Remote Work: Definition, Forms, and Difference from Home Office

In the past, remote work was a modality that applied only to a very specific sector of the market. With the rise in remote work in recent years, a new remote work law was enacted.

In this guide, we explain everything you need to know about the new remote work law to successfully manage your company and human resources.

Key Points

• The new remote work law defines the terms “distance work,” “remote work,” and “in-person work.”
• Remote work applies when an employee works remotely at least 30% of their work hours over a reference period of three months.
• The main difference between distance work and remote work is the use of the internet and technological tools by the remote worker.
• If the remote work model is adopted, the company must provide the employee with all necessary equipment and cover the agreed portion of monthly electricity and internet expenses.
• Remote work must always be considered a voluntary employment option, and both the company and the employee must agree to its implementation.

What is the Remote Work Law in Spain?

The new remote work law, which came into effect on July 11, 2021, regulates the rules for implementing remote work in Spain. It defines the terms “in-person work,” “distance work,” and “remote work.”

It also outlines the rights of remote workers and companies, the expenses companies need to cover, and the penalties for non-compliance with this law.

The remote work law does not mandate that either the company or the worker must adopt this employment modality. Distance work is optional and will only occur if both parties agree. If the employee and the company choose this modality, it is important to formalize it in writing. Otherwise, penalties may arise if remote work is not included in the employment contract.

Differences Between Distance Work, Remote Work, and In-Person Work

To determine if the new remote work law affects you, it’s important to understand the form of work you are considering for your company. Currently, there are three types of work: distance work, remote work, and in-person work.

Distance Work

The distance work model involves carrying out work activities at a location chosen by the employee, such as their home. This means the employee is free to choose a place outside the office to perform their work tasks. The company does not have direct control over the chosen location.

Distance work offers several advantages for both the employee and the company:

• Reduction in office costs
• Access to a larger pool of workers
• Greater flexibility
• More autonomy
• Flexible hours in the smart working model
• Less stress
• Increased productivity
• Reduced absenteeism
• More competitive conditions and better candidates

In general, distance work is when an employee works remotely for at least 30% of their work hours over a three-month reference period.

Remote Work

According to the Remote Work Law, remote work involves performing work activities exclusively or predominantly through IT and telecommunication devices.

In other words, remote work can be considered a subset of distance work, provided it includes the use of the internet and technological tools by the worker.

The hiring company must provide all necessary technological tools for the worker to perform their services outside the office. Consequently, through IT systems, the company can monitor and manage the employee’s work activities, as long as the employee has been informed beforehand.

The remote work modality retains the advantages of distance work for both the employee and employer. The main difference is that remote work can only be performed using the IT tools provided by the company. In contrast, distance work does not necessarily require these tools.

Implementing remote work requires some planning, and there are considerations to be made, which we explore in the article on remote-first.

In-Person Work

In-person work takes place at “the workplace or location determined by the company.” The worker follows a schedule set by the company and, theoretically, spends 100% of their time on company premises fulfilling their work tasks.

In-person work involves higher costs for the company, including physical office spaces, transportation expenses, stationery, etc.

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What Are the Key Points of the Remote Work Law?

The most important aspects of the remote work law include the following:

Affected Groups

According to Article 1 of the law, the remote work law affects all individuals with employment relationships described in Article 1.1 of the consolidated text of the Workers’ Statute. This refers to all individuals who regularly perform their work activities remotely. In other words, the remote work law impacts all employees and companies that typically utilize distance work.

Control of Working Hours

Under Article 13 of the remote work law, employees are entitled to flexible working hours. However, this schedule must always be agreed upon with the hiring company. The company must establish the negotiated terms regarding working hours and the worker’s availability in the remote work agreement.

Additionally, according to Article 14 of the same law, time control applies not only to in-person work but also to remote work. All companies must have a suitable procedure for recording their employees’ working hours. While magnetic cards or biometric systems are options for recording in-person work, applications or programs installed on electronic devices can be useful for remote work.

What Costs Must the Company Cover for Remote Work?

According to the remote work law, the company is responsible for the means and costs necessary to effectively carry out remote work. Generally, the company must cover the following aspects:

• Providing the worker with the necessary inventory to perform their job (e.g., computers, monitors, laptops, and phones, as well as furniture or tools like desks, chairs, headsets, or mice).
• Initial costs and maintenance of equipment.
• Providing equipment for establishing an internet connection.
• Covering a portion of the monthly electricity and internet expenses.

It is also advisable to sign a material loan agreement. In the event of contract termination, the company can request the return of all materials specified in the inventory.

The remote work law does not specify the percentage of monthly expenses that the company should cover. However, according to Article 12.2 of the law, company agreements and collective bargaining agreements will determine how and to what extent these expenses are to be compensated.

Right to Digital Disconnection and Privacy

The remote worker has the right to disconnect outside working hours, known as the right to digital disconnection. Even if they have access to work devices outside these hours, it is important to respect working hours. Only in this way can the employee enjoy their free time.

To comply with the remote work law and respect the right to digital disconnection and privacy, the company should adhere to the following:

• Respect breaks.
• Adhere to the maximum duration of working hours during work periods.
• Avoid risks of digital fatigue for the worker.
• Provide a balanced and positive work environment.
• Not require the worker to install any software on their private devices.
• Not demand the use of private devices for work tasks.
• Limit the worker’s use of company-provided devices, if applicable, to prevent their use for personal or leisure purposes.

The best way to record working hours to comply with the remote work law and facilitate the process for employees is through the use of time tracking software. With Personio’s software, remote workers can easily log their start and end times via the web and mobile app.

Control and Monitoring of Remote Workers by the Company

In relation to the rights to digital disconnection and privacy, it is important that companies use appropriate measures to control or monitor their workers.

According to Article 20.3 of the Workers’ Statute and the remote work law, the company can take necessary measures to ensure employee performance, always considering individual capabilities.

However, any measures taken must respect the worker’s fundamental rights, such as the right to honor, personal and family privacy, and image rights. The following tools are suitable for controlling and monitoring remote workers:

• Time control systems
• External monitoring software
• Project management apps
• Performance evaluation programs

All measures for controlling or monitoring remote workers must be documented in the remote work agreement. This means the worker must be aware of which productivity control tools might be used.

What Are the Rights and Obligations of Remote Work?

The remote work law regulates both the rights and obligations of the company and the remote worker.

Rights

In addition to the points already mentioned, the regulations include the following rights for all remote workers:

• Guarantee of safety and health in the remote work environment.
• Assessment and prevention of occupational risks.
• Reversibility of the remote work agreement according to the terms negotiated or agreed upon in the remote work agreement.
• Salary guarantee; the employer cannot reduce the worker’s salary due to remote work.
• Respect for the previous working hours before remote work.
• Right to professional promotions.
• In the case of a poor experience after transitioning to remote work, the company cannot terminate the employment relationship with the worker or change the conditions of their contract.

Obligations

In contrast, the remote worker must fulfill the following obligations:

• Implement occupational risk prevention measures.
• Ensure their own safety.
• Properly use the tools provided by the company.
• Perform their work tasks.

Overall, there should be no difference between in-person and remote work regarding rights and obligations. Thus, remote work should neither disadvantage or advantage the worker.

Penalties for Violating the Remote Work Law

Since October 1, 2021, all penalties established by the remote work law are in effect. If an inspection reveals irregularities, the affected company must comply with potential penalties.

According to current regulations, penalties are divided into three categories with varying amounts, depending on the nature of the violation:

How to Avoid Them?

These penalties are related to the remote work contract. Therefore, if your employees perform their work activities remotely, it is mandatory to regulate the conditions in writing in an agreement. This agreement can be part of the initial employment contract or established later. To avoid fines, the agreement should include, at a minimum:

• Inventory of the means, devices, and tools necessary for proper remote work.
• Working hours.
• Rules regarding availability.
• Percentage of remote work versus in-person work.
• The location chosen by the remote worker for remote work.
• The company’s office or the location for in-person work, if applicable.
• Tools required for remote work.
• Possible expenses for the worker and their compensation.
• Means for evaluating the worker’s performance.
• Procedure for technical difficulties.
• Means to record working hours.
• Legal instructions on data protection.
• Specific terms for digital disconnection and privacy rights.
• Duration of the contract.
• Duration of the notice period in case of reversibility.

Both the company and the remote worker must sign the document for it to be valid.

How Can Personio Help Improve Remote Work in Your Company?

Personio enhances remote work with several features. Its software allows remote and automatic time tracking, enabling more effective management of work time, overtime, and absences. All these issues are automatically incorporated into payroll, streamlining payroll calculations and payments for remote workers.

It helps identify employees with varying levels of remote work to establish analyses that determine absences, productivity, promotions, training participation, and other indicators. This provides specific statistics for this type of employee, helping identify those who have a better or worse relationship with this modality.

Having all employee documentation in one accessible platform also enables better hybrid work models. Electronic signatures or digitized onboarding processes also facilitate the quick integration of remote employees.