Working from home – a stopgap measure during the crisis and a fundamental work model

The year 2020 had barely begun when the entire world was already facing a serious health crisis. The novel coronavirus did not spare Europe either. Infection rates in Germany are rising daily. There is growing uncertainty among the population. The motto: Stay home and keep infection rates low. But as restrictions tighten, employees are growing increasingly worried about their jobs. Small businesses and the self-employed, in particular, fear for their livelihoods. So how can you keep working while staying at home as much as possible? That’s right! Working from home. Remote work is currently a widely used option. Anyone who can is working from home. Our daily routine at our offices in Düsseldorf and Oberhausen is also heavily impacted. In times of crisis, we must stick together and do everything we can to limit the economic damage. In this article, we would therefore like to explain what needs to be considered when working from home. The following information is relevant for both employees and employers and is also of interest outside of a crisis. Working from home doesn’t have to be just a stopgap solution!

In what forms is working from home possible?

Working from home is practical, important during a pandemic, and, without a commute, also beneficial for the environment. So one wonders, why doesn’t everyone simply work from home? Of course, we must not forget that working from home is not practical or even possible for everyone. Not every profession is suited for working from home. For example, those working in manufacturing, skilled trades, or brick-and-mortar retail have little prospect of working from home. On the other hand, there are also many tasks that can be easily performed from a home office. Office work, in particular, is ideally suited for the home office. But with a little creativity and technology, other professions can also be carried out from anywhere.

Working from home can take various forms. These include:

• Telework: In this scenario, employees perform their work exclusively from home and do not need to come into the office. Legally speaking, this option is likely the most complex for the employer.
• Alternating telework: In this form, employees can switch between working from home and working on-site. In practice, this is likely the most common option. The advantage: there is regular face-to-face contact. The currently necessary work-from-home arrangements also fall under this category.
• Mobile telework: This arrangement describes the home office for employees who travel frequently. Examples include field service employees.

What are the benefits of working from home?

In the current situation, working from home primarily offers health and safety benefits. However, there doesn’t have to be a crisis for the home to become a beneficial work environment. Fundamentally, employees can be deployed more flexibly. There are no commute times, resulting in significant time savings. While increased personal responsibility carries some risk, it also leads to improved motivation. For some employees, it’s also wonderful when work and family life are easier to balance. Ideally, the home office even allows for more undisturbed work than the office could. There are fewer distractions from colleagues. As an employer, you may also be able to save on operating costs.

Although working from home is practical and should be appealing to many, there are also downsides. Flexibility and personal responsibility can be both a blessing and a curse. Not every employee can work from home without difficulty and maintain the same level of performance. The risk of distraction is naturally greater at home. In times of crisis, these challenges must be addressed as effectively as possible. In normal working life, both the pros and cons should always be taken into account.

What requirements must be met for working from home?

The switch to working from home is often made lightly. Employers forget that there are indeed regulations and requirements to be observed. First, it must be ensured that the workspace at home is well-equipped and complies with legal requirements. The premises themselves must, of course, be provided by the employee. Furniture and items necessary for work should generally be provided by the employer. In general, the employer is obligated to comply with the provisions of the Workplace Ordinance and the Occupational Safety and Health Act even when working from home. Normally, the specific details are agreed upon between both parties. Especially when working from home is granted only as an exception or at least rarely, the home workspace is not overly relevant. It is simply necessary to ensure that the employee can perform the assigned work.

Similar to the office, working hours and break times must also be adhered to when working from home. In doing so, employers must follow the Working Hours Act (ArbZG). It should be noted that employees are required to document their working hours. This is, of course, somewhat more difficult when working from home. The law does not specify exactly how this documentation should be carried out. In most cases, the responsibility falls on the employee. A wide variety of manual or fully digital records can be used, such as an app on the employee’s own smartphone.

Accidents or injuries can also occur while working from home. Accidents or injuries that occur during working hours at home are generally covered by statutory accident insurance, provided they happen at the workplace (the home worker’s office space). However, the trip to the restroom is not covered. The situation is different at the workplace within the company. Here, for example, the trip to the restroom is covered.

There is no legal entitlement to working from home in Germany. It is therefore important that employers and employees agree on how the employment relationship should be structured. During the COVID-19 crisis, a loose verbal agreement is sufficient for this purpose. However, if working from home is to be carried out on a general basis, an additional clause in the employment contract is advisable.

Working from Home – Claiming a Home Office for Tax Purposes

Those who work from home may also enjoy tax benefits. Under certain conditions, the home office can be claimed for tax purposes. It is important to note that the costs of a home office are only tax-deductible if the home office is a separate room in your home. The room must be used primarily for professional purposes. A work corner in a room is not sufficient. So, if you’re working on your laptop from the sofa during the COVID-19 pandemic, you cannot claim this as a tax deduction. For professional home workers with a furnished home office, tax savings are possible.

The costs for the home office and furnishings can be claimed as income-related expenses or, for self-employed individuals, as business expenses. Those who work entirely from home can deduct the costs for the home office from their taxes without limitation. For this, it is important that the primary focus of their work takes place in the home office and that there is no workplace at the company. Employees who work partly at the company and partly from a home office generally cannot claim any expenses. In exceptional cases, however, field staff, sales representatives, or teachers may claim certain costs on their tax returns. Those who do not have their own workstation at their employer’s premises may, under this exception, deduct a maximum of 1,250 euros per year for the home office. Whether you can benefit from this tax-wise in your specific case should be discussed with a qualified tax advisor.

We can see, then, that working from home can also have tax implications. As an entrepreneur or employee, you should seek advice from a tax advisor on this matter. Our team in Düsseldorf and Oberhausen can assist you with this and many other tax-related issues.

Any questions? Tax advisors in Düsseldorf and Oberhausen!

We hope this post was helpful and informative for you. If you have further questions, we are the perfect point of contact. Working from home may also be a sensible option for your daily work routine. Entrepreneurs, employers, and employees should always consider whether working from home in a home office might also have tax implications. We’d be happy to advise you. Just contact us to schedule a consultation.

The team at Trimborn . Partner wishes you good health and strength during these times of economic uncertainty. If you have any questions, we are also happy to assist you by phone.