar to a meal or restroom break. In the second, ensuring the front door was locked aligned with an instruction from her employer for safety while working from home. The Tribunal concluded that these actions fell within the scope of her employment responsibilities and Telstra were required to offer compensation.

This case is a powerful reminder that any remote work, whether from home or any other location, creates unique responsibilities for both employers and employees. It highlights the need for clear, well-defined policies to address these risks, manage expectations, and protect both the business and its employees.

It’s important for employers to remember that work-related injuries can happen in any location where work is performed, whether they are the usual workplace, home office or elsewhere.

The Importance of Clear Policies & Procedures

Without clear policies and procedures, remote work can lead to confusion and miscommunication. Employees may not be sure of what’s expected of them or how to handle issues such as workplace injuries. By establishing strong policies, employers can create a structured, supportive environment that promotes accountability, productivity, and a sense of connection, even from a distance!

Key Lessons for Employers

Any at home office introduces unique risks and responsibilities. The following considerations can help employers address these challenges effectively:

  1. Establishing Clear Remote Work Policies: Employers should create comprehensive policies that clearly outline expectations for home workspace safety, including the scope of work-related activities.
  2. Conducting Risk Assessments: Provide tools for employees to assess their home workspace. While in-person inspections may not be feasible, self-assessment checklists or virtual evaluations can help identify potential hazards.
  3. Supplying Ergonomic Equipment and Training: Employers have a responsibility to provide employees with the necessary tools to work safely. This can include ergonomic furniture and training on setting up a safe workstation. Where this cannot be funded by the employer, you might choose to have the employee provide equipment in exchange for being able to work from home.
  4. Injury Reporting Procedures: Employers should develop and communicate clear procedures for reporting injuries, including how to document incidents and assess whether an injury is work-related.
  5. Communication: Leaders should have a structured approach to maintaining contact with all employees working away from the usual workplace.
  6. Addressing Work-Life Boundaries: Remote work can blur the line between work and personal life. Employers should set expectations around break times and provide guidance on what constitutes work-related tasks.

The Role of Psychological Safety

Mental health is just as important as physical safety, and remote work can increase feelings of isolation and stress. Employers should foster open communication, provide access to mental health resources, and create a culture that prioritises employee well-being, an essential part of a comprehensive remote work policy.

Proactively addressing the risks associated with remote work not only protects employees but also helps mitigate potential legal, insurance and financial liabilities. The case of Hargreaves v. Telstra emphasises the importance of understanding how employment obligations extend into the home and highlights the critical role of thoughtful policies in supporting a safe and productive workforce.

By prioritising safety and well-being in remote work arrangements, employers can foster a resilient and engaged workforce, paving the way for long-term success in an evolving work landscape.

If you have any questions about your obligations as an employer to your working-from-home employees or would like further information on how we can assist you in developing your remote work policies, fill out the form below to enquire.

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