Find out the key differences between telework vs remote work in this guide for HR leaders. Learn how each model impacts compliance and workforce management
Flexible working has been around for a while, becoming even more mainstream during the pandemic. NASA engineer Jack Nilles came up with the term “telecommuting” in the 1970s to describe his work on a remote communications system. Other concepts and terms followed, such as telework and remote work.
In this article, we’ll go over the similarities and differences of telework vs. remote work. We’ll discuss compliance issues, tech needs, and engagement best practice.
If your company is planning to shift from traditional work models to more flexible options, you can test the waters through telework or remote work. We hope this article can help you make that decision.
The two terms are similar, but not quite the same. Let’s go over a quick overview of telework vs. remote work:
Teleworking involves working from an approved location other than the office. This could be:
Employees who telework are expected to come to the worksite on a regular and recurring basis each pay period. This could be for client meetings, team events, or work functions.
Because of this, some companies require that employees live within the same area or state. Some employers have a guideline that workers must be within a 2-hour commute from the office.
Teleworking employees are also expected to be online during regular work hours, at the same time as their office-based colleagues.
Remote working involves a lot more flexibility compared to teleworking. Remote employees can work from anywhere.
Unlike their teleworking counterparts, remote workers need not come into the office at all. Even then, employers may set conditions on what locations potential hires should be based in.
Companies may also require remote employees to update headquarters of changes to their address. This is all part of compliance requirements, which we’ll cover in more depth later.
When it comes to working hours, remote workers can log in during business hours in their part of the world. There is no need to work at the same time as their teammates at headquarters.
Some examples of remote working jobs are:
Read next: How to hire for remote customer service jobs
Whether you decide to hire an employee who teleworks or works remotely, there are several compliance issues to keep in mind. Here are some of them:
Teleworking employees, in general, follow the employment laws of the company’s headquarters. Remote workers, meanwhile, must follow labor laws of the state or country where they are based. These labor laws cover minimum wage, overtime, and leave policies.
Teleworking employees – who, in most cases, live in the same state where their employer is based – follow the tax and payroll laws of the head office.
With the rise of remote workers during the pandemic, remote work has now become a basis for imposing state nexus taxes. This means that companies may need to register in multiple states where their remote workers are based.
Remember to include a section on payroll and taxes when drafting your company’s remote work policy.
Teleworkers are covered under their employer’s standard workers’ comp policies, since they work in the state where the company is based.
Meanwhile, employers may need separate workers’ comp policies for remote workers based in different states.
Teleworkers and remote workers should be mindful of data handling, especially where data security and privacy laws apply.
General Data Protection Regulation (GDPR) is an EU law that protects the personal data of EU residents.
The California Consumer Privacy Act (CCPA), a state law inspired by the GDPR, protects the personal information of California residents.
The Health Insurance Portability and Accountability Act (HIPAA) is a federal law that protects medical information of patients in the US.
The relevant privacy law applies depending on these scenarios (we'll assume that the employer is based in the US):
GDPR applies if:
the employee, regardless of where they are based, handles personal data of EU residents
CCPA applies if:
HIPAA applies if:
To make sure that all data is kept safe under these laws, employers should have measures in place such as secure VPNs and robust cybersecurity policies. Organize training sessions on the relevant data security law as part of an employee’s onboarding process.
Employers must comply with the Fair Labor Standards Act (FLSA) when it comes to overtime pay, regardless of where employees work.
Lines tend to blur when misclassifying remote workers as contractors. This practice goes against the FLSA. Employers found to have misclassified employees may owe back wages and overtime pay. They also face fines and possible legal action.
Telework employees fall under their employer’s benefits plan. As for remote workers, employers may need to follow the requirements of the state where the employee is based.
As we have seen, there are different legal and compliance issues for telework vs. remote work employees. Meeting the requirements for teleworking employees is more straightforward as they are based in the same state as the employer.
Compliance issues for remote work employees are more complicated because of state- or country-specific laws.
Although they work away from the office, telework and remote work teams have slightly different needs as far as tools go.
Employers provide computers and VPN access to teleworkers. Internet access may be part of the package too. If the teleworker has any issues with the equipment, they can simply come into the office to have the IT team fix it.
Remote employees, meanwhile, need a good laptop, access to the cloud, and a stable internet connection to do their work. They could benefit from basic training in IT troubleshooting and phone or chat access to a 24/7 IT helpdesk.
If you plan to go a step further and decide to hire digital nomads, here's how you can best support them.
We’ve established early on that telework and remote work teams have varying needs. This also extends to employee engagement and well-being. We’ll go over the kind of support telework vs remote work teams require:
Occasional in-person interactions help address the need for human connection for teleworkers. To keep them engaged, organize:
Remote work teams, meanwhile, need stronger virtual engagement. Team meetings on Zoom or Teams and group chats on Slack can help build teamwork and rapport. Online team building sessions with games on Kahoot! are fun too!
Telework employees get the best of both worlds in this area. They can enjoy in-person group sessions (on days they’re in the office) and virtual meetings (when working elsewhere).
A good strategy is to schedule team meetings and sessions on the day the teleworker is in the office. This way, they make the most of the time spent with their teams.
Those who work remotely use tools like Slack or Notion for collaboration across time zones and locations. It’s important to document everything in one place, just like software company GitLab does. Their company handbook is updated regularly and serves as the single source of truth.
Read more about GitLab’s approach in this article on top remote work companies.
Employers can make full use of office facilities when offering well-being support to teleworkers. Some strategies to consider:
Remote workers call for a different approach. Offering support via a virtual employee assistance program (EAP) would be helpful. Online coffee chats and group meetups are great ideas as well.
Having the company cover the employees’ work from home setup, whether in full or through a financing scheme, is also a big help.
We’ve seen the differences between telework vs. remote work; how can HR and team leads support these forms of flexible working?
Establish clear expectations. State what’s required for the role. In a telework setup, for example, outline how often the employee should come into the office.
Set cybersecurity guidelines. Security levels may vary for telework vs. remote work employees, but following security rules is non-negotiable. Have security training in place. Require employees to sign SOPs showing that they comply with the guidelines.
Make the right tools and benefits available. That might look like a transportation allowance for teleworkers or subsidy for high-speed internet for remote teams. The key is to offer the type of support that’s best for their work arrangement.
Promote work-life balance. Offer well-being initiatives that make the most sense to your teams. Onsite well-being counselor? Works better for teleworkers and office employees. Virtual therapists? Great for remote workers.
Build a strong team culture. This calls for different approaches: more in-person engagement for teleworkers, virtual spaces for remote workers.
The bottom line is to offer support that’s tailored to your employees’ work setup.
The option to go with a teleworker or a remote employee comes down to your organization’s requirements and resources. Teleworking is more straightforward when it comes to tax and compliance issues, but remote jobs offer a bigger talent pool. This option, however, can put a strain on your payroll and legal compliance teams.
Whether you go with a telework or remote work position, what matters is that your organization took a step towards offering flexible work options. And that’s a win for the company and your employees.
When it comes to telework vs. remote work, which do you prefer? Let us know in the comments below
