Amid rising energy costs in South Africa, employers have been urged to reintroduce work-from-home policies to reduce staff travel costs.
Before the COVID-19 lockdown, most workplaces in South Africa adhered to traditional norms regarding work hours.
Employees were expected to come to work every day. However, the work-from-home mandate during the COVID-19 pandemic prompted companies to revise their understanding of work.
Many companies implemented various work flexibility models, such as hybrid working and remote arrangements, to ensure that employees could continue to meet the company’s objectives.
Cliffe Dekker Hofmeyr noted that as many employers and employees alike became accustomed to the changes, others began a push to bring people back to the office.
However, the conflict in the Middle East has led to a resurgence of the work-from-home model amid rising fuel prices.
The International Energy Agency has described the conflict as “the largest supply disruption in the history of the global oil market”.
The closure of the Strait of Hormuz, a narrow passage through which approximately 20% of the world’s oil supply flows, has led to oil prices skyrocketing.
This led to record fuel price increases in April, with diesel up R7 per litre and petrol up R3 per litre. More pain is expected for May if the war persists.
The government was able to offer some temporary relief via a R3 per litre reduction in the general fuel levy, which helped limit the increase somewhat in April.
However, even with the relief, a large increase in transport costs, both private and public, is hitting South Africa hard.
Renewed talks over work-from-home
With this backdrop, questions of remote, flexible and hybrid working have acquired fresh urgency, given its economic and social benefits for many.
The IEA issued a formal report identifying ten demand-side measures that governments, businesses and households should adopt to ease the strain on energy markets.
Working from home, where possible, was on the list, given that it eliminates or reduces the fuel consumed by daily commuting. Several countries have already acted on this guidance.
Cliffe Dekker Hofmeyr said that the Covid-19 pandemic showed that remote or hybrid working arrangements could be implemented without a material loss in productivity.
“Employers who invested in the infrastructure, policies and management practices needed to support flexible working during the pandemic are now well placed to deploy those same arrangements.”
“From an employment perspective, employers should be mindful that commuting costs are a real and increasing burden on employees.”
Cliffe Dekker Hofmeyr said that employers should consider implementing or reinstating remote or hybrid working arrangements where possible, but the approach need not be all-or-nothing.
“A modest increase in the number of days worked from home can yield meaningful savings for employees and contribute to the broader effort to reduce fuel demand,” it said.
“The COVID-19 pandemic was the first occasion on which remote, flexible and hybrid working was considered and implemented on a truly significant scale in South Africa.”
The top law firm said that the current conflict in the Middle East provides compelling grounds for South African employers to revisit these arrangements.
