Flexible Working and Base Location Policy: Legal and HR Framework for Indian Employers

Reviewed and Validated by: Kartavya Ostwal, Advocate

A flexible working and base location policy should clearly explain where employees are expected to work from, when office attendance is required, when remote work is permitted, how flexible work approvals operate and how the company will communicate changes in working arrangements. The policy should not leave employees guessing whether a location change affects their job security, career growth, payroll, tax treatment or long-term role stability.

For Indian employers, this policy becomes particularly important when employees work from different cities, when the company has identified specific base locations, or when office attendance is introduced for compliance, documentation, supervision, collaboration or business continuity reasons.

Why a Base Location Policy Is Necessary

A base location policy helps the company document the official work location or base location of employees. This is useful where employees are working remotely, operating from different cities, moving between locations or attending office only on specified days.

Without an established Policy ambiguity may arise regarding the whether remote working will occur and the expectations for showing up at the office or switching to remote work. This may also result in inconsistencies in communication and implementation of office attendance requirements across employees. As such, the policy need to provide guidance on the base location, remote work location, attendance in the office , approval process and subject to the relevant terms of any employment contract.

Read another Article: Remote Work Policy Indian Companies: Practical Drafting Guide for Employers

Employment Contract Override

This policy should be interpreted alongside the employment agreement of the employee, as well as relevant company policies and in case of any inconsistency , the terms of the employment agreement shall prevail unless stated otherwise.

No Permanent Right to Remote Work

Nothing contained in this policy should be interpreted as providing indivuial with the permanent right or work remotely, unless expressely provided by the company in writing. Remote working will still be dependent on certain conditions of employment.

Distinguish Between Base Location and Remote Work Location

A clear distinction must be maintained  between an employee’s base location and the place from which the employee may temporarily or periodically work.

A base location is the location designated by the company for employment, administrative  operational purposes. Remote work location refer to the location from which an  employee is permitted to work under a company approved flexible working or work-from-home arrangement.

This distinction matters because an employee may work from home, but the company may still treat a particular city, office or establishment as the employee’s base location for internal records, HR administration and work allocation.

Clarify Whether Relocation Is Required

If the company introduces identified base locations, employees may seek clarification regarding relocation obligations

The communication shall clearly specify whether any relocation is required . Where employees outside base locations are not required to relocate, the company should expressly confirm that no relocation is required and that existing work-from-home arrangement shall continue in accordance with the applicable company policy.

Such clarification reduces ambiguity and promotes consistency in employee communication. . It also reduces repeated follow-up questions from employees who may otherwise assume that the change is a hidden relocation instruction.

All relocation requirements will be subject to the employment contract and the applicable Company policy.

Clarify That Job Security Is Not Affected

When work location policies are changed, employees may fear that their job is at risk because they are outside the identified base locations.

The communication should state that the change is not linked to the employee’s role, performance or location, and that the new approach does not affect any aspect of employment. Employment terms shall continue in accordance with applicable contractual and policy provisions.

This is a useful communication safeguard. Effective communication helps avoid misunderstanding about employment continuity.

Explain the Compliance or Business Rationale

The policy should explain why office attendance or base location designation is being introduced.

Where the change is compliance-driven, the company can explain that office attendance has been introduced to meet compliance requirements and maintain clear documentation, while keeping office attendance to the minimum required.

The communication should remain simple. Employees do not need to receive the company’s full internal legal analysis, but they should understand the practical reason for the change.

Office Attendance Requirements

The policy should state whether employees are required to attend office and how often.

For example, a company may require employees in a particular base location to attend office once a week for compliance or documentation purposes. The policy should also define the applicable office timings for such attendance.

Where employees in another location are not required to attend office because the local regulatory or operational framework does not require it, the policy can state that those employees may continue with flexible working arrangements.

The responsibility of office should be defined with frequency, timing and approval needs.

Flexible Work Approval

Flexible work arrangements should not be left informal.

The policy should specify how often employees need to seek approval for flexible working, whether approval is annual, role-based, manager-approved or HR-approved, and whether relocation within India affects the approval.

The policy should also make clear that approval of flexible work is subject to business requirements, team requirements, compliance requirements, performance, availability and security considerations.

A grant of approval under a flexible work arrangement does not give any party any right or entitlement to continue the flexible working arrangement permanently and may be reviewed at various intervals by the Company depending on its needs.

This helps the company retain operational control while still giving employees predictable flexibility.

Manager Approval and Team Requirements

A flexible work arrangement should ordinarily require prior manager approval.

The manager should assess whether the arrangement is compatible with team requirements, work allocation, collaboration, client deliverables, deadlines, communication needs and productivity.

Managers should also implement the policy fairly and consistently. The policy should require them to communicate schedules and expectations clearly, monitor team efficiency and avoid arbitrary differences between similarly situated employees.

Employee Availability During Flexible Work

Employees working remotely or under a flexible work arrangement should remain online, available and responsive during working hours.

They should ensure productivity, adhere to deadlines, comply with security standards, maintain communication with their teams and keep laptops and other devices secured. Employees working remotely should also ensure a distraction-free workspace and stable internet connection.

This language is important because flexible work should not become unpredictable work. The employee’s location may be flexible, but availability, accountability and performance standards should remain clear.

Working Hours and Overtime

The policy should set out working hour expectations.

Employees shall comply with working hours prescribed under Company policy. . The policy may also state that no employee should work overtime under the flexible work policy without prior managerial approval.

This protects both sides. Employees should not be expected to work endlessly because they are at home, and the company should not have uncontrolled overtime exposure arising from remote or flexible work.

Overtime provisions, where applicable will continue to be governed by employment terms and applicable laws.

Work-From-Home Infrastructure

A flexible working policy should define minimum infrastructure standards.

Employees working remotely should maintain a suitable and distraction-free workspaceand any other infrastructure reasonably required for the performance of their roleand a stable internet connection. Where the role requires uninterrupted availability, the company may also require broadband, backup power and mobile internet redundancy.

If repeated disruption affects work deliverables, meetings or client commitments, the reporting manager may raise the concern and review whether the employee’s work-from-home setup is adequate.

This helps maintain productivity, operational continuity and consistent work standards while reducing avoidable disruptions.      

Data Security and Breach Reporting

Flexible work increases data and device risk.

The policy should require employees to comply with security standards, keep company devices secure and immediately report any suspected or actual data breach to the designated company representative or  concerned authority in accordance with applicable internal policies..

This obligation should be linked with the company’s confidentiality, data protection, cyber security, acceptable use and device usage policies. Where employees work outside the office, the company should be especially careful about laptops, confidential documents, client data, personal data and internal systems.

Employees shall not store, transfer or disclose Company information through unauthorised devices, applications or communication channels.

Travel Allowance and Office Attendance

If office attendance is required under the policy, the company should clarify whether travel allowance will be provided.

Where no travel allowance is provided for periodic office attendance, the communication should say so directly.

This prevents misunderstanding and avoids later claims that employees expected reimbursement for routine base location attendance.

Career Growth and Equal Opportunity

The policy must explain whether flexible working arrangements have any impact on promotion crieteria, performance appraisal or all other employment issues. The policy communication should clarify that employees continue to have equal opportunities for career growth and that compliance-driven work location changes do not affect career opportunities.

This is important for employee morale. A flexible work policy should not create a perception that remote employees are second-class employees or that career growth is available only to those attending office more frequently.

Payroll and Tax Treatment

Where a work location change does not affect payroll or tax treatment, the company should state this in the employee communication.

Employees often worry that location changes will affect salary, benefits, reimbursements, statutory treatment or tax documentation. A clear statement reduces confusion and prevents HR from having to answer repeated individual queries.

Avoid Over-Communicating Internal Strategy

Employee communication should be clear and sufficient for operational purpose while avoiding unnecessary  disclose of internal hiring strategy, regulatory analysis or business expansion plans.

The communication should focus on  relevant information including relocation requirement attendance at the office, required approvals, and any consequences on employment conditions, pay, payroll processing, or other workplace issues ,

Link the Policy With the Employment Agreement

The employment agreement may contain provisions allowing the company to relocate the employee to another location, department for various reasons such as organizational requirements and may require compliance with Company rules, policies and procedures issued from time to time. The flexible working and base location policy should be aligned with this contractual framework. The policy should not promise permanent remote work if the employment agreement allows location changes based on business needs.

Consequences for Non-Compliance

The policy should state that violation of flexible working or base location requirements may invite disciplinary action, including disciplinary action up to and including termination, subject to applicable disciplinary procedures

Non-compliance may include refusing required office attendance without approval, repeated unavailability during working hours, failure to maintain stable work-from-home infrastructure, unauthorised overtime, non-reporting of data breaches, misuse of flexible schedules or failure to follow manager-approved work timings.

The policy should allow the company to modify, suspend or withdraw flexible working arrangements where performance, availability, security, team coordination or business needs are affected.

Sample Flexible Working and Base Location Clause

The Company may designate a base location for each employee for employment, administrative, compliance, administrative, reporting and  operational purposes. The Company may also permit eligible employees to work remotely or under a flexible working arrangement, subject to business requirements, team requirements, compliance requirements, performance, availability, security considerations and applicable approvals.

Employees who are permitted to work remotely or under a flexible working arrangement shall remain available  and responsive during designated working hours and through approved communication channels. They shall maintain productivity, adhere to deadlines, communicate regularly with their teams, comply with security standards and keep all company devices, documents and information secure.

Nothing contained in this policy shall be construed as creating a permanent right or entitlement to remote work unless expressly agreed in writing by the Company.

Any flexible working arrangement shall require approval in accordance with the process specified by the Company. The Company may modify, suspend or withdraw any flexible working arrangement where the arrangement affects business requirements, team coordination, performance, availability, compliance, security or operational needs.

Where office attendance is required, employees shall attend office on the days, timings and frequency notified by the Company. Unless expressly provided by the Company, routine travel to the designated office or base location shall not be separately reimbursed.

Any suspected or actual data breach, device loss, security incident or unauthorised disclosure of company information must be immediately reported to the designated company representative or authority in accordance with applicable internal policies.

Violation of this policy may invite appropriate disciplinary action, including withdrawal of flexible working approval or termination of employment in serious cases.

Employee Communication Template for Base Location Change

Dear Team,

We are writing to inform you of an update to the Company’s working arrangement and base location framework.

This update is being introduced to support compliance, documentation and operational clarity. It is not linked to any employee’s role, performance or location, and it does not affect the continuity of employment.

Employees who are currently working from locations outside the identified base locations will not be required to relocate unless separately informed in writing by the Company. Existing work-from-home arrangements will continue in accordance with the Company’s flexible working policy.

Where office attendance is required for employees based in a particular location, the applicable frequency, timings and office details will be communicated separately.

This change does not affect career growth, compensation, payroll or tax treatment employment will continue on existing terms and conditions unless otherwise notified.

For any questions, please contact HR.

Regards,
HR Team

Practical Drafting Checklist

• Define approval process for flexible working arrangements
• Distinguish base location from remote work location.
• Clarify whether relocation is required.
• Clarify impact of relocation of workspace on employment terms, whenever relevant.
• Explain the compliance or business reason for the change.
• Define office attendance frequency and timings.
• Clarify whether travel allowance is payable.
• Define flexible work approval frequency.
• including approval authority.
• State employee availability requirements.
• Define work-from-home infrastructure standards.
• Require data security and breach reporting.
• Clarify whether any changes to the work pattern affect performance evalutions or employment conditions.
• Clarify payroll and tax impact where relevant.
• Avoid unnecessary disclosure of internal hiring strategy.
• Link the policy with the employment agreement.
• Reserve the right to modify or withdraw flexible work.

 State disciplinary consequences for non-compliance, subject to applicable policy and due process requirements.

Common Mistakes Employers Should Avoid

• The first mistake is announcing base locations without explaining whether relocation is required.
• The second mistake is failing to clarify job security.
• The third mistake is over-explaining internal hiring strategy.
• The fourth mistake is not defining office attendance requirements.
• The fifth mistake is not clarifying travel allowance.
• The sixth mistake is not defining flexible work approval.
• The seventh mistake is allowing flexible work without manager oversight.
• The eighth mistake is not requiring employee availability during working hours.
• The ninth mistake is ignoring data security and device obligations.
• The tenth mistake is not aligning the policy with the employment agreement.
• The eleventh mistake is treating flexible working arrangements as permanent rights without an express written policy provision.

FAQs

What is a base location policy?

A base location policy defines the location designated by the company for employment, compliance, administrative, reporting or operational purposes. It may operate alongside remote work or flexible working arrangements.

Can employees continue working from home even if the company identifies base locations?

Yes, if the company permits it. The communication should clearly state that employees outside base locations are not required to relocate and that existing work-from-home arrangements will continue under the flexible working policy.

Should the company clarify job security during a location change?

Yes. The communication should state that the change is not linked to role, performance or location and does not affect employment continuity.

Can office attendance be required for compliance or documentation?

Yes. The company may require office attendance forcompliance, documentation, operational or business requirements , provided the requirement is clearly communicated.

Should employees receive travel allowance for periodic office attendance?

This depends on company policy. If no travel allowance or reimbursement will be provided, the communication should say so clearly.

Can flexible work approval be periodic?

Yes. The policy can require employees to seek flexible work approval at defined intervals, such as annually or based on role requirements, depending on the company’s framework.

Can flexible work affect career growth?

The communication should clarify that employees continue to have equal opportunities for career growth and that compliance-driven work location changes do not affect career opportunities.

Corrida Legal Note

A flexible working and base location policy should give employees clarity without weakening the employer’s ability to manage compliance, documentation, productivity and security. The best policy separates base location from remote work, explains office attendance requirements, reassures employees on job security and career growth, and preserves the company’s right to revise arrangements based on business needs.