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Okay, but here in the US we have long commutes so I'm concerned about addressing a different problem. There are people at my factory with 40-50 minute commutes at highway speeds. One way. We don't even get paid that much!
This all happened without any incentives for for anyone to increase commute length. It's just a consequence of property markets.
You're concerned about different things than I am.
That's because you have moronic zoning laws. The fix is to start by replacing those, not punishing people.
Punishing people by paying them for the time they spend commuting.
Meanwhile, my factory at least would start lobbying for better zoning laws if they had to pay people for the 40-50 minutes they spend driving to work every day.
But it's never that easy, is it? Capitalists are going to capitalist and that means you WILL be punished for the extra costs you incur to the company this way.
Maybe it'll work for your factory, but in a big city where city center rent is already ridiculously high despite the significantly higher density than suburbs, you'll just be unfairly punished for not paying twice as much rent if the company is allowed to discriminate. If they're not allowed to discriminate, you can just spread out your commute even further in order to work less for the same money, so where's the incentive in moving closer?
We're already punished by being forced to have longer commutes! The company isn't doing the punishment, of course, but the housing market is by pricing people out of the city.
I also don't think the company can demand workers pay higher rent without also paying higher wages. They'll be unable to hire workers if they try. Either the pay increases to match the housing market or they settle for paying commuters.