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Cross-border workforce compliance trends 2024/2025
Explore key tendencies in cross-border employment and employee mobility, including business travel, workations, commuters, and other scenarios from 500+ employers and industry experts
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EU's new Posted Worker portal: A game-changer for compliance and enforcement
EU's new Posted Worker portal: A game-changer for compliance and enforcement
The European Commission's recently announced a plan for a unified posted worker declaration portal. It marks a significant shift in how cross-border work will be managed in the EU. While the initiative promises to reduce administrative burden, the current costs and complexities reveal why businesses need efficient solutions now more than ever.
The true cost of posted worker compliance
The numbers are staggering. Recent studies show that businesses typically spend between €150-200 per posting on administrative costs alone. For the German mechanical engineering industry, this translates to a minimum of €31 million yearly in administrative costs for their 205.000 registered postings. These costs break down into three main components:
- 17% for collecting and gathering data
- 33% for entering company and employee data
- 51% for compilation of documents including translations
Current manual processing times vary strongly across the EU. While Estonian declarations take 21 minutes, Italian submissions take 61 minutes, and Greek submissions consume up to 87 minutes. Multiply this by hundreds or thousands of postings, and the resource drain becomes clear.
At WorkFlex, we've revolutionized this process through intelligent automation that drastically reduces both time and costs. Our platform automatically assesses the need for posted worker notifications upon receiving business trip requests and, if required, drives the data gathering and submits them without additional manual intervention. The system seamlessly adapts each notification to country-specific requirements, eliminating the need for in-house expertise in various national regulations.
What traditionally takes between 20 minutes and 1.5 hours per submission, can be completed automatically through WorkFlex - with no additional effort beyond the initial travel request. This automation brings per-posting costs well below the industry average of €150-200, while ensuring complete compliance across all EU jurisdictions. For businesses facing the challenge of managing cross-border work, this transforms posted worker compliance from a resource-draining burden into a streamlined, automated process.
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The digital transformation of enforcement
While the new portal promises to reduce these burdens by up to 73% through standardization, it also creates unprecedented transparency for authorities. By centralizing data through the Internal Market Information System (IMI), labour inspectorates will gain powerful tools for identifying and investigating non-compliant companies. As the Commission's puts it: the system will "contribute to the protection of posted workers" through "effective and adequate inspections."
Why this matters more than ever
In 2022, the EU recorded about 1.9 million posted workers with 2.3 million declarations and 4.7 million individual postings. These numbers grew 14% between 2021 and 2022 (excluding road transport), highlighting the expanding scope of the challenge. While the new system promises to streamline the process, companies still face the fundamental challenge of gathering and managing the required information efficiently.
The hidden complexity
Despite the promise of simplification, the underlying compliance requirements remain unchanged. Companies must still:
- Accurately track all cross-border movements
- Gather comprehensive documentation across 300+ different information points currently required by various Member States
- Ensure real-time compliance with varying national requirements
- Maintain auditable records
- Manage translations and local requirements
The solution: Automation and centralization
This is where modern compliance management platforms like WorkFlex become crucial. By automating data collection, streamlining submissions, and centralizing record-keeping, WorkFlex helps businesses to reduce their posting-related costs significantly below the current €150-200 per posting average. Our platform eliminates the need for manual data entry, and ensures consistent compliance across all EU jurisdictions, now and in the future.
Looking ahead: A strategic approach
While the portal's implementation timeline extends to 2026 and beyond, with voluntary adoption by Member States, the writing is on the wall: digital enforcement is the future. Companies that wait to modernize their compliance approach risk finding themselves under increased scrutiny in this new digital landscape.
The time to act is now
The shift toward digital enforcement means that the "wait and see" approach to posted worker compliance is no longer viable. As authorities gain better tools for monitoring and enforcement, the cost of non-compliance will likely far exceed the investment in proper management systems.
For businesses operating across EU borders, this development should serve as a catalyst to reassess their posted worker compliance strategies. The question is no longer whether to comply, but how to do so efficiently in an increasingly digital enforcement environment.
This strategic shift in enforcement capabilities makes it clear: companies need robust, automated systems to manage their posted worker obligations effectively. With solutions like WorkFlex, businesses can turn what is currently a significant administrative burden into a streamlined, cost-effective process while ensuring full compliance with evolving regulations.
Understanding the DTV Visa for Thailand: What Employers Need to Know
Understanding the DTV Visa for Thailand: What Employers Need to Know
As Thailand grows as a hub for remote work and digital nomadism, the Thai government has introduced the Destination Thailand Visa (DTV). This new visa, especially the DTV1 (workcation) type, facilitates legal, extended stays for remote workers who want to experience Thailand's rich culture. For employers, especially those with employees interested in workations, understanding the DTV1 Visa and its regulations is crucial to avoiding compliance issues related to visas, social security, and tax.
Importance of the DTV Visa and Compliance Risks
The DTV Visa is tailored for remote workers, digital nomads, freelancers, and entrepreneurs. It does not cover individuals intending to work directly for Thai companies; these individuals need a separate work permit and visa. This distinction is key for both employers and employees to understand, as incorrect usage could lead to compliance issues.
Overview of the DTV Visa
Launched on July 15, 2024, the DTV Visa caters to individuals aiming to work remotely or participate in “Thai Soft Power” activities (e.g., Thai boxing, cooking classes, sports training). The visa is available to spouses and dependent children of DTV holders as well. Key features include:
- Validity: Five years, renewable
- Cost: Approximately 270€ (10,000 THB)
- Entry: Multiple entries allowed
- Eligibility: Digital nomads, freelancers, and entrepreneurs working remotely
- Income requirement: Proof of sufficient funds or income to sustain oneself during the stay
Duration of Stay
The DTV Visa permits five-year multiple entries, with up to 180 days per stay, extendable once for another 180 days at the Immigration Office, totaling 360 days. After this period, individuals can re-enter the country to reset their stay period. Extensions require a 10,000 THB fee, and re-entry fees are waived. Note that individuals staying in Thailand for more than 180 days per year may become Thai tax residents, triggering tax obligations.
Application Process
Applying for the DTV Visa can be complex, and the application fee is non-refundable. Working with a professional agency, such as WorkFlex, can help avoid common pitfalls and expedite approval.
Working in Thailand with the DTV Visa
No work permit is required for DTV Visa holders employed by non-Thai entities under the workcation provision. However, working for Thai companies requires a separate work permit and visa. According to Thai tax laws, individuals staying in Thailand for over 180 days become tax residents, resulting in personal income tax obligations, which may also lead to employer wage tax requirements.
Employer considerations
- Social security: With the Digital Nomad Visa, the EE and ER declare that the Employee is working in Thailand for the Employer, as in order to get the visa a document is needed issued by the employer that the employee is allowed to work from Thailand for this time frame. The social security risk tied to Thailand's DTV Visa arises from the fact that Thailand operates under the principle of territoriality, meaning any work conducted within the country could subject employees to Thai social security contributions, regardless of whether they are employed by a non-Thai company. This becomes particularly problematic for employers from countries like Germany, which does not have a social security treaty with Thailand. As a result, employers may face the obligation to remit social security payments to both countries, creating a dual social security burden.
For German employers, while they can rely on the Ausstrahlung rule (§4 SGB IV) to maintain German social security coverage for their employees abroad, this does not exempt them from the possibility of simultaneous obligations in Thailand. Employees working remotely from Thailand for extended periods, under the DTV Visa, may trigger Thai social security liabilities due to the absence of a bilateral social security agreement.
- Compliance and documentation: Employers should ensure that employees meet all DTV Visa requirements, including income verification and proof of employment. It is essential to consult with legal experts to ensure compliance with Thai and home country regulations.
- Tax implications: Employers should adjust payroll processes to accommodate tax obligations in both Thailand and the employee’s home country. Additionally, corporate tax considerations like Permanent Establishment (PE) may arise, requiring further assessment.
Other visa options in Thailand
Thailand offers various visa types beyond the DTV Visa:
- Non-Immigrant B2 Visa: For those working or conducting business in Thailand.
- Non-Immigrant B3 Visa: For frequent business travel.
- DTV Visa (Digital Nomad Visa): For digital nomads and freelancers, valid for up to a year, with possible renewal.
Each visa type has specific requirements, and employers should ensure their employees apply for the correct visa based on their planned activities.
Conclusion
The DTV Visa is a major development for digital nomads and remote workers, providing a structured, legal way to live and work in Thailand. Employers can facilitate a smooth transition for remote employees by staying informed and consulting with legal experts.
Is your work-from-anywhere policy compliant?
Is your work-from-anywhere policy compliant?
➡️ What does it take for a company to remain fully compliant when employees go on work-from-anywhere trips? Is an A1 certificate and visa enough? What measures should HR and travel teams take to ensure the employer's duty of care is fulfilled when employees travel?
Our experts, Pieter Manden, LLM, MBA, Co-founder of WorkFlex, and Brock Dale, Senior WorkFlex Consultant, guide you through the critical aspects of compliant work-from-anywhere policy management.
In the session, you learn about key things to consider when creating and managing your work-from-anywhere policy. 🧐
WorkFlex update: Global mobility compliance like no other
WorkFlex update: Global mobility compliance like no other
In an increasingly globalized world, managing international work compliance is critical yet complex. Over the past few quarters, WorkFlex has rolled out significant new developments to simplify that complexity, bringing compliance support like no other to global work situations. Whether it’s work-from-anywhere trips, business trips, or cross-border commutes, WorkFlex goes beyond merely assessing compliance risks. Our team actively implements critical measures—submitting PWD notifications, obtaining A1/CoC certificates, and securing travel authorizations and visas—so clients can trust their global workforce is always in compliance, with no hidden fees. Here’s a look at our latest advancements in delivering seamless, efficient compliance solutions worldwide.
Posted Worker Directive (PWD)
- We can submit PWD notifications in all 31 countries, including regional submissions in Switzerland and Spain.
- On average, we submit PWD notifications within 24 hours of receiving the trip request on the WorkFlex platform.
- We have successfully supported three PWD audits conducted by local authorities in Austria and Switzerland.
- Following regulatory and procedural adjustments for PWD compliance in Romania and the Czech Republic, we have updated the WorkFlex platform.
- Sharing necessary information has become easier than ever for travelers, thanks to streamlined data gathering for PWD submissions on the WorkFlex platform.
A1/Certificate of Coverage (CoC)
- We can obtain A1/CoC certificates in 24 countries.
- For 60% of all trips, we successfully obtained the A1/CoC within 5 days after the trip request on the WorkFlex platform. No other provider has managed to achieve such a rate so far, as issuing an A1 or a CoC typically takes months. For example, in the United States, it takes 3 months, while in the Netherlands, it takes 2 months.
- We have successfully obtained special A1 certificates for multistate workers, self-employed statutory directors, and employees with private old-age insurance coverage.
Travel Authorizations and Visas
- We have successfully obtained Swiss work visas (Arbeitsbewilligung) for accumulated secondments exceeding 90 days.
- We have also obtained Swiss Sunday-work authorizations.
- In September alone, we requested travel authorizations and visas for Australia, Canada, China, India, Italy, Jordan, Kenya, Namibia, the Netherlands, Saudi Arabia, South Africa, South Korea, Sri Lanka, Tunisia, the United Kingdom, and the United States.
- Our processing speed has improved significantly; a Chinese express visa was issued within three days of submitting the trip on the WorkFlex platform.
- … and even faster: an Australian travel authorization was issued within five hours of trip submission.
With these powerful capabilities, WorkFlex is setting a new standard for global mobility compliance. By offering a unified solution that covers both risk assessment and the full spectrum of compliance services, we enable our clients to travel confidently across borders with ease. As WorkFlex continues to innovate and adapt to changing regulations worldwide, we remain committed to making global mobility simpler, faster, and more secure.
Ready to empower your team with streamlined compliance solutions? WorkFlex is here to support every step of the way.
Cross-border workforce compliance trends for 2025
Cross-border workforce compliance trends for 2025
As 2025 approaches, it’s crucial to stay ahead of the evolving cross-border compliance landscape. 💡
Join us for an insightful webinar where global mobility experts will share findings from a comprehensive survey of 300 companies, shedding light on emerging trends in cross-border workforce compliance.
➡️ Key topics to be covered:
- Emerging trends in cross-border employment and employee mobility, including business travel, workations, commuters, matrix managers, expatriates, virtual assignments, and remote work.
- In-depth analysis of business travel trends and associated compliance challenges.
- Best practices and insights on the most widely adopted work-from-anywhere policies and their impact on global mobility
➡️ Speakers:
- Christine Kraft, Senior Manager Global Mobility, Vialto Partners
- Paul Bennett, Co-founder and CEO, PerchPeek
- Pieter Manden LLM MBA, Co-founder WorkFlex
Stay informed and gain practical insights to optimize your global mobility programs for 2025 and beyond. 🌎
Managing cross-border commuters: complexities and solutions
Managing cross-border commuters: complexities and solutions
What is a cross-border commuter?
A cross-border commuter is an individual who lives in one country but works in another country. This arrangement often involves daily or weekly commutes across national borders. The status of a cross-border commuter can affect tax obligations and social security coverage, which may vary between the home and work country depending on the country combination and the distribution of workdays between the two.
Hear about what cross-border commuters are and what are the compliance aspects of managing them from WorkFlex co-founder, Pieter Manden LLM MBA.
The complexities of managing commuters
Commuting employees often create significant compliance challenges for organizations. Historically, the daily routine for cross-border commuters was simple: get into a car, drive across the border to work, and return home the same day – every day. However, this straightforward sequence has been disrupted. The number of “classic” commuting days have decreased significantly. Nowadays, commuters may work from home on some days, stay overnight in their employer’s country on others, or go on business trips and work-from-anywhere trips to different destinations. As a result, tracking the days spent across countries has become increasingly important to address tax and social security implications.
HR departments often struggle to accurately track the location of these employees. And even if they would, it is difficult to understand how the actual presence impacts the tax and social security status of the commuter. The regulations in this regard are very complex. The lack of tracking data and the complexity of the regulations lead to compliance risks, as we will address in more detail below. Additionally, commuters are often not informed and feel not guided in what they are supposed to do and where they are supposed to be.
What are the compliance implications for cross-border commuters?
1. Social security
It is complex to determine whether a cross-border commuter is supposed to pay social security contributions in the work country, the home country, or maybe even in both. This depends on specific agreements between the two countries, the contract status, and the actual number of days spent in each country. Paying social security contributions in the wrong country will lead to a significant administrative burden to recover paid contributions in the one, and remit contributions in the other country retrospectively. This exercise is likely to result in financial damages for professional support, interest and penalties, and potentially double payment of contributions.
Within the European Union, commuters used to be able to remain socially insured in the work country as long as they worked a maximum of 25% at home. Over the past years, more than 20 EEA countries have entered a Framework Agreement concerning cross-border telework within the EU/EEA/Switzerland, which came into force on 1 July 2023. Commuters between countries that have both entered into this framework agreement, can work up to 50% in the home country yet remain socially insured in the work country.
Clearly, it is important to track that the commuter does not exceed this maximum of 25% resp. 50% in the home country. An additional layer of complexity in tracking working days arises when employees travel to other destinations - whether for business trips or work-from-anywhere arrangements. Days spent in destinations outside the work and home countries should also be counted toward the overall balance of employee working days and considered for social security implications
2. Tax
The tax status of commuters can be even more complex than the social security status. In principle, tax treaties prescribe that income from employment is taxable in the country where the work activity takes place. For commuters, this means that workdays in the work country are taxable in the work country, and workdays in the home country are taxable in the home country. This results in a so-called spit payroll. Without tracking where the commuters actually worked from, it is impossible to run a split payroll in a compliant manner.
As an exception to the main rule above, some tax treaties have included a special commuter arrangement. Examples of tax treaties that include such a commuter arrangement are the treaties between Germany and Austria, Germany and Switzerland, Germany and Luxembourg, Belgium and France, and France and Switzerland. The special commuter agreement generally provides for the possibility that the commuters income is only taxable in the work country, if certain conditions are met. These conditions differ per tax treaty. A commuter between Germany and Austria needs to both live and work within the so-called border zone, and is only allowed to work a maximum of 20% (45 days) outside of this border zone. The tax treaty between Germany and Luxembourg does not speak of a border zone. Here, a commuter should limit the working days outside the work country to 34 days per year. For commuters between France and Switzerland, this number is 45 days – yet a special exception for 40% telework from home is allowed. Without appropriate instructions to the commuters and tracking the actual presence, the aforementioned thresholds can be easily exceeded. This results in having to retrospectively correct payroll. Just as with correcting the social security contributions, this exercise is likely to result in financial damages for professional support, interest and penalties, and potentially double payment of contributions.
WorkFlex solution
WorkFlex has developed an automated software solution that streamlines commuter management for HR teams while enhancing the employee experience for commuters.
With our solution, employers receive:
- Ongoing compliance management based on real-time commuter presence data
- Proactive warnings in case of non-compliance
- Easy tracking and report generation
The objective of the WorkFlex commuter solution is to track the presence of employees in their home and employment countries, or any other locations, such as business trip destinations or work-from-anywhere locations, and to continuously assess their tax and social security status. Additionally, WorkFlex will help both HR and the commuter to easily understand if and how the actual presence should impact the social security country and/or the payroll split.
Two main indicators are monitored on an ongoing basis:
- Ongoing tax compliance status: This metric evaluates the accuracy of the commuters´ reported tax status (payroll split), by comparing it to their actual and projected presence in each country. It determines where employment taxes should be paid - whether in the home country, work country, or split between both (with specific percentages for each). This assessment helps ensure compliance with international tax regulations based on the employee's work patterns and locations.
- Ongoing social security status: This indicator checks if the country where the commuters is socially insured, actually matches the legal requirements. It compares the status claimed by the employer or employee (whether it's assigned to the home or work country) against the employee's actual time spent and expected future presence in each country.
With WorkFlex’ commuter solution, HR teams can effortlessly navigate the complexities of managing cross-border commuters. Our platform simplifies the process by automatically monitoring legal requirements across different countries and ensuring that all commuter presence data is accurately captured in the system. This means less administrative hassle for your team and more time to focus on strategic initiatives. Trust WorkFlex to streamline your commuter management and enhance compliance, allowing you to attract and retain top talent in a globalized workforce.
Everything employers need to know about the new UK ETA
Everything employers need to know about the new UK ETA
The UK ETA (Electronic Travel Authorization) will be a mandatory requirement for travelers from countries that do not need a visa to enter the UK. This includes all EU member states, as well as the US, Canada, Australia, and others.
Key details about the ETA:
- Affected travelers: Citizens worldwide, with varying start dates for the ETA requirement (see below).
- Cost: £10 (approximately €11.85)
- Validity: Two years from the date of issue
What is an ETA?
An Electronic Travel Authorization (ETA) is a mandatory travel requirement for visitors entering the UK from countries that do not require a visa. This includes every individual, regardless of age, meaning that even children and babies must have their own separate ETA.
The ETA is a digital authorization linked to the traveler’s passport and serves as a preliminary permission to travel to the UK. However, it is important to understand that possessing an ETA does not automatically grant entry into the UK. Upon arrival, travelers will still need to seek permission to enter from a UK border officer.
The ETA is designed to enhance border security and streamline the entry process for eligible travelers by allowing the UK government to conduct pre-travel checks. While the ETA simplifies the process for travelers from eligible countries, it’s crucial to apply for it in advance of your trip to ensure compliance with UK entry requirements.
Who needs an ETA to travel to the UK?
In a nutshell, all citizens who can travel to the United Kingdom without a visa will need to obtain an ETA. Introduction of the system takes place in periods, with first batch of countries included in the pilot project using ETA since November 2023, to EU countries being eligible from April 5, 2025. Let's take a look at the timeline.
Countries for which ETA is already required
The United Kingdom launched its ETA system in November 2023 for an initial pilot phase for citizens of Qatar. In February 2024, Saudi Arabia, Bahrain, the United Arab Emirates, Kuwait, Oman and Jordan (now removed from the program) joined the ETA program.
Countries for which ETA will become available in November 2024
Nationals of 49 countries and territories will be able to apply for ETA authorisation from November 27, 2024. They can travel to the UK with an ETA from January 8, 2025.
Antigua and Barbuda. Argentina, Australia, The Bahamas, Barbados, Belize, Botswana, Brazil, Brunei, Canada, Chile, Colombia, Costa Rica, Grenada, Guatemala, Guyana, Hong Kong Special Administrative Region (including British national overseas), Israel, Japan, Kiribati, Macao Special Administrative Region, Malaysia, Maldives, Marshall Islands, Mauritius, Mexico, Federated States of Micronesia, Nauru, New Zealand, Nicaragua, Palau, Panama, Papua New Guinea, Paraguay, Peru, Samoa, Seychelles, Singapore, Solomon Islands, South Korea, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Taiwan (if you have a passport issued by Taiwan that includes in it the number of the identification card issued by the competent authority in Taiwan), Tonga, Trinidad and Tobago, Tuvalu, United States, Uruguay.
Countries for which ETA will become available in March 2025
Nationals of European Union, EEA and additional countries will be able to apply for ETA authorisation from March 5, 2025. They can travel to the UK with an ETA from April 2, 2025.
The countries include Andorra, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, Vatican City.
Who cannot get an ETA
Not everyone is eligible to apply for an ETA. Citizens from countries that are not visa-exempt, meaning they do not have the privilege of entering the UK without a visa, must apply for a standard visa instead. The ETA system is not available for these nationals.
Citizens from the following countries need a visa and cannot apply for an ETA:
Afghanistan, Albania, Algeria, Angola, Armenia, Azerbaijan, Bangladesh, Belarus, Bolivia, Bosnia and Herzegovina, Burkina Faso, Burundi, Cambodia, Cameroon, Central African Republic, Chad, China, Congo, Cuba, Dominican Republic, Ecuador, Egypt, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Georgia, Ghana, Guinea, Haiti, India, Indonesia, Iran, Iraq, Ivory Coast, Jamaica, Jordan, Kazakhstan, Kenya, Kosovo, Kyrgyzstan, Laos, Lebanon, Lesotho, Liberia, Libya, Madagascar, Maldives, Mali, Mauritania, Mongolia, Montenegro, Morocco, Mozambique, Myanmar, Nepal, Niger, Nigeria, North Korea, North Macedonia, Pakistan, Palestinian Territories, Philippines, Russia, Rwanda, Senegal, Serbia, Sierra Leone, Somalia, South Africa, Sri Lanka, Sudan, Syria, Taiwan, Tajikistan, Tanzania, Thailand, Togo, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, Uzbekistan, Vietnam, Zambia.
You also do not need an ETA if you:
- Have a British or Irish passport
- Have permission to live, work, or study in the UK.
- Have a visa for entering the UK.
- Are not an Irish citizen but legally reside in Ireland and do not require a visa to enter the UK with your passport.
Costs and validity of the ETA
The ETA will cost £10 (approximately €11.85) per applicant. Once granted, the ETA will be valid for two years and can be used for multiple trips to the UK. This is particularly beneficial for businesses that frequently send employees to the UK, as the ETA covers multiple entries within its validity period.
What can you do with an ETA?
For companies sending employees on business travel or workation, the ETA permits stays in the UK for up to six months. During this time, employees can engage in various business activities such as meetings, conferences, or short-term projects. The ETA also covers entry for training purposes and can be used for workation, tourism or family visits.
However, it’s important to note that the ETA does not allow for long-term work or employment. If your employees are planning to work in the UK for an extended period, or if they fall under certain categories like creative workers or those on long-term assignment, they may need to apply for a different type of visa.
How to apply for an ETA
Applying for an ETA is a process that can be completed online. Applicants will need to provide personal information and details about their travel plans. The application also involves answering a series of security and health-related questions. Once submitted, the application is usually processed within 72 hours, and the ETA is electronically linked to the traveler’s passport.
Given the simplicity of the application process, it’s tempting to handle ETA applications internally. However, for businesses that manage frequent travel for multiple employees, it might be more efficient to outsource this task. WorkFlex offers a streamlined service for obtaining ETAs, ensuring that all applications are handled promptly and accurately, thus avoiding potential delays or issues at the border.
What you, as an employer, should do about ETA now
As the introduction of the UK-ETA looms closer, employers need to start preparing now. Here are a few steps to ensure a smooth transition:
- Educate your employees: Inform all employees who travel to the UK about the new ETA requirement. Make sure they understand who needs an ETA, how to apply, and what the process involves.
- Plan ahead: Factor in the 72-hour processing time for ETAs when planning trips. Ensure that all necessary ETAs are applied for well in advance of travel dates.
- Budget for costs: While the cost of an ETA is relatively low, it’s still an added expense. Decide whether your company will cover this cost for employees or if they will need to pay it themselves.
- Update expatriate programs: If your company has long-term assignments in the UK, consider how the ETA requirement will impact these plans. You may need to adjust your expatriate programs to include support for visa and ETA applications.
Conclusion
The introduction of the UK ETA represents a new layer of complexity and administrative burden for international travel to the UK, especially for companies involved in frequent business travel or workations. By understanding who needs an ETA, the application process, and what activities are permitted under an ETA, businesses can avoid potential disruptions and ensure a smooth travel experience for their employees.
For companies looking to streamline the process, WorkFlex offers comprehensive visa and ETA services, ensuring your employees are travel-ready without the administrative burden. Contact us today to learn more about how we can assist you with all your travel authorization needs.
The costly consequences of ignored compliance risks in business travel and work from anywhere
The costly consequences of ignored compliance risks in business travel and work from anywhere
As business travel surges back to pre-pandemic levels and work from anywhere becomes a widely accepted norm, compliance risks have become an increasingly critical issue for organizations. Since the pandemic, the enforcement of remote work-related regulations across the globe has tightened significantly. While many companies have recognized the importance of assessing and mitigating compliance risks when their employees travel abroad, others continue to underestimate the dangers of inadequate handling and documentation. This is a risky oversight, as non-compliance with regulations such as immigration, visa, labor law and tax, can lead to severe legal and financial consequences for both employers and employees.
Although companies often manage to keep compliance breaches out of the public eye—understandably not wanting to make headlines for such issues—the risks are very real, and the impact can be substantial. Below, we will examine real-life examples of what can happen when compliance is ignored during business trips or work-from-anywhere arrangements.
Why is business travel and work-from-anywhere compliance a big deal?
The pandemic highlighted how effectively authorities can collaborate across borders to enforce travel restrictions. While the pandemic may have passed, this global interconnectedness among authorities has only strengthened. For instance, systems like the EU’s Entry/Exit System and the U.S. ESTA now provide authorities with unprecedented levels of information about international travelers. Additionally, the European Labour Authority now helps EU member states conduct joint cross-border inspections. These inspections address complex cross-border fraud and irregularities by pooling resources and information from various enforcement agencies. This increased collaboration and data-sharing make it much more difficult for individuals to travel "under the radar," even for brief trips.
A notable example of this diligence is the enforcement of the Posted Worker Directive (PWD). Under this regulation, employees traveling for work to another EU country must be registered with local authorities to avoid legal penalties and fines. In 2023 alone, Luxembourg’s Labour Authority (ITM) imposed fines totaling 8.9 million euros for non-compliance with worker posting rules. The number of inspections also surged, from 10,000 in 2022 to over 17,300 in 2023. As more resources are dedicated to on-the-ground checks and penalties for posting offenses remain steep, compliance with PWD requirements is becoming increasingly critical—not only in Luxembourg but across the EU.
Even in celebratory contexts, compliance remains essential. During the 80th anniversary of D-Day in Normandy in 2024, British paratroopers participating in the commemoration were still required to show their passports. This illustrates that compliance is mandatory, regardless of the purpose of the trip.
These examples underscore the critical importance of adhering to compliance regulations, regardless of the destination, duration, or purpose of the trip. As authorities enhance their monitoring and enforcement efforts, the risks associated with non-compliance continue to escalate. In the following sections, we will delve into real-life examples of companies and employees who faced significant consequences after failing to comply with regulations during business and work-from-anywhere travel.
Compliance risks in business travel and work-from-anywhere: Cases of trips gone wrong
There are seven key risk areas related to business travel and work-from-anywhere compliance: visa and work entitlement, permanent establishment, wage tax, social security, the Posted Workers Directive, labor law, and data security.
Each of these dimensions poses its own risks and requires specific risk mitigation measures, which you can explore in the WorkFlex remote work compliance handbook. We explore real-life examples of trips gone wrong, highlighting several of these key risk areas below.
Permanent Establishment risk
A Permanent Establishment (PE) is a concept in international tax law where a business is considered to have a relevant presence in a foreign country, making it subject to local taxes. This designation can occur when business activities in the host country are substantial enough that local authorities view the company as having a taxable entity there. Several high-profile cases have involved companies like Netflix and Bosch facing large penalties due to their employees' work activities in foreign countries.
Netflix’s €2 million tax bill in India
Netflix ran into this issue in India in 2023. Even though they didn’t have an office in India, local authorities argued that the company had created a PE simply by having employees there. As a result, Netflix faced a €2 million tax bill. This shows how even a small business presence in a country can result in major financial consequences. India is known for its eagerness to find new sources of tax revenue, so companies need to be extra careful.
Bosch’s €320 million settlement in Italy
Bosch faced an even bigger problem in Italy. Italian tax authorities determined that Bosch had established a PE because some employees were working on local projects, mostly at Fiat’s premises. Bosch was hit with a €1.4 billion tax bill, and to avoid even more serious penalties, including potential jail time for employees, the company settled for €320 million. This case shows that PE risks are real, and failing to manage them can be extremely costly.
Visa and work entitlement risks
When employees go on a business trip or work-from-anywhere trip, it’s highly important to acknowledge they or the company have ensured that the proper visa has been obtained to (a) enter the country and (b) perform work activities there. Immigration requirements depend on the traveler's nationality, the duration of the trip, and its purpose. Noncompliance with country-specific requirements may lead to the business traveler or workationer being denied entry, but it can also result in very significant penalties, as the examples below show.
Infosys and the U.S. visa penalty
One of the most well-known cases of visa-related issues involves the Indian IT giant Infosys mistakenly using the wrong type of visa for its U.S. employees. Instead of going through the more complicated and expensive process of getting H1B visas, they opted for easier-to-get B1 visas. This small mistake resulted in a €31.5 million penalty, the largest ever for a visa violation in the U.S. What’s striking is that only 0.02% of the company’s working days in the U.S. involved the wrong visa. Yet, the fine was massive, proving that even small missteps can lead to big problems.
Blocked at the U.S. border
Another risk comes when employees don’t fully understand the visa they are traveling on. A Canadian contractor who regularly traveled to the U.S. for business meetings found themselves blocked at the border despite using a visa exemption that had worked in the past. They had to sign a withdrawal of their application and were forced to miss their flight. This example highlights the unpredictability of border control. Employees need to be well-prepared to explain their purpose of travel and how it aligns with their visa.
Australian teacher detained in Thailand
An example of a work-from-anywhere trip ending badly—resulting in jail—occurred in Thailand. An Australian teacher, temporarily in Thailand on a tourist visa, was arrested for doing online work for his Australian employer. He mistakenly believed that because he wasn’t being paid in Thailand, remote work for an Australian employer will not seem relevant for the authorities. However, after a neighbor reported him, he was detained by officials. This case underscores how easily remote workers can find themselves in serious trouble if they do not have the correct visa, even when their work is purely online and for a foreign company.
Data breaches during international trips
Another serious risk associated with business trips and work-from-anywhere trips is the heightened likelihood of data breaches.
When working remotely, employees are four times more likely to experience a data breach compared to those who work on-site. Due to lack of knowledge and instructions, many travelers tend to use unsecured public Wi-Fi and store passwords in unprotected documents, which makes them easy targets for cyberattacks. In 2024, the average cost of a data breach was $4.88 million, showing how expensive it can be for employers to fix these issues.
This highlights the need for strong cybersecurity measures: data transfer impact assessment before employees go on a business trip or work-from-anywhere trip, as well as proper guidelines on best practices for managing data securely when working from overseas.
Lack of work-from-anywhere policy: the perfect environment for ‘hush trips’
Failing to address specific compliance issues, such as the risk of permanent establishment and data security, can prove costly. However, forbidding employees from taking work-from-anywhere trips can be equally problematic. In organizations where such trips are explicitly banned or the topic of work-from-anywhere policy is just not addressed, many employees take matters into their own hands, working from abroad without informing their employer—a practice commonly known as "hush trips." A clear indicator of this trend is the frequent discussions on Reddit forums.
On Reddit, users often ask questions anonymously, and many openly share their plans for extended trips abroad while continuing to work remotely. Common discussion topics include tax obligations, visa requirements, and concerns about Permanent Establishment (PE) risks. For example, one user asked if staying in Portugal for six months would trigger tax issues for her Irish employer, while another wondered if working in China for five months on behalf of a U.S. company could result in a PE issue. In other discussions, users even shared tips on hiding their international location from their employers, including using specific software on company devices.
These conversations reveal that many employees fail to fully grasp the serious implications their ‘hush trips’ can have on their employers. Even when Reddit users acknowledge the risks, many are still willing to take the chance in order to enjoy working from abroad. For employers, these secretive trips pose significant risks—not only from tax and legal perspectives but also in terms of fulfilling their duty of care toward their employees.
Conclusion
The examples above show that no travelers, regardless of the trip's length or purpose, are immune from scrutiny by authorities. This highlights the critical need for a robust travel policy and trip management process in every organization, covering trip approvals, compliance risk assessments, and the implementation of risk mitigation measures. In the worst cases, failure to ensure that employees travel compliantly can result in significant penalties, fines, or, as in the case from Thailand, even imprisonment.
WorkFlex is committed to helping clients achieve 100% compliance for business trips and work-from-anywhere arrangements. Our solutions enable employers to navigate the complexities of compliance with an all-in-one, automated approach, avoiding the severe consequences of non-compliance.
Compliance for work-from-anywhere trips: Why an A1 certificate is not enough
Compliance for work-from-anywhere trips: Why an A1 certificate is not enough
Do you think that an A1 certificate is all you need for a compliant workation? Let us prove you wrong!
In our exciting webinar, we uncover the hidden risks that many overlook. Dorothee Schweigard, our compliance expert and head of the Compliance Research Center at WorkFlex, and Sandro Günaltay, our Senior WorkFlex consultant, will explain the most important factors that are essential for a safe and compliant workation.
Find out why an A1 certificate is just the beginning and how you can protect your employees comprehensively when they go on work-from-anywhere trips. Join us and delve deep into the world of workation compliance!
🗣️ Language: German
Navigating complex employment scenarios: How WorkFlex ensures compliance for business trips and work-from-anywhere requests
Navigating complex employment scenarios: How WorkFlex ensures compliance for business trips and work-from-anywhere requests
In companies with global employment, one-size-fits-all solutions simply don’t cut it. At WorkFlex, we understand that no two employment relationships are the same, especially when it comes to cross-border and international workforce. That’s why our all-in-one HR compliance management platform has enhanced capabilities to address four unique employment types – commuters, expats, matrix employees, and remote employees–, ensuring that compliance is never compromised when your employees go on a business trip or work temporarily from abroad.
These special cases require extra caution, and with WorkFlex, we help your business stay compliant while managing the complexities of these employment scenarios with ease.
Commuters
Commuters live in one country but work in another. This is a common situation in Europe, for instance, where many people live in one country and commute daily to work in another. A notable example is employees who reside in France but work in Switzerland, drawn by economic or personal preferences.
For these workers, when doing a business trip or working temporary from abroad, tax and social security compliance needs special attention. WorkFlex's risk assessment engine takes these scenarios into account, ensuring that cross-border workers are always compliant with the appropriate tax and social security regulations when going on a trip.
Expats
Expats are employees temporarily assigned to live and work in a different country. Imagine a German employee who is sent to Japan for two years to help build the company’s operations there. In such cases, expats often remain socially secured in their home country, but their taxation may shift to the host country, either partially or entirely.
Navigating the tax and social security requirements for expats on a business trip or work-from-anywhere trip requires careful handling. WorkFlex flags these cases and ensures all the necessary documents are prepared, so your expat employees are compliant in both their home and host country, as well as the destination country when doing a business trip or temporary work from abroad trip.
Matrix managers
Matrix managers are balancing responsibilities across functional and project-based tasks in different countries. For example, a director based in Spain may oversee the Latin American market. When these employees travel to the countries they manage, they may trigger not only payroll obligations from day one - especially if their work is directly connected to the local business - but also extended PE risks, data security risks, and more.
Our platform precisely handles the business trips and work-from-anywhere requests of matrix employees, ensuring that every workday in a foreign market is accounted for and compliant with local regulations.
Remote employees
Remote employees, either employed through an Employer of Record (EoR) model, or directly remotely, add another layer of complexity. In this scenario, an employee lives and works in a different country from their employer but does not regularly commute. For example, a Greek employee may be hired through an EoR by a German company.
WorkFlex ensures that all cross-border and legal obligations are flagged when your remote workers travel, even when employees are employed remotely, either direct or through a third-party.
Why special cases require special attention
Each of these employment scenarios presents unique compliance challenges, especially when it comes to business trips or work-from-anywhere (workation) arrangements. Failing to account for these differences can expose companies to unforeseen compliance risks and legal penalties.
At WorkFlex, our risk assessment engine doesn't just recognize these special cases; it actively manages them. We flag these scenarios, evaluate potential compliance risks across seven risk dimensions (VISA / work entitlement, permanent establishment, wage tax, social security, Posted Worker Directive, labor law and data security), and ensure that the correct measures are taken to stay compliant.
With the click of a button, our platform generates relevant documents, maintains an audit trail, and ensures your business operates smoothly across borders—no matter how complex the employment relationship.
Stay ahead of global HR compliance challenges with WorkFlex, and make sure every type of employee is covered, no matter where or how they work.
Navigating U.S. Visa Categories: A Step-by-Step Guide
Navigating U.S. Visa Categories: A Step-by-Step Guide
Every year, millions of people travel to and from the United States. It is one of the most popular countries in the world for immigration, business, and tourism. If you are not a U.S. citizen, you usually need a visa to enter the country.
Getting a U.S. visa can seem difficult because there are many types of visas and specific rules for each. Whether you’re traveling for business, pleasure, study, or to reunite with family, knowing the different visa types and their requirements is very important. WorkFlex is here to help you with this complex process, ensuring an easy application experience. In this guide, we provide a detailed overview of the main visa categories and how WorkFlex can assist you in securing the right visa for your needs.
Types of U.S. Visas and Their Requirements
ESTA
The Electronic System for Travel Authorization (ESTA) allows nationals from certain countries to travel to the U.S. for tourism or business for up to 90 days without obtaining a visa. Applicants must apply at least 72 hours before departure. ESTA is valid for two years or until the passport expires.
ESTA is suitable for short-term tourism, business visits (while only under specific conditions only), or transiting through the U.S. However, those who have visited countries designated as State Sponsors of Terrorism are not eligible and must apply for a visa instead.
Eligible Countries for ESTA
Citizens from countries including the UK, Australia, Japan, South Korea, and most European nations can apply. See the full, up-to-date list of countries eligible for ESTA in the website of U.S. authorities.
ESTA and Business travel
When is an ESTA Enough for Business Trips?
Certain conditions have to be met for ESTA to be the right type of visa for a business trip:
- Trip duration: The trip must be 90 days or less. ESTA covers multiple entries, but each stay must not exceed 90 days.
- Traveler's nationality: Only citizens of VWP countries are eligible. These include most European countries, as well as nations like Australia, Japan, and South Korea.
- Purpose of visit: The visit must be strictly for business purposes as defined below. Employment or payment from a U.S. source is not allowed under ESTA.
- Valid passport: Travelers must have an e-passport with a machine-readable zone on the biographic page.
ESTA-eligible business activities planned for the trip include:
- Business Meetings and Consultations: Attending meetings with business associates or consulting with business clients in the U.S.
- Conferences and Conventions: Participating in conventions, conferences, trade shows, or seminars.
- Contract Negotiations: Negotiating contracts without direct engagement in productive employment.
- Short-Term Training: Undertaking short-term training that does not involve hands-on work that directly benefits a U.S. employer.
When ESTA is Not Enough for Business Trips?
If your business travel involves any of the following, you would need to apply for a B-1 Business Visa instead of using an ESTA:
- Employment or direct income from a U.S. source.
- Staying in the U.S. for more than 90 days.
- Engaging in productive work or hands-on tasks that benefit a U.S. employer.
How WorkFlex Can Assist with ESTA
WorkFlex provides the following services to help you with your ESTA application:
- Application Guidance: Step-by-step instructions on completing the ESTA application correctly.
- Eligibility Check: Ensuring you meet all requirements for an ESTA.
- Issue Resolution: Assistance with any issues that may arise during the application process.
Tourist and Business Visas
B-1 Visa (Business Visitor)
For temporary business-related activities such as meetings, conferences, and negotiations. Applicants must demonstrate a legitimate business purpose and strong ties to their home country. Typically, this visa is granted for up to 6 months.
For business travel, the B-1 Visa is typically required. This visa is suitable for attending conferences, meetings, or negotiating contracts. It does not permit employment or receiving payment from a U.S. source. For longer-term work assignments, other visas like the H-1B or L-1 might be necessary depending on the nature of the work and the relationship with the sponsoring company.
B-2 Visa (Tourist Visitor)
For tourism, visiting family and friends, and medical treatment. Applicants need to show intent to return to their home country after their visit. Also this visa is typically granted for up to 6 months.
Student and Exchange Visas
F-1 Visa
For academic students enrolled in the U.S. educational institutions. This visa requires a proof of admission, financial support, and intent to return home after studies.
M-1 Visa
For vocational or non-academic students attending technical or vocational schools.
J-1 Visa
For participants in exchange programs, including students, researchers, and professionals. Requires a sponsorship by a designated exchange program.
Work Visas
H-1B Visa
For foreign professionals with specialized skills and a job offer in the U.S. Requires employer sponsorship and meeting specific wage requirements. Typically valid for up to 3 years, extendable to a maximum of 6 years.
L-1 Visa
For employees of multinational companies being transferred to U.S. offices. L-1A for managers (up to 7 years), L-1B for employees with specialized knowledge (up to 5 years).
Other Specialty Visas
O-1 Visa
For individuals with extraordinary abilities in arts, sciences, sports, or business. Requires demonstration of extraordinary ability and recognition in the field.
E-1 and E-2 Visas
For treaty traders and investors from countries with trade agreements with the U.S.
How WorkFlex Can Assist
Navigating the U.S. visa process can be overwhelming, but WorkFlex helps every step of the way.
Applying for ESTA on your behalf
If an ESTA is sufficient for your specific trip, WorkFlex can do the whole application for you – saving you the manual hassle and time spent for filling out the application forms. Based on the information provided by the employee, WorkFlex inputs all necessary details into the application form, uploads the required documents, and ensures that the visa is sent to both the employee's email address and the HR department.
Handling other types of visa
In case another visa is needed WorkFlex is here to help. Our experienced team provides comprehensive support, including:
- Visa Consultation: Personalized advice to determine the most appropriate visa type for your needs.
- Application Assistance: Guidance through the application process, ensuring all forms and documents are correctly completed and submitted.
- Interview Preparation: Tips and mock interviews to help you prepare for your visa interview with confidence.
- Ongoing Support: Assistance with any issues that arise during the application process, and updates on the status of your application.
Conclusion
Traveling to the U.S. involves careful planning and preparation, particularly when it comes to securing the right visa. An ESTA can significantly simplify short-term business travel to the U.S. for eligible nationals. For trips involving longer stays or employment activities, a traditional business visa like the B-1 would be necessary.
WorkFlex is here to help you navigate these requirements and ensure a smooth travel experience. Contact us today to start your journey towards obtaining a U.S. visa with confidence and ease.
ETIAS: All you need to know about the new EU entry requirement
ETIAS: All you need to know about the new EU entry requirement
The European Travel Information and Authorization System (ETIAS) is the new entry regulation for visa-exempt travelers entering Europe. Although ETIAS is not yet operational, its implementation will begin with the EU Entry/Exit System (EES) launch on November 10, 2024, and continue into mid-2025 when ETIAS itself will be fully rolled out.
In this article, we will cover everything you need to know about the upcoming ETIAS requirements, including the application process, eligibility, and important details about its implementation.
Please note: The ETIAS system is not yet live. The official website will start accepting applications in mid-2025. Any website claiming to offer ETIAS services before this date may be fraudulent.
What is ETIAS?
The European Travel Information and Authorization System (ETIAS) is set to become the new entry requirement for visa-exempt travelers entering Europe. Similar to the electronic authorization system in the United States (ESTA), ETIAS requires visitors with visa-free access to the EU and Schengen member countries to register in the system when traveling to these member states. Once the new system is in place in mid-2025, nationals of approximately 60 countries and territories who do not need a visa to travel to any of the 30 European countries, will have to apply for an ETIAS travel authorisation before starting their trip.
It's important to remember that ETIAS is not a visa; it is more accurately described as a visa-waiver. Like the American ESTA, ETIAS is a travel authorization for travelers who do not require a visa to visit Europe. Under ETIAS, these visitors will undergo additional security checks before being permitted to enter the EU.
There are two main reasons why ETIAS is being introduced:
1. Increasing security: Amidst global challenges, the system aims to identify travelers who may pose a security threat to the EU and prevent them from entering before they arrive at the border.
2. Improving border management: The system seeks to enhance the management of EU country borders and improve travel efficiency.
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Who is required to apply for ETIAS?
Nationals of countries that are visa-exempt when traveling to the EU will need to apply for an ETIAS travel authorization. This includes citizens from the United Kingdom, United States, Canada, Australia, New Zealand, and many other countries. A full list of eligible countries can be found on the official EU website.
While nationals from these visa-exempt countries will need to obtain ETIAS authorization, travelers from certain other countries will still require a Schengen Visa to enter and travel through the 27 Schengen countries. Countries requiring a Schengen visa (and not eligible for the ETIAS visa waiver) include India, China, Russia, Belarus, Turkey, and others. For a full list of countries requiring a Schengen visa, consult the official EU resources here.
How to apply for ETIAS
Eligible travelers must apply for an ETIAS through the official EU website. Alternatively, businesses with high travel volumes often outsource the application process to services like WorkFlex, which handles ETIAS and similar visa waivers on behalf of your employees.
To apply for ETIAS visa waiver, applicants must have a valid travel document, such as a passport, to which a visa may be affixed. This travel document should not expire within three months of the intended departure and should be no older than 10 years. Please note that not all travel documents are accepted for ETIAS, with specific country requirements available here.
The application process is designed to be straightforward. Submitting the form should take no longer than 10 minutes, and most application decisions will be delivered within minutes. However, processing times can extend up to 4 days if additional checks are required.
Is entry into the EU guaranteed with ETIAS?
It's important to note that obtaining an ETIAS does not guarantee entry into the Schengen Zone, nor does it grant the right to work in these countries. Applications can be refused for several reasons, including if the applicant:
• Used a travel document that was reported lost, stolen, misappropriated, or invalidated.
• Is considered to pose a security, illegal immigration, or high epidemic risk.
• Fails to respond to a request for additional information or documentation within the given deadline, or fails to attend an interview.
• Has previously been refused entry and stay, accompanied by an alert recorded in the relevant information system.
• Provides data, statements, or documents that raise reasonable doubts about their reliability and veracity.
If an application is refused, the applicant will not be permitted to travel to the EU. However, every person has the right to appeal, and the appeal will be processed by the authorities of the country that refused the application.
Practicalities of ETIAS
Validity Period of ETIAS
Approved ETIAS applications will be valid for up to three years or until the associated passport expires, whichever comes first. ETIAS is effective for short-term stays of up to 90 days within any 180-day period. If your travel document expires before your ETIAS authorization, you will need to reapply for ETIAS once a new travel document is issued.
Cost of ETIAS
The cost of an ETIAS application will be EUR 7. However, travelers under 18 and over 70 years of age can obtain ETIAS free of charge.
Conclusion
The European Travel Information and Authorization System (ETIAS) represents a significant shift in the way visa-exempt travelers will enter Europe starting in 2025. By requiring these travelers to register through an easy and quick online process, ETIAS aims to enhance security and improve the efficiency of border management across EU and Schengen Zone countries.
As the implementation of ETIAS approaches, staying informed and preparing in advance will ensure a smooth transition into this new travel authorization system. For further details and the latest updates, follow the WorkFlex Visa Services announcements and the official EU resources.
How Long Can You Stay in Thailand Without a Visa? A Complete Guide
How Long Can You Stay in Thailand Without a Visa? A Complete Guide
Thailand's stunning landscapes, lively cities, spectacular beaches, warm climate, affordability, and vibrant digital nomad scene make it one of the most visited countries in the world. Many nationals from various countries can visit Thailand without a visa. However, it is essential to comply with the legal stay periods and notify Thai authorities accordingly to avoid consequences such as fines, blacklisting, or even detention.
In this guide, learn everything you need to know about a visa-free stay in Thailand without compliance worries.
Maximum duration of visa-free stay in Thailand
There are over 90 countries whose passport holders are part of Thai exemption schemes or bilateral agreements, allowing them to enter the country without a visa or with a visa on arrival for up to 60 days, increased from the previous limit of 30 days in June 2024. The visa exemption is granted at most twice in a calendar year when entering over land or by sea, but there are no limitations when entering by air. Visa exemption applies to tourism, business, and ad-hoc work purposes.
This list includes EU countries, the United Kingdom, the United States, and many others. The Thai authorities update the list of eligible countries regularly, and you can follow the latest developments on their website.
How to apply for a visa extension in Thailand
To apply for a visa extension, you will need to visit a nearby Thailand Immigration Bureau office. For a more efficient process without long waiting times, in most regions, you can submit the required documentation online and receive your extension without visiting an immigration office.
What documents to prepare
Documents that you must prepare to apply for a visa extension:
• Passport (with the entry stamp you got when arriving to Thailand).
• Completed TM7 form, the application for extension of temporary stay
• Passport-sized photo that’s been taken less than 6 months ago
Submitting documents online with e-Extension
e-Extension is an online application system that allows you to extend your stay in Thailand efficiently, without spending time in long queues in any immigration office.
The Thai e-Extension visa procedure is currently available in selected regions: Bangkok, Chiang Mai, Pattaya, Nonthaburi, Pathum Thani, Phuket (Blue Tree only), Samut Prakan, and Surat Thani (Koh Phangan and Koh Samui only). The list of available regions is updated regularly, so please visit the official e-Extension website for any announcements.
The e-Extension portal allows you to submit all required documents and pay the visa fee online. If the application is approved, you will receive the e-Extension via email.
Submitting documents at the Thailand Immigration Bureau on-site
If the e-Extension service is not available in the region you are visiting, you will need to schedule a physical appointment at the Thailand Immigration Bureau to submit the documents. There are several offices across the country, covering each major region. See a list of Thailand's Immigration Bureau office addresses here.
At the immigration office, authorities will ask you to submit the list of documents mentioned above. While the visa extension process is often completed on the same day, it is recommended to start as early as possible to avoid long lines.
How much does a visa extension cost
The application fee is 1900 Baht (around EUR 50).
Staying in Thailand for more than 60 days
Staying in Thailand for more than 60 days is possible. One of the best options for this is the Digital Nomad visa, introduced in June 2024, which allows self-employed remote workers to stay in Thailand for up to five years. However, it's important to note that the process can be more complex, with varying rules based on your nationality, purpose of stay, and other factors.
If you're interested in learning about the options available to you, we would be happy to provide support, ensuring your Thai experience is free of bureaucratic headaches.
Top 5 Reasons why Travel Visa get denied
Top 5 Reasons why Travel Visa get denied
Embarking on international (business) travel is thrilling, but it often involves a critical hurdle -securing a travel visa. Unfortunately, this process can be complex, and facing a visa denial can be daunting. Let’s talk about that feeling of nervousness everyone gets every time they are applying for a visa. It’s understandable, there is always a potential risk of rejection.And rejection can be a tough pill to swallow.
Especially requesting a business travel visa can be particularly stressful due to the tight deadlines, even more complex documentation & uncertain outcome. A denied business visa can disrupt important business meetings, conferences, or negotiations, potentially affecting business relationships and opportunities. The stakes, and therefore also the pressure to get it right, are often higher than with leisure travel visas. Further, business travel often involves significant financial investments in flights, accommodations, and other expenses. A denied visa can result in financial losses, adding to the stress of the situation.
Let’s talk about that feeling of nervousness everyone gets every time they are applying for a visa. It’s understandable, there is always a potential risk of rejection. And rejection can be a tough pill to swallow. But let’s not get too worked up about it just yet. In this blog post, we will discuss 5 common reasons for a visa denial. So you can get ready, do your due diligence, and hope for the best. Or you can contact our WorkFlex Visa Services team who will do all the work for you, maximizing your chances of receiving approval.
Let’s dive into it.
Reason 1: Errors in the Application
One of the primary reasons for travel visa denial are errors in the application. Even minor mistakes in your visa application can lead to denial. This includes inconsistencies in personal information, travel details, or discrepancies between your application and supporting documents. Double-check all entries for accuracy before submission.
Reason 2: Lack of Sufficient Documentation
Another main reason why travel visa applications get denied is insufficient documentation. Embassies require a comprehensive set of documents, including proof of identity, travel itinerary, accommodation bookings, and more. To avoid this issue, ensure all required documents are accurately compiled, up-to-date, and presented in an organized manner.
Reason 3: Inadequate Interview Performance
The visa interview is critical. Prepare thoroughly, practicing responses to potential questions. During the interview, be honest, clear, and concise. Demonstrating preparedness and sincerity can significantly impact the outcome.
Reason 4: Doubts on Intent to Return
Visa officers assess whether applicants have strong reasons to return to their home country after their visit. Demonstrating ties such as employment, family, property ownership, or ongoing educational commitments can mitigate concerns. The stronger your ties, the less likely your visa will be denied on these grounds.
Reason 5: Previous Visa Violations
A history of visa violations or overstays could adversely affect your current application. Address these issues upfront in your application and provide a reasonable explanation or evidence of change.
Conclusion: Addressing the Core Issues
In summary, while there are numerous factors at play in visa denials, the most critical errors often arise from inaccuracies due to uncertainty (such as incomplete or incorrect documentation, inconsistencies in information, or suspicious travel itineraries) and a lack of sufficient documentation. Understanding these prevalent pitfalls and taking proactive measures to address them can significantly improve your prospects of obtaining a travel visa successfully.
For those looking to ease the stress of dealing with visa applications, outsourcing this task to professional services can be a smart move. Immigration consultants or visa agencies are experts in handling visa procedures. They provide personalized help and support, making the application process smoother. By relying on their knowledge and experience, you can improve your chances of getting your visa approved.
Consider reaching out to trusted immigration consultancy firms or visa services to take the hassle out of visa applications and ensure a smoother journey abroad.
Understanding the Difference Between Business Visas and Work Permits
Understanding the Difference Between Business Visas and Work Permits
Navigating the visa requirements for your business travels can be quite the puzzle. Do you find yourself asking what type of visa you need or if you even need one at all? And what exactly sets apart a work permit from a business visa?
In today's world, where business trips are becoming shorter but more frequent, and the global business landscape is increasingly interconnected, it's easy to get lost in the maze of visa regulations. To help clear the confusion, here's a concise guide to determine whether you fall under the category of a business visitor or if you might require a work permit or business visa.
Understanding Business Visas and Work Permits in Detail:
Business Visa:
- Issued for permissible business activities like meetings, conferences, or exploring business opportunities.
- Focuses solely on facilitating business logistics and relations, excluding labor or services.
Work Permit:
- Granted for foreign nationals engaging in paid work or contracted labor.
- Designed for employment purposes, including full-time, part-time, or project-based work.
- Often work permits may require extensive documentation and personal appearances at embassies.
- Obtaining a work permit generally involves a longer and more complex process compared to acquiring a business visa
In essence, the choice between a business visa and a work permit hinges on the nature and duration of activities planned in the host country. While work permits suit long-term employment arrangements, business visas offer a streamlined solution for short-term business engagements.
Summary: Differentiating Between Business Visas and Work Permits
1. Nature of Activities:
- Work Permit: Primarily intended for employment purposes, a work permit authorizes foreign nationals to work and earn income in a host country. It is tied to a specific job and employer.
- Business Visa: Designed for individuals engaging in business-related activities such as meetings, conferences, negotiations, or exploring investment opportunities. It does not entail actual employment.
2. Employment Arrangements:
- Work permits are directly linked to employment, while business visas are for individuals conducting business activities without formal employment.
3. Length of Stay:
- Business visas typically offer temporary short-term stays, often ranging from 30 to 90 days within a 180-day period. Work permits can be granted for longer durations.
So in more practical words:
You're likely classified as a Business Visitor if:
- Your trip lasts less than two weeks.
- You've visited the destination country fewer than three times in the last year.
- Your activities during the trip are limited to attending meetings, conferences, trade fairs, or negotiating deals.
- You maintain a residence outside the country you're visiting.
- Your manager operates from a different country.
- Your employment and salary are tied to a company outside the host country.
However, you may need a Work permit or Business Visa if:
- Your trip exceeds two weeks.
- You've frequented the country more than three times in the past year.
- Your work activities extend beyond occasional meetings to day-to-day operations.
- Your activities might lead to profit generation.
- You require technical equipment for your tasks.
- You're managed by someone within the host country.
- Your sole residence is in the country you're visiting.
- Your salary originates from a company within the host country.
When in doubt, it's always wise to consult with your Global Mobility team or Human Resources department before finalizing your travel plans.
WorkFlex can also help you with this
For those falling under the category of Business Visitor, it's essential to note that even though a visa might not be necessary based on your nationality or other factors, you still need to ensure compliance with certain requirements:
- Sufficient financial resources to cover expenses during your trip.
- A well-defined itinerary for your time in the host country.
- Adherence to the duration required for the purpose of your visit.
- A valid passport along with additional supporting documents such as an employer validation letter, an invitation letter from your host country, details of accommodation, proof of residence and health coverage in your home country, and a copy of your itinerary.
Understanding the nuances between business visas and work permits empowers individuals and businesses to navigate international travel and employment requirements effectively, ensuring compliance and seamless operations across borders. We hope this concise guide assists you in determining whether you require a work permit for your upcoming business trip. Remember, if you're uncertain about any aspect, it's best to seek advice from your Global Mobility advisor, HR department, or legal counsel before proceeding.
Still have many open questions surrounding visa and business visa?
Check out our other resources or speak directly to one of our consultants
Contact us
The benefits of visa agents for business travel
The benefits of visa agents for business travel
What are visa agents?
Visa agents are professionals or agencies specialized in assisting individuals, businesses, and organizations with the process of obtaining visas for international travel. These agents serve as intermediaries between travelers and the relevant government authorities responsible for issuing visas.
Visa agents offer a range of services to streamline the visa application process, including:
1. Consultation: Visa agents provide guidance and advice on visa requirements, application procedures, and necessary documentation based on the traveler's destination country and purpose of travel.
2. Documentation Assistance: They help travelers prepare and organize the required documentation, such as passport copies, photographs, invitation letters, financial statements, and travel itineraries, ensuring that all necessary paperwork is completed accurately and in accordance with the visa requirements.
3. Application Submission: Visa agents facilitate the submission of visa applications on behalf of travelers, either by submitting them directly to the appropriate consulate or embassy or by assisting travelers in completing online application forms.
4. Follow-Up and Updates: They monitor the progress of visa applications and provide regular updates to travelers on the status of their applications, including any additional requirements or requests for information from the visa issuing authorities.
5. Problem Resolution: In the event of complications or issues with visa applications, such as delays, rejections, or requests for additional documentation, visa agents liaise with the relevant authorities to resolve the problem efficiently and minimize disruptions to travel plans.
Overall, visa agents play a crucial role in simplifying the visa application process, saving travelers time and effort, and ensuring compliance with the requirements of the destination country. They provide valuable expertise and support to individuals, businesses, and organizations seeking to navigate the complexities of international travel.
What are the benefits of visa agents?
Visa agents play a crucial role in facilitating business travel visas for several reasons:
1. Expertise and Experience: Visa agents are professionals with in-depth knowledge and experience in navigating the complexities of visa application processes. They understand the specific requirements and nuances of each country's visa regulations, ensuring that applications are completed accurately and efficiently.
2. Time-Saving: Business professionals often have demanding schedules and cannot dedicate the necessary time to research and complete visa applications. Visa agents streamline the process, saving time for both individuals and organizations by handling administrative tasks and ensuring applications are submitted promptly.
3. Reduced Errors: Visa applications require precise information, and even minor mistakes can lead to delays or rejections. Visa agents minimize the risk of errors by guiding applicants through the application process and reviewing documents for accuracy before submission.
4. Stay Updated with Regulations: Visa requirements and regulations can change frequently, posing challenges for businesses to stay informed. Visa agents stay up-to-date with the latest regulations and changes, ensuring that applications comply with current requirements and minimizing the risk of unexpected issues.
5. Personalized Support: Visa agents provide personalized support and assistance throughout the visa application process. They address any questions or concerns, offer guidance on required documentation, and provide updates on the status of applications, providing peace of mind for travelers and employers alike.
Overall, visa agents offer valuable expertise, time-saving benefits, error reduction, regulatory compliance, and personalized support, making them essential partners for businesses seeking to navigate the complexities of business travel visas efficiently and effectively.
Why WorkFlex is more than a visa agent:
WorkFlex surpasses the traditional role of a visa agent by offering a comprehensive suite of services tailored to streamline global travel compliance for corporations. While visa agents typically focus solely on facilitating visa applications, WorkFlex provides a holistic solution for businesses' travel compliance needs. Here's why WorkFlex stands out:
1. Integrated Compliance Platform: WorkFlex offers an all-in-one global compliance platform that extends beyond visa services. In addition to visa management, WorkFlex provides solutions for travel insurance, A1/CoC (Certificates of Coverage), PWD (Posted Worker Directive) compliance, and Duty of Care packages. By integrating these services into a single platform, WorkFlex offers businesses a seamless and efficient solution for managing various compliance requirements related to international travel.
2. Risk Assessment and Automation: WorkFlex leverages advanced technology to conduct risk assessments and automate document generation processes. By analyzing travel itineraries and destination requirements, WorkFlex helps businesses identify potential compliance risks and ensure that all necessary documentation is generated accurately and efficiently.
3. Direct Visa Application: Unlike traditional visa agents that may act solely as intermediaries between travelers and visa issuing authorities, WorkFlex takes a hands-on approach by directly handling visa applications. This direct involvement ensures that applications are submitted promptly and accurately, minimizing the risk of delays or rejections.
4. Expert Guidance and Support: WorkFlex provides expert guidance and personalized support throughout the visa application process. From initial consultation to application submission and follow-up, WorkFlex's team of professionals is available to assist businesses and travelers with any questions or concerns, offering peace of mind and ensuring a smooth travel experience.
In summary, WorkFlex distinguishes itself from traditional visa agents by offering a comprehensive compliance platform, advanced technology solutions, direct involvement in visa applications, and expert guidance and support. By addressing businesses' broader travel compliance needs, WorkFlex provides a one-stop solution for streamlining global travel operations and ensuring regulatory compliance.
Interested in getting to know more information about WorkFlex Visa Services?
Check out our website or directly speak to our team
Everything to know about E-Visas
Everything to know about E-Visas
The correct paperwork is crucial to doing business across borders. Apostille, corporate legal, and export documentation to eliminate risk, delay, and needless cost.
Are you tired of visa applications turning into bureaucratic nightmares? Say goodbye to endless queues and paperwork, and welcome the era of E-Visas – your passport to hassle-free travel. In this guide, we'll explore everything you need to know about E-Visas, from what they are to how to get them, so you can prepare for your next adventure with ease.
Understanding E-Visas:
In a world where time is of the essence, E-Visas emerge as the ultimate solution for travelers seeking convenience and efficiency. But what exactly are E-Visas?
E-Visas, or electronic visas, are digital alternatives to traditional visas. Instead of visiting a consulate or embassy, travelers can apply for visas online, complete with payment, and receive approval via email. It's a game-changer for anyone looking to streamline their travel preparations.
Difference Between an Online Visa and a Traditional Visa
The main difference between an online and a paper-based (traditional) visa is that you don’t need to visit an embassy or consulate at all for visa applications over the internet— the entire visa process is done remotely (online), even the visa payment and the issue document. Another significant difference is that traditional visas are issued for short-term and long-term purposes, while eVisas are temporary.
Which Countries Issue Online Visas?
This list is heavily dependent on your passport and the reason for your trip, among other factors. For example, many nations do not provide E-Visas for business travel; they are solely available for tourists. Also, visas for long-term purposes such as student, work, or family visas, require you to submit a paper-based application and visit the embassy or consulate several times before receiving your permit. Nonetheless, generally speaking, we can state that the tendency is an increasing number of e-visas.
The benefits of E-Visas:
1. Speed and Convenience: No more waiting in long queues or making multiple trips to visa offices. E-Visas can be obtained from the comfort of your own home, often within just a few days.
2. Accessibility: With E-Visas, the entire application process is digitized, making it accessible to travelers from all corners of the globe. Say goodbye to geographical barriers and hello to seamless travel experiences.
3. Cost-Effectiveness: E-Visas typically have lower processing fees compared to traditional visas, making them a budget-friendly option for travelers looking to save some extra cash for their adventures.
In conclusion, E-Visas represent a significant leap forward in the world of travel, offering speed, convenience, and accessibility like never before. By embracing E-Visas, you can bid farewell to the hassles of traditional visa applications and embark on your journey with confidence.
How to obtain an E-Visa:
The process of obtaining an E-Visa varies from country to country:
1. Research: Start by researching the visa requirements for your destination country. Not all countries offer E-Visas, so it's essential to confirm eligibility beforehand.
2. Application: Visit the official website of the country's immigration department or consulate and locate the E-Visa section. Follow the instructions to complete the online application, providing necessary details such as passport information and travel itinerary.
3. Document Submission: Prepare the required documents, including a passport photo and a copy of your passport. Ensure that all documents meet the specified criteria to avoid delays or rejection.
4. Payment: Pay the processing fee online using a secure payment gateway. Once payment is confirmed, your application will be processed by the immigration authorities.
5. Approval: Await approval of your E-Visa via email. Once approved, simply print out the E-Visa and carry it with you during your travels.
Tips for a Smooth E-Visa Experience:
- Plan Ahead: While E-Visas offer faster processing times, it's still advisable to apply well in advance of your travel dates to avoid any last-minute complications.
- Double-Check Requirements: Each country has its own set of requirements for E-Visa applications. Make sure you thoroughly read the instructions and provide all necessary documents to avoid delays.
- Stay Informed: Keep an eye on your email inbox after submitting your application. Communication regarding your E-Visa status will be sent to the email address provided during the application process.
- Print Your E-Visa: While most countries accept digital copies of E-Visas, it's always a good idea to carry a printed copy, just in case.
Is there a difference between E-Visas vs. ETAs?
Is there a difference between E-Visas vs. ETAs?
In the realm of digital travel permits, two terms often surface: E-Visas and Electronic Travel Authorizations (ETAs). While they both facilitate entry into specific jurisdictions, understanding their differences can help travelers navigate the visa landscape more effectively.
E-Visas: Streamlined Solutions for Seamless Travel
E-Visas, or electronic visas, are digital versions of traditional visas. They are obtained through an online application process, typically involving submission of passport information, travel itinerary, and supporting documents. Once approved, travelers receive their E-Visas via email, which they can print and present upon arrival at their destination.
Key Features of E-Visas:
- Applied for online
- Requires submission of detailed information and documents
- Approval granted via email
- Often suitable for short-term visits
- Generally designed for single-entry use
ETAs: Simplifying Entry with Electronic Authorization
On the other hand, Electronic Travel Authorizations (ETAs) operate slightly differently. An ETA is a digital travel permit that allows foreign visitors to register electronically without the need for a traditional visa. While similar to E-Visas in their digital nature, ETAs typically involve a simpler application process and are often used for short-term visits.
Key Features of ETAs:
- Electronic registration for entry
- May not require extensive documentation
- Approval granted digitally
- Often valid for multiple entries
- Designed for short-term visits without the need for a traditional visa stamp
Understanding the Distinctions
The primary distinction between E-Visas and ETAs lies in their application processes, documentation requirements, and intended use. E-Visas are more comprehensive, requiring detailed information and documentation, while ETAs offer a streamlined alternative for travelers seeking entry for short-term visits. In summary, E-Visas and ETAs represent innovative solutions in the realm of digital travel permits, offering travelers convenient alternatives to traditional visa processes. By understanding the differences between these two systems, you can navigate the visa landscape with confidence and embark on your travels with ease.
Choosing the Right Option
When planning your travels, it's essential to research the entry requirements of your destination country to determine whether an E-Visa or ETA is the appropriate option. Factors such as duration of stay, frequency of travel, and specific visa policies will influence your decision.
The 183-Rule & Work-from-Anywhere
The 183-Rule & Work-from-Anywhere
There's been an ongoing discussion on working vs. presence days – and how to formulate it rightly in the company policy in your work-from-anywhere scheme.
Most company policies around remote work abroad include a maximum (30/60/etc.) of sometimes presence days. Other policies only include working days.
Let’s clarify:
Working days are days an employee works abroad for the company – regardless of how many hours the employee did so
Presence days are all days an employee is abroad working and/or for leisure (incl. the weekends & holidays)
This is quite a complex topic.
After all, as an employer, you have little to say on days that the employee is not working. On the other hand, because of the compliance aspects around presence, it is also understandable that companies decide to include a threshold for presence days.
"For compliance, working days and presence days are both relevant as both have legal impacts!"
Why do you need to check “the days spent” in general?
As days have a strong impact on compliance risk factors, such as wage tax, permanent establishment, work entitlement, social security, etc., the employer must be aware of the accumulated presence days per country (see above).
This way, the employer can limit the compliance risk – both for them, but also protect the employee. Another reason to limit the number of days abroad is to ensure office presence. For this, only working days need to be taken into consideration.
Why do also presence days matter for compliance?
While for some dimensions, such as labour law or permanent establishment, (only) working days need to be taken into account, for most risk factors also presence days have a tremendous legal impact. Such as for:
· E.g. wage tax
· E.g. social security
· E.g. work entitlement & registration
To correctly assess the compliance risks, WorkFlex needs to know how long someone is gone, e.g. for Center of Vital Interest Discussions and the 25% rule remainder in home country social security. So not only working more than 183 days in one country triggers compliance risks, but also vacations, business trips, & weekends count into the 183-day rule as well.
Deep-Dive: What is the rationale behind the 183 days?
Whether you manage business travelers, short-term international employees, or remote workers, you have no doubt heard about the "183-day rule".
This rule states – simplified – that an employee will not become taxable in the destination country, as long as his/her overall presence in that country remains below 183 days per year – which can be a calendar year, tax year, or any running 12-month period).
Both globally and domestically, many tax jurisdictions expect an employer (as well as the employee) to track and report non-resident business travel. However, simply applying a "183-day" threshold does not always work to ensure tax compliance.
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The OECD commentary says:
Although various formulas have been used by member countries to calculate the 183-day period, there is only one way that is consistent with the wording of this paragraph: the “days of physical presence” method. The application of this method is straightforward as the individual is either present in a country or is not. (Source: Bundesfinanzministerium)
Therefore, the183-day rule refers to presence days (incl. weekends), so business travel, vacation, and workation count in this timeframe. It follows from these principles that any entire day spent outside the State of activity, whether for holidays, business trips, or any other reason, should not be taken into account. A day during any part of which, however brief, the taxpayer is present in a State counts as a day of presence in that State for purposes of computing the 183-day period. (Source: OECD, p.210)
If a double taxation agreement (DTA; German: DBA) bases the 183-day period on the tax year or calendar year instead of a twelve-month period, the days of stay must be determined separately for each tax year or calendar year. In Germany, the tax year corresponds to the calendar year. If the tax year of the other contracting state also corresponds to the calendar year, there are no special requirements if the corresponding DTA is based on the tax year for the calculation of the 183-day period (e.g. DTA-France, DTA-Greece, DTA-Italy). If the tax year of the other contracting state differs from the tax year of Germany (= calendar year), the tax year of the contracting state in which the activity is carried out is decisive.
WorkFlex Solution
To make sure to correctly count the presence days & working days, WorkFlex has integrated the question "Will you be working throughout the entire stay" on its platform.
So, for example, if an employee is 5 days abroad in Italy, but only works 3 days there, he will need to answer with "no" and add the number of days they will be working. This enables WorkFlex to accurately count both working days and days of presence in the destination country.
Sv.net will be shut down - How to apply for A1 certificates now?
Sv.net will be shut down - How to apply for A1 certificates now?
After 23 years, sv.net, which allowed companies to apply for the A1 certificate electronically, is now being replaced in Germany.
What does this mean for companies? When will this change overtake effect? How exactly will the process change for companies? What are the costs for using the new software?
You can find the answers and more in this blog post, so thatHR and companies are optimally prepared for the upcoming shutdown of sv.net and the switch to the SV reporting portal on March 1st, 2024. This article also provides a comprehensive insight into the key aspects of the A1 certificate. It also sheds light on why the A1 certificate alone is insufficient to make work and business trips compliant and what compliance risks companies must be aware of.
First of all: What is an A1 certificate?
The A1 certificate, also known as the A1 certificate, is a document that regulates a person's social security rights within the European Union (EU) and the European Economic Area (EEA). It is important for people who work or are temporarily employed in an EU or EEA country. The A1 certificate shows which social security system applies to these persons and prevents them from having to pay into different social security systems twice. Employees, civil servants and the self-employed regularly require an A1 certificate if they are working temporarily across borders within the EU, Iceland, Liechtenstein, Norway, Switzerland or the United Kingdom of Great Britain and Northern Ireland. This applies to both business trips and workations.
How to apply for the A1 certificate in Germany until February 29, 2024:
To apply for the A1 certificate, employers and the self-employed have had to submit the application electronically since 2019. There are two main ways to do this: either they use payroll software such as DATEV or LOGA, which forwards the application in a straightforward manner, or they use the sv.net application to submit the application directly electronically. In both cases, the application is automatically forwarded to the responsible social insurance institution.
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Shutdown of sv.net - what does this mean for companies from March 1, 2024?
After 23 years, “sv.net“will be replaced by “SV-Meldeportal”, which enables electronic data exchange with social insurance institutions. Over 500,000 employers carryout around 25 million transactions via sv.net every year. Previously, sv.net was offered by health insurance companies for the exchange of social insurance notifications.
The SV-Meldeportal allows the electronic exchange of notifications, contribution statements, certificates, and applications for employers and the self-employed. Registration in the SV-Meldeportal is required, preferably with an Elster organization certificate or via the BundID.
From March 1, 2024, the A1 certificate for Germany can only be applied for in the SV-Meldeportal. Use of the portal is free of charge until March 31, 2024, after which a user fee will apply, except for the self-employed.
How exactly will the process change for companies?
The IT Planning Council of the federal and state governments has decided to implement the "Uniform Company Account" based on ELSTER. Companies can set up accounts via the websitemein-unternehmenskonto.de, using the company's tax number. Each company account consists of one or more user accounts that are assigned to individual persons. Upon registration, each user account receives an ELSTER organization certificate by post, which is used not only for the initial registration, but also for each login to the SV-Meldeportal.
From 2024, self-employed persons and employees who wish to use the SV-Meldeportal exclusively for applying for and retrieving A1 certificates can alternatively register and log in via the BundID account. This extended registration in the SV-Meldeportal offers employers secure and user-specific access to the applications and data.
It is important to note that a separate registration is required for each branch, each with its own ELSTER company certificate. However, branches can be merged via mandate management.
In general, data cannot be transferred directly from sv.net to the SV-Meldeportal. Every company must register with the SV-Meldeportal. This also applies to companies that previously applied for their A1 certificates via an integration with payroll accounting software - now they have to do this via the SV-Meldeportal. Automatic forwarding of the data is currently not possible. This means a lot of manual work for companies.
A little tip: With the all-in-one software from WorkFlex, you can create A1 certificates within a minute, saving valuable time and money.
Overview of the registration process
The registration process follows these steps:
1. call up the SV registration portal
2. complete registration for use via "My company account"
3. authenticate in the SV-Meldeportal with the ELSTER certificate
4. enter company number and company data
5. receive letter of authorization with activation code by post
6. enter the activation code
7. release the SV-Meldeportal for use
After successful registration, the SV-Meldeportal can be used without restriction. The ELSTER certificate with which the company has registered is required for each login.
What are the costs for using the SV-Meldeportal?
The use of the social insurance notification portal is subject to variable fees that vary depending on the number of company numbers required by the company for the transmission of social insurance notifications. There are two user groups: the single-client variant and the multi-client variant. Reduced fees apply until March 2024. Companies that register before March 31, 2024 are free of charge for the years 2023 and 2024. Fees will apply from January 1, 2025. If you register before this date, the multi-client variant automatically applies, which enables data exchange for several company numbers. In the fall of 2024, users must choose one of the two variants for which a fee will be charged from January 2025. The costs are 36 euros plus VAT for a single company number and 99 euros plus VAT for multiple company numbers, each for a period of 36 months. There is no limit to the exchange of social security notifications.
More data security with the SV reporting portal
The significant difference to sv.net is that data security is considerably higher for companies and employees due to registration via the ELSTER organization certificate on the SV-Meldeportal. Other countries such as the Netherlands, Belgium, Sweden and the United Kingdom have already been introducing much more advanced and thorough processes for years to ensure that data is better protected. Germany is now following suit with the SV-Meldeportal.
Apply for A1 certificates with WorkFlex
If you are looking for an uncomplicated and automated solution for applying for your A1 certificates, WorkFlex software is the perfect solution. With our software, you can apply for A1 certificates in less than a minute - without any extra effort for business trips.
Through our integrations with travel booking tools such as TravelPerk, Navan etc., all relevant compliance documents for business trips are automatically generated by WorkFlex - without any extra effort for HR or the business traveler.
If an A1 certificate is required for a workation, the employee only has to enter the relevant data on the platform. This takes about 2 minutes. After the manager's approval, we take care of creating all the necessary documents. With WorkFlex, you can make the A1 certificate process 95% more efficient and save valuable time. It also minimizes the risk of processing errors - in the event of an error, WorkFlex assumes liability.
German Webinar on the topic:
IMPORTANT: An A1 certificate does not protect against compliance penalties
An A1 certificate alone makes a business trip or workation legally compliant.
Although the A1 certificate is a crucial document for compliance in the case of workations and business trips, it alone is not enough to make a workation or business trip "legally compliant". There are several other compliance risks that companies must check and observe in relation to workations and business trips to avoid high penalties and fines.
Companies are aware of the legal situation concerning business trips. However, the legal situation abroad is often unclear, particularly in the context of the increasingly popular "workations". One challenge is that the relevant laws and regulations were not written specifically for"workations". On the contrary, they were written long before the concept of temporary work abroad even emerged.
In general, companies need to consider all 8 risks individually for each workation or business trip: Establishment Risk, Payroll Tax, Social Security, Insurance, Labor Law, Visa & Work Authorization, Posting of Workers Directive (PWD), and Data Protection.
If you would like to know more details about the individual risks, their complexity, and their legal and tax consequences, please take a look at our Compliance Handbook
- or talk directly to one of our WorkFlex consultants to get a more in-depth consultation tailored to your needs!
Do not mistake business travel for workations
Do not mistake business travel for workations
WorkFlex’s current two solutions cover two types of temporarily work from abroad, namely Workation and Business Travel.
The new work horizon made these two distinct yet intertwined concepts prominent. As business travel has long been a cornerstone of professional life. It involves individuals journeying to different locations for work-related purposes such as meetings, conferences, and client visits.
On the other hand, Workations have been the rising star in employees’ demanded benefits, occupying the second place after salary in recent polls. While there are huge similarities between these two mobile work from abroad, still, it is pretty straightforward to distinguish between them from both employers’ and employees’ perspectives. Complications mainly erupt when employers try to measure and mitigate key compliance exposures for both concepts.
In this blog post, we'll explore the differences between business travel and workation from an HR and employer perspective, shedding light on what employers need to be mindful of and how to effectively regulate these practices.
How to distinguish between Business Travel and Workation
Distinguishing between business travel and workation is not hard at all as there are multiple differentiating factors such as considering the primary intent of the trip, the duration of stay, the location and setting, work schedule flexibility, expense allocation, the nature of formal business meetings, and adherence to company policies. However, one can say that main determining factors are the sponsorship and trip objective.
Expenses incurred during business travel are generally reimbursed by the employer and are directly related to work activities. However, expenses during workation are typically borne by the employee, as the primary purpose is leisure while it really entails a blend of work and personal enjoyment.
Intersecting yet different compliance exposures for employers in business travels and workations
Defining and assessing compliance risk dimensions for business travels and workations by employers and HR personnel could be overwhelming and very expensive. Especially, if they want to implement a solution by applying risk mitigating measures for each risk dimension.
The common regulatory compliance exposures for both business travels and workations could be piled in the following categories:
1- Tax Implications
2- Social Security
3- Labor Law and PWD
4- Work Entitlement
5- Data Protection
Despite the fact that these risk dimensions are common for both solutions, they significantly differ when it comes to its assessment. Tax implications for instance could be stricter for workations and more lenient for business travels, given the fact that BTs usually involve shorter trips than workations. Short-term business travel, such as attending meetings or conferences, usually does not create a Permanent Establishment. Most tax treaties have provisions that exempt short-term activities from triggering PE. Such as Paragraph 6 of Article 5 of the OECD Model Tax Convention which serves as a basis for many bilateral tax treaties. This paragraph specifically addresses exemptions for certain short-term activities.
On the contrary, work entitlement, labor law and PWD could be stricter for BT and more lenient for workations, given the fact that the main purpose of the workation trip is leisure and the business activities comes as an auxiliary.
Yet, there are other aspects that must be taken into consideration by employers for each solution separately such duty of care and expense management for business travels and performance management for workations.
Business Travel: A Strategic Corporate Endeavor
1. Duty of Care: The safety and well-being of employees during business travel is paramount. Employers must establish comprehensive duty of care measures, including emergency assistance and medical support. Also, a travel health insurance is necessary to the extent of being mandatory in this case, especially in case of the absence of a social security treaty between the home and destination country. That’s why Workflex provides a THI to each BT request as soon as it concludes its compliance summary.
2. Expense Management: Employers shall consider implementing robust systems for managing and reimbursing travel expenses. This includes clear guidelines on what expenses are eligible for reimbursement and a streamlined process for submitting and approving expense reports.
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Workation: Balancing Flexibility and Work
Performance Management: One of the employers’ main concerns is clearly define expectations for work deliverables during workation, including deadlines and communication protocols. Also, the time difference plays a vital part in defining communication protocols deliverables in this regard. While HR could assess this on a case-by-case basis in small companies, it is impossible to regulate it in big enterprises. WorkFlex presents the solution in granting the line managers the ability to assess different situations and work expectations for their team members by enabling them to approve or reject employees’ request by a click of a mouse in a robust, automated and time-saving software product.
In conclusion, finding the right balance between business travel and workation is essential. Most importantly, keeping a robust, efficient system for enabling employees to do both with ensuring compliance and avoiding legal and administrative exposures could be overwhelming.
At WorkFlex, we don't just assess compliance risks; we proactively implement solutions to ensure a seamless experience for both business travels and workations.
Our comprehensive approach encompasses everything from thorough compliance risk assessments to the issuance of travel health insurance. We go the extra mile by incorporating essential risk-mitigating measures, including Transfer Impact Assessments (TIAs) for robust data protection, detailed visa instructions for hassle-free travel, and social security certificates to address critical regulatory considerations. Moreover, we bear legal-financial responsibility in case a workation or a business travel went wrong.
Check out our brand new “NO TOUCH” business travel solution here.
Social security treaties: What’s it all about?
Social security treaties: What’s it all about?
What is a social security treaty?
A social security treaty is an agreement between two countries which establishes a common framework to coordinate social security schemes. Thanks to these treaties, it is possible to eliminate dual social security coverage as well as to address issues such as the payment of social security taxes and the transfer of benefits between countries.
The effects of the treaty materialize once a document is issued by the home country’s authorities. This document (A1 or CoC depending on the country) is the proof of the employee paying social security in their home country and being already covered by that country’s social security scheme.
What is the risk of no social security treaty between countries? How does this impact remote workers?
If there is no social security treaty in place between two countries, employees may end up paying social security premiums in two (or more) countries for the same work and also they might miss the benefits they have earned during the time they have been working from different countries. In other words, the existence of these treaties are a relief from a compliance point of view, the lack of them may be a headache.
In practice, when an employee works remotely from another (destination) country and there is no agreement in place, significant challenges arise. For instance, in addition to the mentioned above, the talent and the employer could culminate in contributing to the destination country's social security system by paying social security premiums.
All in all, in the ongoing new reality of remote work, understanding the nuances of social security agreements is crucial for both employers and employees. This requires certain awareness of the potential consequences and the importance of always being provided with documents like the A1 or CoC.
Your employees undoubtedly love the freedom to go on workations! To avoid compliance risks, we highly recommend implementing a workation management process. Book a demo with WorkFlex today to see how we can help you streamline this process and mitigate potential risks.
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How WorkFlex handles Posted Workers (PWD) notifications
How WorkFlex handles Posted Workers (PWD) notifications
Posted workers notifications – or PWD notifications, in German EU Meldepflichten – are notifications based on the EU Posted Workers Directive (PWD). These notifications are required when employees are temporarily sent to work in a different country in the EU/EFTA region, in the framework of a service provision.
The purpose of PWD notifications is to notify local authorities about the presence of the employees providing services on their territory. In the case of labour controls and inspections, PWD notification proof is required. Further, some local working conditions must be observed (e.g. concerning working hours, equal pay, holidays entitlement).
Non-compliance with notification obligations can lead to fines of up to € 5.000. Non-compliance with local working conditions can lead to fines of several thousands of euro , as well as non-financial penalties like multi-year restrictions on doing business in a specific country as well as imprisonment.
The PWD notification process varies by country. The exact content required for notification and the method of filing with local authorities also differ. Most countries offer online portals or processes for submitting PWD notifications, but some lack an online process altogether. Additionally, in some countries, the process is so complex that completing PWD notifications can be nearly impossible for someone not speaking the local language.
WorkFlex is an all-in-one software solution that manages remote work compliance. As part of its automated process, WorkFlex handles PWD notifications as part of trip management.
Here’s how it works: Once business trip information is submitted on the WorkFlex platform, WorkFlex assesses whether a PWD notification is required. If so, the process is automatically initiated for the specific trip destination. The notification confirmation will be uploaded to the WorkFlex platform before the trip starts. WorkFlex's trip handling logic covers nearly every PWD-required destination, ensuring that 98% of the time, your employees' business trips are fully compliant.
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Temporary remote workers qualify as business travellers for VISA/immigration purposes
Temporary remote workers qualify as business travellers for VISA/immigration purposes
The work of the future is here to stay, working remotely is now part of many people's lives. Many employers are not only adopting national hybrid working models, but also policies that allow their employees to temporarily work from abroad. This last topic is especially interesting, because it raises an important question even before the employee enters the destination country.
"How should someone who works temporarily from abroad for private reasons be qualified for VISA purposes?"
Since this is a relatively new topic, regulators never explicitly addressed the temporary remote workers in their VISA rules and regulations. As a result, there is no specific visa or applicable framework for this type of persona. Generally, VISA rules and regulations provide only three possible “titles” for non-nationals to be in a country: tourism, local employment or business travel. The question is whether these titles provide a suitable qualification for the temporary remote worker, and if so, which one. This question is relevant, because the administrative requirements for entering and being allowed to work in the country can strongly differ per title.
Hereinafter, we will separately discuss the three different titles and specifically address whether they are suited to cover temporary remote workers.
1. Tourism
Most countries specifically exclude any type of paid activity in order to qualify as a tourist. Therefore, it is unlikely that temporary remote workers can enter and work from those countries without further ado. Interestingly enough, this would imply that it is incompliant when employees, during their vacation, check their business email on their smartphone. At the same time, for as far as we know no-one ever made a problem out of this before; neither employers and employees, nor governments and authorities. As a result, one could argue that even tourists are practically entitled to perform some work activities.
Some countries specifically allow tourists to work remotely for their employer in the home country for a limited number of days. Schengen Area countries are examples; foreigners who wish to do some remote work whilst on holiday in Europe can do so with a tourist visa, or visa-free if from an exempt country1. Also, pursuant to the American Customs and Border Protection information centre, it is possible to work remotely for a foreign company with the Visa Waiver Program for a certain amount of time within the US.
However, it seems rather opportunistic to claim that this pragmatic exception applies to temporary remote workers everywhere and always, as their working activities generally are not clearly very limited and highly incidental.
2. Local employment
On the other side of the spectrum, there is local employment. If non-nationals want to (permanently) work somewhere, they generally require a proper work permit. An example is the EU Blue Card. Only with this card, non-EU nationals are allowed to accept a job in the specific EU country that issued the card. Local employment in this regard means a local employment, for a local employer. The employee in this set up becomes a resident of the specific country. In the words of the European Commission, the regulations around EU Blue Cards relate to the conditions of entry and residence of highly qualified non-EU nationals in EU countries.
The key drivers for regulating this area is that countries want to protect both their own citizens and the immigrants.Their own citizens to ensure that their jobs cannot be stolen very easily by immigrants. And these immigrants ensure that they are not brought to a country to work against conditions that are much worse than those of the local population (social dumping). Looking at these two key drivers, it is clear that the rules were not meant to “protect” destination countries from temporary remote workers at all.
It goes without saying that temporary remote workers are not a part of a social dumping scheme. That does not mean that it is theoretically possible that the temporary worker ́s remuneration package would lie below the minimum standards of the destination country. Given that this is really unlikely, the number of cases where this will be the case will be extremely low. These exceptions do not change the fact that temporary work from abroad has nothing to do with social dumping.
Equally clear is the fact that temporary remote workers do not compete for jobs with the local workforce of the destination country. Temporary remote workers already have a job! They continue to work for the employer in their home country, and all of their remuneration continues to be paid and borne by that home country employer. They neither intend to become residents in the destination country, nor do they perform any activities for local businesses.
Whereas qualifying temporary remote workers as tourists is “too easy”, it seems at the same time unreasonable to qualify them as local employees. This would quite often require a local sponsor. In the case of a temporary remote worker, this sponsor is not available unless the home country employer would be willing to register in the destination country too. This is clearly not something that employers, who merely allowed their employees to work abroad for a while, will accept. Additionally, it should be noted that the process for obtaining a VISA for local employment is a lengthy, sometimes also costly, process. This is another reason why, if the conclusion would be that temporary remote workers would officially have to obtain a VISA for local employment, this in practice is likely to only lead to more remote workers going somewhere secretly as "tourists".
3. Business Travel
The third and last title for non-nationals to be in a country is business travel. According to the American bureau of consular affairs2, business travel is defined as trips during which the employee temporarily engage in business activities such as:
· negotiation of contracts;
· consultation with business associates;
· litigation;
· participation in scientific, educational, professional or business conventions, conferences or seminars;
· other legitimate activities of a commercial or professional nature.
Similar activities have been considered to lead for the application of a business visa by the Schengen Area countries3:
· meeting or training at a business unit established in the destination country;
· purchase and sale of products, business transactions and tenders;
· attending an exhibition, conference or seminar.
Indeed, as a business traveller, you can do meetings, negotiate contracts and visit clients in the destination country. However, the question is whether "remote work" can be qualified as business travel or not. Of course, the rules are old and were not defined when remote work was at all relevant. Some important hubs for temporary remote workers, such as Spain or Portugal, have overtly stated that they do not have a specific framework for this type of travellers. As such, “performing regular work for your home country employer” is not specifically covered as a work activity under the header business travel.
Nowadays, temporary remote work obviously is relevant, and it is our opinion that business travel comes closer to temporary remote work than tourism (point 1) or local employment (point 2) do. After all, what do business travellers do in between having meetings and client visits? Exactly, regular work activities such as sending emails - which is basically exactly what temporary remote workers do. Employers and authorities never made a problem out of this, so we consider it unlikely that this would change now.
Some governments already unofficially confirmed that remote workers indeed qualify as business travellers for VISA/Immigration purposes. Moreover, we are unaware of any government taking a position against this approach. However, this does not mean that this may not eventually happen. Until this is cleared, the "business traveller" option is the best option available. It is neither “too easy”, nor is it unreasonably strict. It is a workable theory if employees would like to temporarily work from outside of the EU, in these cases where they do not have the nationality of the destination country.
2 U.S. Embassy & Consulates in the UK
3 IND
Unlocking the Secret Costs of Unmanaged Business Trips
Unlocking the Secret Costs of Unmanaged Business Trips
Business travel is rebounding, playing a crucial role in international business expansion, can you relate? 📈 But here's the challenge: HR, Global Mobility, and Compliance teams face challenges ensuring compliance for employees on business trips!
Managing PWD notifications, invitation letters, PE and social security risks, and tracking employee travel details can be overwhelming. But neglecting compliance can result in costs of up to EUR 50 million and damage to your brand.
Check out our exclusive webinar on Business Travel Compliance!
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Together with industry experts we discussed:
👉 What's the most frightening situation a company can face in relation to business travel compliance breaches?
👉What are the strictest countries in terms of business travel compliance?
👉 What are some effective strategies to mitigate business travel compliance risks in your company?
👉 And more.
Our esteemed experts:
- Clarissa Kaiser*, Manager Global Mobility at BioNTech
- Orsolya Mochlar*, Head of International Careers at Merck Group
- Pieter Manden LLM MBA, Co-founder at WorkFlex
*All statements and opinions represent their own, not their employers.
Leaving continental Europe... risk alert?
Leaving continental Europe... risk alert?
There are many employers who allow workations within the European Union (EU) as they often entail less risks than flying to a third state. However, there are territories for which it’s unclear whether the same rules than in continental Europe apply. We’ll dive deeper into the distinction of workations and business travel-related compliance risks in outermost and overseas territories such as Azores (PT), Aruba (NL) or French Polynesia (FR).
There are over twenty territories located around the globe in the Atlantic, Antarctic, Arctic, Caribbean, Indian, and Pacific regions whose status is often a matter of concern for the employer allowing their employees to work from “anywhere in Europe”. Due to historical and geographic reasons, assessing if a territory is part of the EU or not and which rules apply in such territory may be more complex than expected.
Luckily, the European Commission sheds some light by making the following categorization within the territories located outside of its continental borders:
Outermost regions
Territories that are integral parts of the EU and its single market. These nine outermost regions, even though located far from continental Europe, are considered an extension of their respective member states and benefit from the rights and obligations that come with EU membership. Hence, EU law applies fully and uniformly, just like in any other region within the EU. The archipelagos of the Azores (PT) and Canary Islands(ES) are examples of this. More info can be found here.
Overseas countries and territories (OCTs)
Territories that have a special relationship with an EU member state (namely Denmark, France, and the Netherlands) but are not part of the EU as such. Unlike the outermost regions, OCTs do not have full EU membership, and EU law does not automatically apply to them. However, OCTs maintain a relationship with the EU through various agreements and arrangements established between the EU and the respective member states. They are all islands such as Greenland (DK), Aruba (NL), or French Polynesia (FR). You can find more information on the EU overseas territories here.
This categorization means that territories can be covered (or not) by double tax agreements and social security treaties. For instance, Aruba (NL) as an overseas territory would not be covered by most of the treaties signed by the Netherlands, while Azores (PT) would actually be considered as Portugal for any legal matter and all the potential risks that a workation or business trip could trigger would be the same in continental Portugal than in the islands.
In a nutshell, not all the territories outside of continental Europe are the same concerning tax, social security, labour law, social security, and VISA matters. As a general rule, outermost regions do not generally entail the same challenges as overseas territories. However, a case-by-case assessment is always required, and it’s important that the potential risks are managed. This is why WorkFlex performs an individual risk assessment of each workation request and generates relevant documentation such as employer statements, PWD registrations, and employee instructions among others. This way, both the employee and the employer can comfortably enjoy a workation slightly further from continental Europe.
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Temporary remote workers do not qualify as Posted Workers in the meaning of the EU PWD
Temporary remote workers do not qualify as Posted Workers in the meaning of the EU PWD
Pieter Manden is the Co-Founder of WorkFlex and former Head of Trust & Employer Compliance at WorkMotion. He is a Dutch certified tax lawyer specialising in compliance around modern mobility. Pieter has 13 years of professional experience with PwC in the Netherlands and Germany. He was Director responsible for the PwC Germany's Remote Work proposition prior to joining WorkMotion in January 2022.
Gonzalo Corrales Cortes is a Senior Associate Tax & Legal at WorkFlex. He is a Spanish law graduate, specialising in international tax. He enjoyed his international education in Spain, France and the Netherlands. He has working experience in both France and Belgium, where he started his career with Deloitte. Gonzalo is currently enrolled in a Legal Practice Master's program to obtain a certification as a lawyer in Spain.
1. Introduction
In recent years, especially after the COVID-19 pandemic started in 2020, remote work has become a reality for many people. The number of employees working remotely is increasing and is likely to continue to do so in the future. This also means that employees will not necessarily work from their resident country all the time, but possibly from other countries too as part of a so-called Workation (a combination of work and vacation). Especially in this international setup, several employer compliance topics must be addressed, including immigration, social security or tax.
With remote work being such a relatively new concept, it was not in the back of the minds of the regulators who were working on work-related issues. An example of this is the Directive 96/71/EC of the European Parliament and the Council of 16 December, also known as the Posted Workers Directive (PWD). The PWD prescribes that employers, amongst other things, need to notify local authorities if they have posted an employee from the employment country in the specific destination country. This is a significant administrative burden that employers prefer to prevent. In this regard a question that we are often being asked is:
Do temporary remote workers qualify as posted workers in the sense of the PWD?
2. Definitions
Temporary remote worker
An employee who works outside the country of employment on a temporary (<183 days) basis, without this trip having any business reason or purpose. The employer has allowed the employee to temporarily work outside the country of employment, but this trip is entirely privately driven.
Posted worker
An employee who, for a limited period, is sent by his/her employer to carry out a service in an EEA member state other than the state in which he/she normally works, in the context of a contract of services, an intra-group posting or a hiring through a temporary agency.
3. Conclusion
We are of the opinion that this question should be answered negatively. Temporary remote workers do not qualify as posted workers in the sense of the PWD.
The fact that some of the PWD´s translation into national law is somewhat ambiguous, does not change our conclusion. In our view, neither the EU nor the specific countries had the ambition to cover temporary remote workers under these regulations. The aforementioned leads to the implication that we find that no PWD notification duties arise related to temporary remote workers.
Hereinafter, we elaborate on the arguments in favour of our conclusion, some grey areas and we discuss a future outlook.
4. The aim of the PWD
The objective of the PWD is to protect the rights and working conditions of the posted employees and to address a number of concerns such as social dumping. Following the PWD, the member states are obliged to guarantee to these employees certain rights and conditions of employment that are granted to local workers in the host country.
Remote workers were not initially meant to be covered. Indeed, regarding the objective of the law, they should not even be a subject of concern, because they do not compete with the local workforce, and rights such as assuring the minimum wage of the host country are irrelevant, since remote workers often come from countries where they are paid higher salaries than local ones. At least, it is clear that this is not a situation of social dumping.
The PWD has been enacted into national legislation by all the EEA member states and Switzerland, thus the definition of posting workers can vary and have a broader or more restricted meaning depending on the country. The majority of the time, remote workers are clearly excluded from the scope of these national rules, especially as they do not meet the posting workers main characteristics. By way of illustration, some examples can be mentioned:
Spain
According to the Law 45/1999, following which displaced worker is deemed to be the worker, whatever his nationality, of the companies included in the scope of this Law moved to Spain for a limited period of time in the framework of a the provision of transnational services, provided that there is a working relationship between such undertakings and the worker during the period of posting.
France
The French legislator has enacted the PWD via its Labour Code, defining a posted worker as any employee regularly established and exercising his/her activity outside France and who usually working on behalf of the latter outside the national territory, carries out his/her work at the request of the employer for a limited period on national territory under the conditions defined in Articles L.1262-1 and L. 1262-2.
Netherlands
The PWD is translated into national Dutch law via the “WagwEU”. This law defines posted workers as foreign employees who have been sent to work in the Netherlands for a limited time as part of a transnationalservices agreement. Under such a transnational services agreement, the employees are at the Dutch recipient´s disposal to perform work activities in the Netherlands.
Based on the above, it becomes even clearer then, that remote workers do not fit in the general definitions of posted workers given in most of the member states national law. The reasoning behind is that a posted worker generally provides a transnational service to a specific recipient in the country of arrival (i.e a parent company or a subsidiary belonging to the group), while the employee working remotely will keep providing the service to the same employer regardless of the place of residence. Besides, while a remote worker is in the destination for private reasons, posted workers are being sent to another country at the request of his/her employer to perform some specific tasks in a contracting enterprise.
5. Arguments against: grey areas
On the other hand, it should be noted that due to the different perspectives to implementing the PWD among EEA member states, a few countries have adopted a much more compliance-heavy approach. They seem to have enlarged the concept of posted workers in their local law. Examples are Portugal or Belgium. In these countries, any “work-related presence” may trigger the application of the directive and could cause more administrative obligations for the employer in order to avoid being fined. This approach would also make the country less attractive for the potential workforce looking for a few weeks or months working therein.
Belgium
According to Belgian national law, a posted worker is an employee that works and was initially hired outside the country but is temporarily working in Belgium.
Portugal
Following the Portuguese Labour Code, a posted worker is an employee hired outside the country but temporarily working in Portugal in the context of acontract of services, an intra-group posting or a hiring out through a temporaryagency.
As such, in the case of Belgium the local implementation of the PWD seems to have a broader sense than other countries. This is also true for the UK, where employees have certain minimum statutory rights from day one. This can be a complicating factor, particularly if a dispute or termination scenario arises and the employee asserts that they have employment rights in another jurisdiction… While in Portugal it could be easily argued that the context is not the performance of a service due to a specific contract but the validity of the same contract with the same employer.
Although in practice these countries have differentiated between posted workers and temporary remote workers situations, by not imposing the PWD rules to privately driven individuals. This was confirmed by local tax authorities upon our request, it has however not been published as an official statement (yet).
Additionally, it is undeniable how the treatment of both posted workers and remote temporary workers remains the same in some specific areas such as Social Security or VISA/immigration law.
Concerning Social Security, it should be kept in mind that when a company posts employees into other EU countries on a temporary basis, most of the time they remain insured for social security purposes in the country where the company business is located. In these cases, an A1 certificate or a CoC (Certificate of Coverage) should be issued. An A1 certificate of coverage is an European form that states the country in which a worker is covered by social insurance. Regardless of the travel reason (privately driven employees or employees sent by their employers), employees must always be covered by social security since in order to protect both employer and employee, there should be a way to certificate their coverage during the stay abroad.
Related to immigration law, when non-EU member state employees are posted into an EU country, they need both a visa and work or resident permits. So do remote workers when they visit third countries, as a result of the performance of services abroad they need a business visa to travel instead of a tourist one as well as being in possession of a valid work permit if requested in the country.
6. Future Outlook
Even if the disparities are bigger than the similarities, these two concepts may be misleading and can drive the legislator to vaguely apply similar regulations on both cases despite the differences. Elements like who is the actual beneficiary of the services, or the request of the employer to carry out the job in another country have been considered key elements to differentiate these two realities by several authors.
Most of the countries have already openly stated that temporary remote workers are out of the scope of their PWD transposition in national law which provides with an unquestionable flexibility for both employers and employees.
Although, due to the high volume of employees aiming to benefit from some periods working from abroad (that will keep increasing in the upcoming years) and the opportunity that entails attracting migrant talent into our borders, governments and EU institutions proactivity is crucial in order to create an assured and suitable atmosphere for both employers and employees and avoiding regulatory gaps for remote workers aiming to work from overseas. Designing remote work policies that comprehend the harmonisation of member state legal approaches or clarifying complex and unclear points regarding social security would be a nice way to start this journey.
What does the "perfect policy" for temporary work from abroad look like?
What does the "perfect policy" for temporary work from abroad look like?
Balancing between the employee interest of workations as a benefit on the one hand, and the employer compliance risks on the other hand. How to lay this down in the company policy for temporary work from abroad? What must be in the policy and what not? How would our guests change their policy if they had the opportunity to create it from scratch?
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Guest speakers:
- Sophie Kostka - Head of HR & Culture @ Enpal
- Małgorzata Miaśkiewicz - Global Mobility Principal @ Delivery Hero
- Sabine Ziesecke - Tax Partner @ PwC
- Moritz Gamon - Teamlead People Operations & Services @ IU Internationale Hochschule
The Rise of Workations: Employer Compliance and Data Security
The Rise of Workations: Employer Compliance and Data Security
What are the employer compliance and data security risks related to temporary work from abroad? How can employers manage & mitigate them, so that employees can enjoy this benefit beyond boundaries in a well-informed, instructed, and insured manner?
Speakers:
- Jonas Jacobsen, Data privacy lawyer at HK2 Rechtsanwälte
- Pieter Manden, Head of Trust & Employer Compliance at WorkMotion
- Patrick Koch, General manager of WorkFlex
How to keep you and your employees safe during workations?
How to keep you and your employees safe during workations?
Risks associated with workations
Workation is generally associated with pleasant experiences – employees get the chance to improve their work-life balance, as well as spend time on boosting their mental health and wellbeing. However, we have to acknowledge the fact that health & occupational risks are not eliminated when working from abroad, and both – employees and employers – should protect themselves from those.
Getting some minor injuries when working in the office is not uncommon. The same can happen when workflexing – to name a few of generic examples, poorly designed workstation in your hotel room leading to back injury; the universal slips, trips and falls somewhere on your way to take a work call from the beach! Injuries can also happen in the spare time when taking a walk on the beach, hiking, surfing, or doing other activities.
Employer Concerns
After hearing about these risks, WorkFlex‘s clients often ask:
- Who is liable in case an accident happens when the employee is abroad?
- Is travel insurance always needed?
- Can the travel insurance for workations be the same as for business trips?
- How should we handle any insurance claims or any other medical issues?
- Is health insurance included in the A1/CoC?
- And others.
The concern of who is exposed to paying medical bills in case of an accident while working from abroad is legitimate! Although it might appear that the work to purchase extensive travel health insurance must be conducted by the employee, the legal frameworks stating what is an occupational accident during workations is ambiguous. Therefore, employers might be enjoined to cover the medical expenses if it is deemed as an occupational accident.
To illustrate with an example, one mother required an early emergency delivery of her baby and post-natal treatments while travelling in a foreign country. After being discharged, she is facing a $950,000 bill for medical rehabilitation because she was not sufficiently educated on what is included in her existing insurance of the home country and because she did not procure a suitable travel health insurance (Nelson, 2014).
Another concern is the quality of medical services employees get in case of an accident. The medical insurance coverage we would receive in destinations might not be as broad as expected, even if you carry public or private insurance and your home country has a social security treaty with the destination country.
Coverage without additional health insurance
Can I rely on my public insurance?
It is important to bear in mind that public insurance is only valid in the EU countries, Switzerland, Liechtenstein, Norway, and Iceland. Generally, it is advised to carry the European Health Insurance Card (EHIC) to prove the insurance coverage of your home country’s insurance while travelling abroad. Though public insurance is helpful, will it be able to cover all the different situations you may encounter during your temporary work abroad?
Imagine…
You are a German citizen carrying public insurance and you decide to workflex in France. There will be situations that you encounter where the standard of medical treatment while using your EHIC card will not be the same standard as you experience in Germany.
Scenario 1
If for emergency reasons you need to seek medical treatment, you must ensure that the medical facility is under the public health scheme, otherwise the German public insurance will not cover the treatment costs. Even if the German public insurance partially covers the costs, the employee must pay 30% for ambulant care, 80% of the pharmaceutical costs, and 20% of the hospital stay in addition to extra daily charges for the hospital and other co-payments based on the complexity of the treatment. Moreover, it is often required to prepay the treatments in the medical facility before receiving a medical report that can be submitted to the insurance provider.
Scenario 2
If transportation back to Germany is needed for medical reasons, this type of insurance will not cover you – getting this service would imply tens of thousands of euros to be paid either by you or your employer, depending on the root cause of the emergency! Irrespective of the country where the accident takes place, you should assume paying a significant share of the medical costs yourself.
But what about private insurance?
Although private health insurance providers are required to provide coverage to the insured for at least one month globally, the actual length of the coverage depends on your provider and the insurance conditions might differ to the home country’s standards (see here for an overview of German private insurance providers and their restricted travel policies). However, employees have the option to purchase additional policies to amplify the existing insurance scope. The employee should also assess whether a separate foreign travel health insurance is recommended based on deductibles. These would need to be paid in case of a compensation claim and whether medical repatriation is included. Furthermore, many private health insurance providers reimburse a portion of the premiums if no claims have been submitted in a year. If that is the case, it is advisable to purchase a separate travel health insurance to safeguard the bonification.
To sum up, coverage of workations with existing insurance, either public or private, is indeed extremely complicated. There are a myriad of different rules across all the insurance providers that also depend on the destination of your choice. Moreover, it is important to remember that acquiring an A1 certificate or a Certificate of Coverage (CoC) from the insurer that’s needed for workflexing trips does not address your health insurance needs.
Ultimately, to contain your financial risk and save effort on researching the local insurance conditions for a destination country, one should procure private travel health insurance to workflex abroad.
Reduce employer & employee risk with a dedicated workation insurance
Injuries abroad can get expensive – not only emotionally, but also financially. Knowing that this pain could be the responsibility of both employee and employer, it’s definitely worth it to hedge the risk by purchasing specific workation insurance packages for each employee.
To minimise the employer and employee risk of potentially paying the medical expenses for the employee, WorkFlex has partnered with Hallesche Krankenversicherung a.G. This provides comprehensive travel insurance for employees temporarily working from abroad using WorkFlex.
With this new feature, WorkFlex has added another layer of safety – travel health insurance for your employees’ workflexing trips.
What’s covered by WorkFlex’s insurance feature?
- Unlimited medical coverage to suit your and your employee’s needs while in a foreign country, including any emergency situation in any clinic, dental treatments, cases of Covid-19 and medical repatriation
- No restrictions on home & destination countries: Many insurance providers have great restrictions on countries their packages cover. With the WorkFlex solution there are no restrictions on home & destination countries eligible for the insurance package
- Easy-to-use & integrated with WorkFlex platform for a seamless and easy application
- No administrative burden: The WorkFlex team takes care of applying, communicating, and managing the insurance package throughout the whole trip period.
- Comprehensive & easy-to-grasp guide of the insurance policy provided for the employee and employer. Hallesche Krankenversicherung also provides 24/7 phone and email support for any questions about the insurance coverage or assistance while abroad under 0049 711 66 03 39 30 in 25 languages.
If you want to learn more about WorkFlex’s new insurance feature, feel free to book a demo or reach out to your WorkFlex consultant!
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There’s no “permanent” in temporary work from abroad
There’s no “permanent” in temporary work from abroad
Workations are rapidly becoming an important employee benefit, and that´s for a good reason. If employees are no longer expected to work from the office, why should they only work from home? Although, not all people adapt at the same pace, and many consider it weird to go on an extended vacation only to work from there too. To be more specific, our baby boomer parents probably think it’s a classic ‘Millennial’ or ‘Gen Z’ thing to do. Nevertheless, we expect workations to develop into something usual as more employers increasingly offer them and employees continue to enjoy them.
Employers are sometimes hesitant to allow workations because of the compliance risks.
Permanent Establishment (PE) risk, in particular, is considered a showstopper. The risk here is that the employee could trigger a corporate tax liability in the destination country, meaning the employer would need to pay corporate taxes over the profits generated in the destination country. Given that the presence in the country is very limited, however, these corporate taxes generally aren't the key problem. The biggest problem is the administrative burden that comes with having to pay the taxes which, besides setting up bookkeeping, includes registrations with authorities and documentation for intercompany billing and profit allocation.
For this reason, it’s safe to say that employers really don't want their employees to constitute a PE. After all, workations should be an employee benefit rather than an employer burden.
This raises the questions; how does an employee temporarily working from abroad constitute a PE, as well as if, (and how) it can be prevented? And this is where we have good news — there’s no “permanent” in temporary work from abroad. As the name suggests, PE’s require a certain level of permanency. A workation is by character temporary and will therefore generally not be permanent enough. This is supported by both the OECD and the UN, the two organisations whose tax treaty models and commentaries have been most widely adopted. Both state that a so-called ‘fixed place of business PE’ and ‘service PE’ will usually not be constituted if the presence in the other country is below 183 days. This is one of the reasons why an international stay that exceeds this threshold no longer qualifies as “temporary”. In practice, workations are generally much shorter.
Of the more than 1,000 workation requests processed through our WorkFlex platform, more than 95% were below 30 days.
This makes it highly unlikely that these workations pose a PE-risk, even in countries that have adopted even tighter policies around ‘fixed place of business’ or ‘service PE’s’ than the OECD and UN policies. Yet, there are three additional factors that need to be considered;
- That the company doesn’t have an office or entity in the destination country. If it does, it must be made clear that the employee did not visit the office or perform activities for the benefit of the local entity. Deviating from this will not always, nor automatically, create a significant PE-risk. However, it would make it difficult to confidently state that the workations are not likely to form a PE-risk.
- For the 183-day threshold, you may be required to look at multiple workations in the same destination country. In other words, an accumulation of workationers in one country might increase the PE-risk in that location.It’s therefore recommended to have a single system in place, like WorkFlex, to manage all of the company’s workation requests. It’s also important to note that this accumulation doesn’t simply apply to employees from different departments who happen to enjoy a workation in the same country. PE-risk is more likely to increase if there is some organisational overlap. For example, if various employees working on the same project accumulate in the same, destination country. Although this is often the case for business trips, it’s hardly the case for workations. It does show why it is important to distinguish between the two from each other, though.
- Lastly, is the only type of PE –- other than the previously discussed ‘fixed place of business’ and ’service PE’ – that can still pose significant risk even if the workation is below 183 days. This concerns the so-called ’dependent agent PE’. In short, the OECD and UN consider a ’dependent agent’ an employee that habitually plays the principal role leading to the conclusion of contracts. It is broadly accepted that “habitually” implies a certain frequency. For example, five contracts where the individual played the leading role. Still, this doesn’t exclude the theoretical possibility that a dependent agent constitutes a PE during a workation of one day. For this reason, it’s recommended to take two extra measures to mitigate and manage the dependent agent PE of workations.
The first one is to determine who actually qualifies as a dependent agent. Normally, the vast majority of employees don’t, as they do not habitually play this leading role in the conclusion of contracts. Examples of employees who are more likely to qualify as a dependent agent are senior managers and employees in sales and procurement roles. Workation requests of these employees need to be highlighted. A second measure is to assess the actual dependent agent PE risk for these requests. Questions to consider are; how often does the employee usually perform high-risk activities? Can they realistically refrain from performing these activities during the envisioned workation?
Together with many specialists in the field, we are of the opinion that even the most senior employees should be able to enjoy a 30-day workation without triggering a material Dependent Agent PE risk.
However, a case-by-case assessment is always required, and it’s important that the potential risks are managed. This is why WorkFlex performs an individual risk assessment of each workation request and generates relevant documentation such as employer statements and employee instructions. This way, both the employee and the employer can comfortably enjoy a workation.
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Compliance topics around workations
Compliance topics around workations
Workations are rapidly becoming a significant employee benefit, for a good reason. Why should employees only work from home if they are no longer expected to work from the office? Allowing them to work from abroad for some time is an excellent example of implementing increased flexibility, similar to enabling them to work from home. For employers, the beauty of flexibility as a benefit is that it is more or less free of costs. That is, as long as the employer does not pay for the workation and the workation does not trigger any unexpected obligations for the employer. As an employer can decide on the first topic, this white paper focuses on the second topic.
Any unexpected obligations for the employer are likely to relate to the compliance risks around workations. A practical example would be the obligation for the employer to set up payroll in the destination country or the employer's liability in case the employee requires medical assistance during a workation. This raises the question of which compliance risks are related to workations, and how employers can manage or mitigate these risks.
Definition of Workation
Before diving into the compliance topics, it is essential to align on the definition of a workation. In short, this is a situation where an employee continues to work while temporarily abroad for private purposes.
The following four characteristics are relevant:
1. Abroad. This means outside the country of employment and residence of the employee. The employee will not give up his/her residency in the home country during the workation.
2. Private. The stay abroad is privately driven and has no business objective at all. Thus, a workation is something different than a business trip. A workation can be combined with a business trip, e.g., when the employee stays for a workation after visiting a business seminar.
3. Work. The employee continues to perform work activities for (the benefit of) his/her home country employer only. This means that the employee does not create any local value in the destination country.
4. Temporary. The stay is temporary, namely maximum 183 days in any running 12-month period (accumulated per country). However, many employers have limited workations within their company to a maximum number of working days that lie significantly below these six months, such as 30 or 60 days.
Summary of compliance topics
Tax
- Corporate Income Tax: The risk that the employee constitutes a so-called Permanent Establishment (PE). This would trigger a corporate liability for the employer in the destination country. Although this is not necessarily expensive in terms of the taxes due, the administrative burden that comes with this liability is disproportionally high.
- Employment Tax: The risk is that the employer needs to set up payroll to calculate, withhold and remit employment tax in the destination country. If a remote worker constitutes a PE in the destination country, this will also trigger an employment tax liability. On the contrary, as long as a remote worker does not constitute a PE, the employment tax liability is generally only triggered in exceptional cases.
- Social Security: The social security risk around workations is twofold. First is the risk that the employee loses coverage from the home country's social security system. Second, the chance that the social security system of the destination country becomes applicable. Both risks are relatively easy to manage for countries within the EU and countries where a social security treaty is in place.
- Personal Income Tax: The risk is that the employee becomes taxable in the destination country for personal income tax purposes. If this only affects the employer indirectly, e.g., the employee's income tax liability can trigger an employer's employment tax liability.
Legal
- VISA / Immigration: Does the employee have the right to work in the destination country? One may question whether a valid working title is required if the visitor's primary purpose is tourism. This is somewhat unclear, as the VISA / Immigration legislation was not written with 'workationers' in mind. Nevertheless, it is essential to consider this topic, as the fines and penalties for illegal labour are generally hefty.
- Local Labour law: The risk that local labour law becomes applicable. Assuming the employment contract explicitly states that the labour law of the home country applies, it is unlikely that local labour law becomes applicable. This may differ for particular arrangements, such as those around minimum wage and working conditions. In this regard, it is relevant to note that notifications based on the so-called Posted Worker Directive are not applicable for employees enjoying a workation. After all, the employer may have approved the workation but did not post the employee. Moreover, the employee does not perform services locally.
- Duty of care: Every employer has a duty of care for its employees. However, it is relatively unclear what this duty of care precisely consists of, i.e., when the duty is fulfilled. Generally, it prescribes the employer to do everything that can be reasonably expected. As a result, an employer's duty of care is likely much lower during a workation than when the employee works from the office. At the same time, it also means that it cannot be excluded that an accident during a workation should be considered a work accident for which the employer bears the (partial) responsibility.
- Internet and Data security: The risk is that the employee working from abroad breaches security regulations in the home country - such as GDPR regulations - or the destination country. Such as a local prohibition on using VPNs. The breach might also find its origin in client contracts, which may exclude the service providers from performing their services from particular countries.
- Sanctioned countries: Looking at our WorkFlex data, it is rather unlikely that employees want to spend their workation in a country sanctioned by institutions such as the UN or EU. However, this is not impossible thus it is recommended to have the list of these countries available.
The long list above might scare people off, but it should not. The risks hardly differ from those relevant when employees work abroad for business purposes, e.g., during a business trip. Also, employees used to work now and then during their vacation, even before the term workation was invented. Neither of these examples was/are considered a big problem, so one should not make the risks above a red flag all of a sudden for workations only. Instead, one should be educated on the risks and manage or mitigate them.
In-depth assessment: PE-risk
For example, taking a better look leads to the conclusion that it is unlikely that workations create a significant PE risk. As the name suggests, PEs require a certain level of permanency. However, there are no "permanent" temporary workers from abroad. A workation is temporary by character and will generally not be permanent enough. The OECD and the UN support this, the two organisations whose tax treaty models and commentaries have been most widely adopted. Both state that a so-called 'fixed place of business PE' and 'service PE' will usually not be constituted if the presence in the other country is below 183 days. This is one of the reasons why an international stay that exceeds this threshold no longer qualifies as "temporary." As a result, even in countries that have adopted even tighter policies around 'fixed place of business' or 'service PE' than the OECD and UN policies, employees enjoying workations will hardly ever constitute a PE.
Yet, three additional factors need to be considered:
1. Local presence. The employer does not have an office or entity in the destination country. If it does, it must be made clear that the employee does not visit the office or perform activities for the benefit of the local entity. Deviating from this will not always, nor automatically, create a significant PE risk. However, it would make it difficult to confidently state that the workations are not likely to form a PE-risk.
2. Accumulation. For the 183-day threshold, you may be required to look at multiple workations in the same destination country. In other words, accumulating workationers in one country might increase the PE risk in that location.
It's also important to note that this accumulation doesn't simply apply to employees from different departments who enjoy a workation in the same country. PE risk is more likely to increase if there is some organisational overlap. For example, various employees working on the same project accumulate in the same destination country. Although this is often the case for business trips, it is hardly the case for workations. Nevertheless, it does show why it is essential to distinguish between the two from each other.
3. Dependent Agent PE. Lastly, the only type of PE- other than the previously discussed 'fixed place of business' and' service PE' – can still pose a significant risk even if the workation is below 183 days. This concerns the so-called' dependent agent PE. In short, the OECD and UN consider a 'dependent agent' an employee that habitually plays the principal role leading to the conclusion of contracts. It is broadly accepted that "habitually" implies a specific frequency. For example, five contracts where the individual played the leading role. Still, this doesn't exclude the theoretical possibility that a dependent agent constitutes a PE during a workation of one day. For this reason, taking two extra measures is recommended to mitigate and manage the dependent agent PE of workations.
The first one is to determine who qualifies as a dependent agent. Typically, most employees don't, as they do not habitually play this leading role in the conclusion of contracts. Examples of employees more likely to qualify as dependent agents are senior managers and employees in sales and procurement roles. Workation requests of these employees need to be highlighted. A second measure is to assess the actual dependent agent PE risk for these requests. Questions to consider are; how often does the employee usually perform high-risk activities? Can they realistically refrain from performing these activities during the envisioned workation.
Managing and mitigating risks
Besides being educated, employers should manage and mitigate the compliance risks of workations. This can be done in many ways. A common way to start is to draft a policy. It forces the company to consider what it wants to allow - and what not. This is not only relevant for compliance purposes. There can be various business objections against workations, e.g., when the employee is expected to be in the office at a particular time or when the time difference between the home location and destination is too significant.
Further, a crucial part of managing workations is ensuring a process is in place. After all, one cannot manage what one does not know. The process starts with the employee initiating a workation request. After this, it should include a manager's approval, as well as a tax and legal compliance assessment taking into consideration the topics mentioned above. Once the request has been approved, the process should prescribe the request of a social security certificate. Other potential actions may include generating and notifying the company ́s travel insurance company, putting an addendum to the employment agreement in place, generating an employer statement and/or employee instruction sheet. Preferably, this process is supported by a technology that combines all of the process requirements above. Moreover, a technology-enabled process saves both the employee and the employer time, besides having some other advantages. For example, suppose the number of workation requests is high. In that case, the technology can help to focus on those requests that are potentially problematic. Moreover, technology can help put an audit trail in place so that all information and documentation are easily accessible. A solid policy and (technology-enabled) process should pave the way for both the employee and the employer being able to comfortably and safely enjoy a workation. And that is exactly the objective: workations are meant to be an employee benefit, not become an employer burden.
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Workations: Limited to 30 days max within Europe – what can go wrong?
Workations: Limited to 30 days max within Europe – what can go wrong?
While a workation within the EU entails fewer risks than working from third countries, this does not mean it is risk-free. In practice, they have proven to be a BIG burden for employers, but why?
Permanent Establishment (PE) risk
Watch out, because if the employee conducts activities on behalf of the enterprise, a Dependent Agent PE could easily be triggered. Some EU countries have a strict approach to PE and potentially even a Fixed Place of Business PE could be created depending on the location where the employee is working from.
No audit trail and employee's confirmation of the work-from-abroad policy
This means a higher labour law risk, in case something goes wrong during the workation. Combine this with no travel insurance (from the employer) and it turns out to be not as safe as one would expect.
No management
A good 30-day workation management requires some time. Even a trip within the EU should not be done without proper employee instructions and neither without A1s (or a WorkFlex Social Security Statement for countries where the process of obtaining an A1 is not that quick). Sometimes forgotten, yet essential.
Accumulated presence
Be careful, not every EU country follows the same logic to stipulate tax obligations in regard to physical presence. That is why in particular countries (e.g. Czech Republic) being compliant can be more complex than expected and it demands you to update yourself regularly as local regulations often change.
HR risk
Not adopting a Working From Abroad policy is definitely not appealing for any employee. Some may wonder why they cannot spend more days abroad if they are EU nationals and want to enjoy this benefit.
Implications of family visits
Visiting family is one of the main purposes of a workation and this entails two inconveniences. Firstly, these trips may lead to having the center of vital interests in the other country (and this has some tax implications). Secondly, workations in the EU countries only could lead to non-EU citizens wondering why they cannot visit their families. Eventually, this policy can reduce engagement and reduce retention.
Your employees undoubtedly love the freedom to go on workations! To avoid compliance risks, we highly recommend implementing a workation management process, even if your current policy permits travel within the EU for less than 30 days. Book a demo with WorkFlex today to see how we can help you streamline this process and mitigate potential risks via the No-Risk Workation Concept.
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How to eliminate employer compliance risks related to workations?
How to eliminate employer compliance risks related to workations?
Your employees would love to go on workations. But you are reluctant to give them the freedom to work from anywhere because of concerns about employer compliance risks. Is there a common ground? 🤔
Yes, there is! 🙌
Watch the webinar on No-risk workations led by WorkFlex Co-Founders Pieter Manden & Patrick Koch. In the webinar, we will introduce you to the groundbreaking concept of no-risk workations that protects the employer from the relevant compliance risks of workations.
Compliant workations: Your ultimate 3-step webinar guide
Compliant workations: Your ultimate 3-step webinar guide
In a series of 3 webinars, we explore everything you have to know about managing workations compliantly and efficiently together with best-in-class experts of temporary work from abroad. Join in for employer experience stories and opinion-sharing!
Episode 1: Should your company make workations a benefit? (🇩🇪 in German)
Flexibility at the workplace is among the most demanded employee benefits that help employers win the war for talent. Besides talent attraction, there are many additional bonuses to workations - e.g. improved employee satisfaction and loyalty. However many companies also fear that workations will hurt employee productivity.
Episode 2: How to get the workation compliance right? (🇬🇧 in English)
Many employers are now offering workations to employees. However, not everyone is aware of the severe employer compliance risks associated with workations, including permanent establishment, wage tax, social security, and others. In the webinar, we discuss what are the must-have HR processes and documents to manage and mitigate the risks.
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Episode 3: What workation management tool to choose? (🇩🇪 in German)
Your employees love to go on workations and they request a lot of trips. You are aware of compliance risks and acknowledge they have to be managed and mitigated. In the webinar, we discuss what tools can you use to manage the workation compliance and workation management process.
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