Extending Office Policies to Work-from-Home Employees
As long as no amendments have been made to the applicable law, you should extend the same policies to employees working from home. Now that everything is open, working-from-home facilities are confined only to business requirements. Still, if you have asked employees to work from home, it should be treated as an initiative in your business interests. Therefore, treat the home as equivalent to your office and extend the same policies of leave, performance appraisal, and termination to those working from home as well.
Performance Management for Remote Employees
You can set targets for them, assess their performance, and if they do not meet your expectations or reach your targets, issue a notice or place them under a PIP (Performance Improvement Plan) before making a decision.
Leave Policy for Remote Workers
Regarding leave, anyone requiring a leave of absence should inform the same and seek approval before proceeding on leave. If you feel they are not monitored properly and frequently abstain from work to attend functions, then you have a choice to make. You cannot have your cake and eat it too. Either you should compromise on certain things or call the employees back to the office. The latter will cost you in terms of electricity bills, internet bills, etc., but you may suspect an element of diluted work.