NEWS
Overseas Remote Working – In view of the increasing sophistication of remote working technologies and the recognition by employees and employers that many roles can be performed effectively from anywhere, overseas remote working is a trend that will continue. As a result, an employer may need to offer overseas remote working opportunities to retain or attract talent.
Broadly, when contemplating overseas employment there are three main options:
Temporary overseas remote work – while this may seem a simple way of permitting employees a spell of overseas working, for anything other than a very limited duration, it can raise risks such as right to work, personal and corporate tax status.
International secondment – the employee remains employed by their existing employer and are sent to provide services to an entity in the host country. Work permit issues must be tackled, along with many others such as pay and tax equity and exit arrangements. In some countries, a local employment contract is required.
Permanent relocation – the employee’s employment in the home country will terminate and the employee will be employed in the host country on local terms of employment. In this scenario, there is no expectation or obligation for the employee to return to the home country or the prior role and therefore the arrangement is suited to a sustained period of working abroad.
Overseas working creates many complex issues and must be carefully managed. For example, we have seen cases where employees working “temporarily” in another location have been met with a large personal tax demands from the “host” country tax authorities and have looked to their employer for reimbursement.
We have long experience of supporting international companies in their overseas working arrangements and would be happy to advise your organisation. Contact Quarmans today
