Agile working does not determine where to perform a professional activity; employees are free to decide where they work. It is therefore difficult to determine in advance if and how to contribute to an employee’s energy costs.

In some European countries, such as Poland and Spain, this is already a topic that has made its way to their legislative bodies, where discussions are ongoing regarding contributions to employees by their employers to (at least partially) cover the relevant energy costs, especially in light of the recent energy crisis and overall rising energy costs that many European jurisdictions are facing.

Currently, this is the agile working situation in various European jurisdictions:

Czech Republic: Employers do not have to make contributions to employees to balance increasing energy costs when working from home.

France: Employers do not have to make contributions to employees to balance increasing energy costs when working from home. It is noted though that an increasing number of companies are negotiating collective agreements regarding agile work, under which employees are compensated for costs associated with working from home.

Germany: Employers do not have to make contributions to employees to balance increasing energy costs when working from home.

Hungary: Employers do not have to make contributions to employees to balance increasing energy costs when working from home, but according to the general reimbursement rule, employees are to be reimbursed for justified expenses incurred in connection with their employment. Electricity and heating costs could be particularly relevant here. Employees may claim compensation for expenses incurred in relation to remote working. In terms of reimbursement, there are two possibilities: (i) itemized settlement, or (ii) lump-sum payment. The latter is capped at HUF 23.200 (approx. € 57) per month and could mean a lower administrative burden; furthermore, it would be free from personal income tax if the employee does not claim any other expenses in connection with remote working.

Italy: Employers do not have to make contributions to employees io balance increasing energy costs when working from home. The current law on agile working (Law no. 81/2017) does not imply the contribution to costs when carrying out a professional activity in agile working mode, with the exception of the costs for the correct functioning of technological tools assigned to the employees (art. 18, paragraph 2), for the training of employees (art. 20), for safety at work (art. 22) and compulsory insurance against injuries and professional diseases (art. 23). Although nothing is mentioned regarding the sharing of energy costs, this could be agreed in an individual “smart working” agreement between the employer and the employee—but this is not imposed by the legislator.

Luxembourg: If an employee is working remotely on a regular basis, the employer must contribute to the costs directly incurred by telework, especially those related to telecommunications. However, employers do not have to make contributions to employees in order to balance increasing energy costs when working from home.

Netherlands: Employers do not have to make contributions to employees to balance increasing energy costs when working from home. However, in case of remote working the employer remains responsible for a safe working environment, so this may imply some costs. In addition, there is the legal framework of “employment best practices”, which applies in general.

Poland: Polish legislation concerning remote work, that will enter into force partly on April 7, 2023 and fully on October 7, 2023, imposes an obligation on employers to reimburse the costs of electric energy and telecommunications services when working remotely. In particular, the employer will cover the costs of electricity and telecommunications services borne by the employee, or alternatively offer a fixed monetary allowance (lump sum). The fixed monetary allowance will be based on the market prices of electricity and telecommunications services, as well as electricity consumption standards. The employer may also reimburse further costs (such as office supplies and office equipment) related to remote work through internal agreement, regulation, or individual employment contract. Such costs reimbursed by the employer are exempt from Personal Income Tax (PIT).

Romania: Employers do not have to make contributions to employees to balance increasing energy costs when working from home.

Slovakia: Employers do not have to make contributions to employees to balance increasing energy costs when working from home.

Spain: According to the “Remote Work” Act, expenses for working remotely must be compensated, providing that the employee spends more than 30% of his/her working time working remotely. Employers must compensate employees for such expenses (e.g.: electricity, gas, etc.). The law does not state how these expenses must be compensated, but it refers to the applicable collective bargaining agreements. Currently, there are few collective bargaining agreements that have been updated to include provisions related to compensation. Therefore, if a collective bargaining agreement does not include specific provisions, companies usually offer a monthly lump sum of €20 to €70, depending on the size of the company and the sector where it operates. As this amount is intended to compensate expenses only, no additional social security charges apply, and it is suspended during the employee’s holidays.

The current trend towards an increasingly fluid and digital work experience seems to be an irreversible process.

Agile working is also becoming a potential source of savings for employers; it introduces "organizational re-engineering" processes and can transform workspaces thanks to investments in digitization. It also means that the company’s organization is no longer solely dependent on physical locations (office space or production plants) and can benefit from the collaboration of people operating in different places. The obvious consequence is the reduction of fixed costs (an increase in savings) relating to the company’s premises.

Furthermore, some analyses, such a recent research (read here – in Italian) by the Milan Polytechnic (a renowned Italian university), have shown how the increased energy costs connected with agile working are largely compensated for employees by the reduction of commuting costs to reach the workplace. Will this be enough, or will legislators have to find other ways to compensate workers?