Sample Flexible Work Arrangement Policy

Sample_Documents

DISCLAIMER: This is a sample template provided for informational purposes only. It does not constitute legal, tax, or financial advice. Organizations should consult their own legal and tax advisors and tailor this document to reflect their specific business needs, geographies, and applicable laws.

Document Header

Document Title	Flexible Work Arrangement Policy
Document Type	Flexible Work Arrangement Policy
Category	Perquisites & Programs
Company	<Company Name>
Version	v<Number>
Effective Date	<Date>
Last Review Date	<Date>
Next Scheduled Review	<Date> (or 12 months after Effective Date, whichever is earlier)
Policy Owner	<Title, e.g., VP Total Rewards>
Policy Sponsor	<Title, e.g., CHRO>
Approver(s)	<Governance Body, e.g., Executive Compensation & Talent Committee>
Geographic Scope	<Countries/Regions>
Employee Groups Covered	<Employee Types/Grades>
Document Number	<Document ID>
Confidentiality	Internal

Purpose and Objectives

Outline consistent, equitable, and compliant standards for flexible work arrangements at <Company Name>.
Enable attraction and retention of talent, support inclusion and accessibility, and enhance employee well-being and productivity.
Protect business continuity, customer outcomes, and compliance with applicable labor, tax, privacy, and immigration laws across <Countries/Regions>.
Establish clear decision rights, processes, and documentation for managers and HR, with strong alignment to Total Rewards frameworks.

Guiding Principles

Business-led and role-based: Flexibility is determined by business needs, role requirements, and performance outcomes rather than individual preference alone.
Equity over equality: Offer consistent frameworks while allowing reasonable variation by job family, market, or legal requirement to achieve equitable outcomes.
Compliance by design: Incorporate labor standards, tax, social security, export controls, data privacy, and health and safety requirements from the outset.
Simplicity and transparency: Make processes clear, predictable, and easy to administer, with documented criteria and rationale.
Measurable impact: Monitor adoption, engagement, productivity, and cost to continuously improve.

Definitions

Base Location – The assigned work location for pay, benefits, and compliance purposes, typically the nearest <Company Name> office or approved remote location.
Flexible Work Arrangement (FWA) – Any approved deviation from the standard on-site schedule, including hybrid, remote, flexible hours, compressed schedule, part-time, or job share.
Hybrid – A schedule combining on-site and remote work based on defined patterns (e.g., 3 days on-site, 2 days remote).
Remote – A schedule performed primarily away from company premises at an approved location.
Compressed Workweek – Full-time hours condensed into fewer days (e.g., 4x10 hours).
Flexible Hours – Variability in daily start/stop times while meeting role requirements and core collaboration hours.
Core Collaboration Hours – Daily time window when teams are expected to be available for meetings across time zones, e.g., <09:00–15:00 local>.
Geographic Pay Differential – Pay adjustment to reflect labor market costs by location, as defined in <Company Name>’s market pricing methodology.
Permanent Establishment (PE) Risk – Potential corporate tax exposure created when employees work in a jurisdiction in a way that triggers taxable presence.
Home Office Stipend – A one-time or recurring allowance for eligible remote/hybrid employees to offset reasonable workspace and connectivity costs.

Scope and Applicability

In Scope

Regular employees of <Company Name> in <Countries/Regions> where FWAs are legally permissible.
Job families and levels designated as eligible based on role analysis, customer impact, and regulatory requirements.
Flexible arrangements with defined terms, approvals, and documentation in the HRIS or case management system.

Out of Scope

Contractors, interns, or employees of vendors or partners, unless explicitly covered by contract.
Reasonable accommodations under disability, medical, or religious frameworks, which follow separate policies and legal processes.
Mobility assignments, relocations, and immigration-sponsored work, which follow Global Mobility policy.

Applicability Notes

Collective bargaining agreements may supersede aspects of this policy for represented employees.
Country addenda will specify legal requirements for <Country> and must be followed if stricter than this global standard.
In case of conflict, the stricter legal requirement or explicit local addendum prevails.

Policy Statement

<Company Name> supports flexible work where it advances business outcomes, complies with law, and maintains appropriate safeguards for data, safety, and customer service.
Participation in any FWA is a privilege, not an entitlement, and may be modified or revoked based on performance, business needs, or compliance concerns with reasonable notice as permitted by law.
Pay, benefits, and tax treatment are governed by the employee’s base location, market-based pay methodology, and applicable local laws and collective agreements.

Eligible Flexible Work Arrangements

Hybrid Work

Description: A mix of on-site and remote work on a predictable cadence, e.g., 2–3 days per week on-site.
Eligibility: Roles requiring regular in-person collaboration, customer interaction, or secure facility access.
Limits: Minimum on-site days set by team or site leadership, e.g., <2–3 days/week> or <8–12 days/month>.
Pay and benefits: No change unless base location changes.
Reimbursement: Commuting is generally not reimbursed. Business travel remains reimbursable under Travel Policy.

Remote Work (In-Country)

Description: Primarily remote work from an approved address in the same country as the base location.
Eligibility: Roles with minimal on-site dependencies and robust virtual collaboration workflows.
Limits: Employee must reside and perform work in <Country> at the approved address; changes require re-approval.
Pay and benefits: Geographic pay differential may apply if moving to a different pay zone; updates effective upon location change.
Stipends: Eligible for home office stipend of <Amount> one-time and <Amount>/month for internet, subject to tax rules.

Flexible Hours

Description: Staggered start/stop times while meeting weekly hour requirements and core collaboration hours.
Limits: Core hours set by team (e.g., <09:00–15:00>). Overtime for non-exempt roles requires prior approval.
Pay impact: Non-exempt employees must accurately record all hours worked; meal/rest breaks follow local law.

Compressed Workweek

Description: Full-time hours condensed into fewer days (e.g., 4x10).
Eligibility: Requires manager and HR approval; not suitable for all teams or customer coverage models.
Pay impact: For non-exempt roles, daily overtime rules vary by <Country/State>; compliance checks are required.

Part-Time and Job Sharing

Description: Reduced schedule roles or two employees sharing a full-time role.
Benefits impact: Eligibility may change if hours drop below thresholds; consult local benefits summaries.
Pay impact: Pro-rated base pay, allowances, and bonuses unless otherwise specified.

Temporary Remote Work (Short-Term Travel)

Description: Short-term work away from base location, typically for personal reasons.
Limits: Subject to approval; typically capped at <20–30 business days> in a rolling 12-month period per jurisdiction to manage tax and compliance risk.
Exclusions: Not permitted from countries under sanction, embargo, or elevated risk lists maintained by <Company Name>.

Eligibility and Participation Criteria

Role suitability based on customer, regulatory, security, and equipment needs.
Performance and conduct at or above <Rating Threshold> for the prior <X months>.
Successful completion of probationary period where applicable.
Satisfactory internet bandwidth (e.g., <50 Mbps down/10 Mbps up>) and private workspace meeting safety and confidentiality requirements.
Confirmation of right-to-work and any registration/notification requirements under local law.
Alignment with team coverage models across time zones.

Decision Rights and Roles

Role	Primary Responsibilities
Employee	Requests FWA, maintains accurate time records, adheres to security and safety protocols, updates address, and meets performance expectations.
Manager	Evaluates role suitability, coverage, performance, and business needs; approves or denies requests; monitors outcomes; documents arrangements.
HR Business Partner	Advises on policy application, employee relations risks, and local legal requirements; supports dispute resolution.
Total Rewards	Sets market-based pay and differentials; defines stipend frameworks; ensures benefits and equity implications are managed; maintains policy.
Payroll and Tax	Confirms withholding, social security, and registration requirements; implements payroll changes by effective date.
Legal and Compliance	Assesses labor, privacy, export control, and immigration risks; provides guidance on cross-border scenarios.
IT and Security	Provides approved equipment, access controls, and security protocols; supports remote connectivity and monitoring.
Facilities	Defines site capacity, safety protocols, and space booking; manages ergonomic resources and equipment retrieval.

Request, Approval, and Documentation Process

Employee reviews eligibility criteria and discusses preliminary feasibility with manager.
Employee submits a request via <HRIS/Case Management Tool> using the Flexible Work Arrangement Request form.
Manager reviews role fit, coverage model, and performance; consults HRBP and Total Rewards as needed.
For pay zone changes or cross-border scenarios, Total Rewards and Payroll/Tax perform impact analysis and advise on effective dates.
Manager approves or denies in system with documented rationale; escalates exceptions to Policy Owner.
Employee and manager sign the FWA Agreement addendum; employee completes security and safety attestations.
HRIS updates base location, work pattern, and cost center if applicable; Payroll/Tax implements changes.
Arrangement is reviewed at <30/60/90 days> and at least annually; changes documented through the same workflow.

Work Location and Timekeeping Requirements

Work must be performed only from the approved address; temporary deviations require written approval.
Non-exempt employees record all hours worked in <Timekeeping System>; off-the-clock work is prohibited.
Overtime must be preapproved by the manager; local daily/weekly overtime and premium pay rules apply.
Observance of local meal and rest break laws is mandatory; system reminders may be enabled.
Core collaboration hours are set at team level; recurring meetings should respect time zones with equitable rotation.

Compensation, Benefits, and Tax Considerations

Pay Philosophy and Location-Based Pay

Base pay is determined using <Company Name>’s market pricing methodology and the employee’s base location pay zone.
Geographic pay differentials may increase or decrease pay when an employee moves between zones; adjustments are effective on the approved transfer date.
Promotions, merit increases, and incentive eligibility follow standard Total Rewards cycles and policies.

Incentive Compensation and Equity Awards

Variable pay targets are based on role, level, and plan eligibility; participation is not impacted by FWA status unless plan documents specify otherwise.
Equity awards remain governed by plan documents and country-specific tax rules; mobility events may trigger tax withholding obligations at grant, vest, or sale.

Benefits Eligibility and Enrollment

Benefits eligibility generally remains unchanged unless hours or employment status change (e.g., part-time thresholds).
Certain benefits (e.g., commuter benefits) may no longer apply to remote roles; new benefits (e.g., telehealth) may become primary.
Local country addenda specify statutory benefits interactions, including social insurance and occupational health obligations.

Allowances and Reimbursements

Home office stipend: Eligible employees may receive <Amount> one-time upon arrangement start and <Amount> per month for internet or mobile expenses, as defined by country addenda.
Tax treatment: Stipends and reimbursements may be taxable depending on law; consult Payroll/Tax. Receipts are required for expense reimbursements above <Amount>.
Equipment: Standard kit provided per IT catalog. Personal purchases require preapproval and become company property if reimbursed.
Commuting: Generally non-reimbursable. If on-site attendance is mandated outside normal pattern, business travel rules may apply; manager preapproval required.

Tax, Social Security, and Compliance Risks

Working from a different jurisdiction can trigger payroll registration, withholding, social security, and corporate tax risks (including PE). Prior approval is required for any cross-border work.
Total Rewards and Payroll/Tax will advise on thresholds (e.g., <20–30 days> triggers), social security certificates (e.g., A1), and registration timelines.
Employees are responsible for promptly updating addresses and travel plans in <HRIS/Tool> to enable compliance.

Equipment, Security, and Privacy

IT provides approved hardware and software; employees must use VPN, encryption, and multi-factor authentication.
Use of personal devices is limited to BYOD policies; only approved applications may access company data.
Employees must prevent unauthorized access and maintain confidentiality; screen locks and secure storage are required.
Security incidents, loss, or theft of devices must be reported within <X hours>.
Monitoring: <Company Name> may monitor access, performance, and security-related activity in accordance with law and privacy notices.

Health, Safety, and Ergonomics

Employees must maintain a safe, ergonomic workspace and comply with local health and safety requirements.
Complete the Remote Work Safety Checklist and attestations upon approval and annually thereafter.
Report any work-related injuries immediately; workers’ compensation processes apply by jurisdiction.
Access ergonomic resources (guides, virtual assessments, or stipend of <Amount> per <Year> where available).

Performance Management and Business Continuity

Goals, KPIs, and deliverables remain consistent across work arrangements.
Teams must define communication norms, including response time expectations during core hours and for critical incidents.
Employees should maintain reliable connectivity and a contingency plan (e.g., backup hotspot). Persistent connectivity issues may require adjustment to the arrangement.

Global, Cross-Border, and Immigration

Cross-border remote work is not permitted without prior written approval from Legal, Total Rewards, and Payroll/Tax.
Short-term work-from-anywhere may be allowed up to <20–30 business days> per jurisdiction annually, subject to risk assessment.
Prohibited locations include countries subject to sanctions, export controls, or heightened security risks as defined by <Company Name>.
Employees are responsible for confirming right-to-work; the company will not sponsor visas for personal travel-based remote work.
Posted worker, immigration notification, and social security certificate requirements must be met before travel.

Recordkeeping and Audits

HRIS will record arrangement type, base location, effective dates, and approvals.
Timekeeping, address changes, and expense claims must be retained for at least <X years> or per local legal requirements.
Total Rewards will conduct periodic audits for pay zone alignment, stipend usage, and compliance with thresholds.

Compliance, Exceptions, and Revocation

<Company Name> may modify or revoke FWAs with reasonable notice, subject to local law and documented business rationale.
Exceptions to this policy require written approval from the Policy Owner and Legal. All exceptions must include a sunset date and review criteria.
Violations of this policy may result in corrective action, up to and including termination, per local law and company policy.

Implementation Guidelines for HR and Managers

Role Suitability Assessment

Analyze role tasks for on-site dependencies, confidentiality, regulated activities, and customer coverage.
Confirm technology readiness: secure remote access, data classification restrictions, specialized equipment needs.
Evaluate team coverage across time zones and core collaboration hours.

Pay Zone and Rewards Impact Checklist

Confirm base location and market pricing zone; model any geographic pay differential changes effective <Date>.
Assess benefit eligibility changes for part-time/job share; confirm pro-ration rules.
Validate incentive plan rules and equity plan tax implications; review country addenda.

Approval and Documentation Tips

Use standardized FWA Agreement language and document clear performance, coverage, and on-site expectations.
Set review cadence (e.g., 30/60/90 days and annually); incorporate metrics into performance check-ins.
For compressed schedules, validate overtime and daily hour limits with HR and Legal.

Manager Playbook Snippets

Sample hybrid expectation: On-site <Tuesday–Thursday>; Core hours <09:00–15:00 local>; remote otherwise; customer meetings take precedence.
Sample remote expectation: Maintain response time within <2 hours> during core hours; attend all-hands on-site <quarterly> with <Department> budget.

Metrics and Reporting

Metric	Definition	Owner	Frequency	Source
FWA Adoption Rate	Percentage of eligible employees with an approved FWA	Total Rewards	Quarterly	HRIS
Retention Differential	Retention of FWA participants vs. non-participants	People Analytics	Semiannual	HRIS
Real Estate Efficiency	On-site utilization vs. capacity by site	Facilities	Monthly	Badging/Desk Booking
Engagement Index	eNPS or engagement score of FWA participants	HRBP/People Analytics	Semiannual	Survey
Productivity Proxy	Role-specific output KPIs vs. baseline	Business Leaders	Quarterly	Business Systems
Compliance Exceptions	Number and nature of exceptions granted	Total Rewards/Legal	Quarterly	Case Management

Review and Approval Process

Draft changes initiated by Policy Owner (Total Rewards) based on data, legal changes, and stakeholder feedback.
Cross-functional review by HRBP, Legal, Payroll/Tax, IT/Security, Facilities, and Business leaders.
Updates to country addenda confirmed by local HR and Legal.
Approvals obtained from <Governance Body> per RACI.
Communication plan finalized; HRIS and documentation updated; effective date published.
Post-implementation metrics reviewed after <90 days> to validate outcomes.

Glossary of Terms and Definitions

Base Pay Zone – Market pricing grouping for compensation benchmarking by geography.
Case Management System – Tool for submitting, tracking, and documenting HR requests and approvals.
Core Role – A role that requires routine on-site presence due to operational, compliance, or customer needs.
Exempt/Non-Exempt – Classification under wage-hour law determining overtime eligibility; terminology may vary by country.
Home Country – Country where the employee holds employment and payroll registration.
On-Site Day – A day when work must be performed at a company site or customer location.
Right-to-Work – Legal authorization to work in a specific country or jurisdiction.

Appendices

Appendix A: Sample Flexible Work Arrangement Agreement Clauses

Work location address, days on-site, core hours, and contact information.
Data security obligations, device usage, and confidentiality reminders.
Safety and ergonomics attestations; photo or checklist uploads where required.
Change notification obligations (address changes, travel plans, household moves).
Review cadence and conditions for modification or revocation.
Acknowledgment of tax and expense treatment and compliance with local law.

Appendix B: Risk Assessment Checklist (Manager and HR)

Does the role involve regulated data or export-controlled technology?
Will the arrangement impact customer SLAs or incident response coverage?
Are there daily overtime or scheduling constraints under local law?
Does the location change trigger a new pay zone or payroll registration?
Have safety and ergonomics requirements been met and documented?
Are works council or consultation requirements applicable in <Country>?

Appendix C: Country Addenda Placeholder

<Country>: Daily overtime thresholds, meal and rest break rules, reimbursement taxability, right-to-disconnect rules, and telework notifications.
<Country>: Social security certificate (A1) requirements and tax residency thresholds.
<Country>: Works council consultation and data privacy notices for monitoring.

Communication to Employees and Managers

Welcome to flexible work at <Company Name>. We designed this program to help you do your best work while meeting our customers’ needs. This section explains, in plain language, how flexible work works here, what you can expect, and how to get started.

What flexible work looks like here

Most teams will choose a hybrid model with set on-site days and the option to work remotely the rest of the week. Some roles can be fully remote within their country, and others need more on-site time because of customer, security, or equipment needs. Your manager will share the model that fits your team.

Who is eligible

Eligibility depends on your role, performance, and local laws. If you are meeting expectations and your job can be done effectively away from the office, you are likely eligible for hybrid or in-country remote work. Some roles need daily on-site presence; others can flex hours or compress the week. If you have questions about accommodations for medical, disability, or religious reasons, please contact <HR Contact> for the separate process.

How to request a flexible arrangement

Talk with your manager about what you need and what the team requires.
Submit a request in <HRIS/Tool Name> using the Flexible Work Arrangement Request.
Complete the short safety and security checklist and confirm your work address.
Watch for an approval or follow-up questions from your manager in <X business days>.
If approved, you and your manager will confirm your schedule, on-site days, and review dates.

What stays the same

Your goals, performance expectations, and commitment to our values remain unchanged.
Benefits and incentives continue per policy unless your hours or employment status change.
We will continue to protect customer and company data; please follow security requirements.

What may change

Your on-site schedule: Teams will set predictable on-site days to help collaboration.
Your pay zone: If you move to a different city or region, your pay may be adjusted up or down to match local market rates. We will explain any changes before they happen.
Your stipend eligibility: You may be eligible for a home office setup stipend and a monthly internet allowance in some locations.

Working securely and safely

Please work from your approved address, use the VPN, lock your screen, and keep company information private. Set up an ergonomic workspace and let us know if you need guidance. Report lost devices or safety incidents right away so we can help.

Time and attendance tips

If you are hourly or non-exempt, record all hours you work and get approval before working overtime. Take your meal and rest breaks as required. If your schedule is flexible, agree on core hours with your manager so everyone knows when to connect.

Traveling or working from another location

Before you work from another city or country, even for a short time, check with your manager and submit a request in <HRIS/Tool Name>. Different places have different tax and legal rules, so we need to confirm what’s allowed. Some countries are not permitted for security or legal reasons.

Expenses and equipment

We’ll provide standard equipment for your job. If you are eligible, you may receive a one-time home office stipend and a monthly internet allowance. Keep your receipts when required and submit expenses in <Expense System> within <X days>. Commuting costs are usually not reimbursed.

If things aren’t working

Sometimes an arrangement needs adjusting. You and your manager will check in after <30/60/90 days> and at least once a year. If business needs change, we may modify or end an arrangement with reasonable notice, following local law.

Where to get help

Talk to your manager about your team’s schedule and expectations.
Visit <Intranet Link> for step-by-step guides and FAQs.
Contact <HR Contact/Shared Services> for policy questions, and <IT Helpdesk> for equipment and security support.

By staying connected, planning ahead, and following these guidelines, we can make flexible work successful for you, your team, and our customers.

Document Information:

Document Type: Flexible Work Arrangement Policy
Category: Perquisites & Programs
Generated: August 28, 2025
Status: Sample Template
Next Review: <Insert Review Date>

Usage Instructions:

Replace all text in angle brackets < > with your company-specific information
Review all sections for applicability to your organization
Customize content to reflect your company's policies and local regulations
Have legal and HR leadership review before implementation
Update document header with your company's version control information
At bottom of the document you find a short example on how the content could be communicated to end-users, for instance employees.

This sample document is provided for reference only and should be customized to meet your organization's specific needs and local legal requirements.