The COVID-19 pandemic has faced the world with a global crisis and numerous changes. For millions of people around the world, working from home has overnight become an everyday occurrence. The aim of our research was to contribute to the research knowledge of the relation between work from home and psychological well-being, i.e. to examine the Latent Deprivation theory by Maria Jahoda (1984) in the current context and to determine whether there is a difference in access to the latent benefits of employment (time structure, social contacts, collective purpose, activity level and social identity/status) and mental well-being, between participants working at the usual workplace and participants working from home; and to determine whether latent benefits are the underlying mechanism of the assumed relation between working conditions and psychological well-being. The survey involved 442 employees (120 working from home, 322 working at the usual workplace). The General Health Questionnaire (GHQ-12) was used as a measure of psychological well-being and the Latent and Manifest Benefits Scale (LAMB) was used as a measure of access to the latent benefits of employment. The results showed that participants working from home show poorer psychological well-being, less social contacts and less experience of collective purpose and social identity compared to participants working at the usual workplace, while these groups do not differ in the time structure of the day and level of activity. Furthermore, social contacts and collective purpose represent mediators of the relation between working conditions and psychological well-being, while time structure of the day, social identity and level of activity didn’t prove to be significant mediators of this connection. Also, a positive correlation was found between the psychological well-being and all of the latent benefits, except the level of activity. These results indicate the importance of latent employment benefits for the psychological well-being of employees and how access to the latent functions may suffer in the circumstances of work from home, so our findings can be used as the basis for adjusting work from home in a way that is conducive to employee's mental well-being.