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Since the generalization of teleworking, companies have redesigned their work organization. This evolution, which brings opportunities for companies and their employees, now opens up new thoughts on its financial implications, especially since a decision by the Court of Cassation issued on 19 March 2025.
Behind this decision, a central question: should businesses now pay compensation for teleworking almost automatically? And if so, under what conditions and according to what calculation methods?
Faced with these new uncertainties, HR managers and business leaders must as of today master the regulation of teleworking and securing the legal framework for teleworking to anticipate the financial and social impacts of this evolution.
1. Teleworking and home occupancy benefits: what are we talking about?
Before assessing their implications, it is important to distinguish between two fundamental concepts:
- Professional expenses: these are the expenses incurred by the worker for the needs of his activity (internet subscription, telephony, consumables...). The employer is required to reimburse the costs associated with teleworking in accordance with its legal obligations for teleworking.
- Home occupancy benefit: unlike professional expenses, this allowance aims to compensate for home occupancy of the collaborator for professional needs. It is justified by the constraint that this situation imposes on the employee, which Case law on teleworking qualifies as “subjection.”
Even in the absence of direct constraints, the simple fact that part of the home is used for professional activity can justify this compensation. Businesses must therefore respect the legal obligations of teleworking to avoid any litigation risk.
2. What does the judgment of 19 March 2025 change: towards a generalization of compensation?
The decision issued by the Court of Cassation marks a turning point in terms of compensation for teleworking.
Until then, in order to be required to pay a telework allowance, the employer had to:
- Not having made professional premises available,
- Or have imposed teleworking on its workforce
Now, the Court is broadening this approach by considering that the compensation is due:
- Or in the absence of professional premises actually made available,
- That is when a collective agreement on teleworking was concluded, even for a few days a week.
This new interpretation raises several questions:
- Is it necessary calculate the telework allowance differently depending on whether it is part-time or full-time teleworking?
- The collective agreement on teleworking does it have to be formalized in writing or is a simple practice sufficient?
- What criteria are used to determine the threshold for triggering compensation?
Faced with these uncertainties, it is urgent for companies to negotiate a telework agreement clear, in order to securing the legal framework for teleworking and to anticipate the associated costs.
3. How to define and anticipate this compensation?
For calculate the telework allowance, two main methods are possible:
The flat rate method
It consists in fixing a lump-sum telework allowance standard monthly to compensate for home occupancy.
Example: case law on teleworking has validated a package of €91 per month for people who partially use their home for administrative tasks.
This method is simple to set up and allows you to take care of teleworking in a predictable and controlled manner.
The real world method
More complex, this method involves:
- Calculate the area actually used for the work,
- Evaluate the rental value of the property,
- Apply a pro rata according to the amount of time you work from home.
This approach has led the courts to award compensation of up to €5,000.
What elements should be included in the calculation?
- Rents or rental value,
- Local taxes (housing, property),
- Condominium fees,
- Home insurance,
- Energy consumption related to the activity.
Businesses must apply the Labor Code on teleworking and formalize these modalities in a charter for teleworking in companies to avoid any financial drift.
4. What are the impacts for businesses and how to react?
Increased financial and litigation risks
Without a clear framework, businesses may have to pay a telework allowance retroactively, over a period of up to two years (biennial prescription — article L1471-1 of the Labor Code).
It is therefore essential to respect the legal obligations of teleworking and to clarify the rules applicable to limit these risks.
Best practices to adopt now
- Negotiate a telework agreement including specific clauses on coverage of teleworking expenses and the associated compensation.
- Prefer a lump-sum telework allowance simple for reduce the cost of teleworking and limit disputes.
- Protecting privacy when working from home by avoiding excessive interference with personal space.
- Set up a charter for teleworking in companies in order to manage claims in a transparent and fair manner.
Conclusion: act without delay to secure your practices
The end of March 19, 2025 marks a major evolution in the field of teleworking. Without waiting for new details, businesses must act to securing the legal framework for teleworking and control their financial commitments. This includes an in-depth analysis of employment contracts, in order to incorporate the necessary clauses related to recourse to teleworking, while complying with legal obligations.
Labor flexibility is now inseparable from increased vigilance over its legal and economic implications, in particular in terms of working time.
Businesses must ensure that remote working practices comply with legal deadlines and applicable rules, while ensuring accurate tracking of the hours worked by teams.
It belongs to the HRDs and managers of master the regulation of teleworking, to integrate these aspects into employment contracts, and of respect labor law and teleworking.
By doing so, they promote a more efficient and controlled organization of working time, while contributing to the creation of a professional environment that is more sustainable, balanced and conducive to performance.
