Remote Work Policy Template for Canadian SMBs

Why you need a written remote work policy

Canadian occupational health and safety legislation extends employer duty of care to home offices. In Ontario, the Occupational Health and Safety Act (OHSA) obligations apply to telework arrangements; WSIB has confirmed that injuries sustained during work performed at home are covered by workers' compensation if the injury arose out of and in the course of employment. WorkSafeBC takes a similar position in British Columbia.

Without a written policy, you have no documented evidence that you informed employees of home office setup requirements, ergonomic expectations, or incident reporting obligations. In a WSIB claim or wrongful dismissal case where remote arrangements are disputed, the absence of a written policy works against the employer.

Beyond compliance, a written policy reduces the most common source of remote work friction: ambiguity. When availability hours, equipment ownership, expense reimbursement, and the right to work from different locations are not written down, each manager interprets them differently — and employees compare notes.

Core elements every Canadian SMB remote work policy needs

A functional remote work policy for a small Canadian business does not need to be long — five to eight pages is sufficient for most teams under fifty people. The core elements to include:

• Eligibility criteria.Which roles are eligible for remote or hybrid work and which are not. Be specific: “roles requiring physical presence at client sites or operating equipment are not eligible.” Vague eligibility language creates equity complaints.
• Core hours and availability expectations. Define the hours during which remote employees must be reachable and responsive. Specify whether this means online in Slack/Teams, reachable by phone, or present on video. Core hours should align with the team's collaboration needs, not a default 9-to-5 if the business does not actually need that.
• Equipment provision and ownership. State clearly whether the company provides equipment (laptop, monitor, headset), whether employees may use personal devices, and who owns equipment if employment ends. Define the return process for company equipment on termination.
• Internet and home office expense reimbursement. Outline what expenses are reimbursable (internet, headset, ergonomic chair) and the process for claiming them.
• Data security requirements. Minimum expectations: use of a company VPN, no sharing of company credentials, prohibition on accessing company systems from public Wi-Fi without VPN, mandatory screen lock when stepping away. For businesses handling sensitive client data, add a clause on secure document disposal.
• Right to monitor (Ontario-specific). If you use any employee monitoring software (time-tracking, keystroke logging, screenshot tools), document it explicitly. Ontario's Working for Workers Act (Bill 88, 2022) requires employers with 25 or more employees to have a written electronic monitoring policy. Even below 25 employees, stating your monitoring practices in the remote work policy is good practice.
• Home office setup requirements. A brief statement that the employee is responsible for maintaining a safe and ergonomically reasonable work area, and must report any workplace injuries to the employer immediately. This documentation supports your WSIB position if an injury claim is filed.

Equipment and expense reimbursement: CRA rules

CRA allows employers to reimburse reasonable home office expenses for employees required to work from home without it being treated as a taxable benefit, provided the reimbursement is for actual employment-related costs. Common tax-free reimbursements include:

• A portion of internet costs (the business-use portion, typically 50–80%).
• Ergonomic equipment (keyboard, mouse, monitor, standing desk) purchased for work use.
• A headset for work calls.

A flat monthly allowance for home office expenses is generally treated as a taxable benefit unless it is a reimbursement for specific documented costs. If you pay a blanket $200/month “remote work stipend,” CRA may view this as employment income rather than a reimbursement. To keep it non-taxable, reimburse against receipts up to a capped amount, or provide company-owned equipment rather than cash.

For employees who use personal phones for work, a proportionate reimbursement of the business-use portion of their phone plan is generally non-taxable. Document the methodology in your policy. When in doubt, confirm your approach with a CPA or a payroll specialist familiar with CRA's T4130 Employers' Guide.

Ontario Bill 88: electronic monitoring policy requirements

Ontario's Working for Workers Act (Bill 88), which came into force in 2022, requires Ontario employers with 25 or more employees to have a written electronic monitoring policy in place. The policy must:

• State whether the employer electronically monitors employees.
• If yes, describe how and in what circumstances monitoring occurs.
• State the purpose for which the information collected through monitoring may be used.
• Include the date the policy was prepared and the date of any updates.

Critically, the Act does not prohibit monitoring — it only requires transparency about it. You can legally monitor work devices, track time in productivity tools, and log VPN access, provided you disclose these practices in a written policy given to employees.

Small businesses below 25 employees are not legally required to have a written electronic monitoring policy under Ontario law, but disclosing your monitoring practices (or absence of them) in your remote work policy still reduces the risk of disputes and builds trust with remote employees.

Structuring a remote work trial period and eligibility review

Many Canadian SMBs grant remote work eligibility after a new employee completes their probationary period (typically 90 days). This is a reasonable and legally sound approach: it lets the employer assess reliability, communication, and output before removing the on-site oversight structure.

If you want to extend remote work to existing employees without making it permanent, structure it as a documented trial: specify the duration (three to six months), the review criteria, and the conditions under which you reserve the right to require a return to office. Under Ontario ESA, changing the fundamental work location for an employee (e.g., requiring someone who has worked remotely for two years to return to the office full-time) may constitute a constructive dismissal if done without reasonable notice.

Document remote work arrangements in a schedule or addendum to the employment contract, not just in a standalone policy. The contract-level document creates the clearest evidentiary record if the arrangement is later disputed.

Frequently asked questions