In April 2022, IPSA introduced the contract options for MP staff members that formalised the options of working from home either flexibly or permanently.
Issuing the wrong contract type can have significant consequences so you must be sure that you are providing the staff member with the correct type of contract at the start of the employment process.
Either party (staff member or employer) can seek to request to change the contract but there are specific processes to follow.
MPs or their proxy should refer to the MP and MPs' staff support team for HR advice before proceeding.
The type of contract your staff is on matters for tax purposes and also to determine what travel costs or other allowances they are eligible for and whether any reimbursements made to them have a personal tax and National Insurance liability.
HMRC guidance sets out examples and definitions to demonstrate when associated costs and allowances may be paid and whether these are taxable or non-taxable (this is also known as 'not eligible for tax relief' or 'eligible for tax relief').
IPSA aligns to HMRC guidance for the eligibility of tax relief for employees. IPSA contracts only allow for one permanent workplace:
The office will usually be either the constituency office or the Westminster office. In the case of home-based contracts, this is the staff member’s home.
IPSA does not offer a contract with more than one permanent place of work so cannot facilitate dual locations or any other combination of options.
Occasional, part or full-time homeworking by office-based staff can all be facilitated by the flexibility of a hybrid contract.
An MP should consider how they will manage their offices and be comfortable with organising and managing staff in their permanent work locations while maintaining good practices as an employer.
MPs must refer to the Members HR Best Practice Guidance. Failure to follow this guidance may invalidate some or all of the employment (and related) insurances provided by the House.
Guidance for MPs
Office-based contract
Staff on an office-based contract are expected to do all their work from an office location, and travel to a different office or other location will be irregular or ad hoc.
If you wish to have staff available to greet or receive visitors, or to be available for local engagements or surgeries, then the office-based contract is likely to be the appropriate choice.
With an office-based contract, the permanent place of work will be either your constituency office or your Westminster office (but not both).
This is likely to be the most appropriate contract for most MPs’ staff.
Does it matter where an office-based worker lives?
No. If the job is advertised with a specific permanent location, for example the constituency office, then it is the staff member’s responsibility to commute to the office at their own expense for their designated start time.
Can a staff member work from home for some of the time?
No. If you and your staff member want to agree that they can work from home for some of the time on a regular basis, then the hybrid contract is the most suitable option.
Hybrid contract
Staff on a hybrid contract are still permanently based from an office location but with some degree of flexibility to allow the staff member to work from home for some of the time.
This will allow you to manage your staff flexibly, ensuring they are in the office as needed while enabling them to work from home if this is mutually beneficial to you both.
The number of days or weeks the staff member works from home does not have to be stated in the contract and can be flexible as agreed by you.
Like office-based workers, for the days they travel into the office, they will commute to their permanent place of work in their own time and at their own cost.
Hybrid contracts can help provide better work-life balance and have many benefits to the recruitment and retention process, but if you want the staff member in the office every day, this is not the right contract.
Does it matter where a hybrid worker lives?
No. If the job is advertised with the permanent office location, then it is the staff member’s responsibility to commute to the office for their designated start time.
For the days that a hybrid worker works from home, they will simply be carrying out their work at home as agreed by you.
Is there anything else to consider for hybrid workers?
MPs as employers need to ensure that hybrid workers can carry out their work effectively from home, including having access to the necessary equipment and communication tools.
A hybrid worker will not normally be provided with additional hardware or furniture to work from home (as their permanent place of work is the office) so you need to be confident that this will not compromise, among other considerations, health, safety or security.
To meet your health and safety obligations for hybrid workers, contact the Members and Members' staff support team and note the HSE checklist for managing home workers’ health and safety.
Hybrid workers cannot request funding from IPSA for any additional costs that can arise from using their home as an office, nor are they entitled to the homeworking allowance, even if they spend most of their time working from home.
Home-based contract
If you wish to employ a member of staff as a home-based worker, they will carry out all of their normal duties from home and are not expected to attend the office. Travel to other locations is also likely to be rare.
Home-based workers are very unlikely to be able to fulfil regular face-to-face contact such as attending local engagements or surgeries. Communications or meetings with you, colleagues or constituents will be via remote technology, and you should expect that you will rarely see this staff member in person.
A home-based contract can only be used where the staff member cannot practically work from an office location, for example where they live a significant distance from your nearest office, or for another justifiable reason such as a reasonable adjustment for your staff member.
You must seek advice from the MP and MP staff services team before offering a home-based contract or if you want to change the place of work in a contract for an existing member of staff. Changing a contract is a significant issue, so before proceeding you must make sure it is the right arrangement now and in the future.
Does it matter where a home-based worker lives?
Yes. Home-based contracts should only be offered when you do not have an office that they can reasonably use.
If the staff member lives within a reasonable distance to one or more of your offices, you should not offer a home-based contract but use a hybrid or office-based contract instead.
Is there a homeworking allowance?
A homeworking allowance is payable to staff who are permanently based at home.
This allowance will be paid to the member of staff without any liability to tax or National Insurance.
The homeworking allowance (or any additional homeworking costs) will not be paid to any member of staff on an office or hybrid contract.
Is there anything else to consider for home-based workers?
MPs as employers need to ensure that hybrid workers can carry out their work effectively from home, including having access to the necessary equipment and communication tools.
A home-based worker will need sufficient hardware and furniture to fulfil their role, and you will need to arrange this or them. Home-based workers will receive the homeworking allowance by default to cover the additional costs of working from home (such as utilities).
Definitions
Commute
The staff member will need to commute to their permanent place of work in their own time and at their own cost.
A commute is the journey between their home or other personal location (for example a friend or family member’s home) and their permanent place of work. Costs associated with this journey such as public transport, mileage, parking or congestion charges, will not be reimbursed by IPSA.
Permanent place of work
Office/hybrid contract – this is the constituency office or the Westminster office. It cannot be both.
Home-based contract – staff on a home-based contract will carry out all their normal duties from home and will be rarely expected to attend any office location. Even though a home-based worker is not considered to have a commute, they will also not be able to request funding from IPSA for regular or routine travel.
Regular or routine travel
This means travel to Westminster or the constituency to do their normal work on a regular basis (e.g. once a month) or for a prolonged period of time.
IPSA funding rules
Full details of allowed travel costs are set out in our guidance.
Equipment will be provided to staff members in accordance with the prevailing PDS guidance. IPSA will not reimburse costs for any equipment that could have been provided by PDS.
Generally, ad hoc journeys that have both a parliamentary and specific purpose are allowed under the Scheme. If the member of staff on an office or hybrid contract must travel other than for their commute, their travel time will also form part of their contracted hours.
For home-based workers, any necessary travel will form part of their contracted hours.