Telework is an increasingly common form of employment, yet its legal and practical aspects are often unclear, particularly when it comes to work equipment or the reimbursement of incurred expenses. This post summarizes the key points to be aware of.
Provision of work equipment: whose responsibility?
There is no statutory list specifying the exact equipment an employer must provide to employees engaged in telework. The general rule under labour law applies, according to which the employer is obliged to provide the conditions and tools necessary for work (Labour Code, Section 51 (1)). However, the parties may agree otherwise by mutual consent.
Use of personal equipment – when is it allowed?
In accordance with the Labour Code, the employee may, based on an agreement with the employer, use their own equipment for telework. The Occupational Safety Act (Act XCIII of 1993, Section 86/A (2)) stipulates that in such cases, the employer must ensure that the equipment provided by the employee is in a condition that does not pose a risk to health and is safe to use. For this purpose, a specific risk assessment must be carried out, preferably documented in writing.
Important: If an employee using their own equipment suffers a health impairment (e.g., musculoskeletal disorders) due to unsuitable work equipment or environment, the employer may also be held liable. Therefore, involving the occupational safety officer during the preparation for telework is essential.
Occupational safety considerations
When working from home, attention must be paid to the adequacy of working conditions, such as:
- ergonomic quality of the chair,
- placement and size of the monitor,
- appropriate lighting levels,
- safety of the work surface and walking areas.
Reimbursement of costs – not automatic
The employer is not generally or automatically obliged to reimburse all costs related to working from home. According to Section 51 (2) of the Labour Code, the employer is only required to reimburse necessary and justified costs incurred in connection with the fulfillment of the employment relationship.
In practice, this means:
- if a cost would be incurred regardless of the employment (e.g., an existing internet subscription) and has not increased due to the work, it need not be reimbursed;
- however, if a cost (e.g., electricity, heating) has demonstrably and justifiably increased as a result of telework, a proportional part may be reimbursed.
Key principle: prior consultation. The employee must notify the employer before incurring the cost and request approval. This follows the general principle of cooperation and helps prevent later disputes.
Options for tax-free reimbursement
Act CXVII of 1995 on Personal Income Tax (the “Personal Income Tax Act”) allows employers to reimburse certain expenses incurred by employees performing telework on a tax-exempt basis. It is important to note that such tax-exempt reimbursements under the Personal Income Tax Act are only permitted if the employment contract explicitly stipulates teleworking. The Act regulates two options:
(a) Itemized reimbursement – based on invoices
The employer may reimburse the employee’s verified expenses, and in some cases, these may be tax-free if they meet the conditions set out in Annex 3, point 1/24 of the Personal Income Tax Act.
These may include:
- computer or IT equipment (single reimbursement up to HUF 200,000; above this, based on depreciation),
- internet usage (monthly or usage-based fees),
- rent and utility costs for the place of telework (proportionally, if the apartment and workplace are not technically separated).
(b) Flat-rate reimbursement – without documentation
According to Annex 3, point II/11 of the Personal Income Tax Act, the employer may pay a monthly flat-rate amount tax-free to cover telework-related expenses, up to 10% of the minimum wage. This option is only available if the employee does not otherwise account for any expenses.
Important: this amount must be determined proportionally to the number of telework days.
Practical considerations
- The fact of telework must be recorded in the employment contract – this is a prerequisite for tax-free cost reimbursement.
- Reimbursement is not automatic; from a labour law perspective, it is only due if the cost is actually incurred, related to the employment relationship, and justified.
- If the employee’s actual costs exceed the tax-free amount, they may still be entitled to reimbursement under the general provisions of the Labour Code, provided the cost was incurred reasonably in connection with the fulfillment of the employment relationship.
Summary
Telework offers flexible opportunities but also requires legally sound regulation. It is advisable for the employer to clearly set out the provision of work equipment, cost reimbursement, and compliance with occupational safety, preferably in the employment contract or a separate agreement. This can prevent future legal disputes and make remote work more predictable for both parties.