Returning to the office: Can the employer really cancel work from home?

After a long period in which working from home became an integral part of the daily routine, many employers are now demanding a return to full-time work from the office.

To understand the legal boundaries and the rights of both parties, we spoke with Adv. Idan Peper, a partner in the Labor Law and Relocation Department at the Goldfarb Gross Seligman law firm, who clarifies the new legal situation.

Many employees have become accustomed to working from home and meet all their targets successfully. Can the employer, despite this, demand that they return to the office unilaterally?

Adv. Peper explains: "The employer has the right to manage the workplace according to their discretion and to determine the format of work. Therefore, the employer is entitled to determine that remote work, whether full or partial, will not be permitted."

According to him, even those who work well from home are still required to come to the office if the employer demands it, as the employer is allowed to consider broader factors such as teamwork, meetings, supervision, or various administrative needs.

Labor courts have reiterated the principle that the employer has the full authority to determine the work format, provided that the decision is made in good faith, based on professional considerations, and not out of discriminatory motives.

"Recently, our firm was involved in a proceeding where an employee tried to force the employer to allow her to work from home during the COVID-19 pandemic," says Adv. Peper. "The court rejected this approach and reiterated the principle that the employer has the right to determine the work format."

However, the decision must be relevant and made in good faith. It is possible to set a different format for different roles if there is a professional reason, but the decision must not be based on discriminatory considerations, such as stereotypes regarding parenthood.

What happens if an employee refuses to return to the office, and can the cancellation of the arrangement be considered a worsening of conditions that allows for resignation with severance pay as if dismissed?

Persistent refusal to return to the office without agreement may be considered non-compliance with the employer's instructions and may even lead to dismissal, subject to the employer's obligation to conduct a proper hearing. As for whether this constitutes a worsening of conditions, the answer is not automatic and stems from an examination of historical agreements.

There is a significant difference between an employee who was initially hired for remote work or whose contract explicitly enshrines it, and someone whom the employer simply allowed to work from home over a period of time.

To the extent that working from home is anchored in the contract, it will be harder for the employer to change it unilaterally, and in some cases, such a change may be considered a worsening of conditions that allows for resignation "as if dismissed" with entitlement to severance pay.

In such a situation, Adv. Peper recommends first checking the employment contract and trying to reach mutual agreements on a hybrid model or a gradual return.