More of us are working remotely than ever before. With this likely to remain the norm for some time, employers are increasingly likely to receive requests from employees to work from home – whilst living abroad.
This may because the employee is originally from another country and has decided to take this opportunity to return home to be with family or because they fancied a change of scenery and new surroundings, perhaps in a country with a lower COVID-19 infection rate than the UK.
But for employers, unfortunately the implications of employees working from home in another country are not quite so simple. So, what should they be aware of when considering requests from employees to work remotely from abroad?
Immigration Rules
There may be immigration implications if an employee does not have the right to work in the country in which they are residing. They may need to have a visa in place, which could take some time to arrange given processing delays because of the pandemic.
Failure to have the correct immigration formalities in place could lead to severe penalties being issued against both the employer and the employee.
There may also be longer term immigration implications if a member of staff who is not a UK national has a prolonged stay overseas, which could impact their continued employment with a UK based business.
Travel Bans
As every country in the world struggles to get control of the spread of COVID-19, travel restrictions are rapidly changing. Employers should therefore be aware of the impact that quarantine requirements may have on an employee’s ability to perform their duties, and the fact that travel bans might be put in place preventing them from returning to the UK for some time.
Employment Law
Employees who work for extended periods outside of the UK may acquire employment protection in the country that they are working and residing. The applicable law may be more generous than that in the UK, for example in respect of annual leave entitlement and holiday pay.
There may also be serious implications if it becomes necessary to terminate the employee’s employment if different laws apply, for example the amount of redundancy payable or the process to be undertaken.
Data Protection
There are also implications under data protection law if the employee’s role requires them to process personal data outside of the UK, particularly where it is being transferred back and forth by email or via access to a central database.
It may be necessary for documentation to be put in place controlling the use of personal data and reiterating security requirements, for example that hard copy documents are kept securely locked away when not in use.
Health and Safety
Employers have a duty to take reasonable care of the health and safety of their employees which includes ensuring they have a safe workplace. This still applies when staff are working from home. There may also be different laws which apply in the country the employee is working, that an employer may also need to comply with.
Employers may have provided equipment to staff working from home in the UK, but it may be more complex and expensive to do so for employees working remotely overseas. However, any difference in treatment could give rise to discrimination claims.
Tax
There may also be costly tax consequences for both employers and employees caused by working overseas for an extended period of time, as income tax and social security contributions may need to be paid in both the UK and the country the employee is working from. There may also be corporation tax and VAT implications for the employer.
Make Sure You Know Where Your Employees Are!
Some employees may already be working overseas without having informed their employer. Employers should remind their employees that they must always seek permission to work outside of the UK, and that such requests will be considered on a case by case, individual basis.
If permission is granted to work overseas, then the terms of this should be confirmed in writing and if possible a clear date specified as to when the employee is required to return to the UK.
Conclusion
Generally speaking, the shorter the period that the employee is working abroad, the lower the risk will be, but this is a complex area and employers should seek specialist advice before agreeing to allow any employee to work remotely from abroad.
For more information and to find out how we can help you, please call 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.