Working from home: what every NZ employer needs to know in 2025

With remote and hybrid working still in focus, it’s essential for business owners in New Zealand to understand the legal and operational framework governing work-from-home (WFH) arrangements. Flexibility brings benefits, but a directive from the New Zealand Government makes an important legal point clear: working from home in the Public Service is not an entitlement, it’s a privilege that must be agreed upon, monitored, and aligned with performance expectations.

What this means for business owners:

• You’re not legally required to allow staff to work remotely unless it’s mutually agreed.
• Unless explicitly stated in the employment agreement or other agreement/provision, the primary place of work remains the office/workplace.
• Certain circumstances mean you can require employees to return to the office, provided the request is handled with fairness and good faith.

PSA’s challenge to the office‑return directive

The Public Service Association (PSA) has taken the Government to the Employment Relations Authority (ERA) over the office-return directive.

• They argue the directive violates pre-existing agreements, Gender Pay Principles and Flexible‑Work‑by‑Default Guidance, which were intended to promote flexible working and address gender inequality in public service roles.
• There were also concerns about this decision unfairly impacting primary caregivers, who are often women. Flexible working is associated with facilitating primary caregivers to thrive in the workplace and still manage responsibilities at home.

The debate: flexible work arrangements

Pros of flexible work:

• Productivity gains: PSA surveys show 85% of participants felt WFH improved productivity.
• Staff wellbeing: Reduced stress, better work-life balance, fewer commutes.
• Talent attraction/retention: Especially among remote-savvy or geographically dispersed talent.

Cons of flexible work:

• Management challenges: maintaining oversight, culture, and engagement remotely takes effort.
• Operational impact: collaboration, mentorship, and training may suffer.
• Equity concerns: not all roles or employees can work remotely, risking a two-tiered workforce.

Key considerations & best practices for employers

1. Make WFH agreements explicit

• Never assume remote working. Include clauses in polices and contracts like:
  • “The employee’s primary place of work is [Office Address].”
  • “Any remote work must be mutually agreed and is subject to review.

2. Health & safety obligations

Under the Health and Safety at Work Act 2015, remote workers remain covered. So employers should:

• Conduct risk assessments (e.g., workstation ergonomics, mental health).
• Implement mitigation, monitor safety, and encourage communication.

3. Privacy & consent to enter home workspaces

• Obtain written consent before entering a home for inspections or equipment installation.
• Respect boundaries and normalise remote-site visits only with prior approval.

4. Equipment and IT

• Decide whether you’ll supply essential gear (laptop, monitor, chair).
• Use Equipment Loan Agreements to clarify responsibilities for maintenance and return.
• Ensure data security, passwords, secure connections, and compliance with privacy laws.

5. Managing return-to-office

• Define clear policies for when and how employees may need to return to the office.
• Provide reasonable notice for changes in location expectations.
• Offer support, for example, by reallocating remote days or review periods.

Working from home needs to be structured and deliberate

Working from home offers clear advantages, but it’s not a guaranteed right. It must be structured as a deliberate arrangement, balanced against business needs and documented clearly.

The PSA’s challenge underscores evolving expectations around flexibility and equality, particularly for employees with caring responsibilities. As a business owner, your role is to lead with clarity, manage performance effectively, and preserve the ability to operationally direct where work happens.

Need help drafting WFH policies or agreements?

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