What is the work arrangement called that allows an employee to work from home?

The work arrangement referred to when an employee is allowed to work from home is known as telecommuting. This term specifically describes the practice of working from a location other than a traditional office environment, usually from home, and often involves using technology to communicate and perform job duties remotely. Telecommuting has become increasingly popular as it offers flexibility for employees and can lead to improved work-life balance.

The other options do not accurately define this specific arrangement: remote collaboration refers to the process of working together with colleagues in different locations using digital tools, while virtual teamwork involves working as part of a team that is spread over various locations but not necessarily from home. Freelancing, on the other hand, describes a self-employed individual who works on a project basis, which may or may not involve a remote work arrangement.