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Free policy template · Word

Remote Work Policy

A remote work policy governs employees who are hired or moved to work permanently away from a company office — from another city or state in India. It covers eligibility, equipment, home-office allowances, working hours across locations, security, tax/payroll location and required office visits.

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Preview of the policy

[Highlighted] = fill in
[Company Logo][Company Name]

REMOTE WORK POLICY

Policy No.:
[Reference Number]
Version:
[Version Number]
Effective Date:
[Date]
Policy Owner:
Human Resources

1. Purpose

This policy sets out the terms on which [Company Name] engages employees who work permanently from a location other than a company office, so that remote employees are productive, connected, secure and treated equally with office-based colleagues.

2. Scope

It applies to employees whose appointment letter or a written amendment designates them as 'Remote', with a specified Remote Work Location in India. Occasional work from home and hybrid arrangements are covered by separate policies.

3. Definitions

  • Remote employee: an employee whose regular place of work is the Remote Work Location.
  • Remote Work Location: the address recorded with HR from which the employee normally works.
  • Overlap hours: [Start Time] to [End Time] IST, when all team members must be available.

4. Policy

  1. Remote status is approved by the Department Head and HR based on role suitability and performance.
  2. Terms of employment, leave, benefits and performance review are the same as for office-based employees unless stated here.
  3. The company provides a laptop and [accessories]. These remain company property and must be returned within [Number] days of separation.
  4. Remote employees receive a home-office/internet allowance of ₹[Amount] per month as part of salary.
  5. The employee must work from the recorded Remote Work Location. Any change of city or state requires [Number] days' prior written approval; working from outside India is not permitted without approval.
  6. Remote employees attend [Number] in-person team meetings a year; travel and stay are reimbursed under the Travel Policy.

5. Procedure

  1. The manager raises a remote work request in [HRMS]; HR verifies role eligibility.
  2. HR issues a remote work addendum recording the Remote Work Location and allowance.
  3. IT ships equipment after the employee confirms the address, and sets up VPN and multi-factor authentication.
  4. HR updates payroll for state-specific deductions.
  5. Remote status is reviewed at the annual appraisal.

6. Responsibilities

  • Employee: maintain a safe, private workspace and reliable internet; protect company data; be available during overlap hours.
  • Manager: set clear goals, hold regular video check-ins and include remote staff in team decisions.
  • IT: provide secure access, support and asset tracking.
  • HR: maintain location records and ensure statutory compliance.

7. Non-compliance

Working from an unapproved location, persistent unavailability, or data security breaches may lead to withdrawal of remote status, recall to an office location and action under the Disciplinary Policy.

8. Review & Approval

HR will review this policy annually and whenever payroll or data protection requirements change.

Approved by
[Authorised Signatory]
[Designation]
Date: [Date]
Acknowledged by
[Employee Name]
Remote Work Location: [Work Location]

What this template includes

  • Remote designation in the appointment letter — states the home location as the place of work
  • Equipment and asset custody — laptop, headset and return obligations
  • Monthly internet/home-office allowance of ₹[Amount] — avoids ad-hoc claims
  • Overlap hours — ensures collaboration across teams
  • Change of location approval — payroll, professional tax and statutory registrations depend on it
  • Mandatory office or team visits — with travel paid by the company

When to use it

  • Hiring developers, designers or sales staff in cities where you have no office
  • Converting an existing employee's role to permanently remote
  • Setting a home-office or internet allowance for a distributed team
  • Clarifying which state's rules and professional tax apply to a remote employee

How to customise this template

  1. 1Decide which roles are 'remote-eligible' and list them
  2. 2Set the allowance amount and whether it is taxable as part of salary
  3. 3Insert your asset shipping and return process
  4. 4Fix the number of in-person meet-ups per year and the travel rules for them
  5. 5Confirm with your payroll provider how location affects professional tax and labour registrations

HR tips

  • Put the remote work location in writing — it affects payroll compliance and which state rules apply
  • Insist on a dedicated workspace and secure internet before shipping equipment
  • Schedule regular video one-on-ones so remote staff are not overlooked for growth
  • Do not let employees move abroad and keep working without prior approval — it creates tax and legal exposure

Remote employment raises questions on applicable state law, professional tax, labour registrations and data protection. Review this template with your payroll and legal advisers before use.

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Frequently asked questions

What is the difference between remote work and work from home?+

Work from home usually means an office-based employee working from home occasionally. Remote work means the employee's regular place of work is away from any office, often in another city, on a permanent basis.

Should remote employees get an internet allowance?+

Many companies pay a fixed monthly internet or home-office allowance. It is not mandatory, but stating a clear amount avoids repeated small expense claims.

Can a remote employee relocate to another city?+

They should apply for approval first, because a change of state can affect payroll deductions, statutory registrations and salary benchmarks. The policy should require written approval before the move.

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