[DaeRyukNanGam Remote Work②] "The Company Is Renting Our Home to Do Business" VS "If That's the Case, Let's Go to the Office"

Conflict over responsibility for indirect costs such as transportation, meal, and cooling expenses
Workers: "Savings from remote work should be distributed to employees"
Companies: "Significant investment already made in system setup"

Mr. A, who works at a domestic startup, recently faced a concern due to working from home. As he worked remotely, his internet and communication bills, as well as electricity costs, increased, and the lunch that was previously provided by the company had to be ordered or bought every time, raising expenses. Even office supplies like mouse batteries, pens, and copy paper had to be covered personally. When he asked the company if he could claim these costs after hearing that other companies provide support for communication and electricity bills, the company has remained silent for ten days.

Company B, located in Pangyo, stopped remote work after the COVID-19 endemic but resumed it following a flood of employee protests. Some employees are demanding support for electricity bills, office supplies, and other expenses to facilitate smooth remote work, causing significant concern. The company has greatly increased costs by providing laptops to all employees and adopting Google solutions for remote work, but now being asked to cover electricity bills as well is causing frustration.

[Asia Economy Reporter Kang Nahum] As remote and flexible work systems become established across industries, many companies are facing conflicts over who should bear the additional costs incurred by these systems. Workers argue that savings from remote work should be shared with employees, while companies contend that they have already invested heavily in building systems necessary for remote work and find it burdensome to increase employee welfare costs further. ▶[Related Article] 'The Dilemma of Remote Work'

Everyone Agrees on Equal Pay for Remote Work, but Indirect Costs Spark Debate

According to the IT industry, almost all companies that have adopted remote work pay the same wages as if employees had come to the office, provided the quality and quantity of work do not change. The issue lies in who should bear costs such as transportation, meals, and cooling expenses that were provided when employees worked on-site, leaving room for conflict.

A recent survey by the Korea Labor Institute of 620 companies implementing remote work found that only 16.3% provide internet usage fees to remote employees, and just 15.8% support indirect costs like electricity bills. In contrast, 77.6% of companies provided essential PCs for work.

Companies justify supporting remote work costs by citing their own cost savings. They argue that remote work reduces various expenses, including recruitment costs due to lower turnover rates and even rent.

A 2015 study by Professor Nicholas Bloom of Stanford University, who measured the effects of remote work over nine months with 1,000 employees at the Chinese travel company Ctrip, supports this logic. The study found that remote workers were 20-30% more productive and saved about $2,000 (approximately 2.6 million KRW) per employee annually.

Employee: "The Company Is Profiting from My Private Space" VS Company: "Remote Work Costs More"

Mr. B, who works at a domestic IT company, said, "If you think about it, the company is making a profit by renting my private space. The rent savings alone from remote work amount to tens of millions of KRW per month, so even if not fully, it is right to support employees with some of these costs."

Another employee, Mr. C, argued, "The employment contract states that the employer provides all necessary items for work. Unless the contract is renewed, the company has a legal obligation to support the items and costs needed for remote work."

On the other hand, the company feels burdened by having to spend twice?both on building systems necessary for remote work and on employee welfare. An executive at a domestic IT company said, "We have spent considerable amounts on information systems and HR management systems needed to operate remote work, so it is difficult to meet demands to increase employee welfare costs as well," expressing reluctance and saying, "Honestly, I want to just tell everyone to come to the office."

Another reason for the company's reluctance is that the idea of reducing costs through remote work is a distant prospect and not immediately feasible. An executive in the telecommunications industry said, "While office operating costs can be reduced, this is a story for the distant future; currently, we have the difficulty of maintaining both office and remote work," adding, "From the employee's perspective, they save on commuting and transportation costs, but it is somewhat hard to understand the demand to pass remote work costs onto the company."

Proactive Measures: 1 Million KRW for Remote Work Setup, 100,000 KRW Remote Work Support Allowance

Not all companies implementing remote work face such disputes. Many domestic companies have proactively provided support to avoid conflicts. Recently, Zigbang closed its headquarters office and introduced a remote work system using metaverse technology. Zigbang provided employees with 1 million KRW for setting up their remote work environment. An employee at Zigbang said, "I bought a desk and blackout curtains with the support money to make my home similar to the office environment," expressing satisfaction, "If I had bought them with my own money, I would have hesitated, but thanks to the company's support, I could purchase without hesitation."

Woowa Brothers, the operator of ‘Baedal Minjok,’ has been providing employees working from home with a monthly remote work support allowance of 100,000 KRW since January last year. This aims to reduce employees' burdens from increased office supply and electricity costs due to remote work. Additionally, all employees can choose one item among premium office chairs, motion desks, or high-spec computer monitors worth approximately 1 to 2 million KRW.

Furthermore, Hancom supports developers working remotely by providing the latest laptops, and many domestic IT companies are increasing welfare costs related to the adoption of remote work systems.

The Ministry of Employment and Labor's Position: "Companies Should Support Reasonable Costs Incurred During Remote Work"

The Ministry of Employment and Labor and other labor authorities also hold the position that costs such as communication fees and consumable supplies incurred additionally due to remote work should be borne by the employer (company). The ‘Comprehensive Manual on Remote Work’ published by the Ministry of Employment in 2020 clearly states that companies should support reasonable costs incurred during job performance, such as telephone and communication fees.

A Ministry of Labor official added, however, "Since disputes may arise regarding cost burdens, it is desirable for labor and management to discuss and establish standards in advance concerning the items and limits of cost burdens, as well as the methods and procedures for cost claims."