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Remote and Hybrid Work Policy – 80-Person Software Company (Non-Unionized), Ontario – Draft

Prepared 5 October 2026. Statute consolidations checked against e-Laws currency date 30 September 2026.

Interpretation

Assumptions: the company is a provincially regulated private employer (not a federal work, undertaking or business) with all 80 staff working in Ontario; no employee is under a collective agreement; employees are not independent contractors; the stipend is a $500 per calendar year cap per employee; and the handbook’s “3 office days per week” is the current baseline, which this draft keeps as the default but treats as an open decision.

Bottom line

This policy keeps a hybrid default of three office days with documented exceptions and offers a home-office stipend of up to $500 per year, while building in the Ontario obligations that attach to remote work: a written disconnecting-from-work policy and electronic-monitoring policy (both mandatory at 25+ employees), hours-of-work and time records, OHSA duties that expressly cover telework, WSIB reporting, and Human Rights Code accommodation. Key legal drivers are the Employment Standards Act, 2000, the Occupational Health and Safety Act, the Human Rights Code and CRA taxable-benefit rules; the draft leaves 8 open decisions for leadership, the most consequential being the tax treatment of the stipend.

This draft is not legal advice and should be reviewed by qualified counsel before adoption.

Purpose and Scope

1.1 This policy sets out when, where and how employees may work away from a company office, and what support the company provides. It aims to support collaboration and flexibility while meeting the company’s legal duties as an Ontario employer.

1.2 It applies to all employees (including managers, executives and probationary employees) who are employed in Ontario. It does not apply to independent contractors.

1.3 Employees who work from outside Ontario need prior written approval (see clause 3.6). This policy does not create a contractual right to remote work; it is a workplace arrangement the company may adjust on reasonable notice, subject to counsel’s review of each employee’s employment contract (see Open Decision 6).

Definitions

Term

Meaning

Hybrid work

Working part of the week at a company office and part of the week at an approved remote work location.

Remote work location

An approved non-company location in Ontario (normally the employee’s home) with suitable connectivity, privacy and a safe workspace. Public or shared spaces such as cafés are not a remote work location for work involving confidential information.

Core office days

The days each week on which an employee is expected to work from a company office (clause 3.1).

Disconnecting from work

Not engaging in work-related communications, including emails, telephone calls, video calls or sending or reviewing other messages, in order to be free from the performance of work (definition tracks ESA s. 21.1.1 as described in the Ministry guide).

Telework

Work performed in or about a private residence, to which the OHSA applies under s. 3(1.1).

Company equipment

Laptops, monitors, peripherals and software the company supplies and owns.

Stipend

The annual home-office payment described in clause 5.

Policy Statements

3 Where and when employees work

3.1 Default hybrid schedule. Employees whose roles can be performed remotely work from a company office on three core days per week (proposed: Tuesday to Thursday) and may work from their remote work location on the other days. [Open Decision 1: 2, 3 or 4 days.]

3.2 Managers may approve occasional variations to core days for business or personal reasons. Roles that require on-site presence (for example hardware lab or customer-site work) are designated in writing.

3.3 The company may require an employee to attend an office or event on reasonable notice for business reasons (for example onboarding, planning or client meetings).

3.4 Employees bear their own commuting costs between home and the office.

3.5 Fully remote arrangements for specific employees are permitted only where documented in writing by the employee’s manager and People lead.

3.6 Working from outside Ontario requires prior written approval, because employment-standards, workers’ compensation, tax and privacy consequences can differ by location. The WSIB advises that an Ontario-resident employee temporarily working outside Ontario is automatically covered for up to six months, and that non-resident employees working indefinitely outside Ontario are not covered by the WSIB WSIB FAQ.

4 Hours of work, time records and disconnecting from work

4.1 Remote work does not change employment-standards entitlements. Subject to any exemption or agreement permitted by the ESA, employees must not be required or permitted to work more than eight hours in a day (or their regular work day if longer) or 48 hours in a week (ESA s. 17).

4.2 The company will keep a record of the dates and times each employee worked and the hours worked each day and week, including when working remotely (ESA s. 15(1)). Employees record their start and finish times and any time worked outside regular hours in the company’s timekeeping tool, and managers must approve overtime in advance wherever practicable.

4.3 Work done from home after hours, such as reviewing or drafting emails, is generally working time under the ESA even where a disconnecting policy exists, according to the Ministry’s guide ESA Guide: disconnecting from work. Employees must report such time rather than work unrecorded.

4.4 Disconnecting from work. Outside scheduled hours, vacation, leave and public holidays, employees are not expected to read or respond to work-related communications unless the situation is a genuine urgency identified in advance (for example on-call duty that is separately scheduled and recorded). Employees are encouraged to use out-of-office and scheduled-send tools. Managers must not expect immediate replies outside working hours. [Open Decision 5: how much this clause promises, since a greater right or benefit may be enforceable under the ESA.]

4.5 This clause 4.4 is the company’s written disconnecting-from-work policy. It applies to all Ontario employees, includes the dates in clause 4.6, and will be provided to each employee within 30 days of preparation or change and to each new employee within 30 days of hire (ESA s. 21.1.2).

4.6 Date policy prepared: [insert date]. Date of changes: [none to date].

5 Home-office stipend and equipment

5.1 Eligible employees may receive up to $500 per calendar year toward home-office costs (for example desk, chair, monitor, headset, or home internet), subject to clause 5.4. Amount prorated for part-year employees. [Open Decision 2: cap, eligibility, amount for hybrid vs fully remote.]

5.2 The company supplies and owns core equipment (laptop, security software and any monitor or peripherals it chooses to issue). Company equipment must be used for company business, returned on request or on departure, and reported immediately if lost, damaged or stolen.

5.3 Stipend claims are submitted with receipts through the expense process within 60 days of purchase. Purchases outside the listed categories require manager approval. Items bought with the stipend belong to the employee unless the company states otherwise in writing. [Open Decision 3: employee-owned vs company-owned.]

5.4 Tax treatment. The company will process the stipend through payroll as directed by its tax adviser. CRA’s COVID-era position that up to $500 of computer or home office equipment reimbursed against receipts was not a taxable benefit applied only to purchases between 15 March 2020 and 31 December 2022, and in any event did not apply to allowances CRA, employer-provided benefits and allowances. Absent a current CRA position confirmed by the company’s tax adviser, a flat allowance should be assumed to be a taxable benefit reported on the T4. The CRA also states that reimbursements and allowances for tools owned by the employee are taxable CRA, tool reimbursements, allowances (applicability to home-office equipment to be confirmed by tax counsel). The employee-facing wording must say: “The stipend may be taxable; the company will report it as required.” [Open Decision 3 and Do Next 3.]

5.5 The company may separately reimburse the portion of a home internet or cell phone plan used for employment. CRA’s existing policy is that the employment-use portion paid or reimbursed by an employer is not a taxable benefit CRA. Employees must keep records supporting the employment-use percentage.

5.6 The stipend does not limit the company’s duty to provide equipment or adjustments needed for accommodation under clause 8.1; accommodation costs are not charged against the $500 cap.

6 Health and safety at the remote work location

6.1 The OHSA applies to telework performed in or about a private residence (OHSA s. 3(1.1)). The company must take every precaution reasonable in the circumstances for the protection of a worker (OHSA s. 25(2)(h)); remote employees are covered by the same duties as office employees.

6.2 Before starting remote work, and annually afterward, each employee completes a short Remote Workspace Self-Assessment (safe electrical set-up, trip hazards, lighting, ergonomic set-up, smoke alarm, ability to call 911 and check in with the manager). The company provides ergonomic guidance and may supply or fund adjustments.

6.3 Employees must report work-related injuries, incidents or hazards at the remote work location to their manager promptly. Where a remote employee has a work-related injury requiring more than first aid, or loses time or pay for work-related injury, the company will report to the WSIB as required (WSIA s. 21; WSIB guidance). If unsure whether an injury is work-related, report it.

6.4 The company’s workplace violence and workplace harassment policies (OHSA s. 32.0.1) apply to remote work, including virtual harassment by email, chat or video. “Workplace harassment” in the OHSA includes conduct “virtually through the use of information and communications technology” (OHSA s. 1(1)).

6.5 The company’s health and safety committee or representative arrangements continue to apply (OHSA s. 9(2) requires a joint health and safety committee at a workplace where twenty or more workers are regularly employed). Remote employees may raise concerns through the committee or their manager.

7 Information security, privacy and monitoring

7.1 Employees must follow the company’s information-security policy when working remotely: company-issued devices only for source code and customer data, multi-factor authentication, VPN or approved secure access, screen locking, no use of public Wi-Fi for confidential work without VPN, and immediate reporting of any suspected breach or lost device.

7.2 Confidential information must not be viewed by household members or visitors, and company records must not be stored on personal devices or personal cloud accounts.

7.3 Electronic monitoring. The company will maintain a separate written policy on electronic monitoring of employees as required by ESA s. 41.1.1, stating whether the company electronically monitors employees and, if so, how and in what circumstances and the purposes for which the information may be used, with the date prepared and any changes. This remote-work policy does not itself authorize any monitoring beyond what that policy states. [Open Decision 7.]

7.4 The company will limit personal information collected about a remote workspace to what is necessary (for example a self-assessment checklist rather than home inspections), and will not require video or photographs of an employee’s home except for a work-related injury investigation, with the employee’s agreement.

8 Accommodation and equity

8.1 Remote or hybrid work is not a substitute for accommodation. Employees may request a modified schedule, location or equipment for needs related to a Human Rights Code ground (for example disability, family status or creed). The company will assess requests individually and accommodate to the point of undue hardship (Code ss. 5, 11, 17).

8.2 The core-office-day requirement, and any decision on remote eligibility, will be applied consistently and will not be used to disadvantage employees on a protected ground. Managers will assess remote employees on outcomes, not visibility, to avoid proximity bias.

9 Changes, termination of arrangement and compliance

9.1 The company may amend this policy. Employees receive written notice of material changes (for example a change in core office days) at least [30] days before they take effect, and copies of the disconnecting policy and monitoring policy within 30 days of any change to those policies. [Open Decision 6.]

9.2 Failure to follow this policy, including repeated non-attendance on core days without approval or falsifying time records, may lead to corrective action.

Roles and Responsibilities

Role

Responsibilities

Employees

Follow core-day schedule; record time accurately; complete the workspace self-assessment; protect company data and equipment; report injuries, incidents and security issues promptly; submit stipend claims with receipts.

Managers

Approve core-day variations; schedule team in-office days; avoid expecting after-hours replies; approve overtime in advance; refer accommodation requests to People; apply the policy consistently.

People/HR lead

Own the policy and related notices; maintain time and expense records; run accommodation process; deliver policy copies within 30 days; track the January 1 headcount trigger; coordinate WSIB reporting.

IT/Security

Issue and manage devices; set access controls; maintain the electronic monitoring inventory; respond to incidents.

Finance/Payroll

Pay and report stipend per the tax adviser’s direction; keep receipts; apply the cap.

Joint health and safety committee / designated representative

Receive remote-work hazard reports; review the self-assessment template.

Executive sponsor

Approve this policy, fully remote exceptions and the Open Decisions.

Procedures

P1 Onboarding / opt-in. Employee and manager agree the remote work location and schedule in writing; employee completes the self-assessment and acknowledges receipt of this policy, the disconnecting policy and the electronic monitoring policy.

P2 Time recording. Employees log daily start/finish and breaks; managers review weekly; People retains records (ESA s. 15 requires records; retention periods under the ESA to be confirmed by counsel—see Coverage).

P3 Stipend. Submit receipts through the expense tool within 60 days; Finance approves up to the annual cap; payroll applies the tax treatment chosen under Open Decision 3.

P4 Incident. Employee notifies manager immediately; manager notifies People; People decides on WSIB reporting and OHSA investigation, and retains the report.

P5 Accommodation. Employee requests; People gathers only information needed (functional limits, not diagnosis); the parties explore options; decision documented in writing; review periodically.

P6 Annual cycle. Each year before 1 January, People checks headcount; if the company employs 25 or more employees on 1 January, it must have the written disconnecting and electronic monitoring policies in place before 1 March (ESA ss. 21.1.2(1), 41.1.1(1)).

Exceptions

E1 Manager and People lead may approve temporary exceptions to core office days (illness recovery, caregiving, travel disruption, extreme weather), documented by email.

E2 Exceptions required by the Human Rights Code override clause 3.1 (see clause 8.1) to the point of undue hardship.

E3 Roles designated as on-site are exempt from the hybrid schedule but remain entitled to equal treatment in benefits.

E4 Nothing in this policy reduces an entitlement under the ESA or any other law; where this policy and the law conflict, the law prevails (see ESA s. 5, no contracting out).

Review Date

Proposed review: 5 October 2027 (annual), and earlier if the office-day rule or stipend changes, a new law applies or the CRA updates its position. Legally required cycles: the ESA does not set a review date for this kind of policy, but the company must re-check the 25-employee threshold each 1 January and have the disconnecting and electronic monitoring policies in place before 1 March (ESA Guide); the workplace violence and harassment policies must be reviewed at least annually (OHSA s. 32.0.1(1)(c)).

Legal Basis

“Verified” means the section text was read on the e-Laws or agency page cited on 5 October 2026. e-Laws currency date for all statutes: 30 September 2026. Guidance is labelled as such and is not law.

Clause

Requirement

Source / citation

Mandatory or best practice

3.1, 3.3

No Ontario statute located that sets a minimum or maximum number of office days; ESA rights apply regardless of location.

Employment Standards Act, 2000, S.O. 2000, c. 41 (consolidated 1 Jan 2026) – e-Laws

Best practice (no statutory requirement located; negative finding not exhaustive)

4.1

Maximum 8 hours/day (or regular day) and 48 hours/week, unless an exception or agreement applies.

ESA s. 17(1) – e-Laws

Mandatory

4.2, P2

Record each employee’s dates and times worked and hours per day and week.

ESA s. 15(1) (items 3.1 and 4) – e-Laws

Mandatory

4.4–4.6

Employer with 25+ employees on 1 January must, before 1 March, have a written disconnecting-from-work policy for all employees including preparation/change dates; copy to employees within 30 days; copy to new employees within 30 days of hire.

ESA s. 21.1.2(1)–(3) – e-Laws; guidance: Ministry ESA Guide (updated 8 July 2024)

Mandatory (policy); content of the policy is for the employer (guidance)

4.3

Work done from home after hours is generally working time under the ESA even with a disconnecting policy.

Ministry ESA Guide (guidance) – Ontario.ca

Best practice (guidance)

7.3

Employer with 25+ employees on 1 January must, before 1 March, have a written electronic monitoring policy with prescribed content and dates; copy within 30 days.

ESA s. 41.1.1(1)–(4) – e-Laws; guidance: Ministry ESA Guide

Mandatory

6.1

Act applies to telework in or about a private residence.

Occupational Health and Safety Act, R.S.O. 1990, c. O.1 (consolidated 27 Nov 2025), s. 3(1.1) – e-Laws; guidance: MLITSD OHSA Guide, Part I

Mandatory

6.1

Employer shall take every precaution reasonable in the circumstances for the protection of a worker.

OHSA s. 25(2)(h) – e-Laws

Mandatory

6.4

Employer must prepare, in writing and post/make accessible, workplace violence and harassment policies and review at least annually; harassment includes virtual conduct via ICT.

OHSA ss. 1(1), 32.0.1(1)–(2) – e-Laws

Mandatory

6.5

Joint health and safety committee required at a workplace where 20+ workers are regularly employed.

OHSA s. 9(2)(a) – e-Laws

Mandatory (how remote staff count toward “workplace” headcount: unverified)

6.3

Employer notifies WSIB within three days of learning of a workplace accident needing health care or causing inability to earn full wages.

Workplace Safety and Insurance Act, 1997, S.O. 1997, c. 16, Sched. A (consolidated 24 Apr 2026), s. 21(1) – e-Laws; guidance: WSIB FAQ

Mandatory; WSIB guidance on remote work is guidance only

3.6

WSIB coverage for Ontario residents temporarily working outside Ontario (six months) and non-residents indefinitely outside Ontario (not covered).

WSIB FAQ (guidance) – wsib.ca

Best practice (guidance)

8.1, 8.2, 6.2

Right to equal treatment in employment without discrimination (incl. disability, family status, creed); constructive discrimination; accommodation to undue hardship.

Human Rights Code, R.S.O. 1990, c. H.19 (consolidated 1 Jul 2025), ss. 5(1), 11, 17 – e-Laws; guidance: OHRC policy on ableism, ch. 8

Mandatory; OHRC material is guidance

5.4

CRA COVID-era $500 equipment position applied 15 Mar 2020–31 Dec 2022, to receipted reimbursements and accountable advances, not allowances.

CRA, Employer-provided benefits and allowances (page dated 17 Jan 2022) – canada.ca

Guidance (expired position); current treatment to be confirmed

5.4

Employer reimbursement or allowance for employee-owned tools is a taxable benefit, reported on the T4 (Box 14, Code 40); ITA ss. 5(1), 6(1)(a), 6(1)(b).

CRA, Tool reimbursements, allowances and rental payments (page dated 6 Mar 2026) – canada.ca

Guidance; application to home-office equipment (unverified)

5.5

Employer payment of the employment-use portion of cell phone/internet is not a taxable benefit.

CRA, Employer-provided benefits and allowances – canada.ca

Best practice (guidance, existing CRA policy)

7.1, 7.4

PIPEDA applies to employee information only for federal works, undertakings or businesses; no Ontario private-sector employee privacy statute identified; IPC remote-work fact sheet is addressed to Ontario public institutions.

OPC Q&A – priv.gc.ca; IPC Fact Sheet, July 2020 – ipc.on.ca

Best practice (guidance). Customer-data privacy duties not assessed (unverified)

4.6 (record retention)

Employer retains copy of each required written policy for three years after it ceases to be in effect.

Ministry ESA Guide (guidance) – Ontario.ca; ESA s. 15.1-series retention clauses (specific subsection for the disconnecting policy not isolated: unverified)

Mandatory (unverified subsection)

Threshold check: ESA 25-employee triggers (21.1.2, 41.1.1) – met (80 employees). OHSA JHSC 20-worker trigger – met. Union/collective agreement rules – not applicable (non-unionized). Federal jurisdiction/PIPEDA employee rules – not met (assumed provincially regulated). Sector-specific rules – none identified for a software company (assumption).

Peer Practice

Organization

Approach

Date

Link

City of Toronto – Remote Work Policy, Hybrid Work (public employer, unionized and non-union)

Minimum three days per week at City location (four for Division Heads); remote location must be in Ontario; annual remote-work attestation and safety checklist; remote work is a privilege, not a term of employment; stresses WSIA, OHSA and ESA compliance and that hybrid is not a substitute for accommodation; employees bear commute costs; no stipend described on the page.

Approved 23 Mar 2022; revised 17 Oct 2025 (effective 1 Jan 2026)

toronto.ca

Canada Post – Hybrid Workplace Practice (federal Crown corporation; federal law applies)

Non-executives at least two office days per week (Tue–Thu); executives three; employees bear travel costs and utilities; company supplies/owns equipment for company use only; equipment must meet health, safety and privacy requirements.

Updated 17 Nov 2025

jobs.canadapost.ca

Instacart Canada – “Flex First” (private tech company, US-headquartered; careers page, not a full policy)

No return-to-office date; most roles work from home, office or both; Canadian employees may work remotely from Ontario, Alberta and British Columbia; some roles must be in office on certain days; stipend to outfit WFH setup and internet reimbursements (amounts not published); company-funded in-person events.

Undated page (accessed 5 Oct 2026)

instacart.careers

Where this draft sits: three core days matches Toronto’s floor and is one day above Canada Post’s non-executive floor, while a private tech peer publishes no mandatory office days. Only Instacart confirms a stipend and does not publish its amount, so $500/year cannot be benchmarked on this record; treat it as an internal decision (Open Decision 2). Only three peers were located; none is an Ontario software company of comparable size, so the comparison is a partial indicator only.

Common Pitfalls

Pitfall (Ontario)

How this draft avoids it

Adopting a disconnecting policy but ignoring that after-hours work from home is still working time under the ESA.

Clauses 4.2–4.4 require time recording and make clear that after-hours work counts and is reported.

Omitting the separate written electronic-monitoring policy (a mandatory ESA document at 25+ employees) when adding remote-work tools.

Clause 7.3 requires the standalone policy and Do Next 2 schedules it.

Treating the home as outside OHSA duties.

Clause 6.1 cites OHSA s. 3(1.1) and s. 25(2)(h); clauses 6.2 and 6.3 add self-assessment and incident reporting.

Failing to report a home injury to the WSIB because it happened at home.

Clause 6.3 follows WSIB guidance: report possible work-related injuries.

Setting a flat $500 allowance and assuming it is tax-free because of the old CRA $500 position.

Clause 5.4 notes the position expired 31 Dec 2022 and excluded allowances; Open Decision 3 compares reimbursement and allowance.

Using the office-day rule inconsistently or as a barrier for employees needing accommodation.

Clauses 3.2, 8.1, 8.2 and 6.2 provide for accommodation to undue hardship and consistent application.

Changing office days unilaterally without considering contract terms.

Clause 9.1 provides notice; Open Decision 6 and Do Next 1 flag counsel review of employment contracts.

Letting staff work from another province or country without checking WSIB, tax and employment law consequences.

Clause 3.6 requires prior approval and cites WSIB guidance on out-of-province coverage.

Assuming PIPEDA governs employee data for an Ontario software company.

Legal Basis row for 7.1/7.4 explains that PIPEDA reaches employee information only for federal works; the clause is framed as best practice.

Open Decisions

Decision

Options

Legal floor

1. Office days (currently 3)

A) Keep 3 core days; B) 2 days; C) Team-set; D) 4 days.

No statute located prescribing a number. Contract terms and accommodation duties apply; consult counsel on changes to existing employees.

2. Stipend cap and structure ($500/year)

A) $500 annual cap for all; B) larger for fully remote; C) one-time $500 plus annual; D) split equipment and internet lines.

No law located requiring a stipend; cap is permitted. Accommodation costs sit outside the cap (Code ss. 11, 17).

3. Tax treatment and payment form

A) Flat allowance, taxable on T4; B) receipted reimbursement with tax adviser’s opinion; C) company-owned equipment; D) internet/phone employment-use reimbursement outside the cap.

CRA treats allowances for employee-owned tools as taxable; the $500 COVID position expired 31 Dec 2022 (guidance).

4. Equipment ownership

Company-owned vs employee-owned stipend purchases.

No statutory floor; interacts with tax treatment.

5. Disconnecting policy strength

A) Statement of expectations only; B) specific protected hours; C) on-call exceptions.

Policy must exist, include dates, cover all employees; a greater right or benefit may be enforceable under the ESA (guidance).

6. Contractual status and notice of change

A) Policy-only; B) incorporate in contracts; C) notice period for changes (draft: 30 days).

ESA s. 5 no contracting out; changes to a fundamental term may carry legal risk; counsel to advise (case law not reviewed here).

7. Electronic monitoring

None; limited security monitoring; activity tracking.

Written policy required stating whether and how monitoring occurs (ESA s. 41.1.1).

8. Out-of-province work

A) Ontario only; B) case-by-case; C) other provinces by approval.

WSIB guidance on coverage outside Ontario; other provinces’ law not assessed.

Do next

  • Have employment counsel review the draft, in particular clauses 3.1 and 9.1 against existing employment contracts and the handbook’s 3-day rule.
  • Confirm that the company has a current written electronic-monitoring policy and a disconnecting policy (dated); if not, prepare and distribute them within 30 days.
  • Ask the company’s accountant or payroll provider to confirm the T4 treatment of the $500 stipend before announcing it.
  • Confirm workplace violence/harassment policies and the joint health and safety committee cover remote staff; build the workspace self-assessment form.
  • Give employees written notice of the new policy and any change, collect acknowledgements, and diarise the 5 October 2027 review.

Coverage

The WSIB page and e-Laws statutes were read in full text on 5 October 2026. Unverified or not found: the specific ESA subsection for retaining the disconnecting policy copy (taken from Ministry guidance); whether remote staff count toward OHSA s. 9(2) “workplace” headcount; whether any Ontario statute or case sets minimum office-day rules (none located, not exhaustive); current CRA treatment of employer-paid home-office stipends beyond the pages cited; case law on unilateral changes to work location; and the amounts of peer stipends. OHRC and IPC material is guidance. Prescribed content under ESA 21.1.2(4) and 41.1.1(2)3 not reviewed.

Sources

…

04

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