Remote work policy guide for employers (with free template)

As the world embraces flexible work models, a solid remote work policy has become a necessity, not just a nice-to-have for Canadian employers. Yet, many employers feel overwhelmed by the legal and operational details involved in crafting one. What are the rules for managing a remote team in Canada? What needs to be in the policy to protect your business?

This guide will walk you through exactly what to include in a comprehensive remote work policy, explain the key compliance considerations for Canadian employers and provide a free, downloadable template to help you get started right away.

What is a remote work policy?

A remote work policy is a formal document that outlines the rules, expectations and guidelines for employees who work outside of a traditional office. The purpose of this policy is to create a clear framework that governs remote work arrangements, whether they’re temporary, hybrid or fully remote. It sets expectations for both the company and the employee, protects the business from legal risks, and manages compliance with relevant employment standards and regulations.

Why your business needs a remote work policy

A clear remote work policy is a cornerstone of a successful flexible work strategy. It’s essential for both operational efficiency and legal protection.

• Clarifies expectations and reduces misunderstandings: A policy removes ambiguity about everything from work hours and communication protocols to equipment and data security. This clarity helps prevent conflict and ensures everyone is on the same page.
• Ensures compliance with Canadian employment laws: Remote work introduces new legal obligations related to health and safety, privacy and employment standards. A policy helps you address these requirements proactively, minimizing your legal risk.
• Protects company data and assets: With employees working from various locations, protecting sensitive company data is paramount. A policy can set mandatory security protocols, such as using a VPN and securing company-provided equipment.
• Supports productivity and engagement: By setting clear guidelines, a policy enables employees to work effectively from home while staying connected to the team. Most employed Canadians (66%) are part of organizations that embrace flexible work options, with 38% working remotely and 28% encouraged to do as much work remotely as possible. 

Key legal considerations for Canadian employers

When drafting a remote work policy in Canada, it’s crucial to consider the unique legal landscape. Neglecting these areas can lead to significant legal and financial consequences.

• Federal and provincial employment standards: You must comply with the employment standards of the province where your employee is performing their work, not just where your business is located. This includes rules on work hours, overtime pay, and statutory holidays.
• Health and safety obligations: Employers have a legal duty to provide a safe working environment, and this extends to employees’ home offices. Your policy should include a section on workspace safety and ergonomics, and you may need to provide a checklist for employees to ensure their workspace meets basic safety standards.
• Privacy and data protection laws: Canadian privacy laws, like PIPEDA and provincial equivalents, apply to remote work. Your policy must detail how employees should handle and protect confidential company and client data, especially on personal devices.
• CRA rules on home office expenses: The Canada Revenue Agency (CRA) has specific rules regarding home office expenses. Your policy should clearly state whether the company will reimburse these expenses and, if so, which ones. This clarity is important for both the company’s accounting and the employee’s tax filings.

For more detailed information, consult official resources from the Government of Canada and your specific provincial government’s employment standards branch.

What to include in a remote work policy (step-by-step)

A comprehensive remote work policy should cover all key aspects of the remote work relationship. Use this section as a checklist for creating your own policy.

• Purpose and scope: Clearly define the policy’s purpose and to whom it applies (e.g., full-time employees, contractors, specific departments).
• Eligibility criteria: Establish who is eligible for remote work. This could be based on job function, performance history or tenure with the company.
• Work hours and availability: Outline core working hours, how employees should track their time (for non-salaried employees) and what is expected regarding their availability for communication.
• Equipment and expense guidelines: Specify what equipment the company will provide (e.g., laptop, monitor) versus what the employee is responsible for. Clarify the reimbursement process for approved expenses like internet, phone or office supplies.
• Workspace safety and ergonomics: Require employees to maintain a safe home office environment. You can include a self-assessment checklist and information on ergonomic best practices.
• Confidentiality and data security: Set strict rules for protecting company data. This should include using secure networks, password protection and protocols for handling confidential documents.
• Performance and communication expectations: Define how performance will be measured and what tools employees should use for communication and collaboration.
• Hybrid and flexible work variations: If you offer hybrid work, specify the required number of in-office days and how scheduling will work.
• Travel, meetings and on-site requirements: Explain the circumstances under which remote employees must come into the office for meetings, training or team events.
• Policy review and updates: State that the policy is a living document that may be updated and when those updates will occur.
• Non-compliance consequences: Clearly outline the disciplinary actions that may be taken for failing to follow the policy, up to and including termination.

Best practices for implementing your remote work policy

A great remote work policy is about more than just legal compliance; it’s about creating a positive and productive work environment. Make sure you consider these best-practice tips for implementing your policy.

• Involve managers and employees: Gather feedback from your team when drafting the policy. This makes them feel heard and increases the likelihood that they’ll support the new rules.
• Train leaders on managing remote teams: Managing a remote team requires a different skill set. Provide training on effective communication, trust-building and performance management for remote staff.
• Use surveys to measure effectiveness: Regularly check in with your employees to see if the policy is working. Use surveys to get feedback on what’s effective and what needs to be adjusted.
• Keep policies flexible: The world of work is constantly evolving. Build in enough flexibility to adapt to new technologies, changing business needs and emerging best practices.

Beyond the formal policy, foster a strong remote culture by implementing virtual team-building activities, creating recognition programs for remote employees, and encouraging managers to conduct regular wellness check-ins.

Free download: Remote work policy template

Here’s a preview of the letter template you can download and customize based on your requirements:g it annually) isn’t about adding red tape — it’s about showing employees why these rules protect them, their colleagues, and the workplace culture you’re all building together.

The information in this template is current as at 1 August 2025, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The content is general information only, is provided in good faith to assist employers and their employees, and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this template. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this template.