There can be a number of issues to consider when employees start to work from home. The Institution of Occupational Safety and Health (IOSH) has a useful datasheet on-line, covering issues such as assessing the suitability of an employee for teleworking, equipment requirements, training needs (in particular, time management and communication skills) and assessing the management structure.
They also provide a premises assessment form, which can be downloaded from their website at IOSH