Search

How can we help?

Icon

When working from home means working from abroad: considerations for employers

Working from home is the new normal for many. Some employers have been flexible in their approach to what ‘at home’ means in reality. As long as the job is being done, does is matter where it’s being done from?

The answer is yes, if you have employees working from abroad. This short blog sets out some consequences of having employees working from abroad for business to consider, as it looks like home working is set to stay.

New territory, new rights?

Depending on the jurisdiction and the length of the employee’s stay, they may acquire new employment rights under local law. It is likely that the longer the stay, the higher the risk so please do get in touch to ensure that your business is not exposing itself to new legal obligations.

Returning to the UK

You may require employees to return to the office at short notice (subject to Government guidance and restrictions). In most cases, your office will be stated as their normal place of work under the employment contract. This means there is no prescribed notice you need to give when asking employees to come back in. If employees are working from abroad, they could face travel restrictions or be subject to self-isolation on their return.

As this could impact their return to the office we advise that you plan ahead and ensure you know where your employees are working to minimise impact on the business if you need staff back in. You may also have no obligation to pay the employee you have recalled to the office but does not turn up for work on time. This approach should be treated with some caution though because, depending on the facts and the working arrangements, the employee may have an unauthorised deduction of wages claim.

Ciara Duggan

Solicitor

View profile

+44 20 7539 8052

You may require employees to return to the office at short notice (subject to Government guidance and restrictions).

Immigration

Penalties for illegal working can be enforced against employers and employees and can be substantial. Most jurisdictions (including the UK) prohibit ‘productive’ work under business visitor visas, so legal advice must be sought, relevant to each jurisdiction. UK nationals can currently live and work across the EEA with ease but this is likely to change come 1 January 2021. EEA nationals will require a visa to work in the UK from this date, so it is anticipated that this will be the case for UK nationals seeking work in the EEA from 1 January too.  Consideration should also be given to your employees who are not UK nationals, whose immigration status’ could be impacted by sustained periods overseas.

Tax

There may be tax implications for your business if employees are working abroad for prolonged periods. These include local payroll/income tax consequences and potential corporation tax consequences if the particular jurisdiction regards your employee as essential creating a new working ‘establishment’ in its country. We advise seeking specialist tax advice to ensure you are aware of your liabilities and exposure.

Please do not hesitate to get in touch with out immigration or employment team should you have any questions about employees working overseas whilst ‘WFH’.

About this article

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Ciara Duggan

Solicitor

View profile

+44 20 7539 8052

About this article

Read, listen and watch our latest insights

art
  • 01 June 2023
  • Employment

Facts employees should know about their personal data

We previously published an article on facts an employer should know about holding personal data, so it is only fair that we also write about the other side of the coin – facts employees should know as individuals whose personal data is held by their employer.

art
  • 01 June 2023
  • Immigration

What is the Immigration Skills Charge (ISC) and how much do you have to pay?

The Immigration Skills Charge (ISC) is a levy on companies who sponsor migrant workers. This levy was imposed on 6 April 2017. The Government states that the charge has been levied to contribute towards addressing the skills gap in the local economy.

art
  • 26 May 2023
  • Employment

Avoiding discrimination in flexible working requests

The right to request flexible working is currently available to employees with at least 26 weeks’ service and is set to be extended further under new Government reforms.

art
  • 25 May 2023
  • Corporate and M&A

Management Buyout – Top 5 things to consider

A management buyout is a financial transaction in which a member of the management team purchases the company from its registered owner. MBO’s usually occur in private companies in an effort to enhance profitability and simplify strategies.

art
  • 25 May 2023
  • Employment

Carer’s Leave Bill set to become law

On 19 May 2023, the Carer’s Leave Bill had its third reading in the House of Lords, and upon receiving Royal Assent, will become law. There is not yet a date for the implementation of this bill, however it is likely that this will happen relatively quickly upon receiving Royal Assent, so is definitely one to keep an eye on.

art
  • 18 May 2023
  • Immigration

Navigating SOC Codes

When it comes to UK immigration, understanding the intricacies of the system is vital. One significant aspect of the process revolves around Standard Occupational Classification (SOC) codes. SOC codes play a crucial role in determining the eligibility for an individual to apply for a work visa, assessing skill levels, and matching individuals to appropriate job roles.