I am in charge of delivery and operations, any issues the team have when helping me deliver work have to go through me, I then bring it to the attention to my boss. My colleague, a developer lately has started to become harder to work with. So to summarise:

- Since the company cannot meet his salary expectations, he has requested to work from home one week in a month. We have agreed to this, but now has requested that he would like to work 2 weeks from home. Both my boss and I feel that he is pushing his luck on this matter and have in private agreed to not do this. I have told him that if my colleague wants more time away from the office, he should book a holiday and take time out.

- As time has gone on, he is increasingly becoming harder to manage, if we would ask him to do something, he would end up questioning why it has to be done a certain way. I do not want to get confrontational, but sometimes it is affecting the work flow since developments are now taking longer to complete because they have to be redone to how my boss originally wanted it. Other times the changes make sense, but the problem is things are becoming less streamlined. When I bring this up, he is now starting at times to ignore my advice, and does things his way because he thinks its the best way to do it.

- I am starting to feel that as he is gaining more influence, he knows for example that right now we need him quite a lot, he is using it to his advantage.

Short of becoming confrontational, I do not know how to diffuse the situation from getting out of hand. My boss yesterday told me that he may need to start having words with the developer, letting him know that there is a limit to what we can give him. Should I let my boss handle it, or should I step in?