Remote Work Compliance
Working across borders always creates compliance problems. Compliance in remote work refers to adherence to laws, regulations and company policies while working outside the employee home country. It involves meeting legal and organizational requirements to ensure ethical and secure work practices.
The way how work is done experienced an unprecedented change. In the midst of technological advances and changing workforce needs, companies around the world have begun to revolutionize the way they think about work. One particularly prominent trend: Workations.
This innovative form not only allows employees to work from home but also temporarily abroad from another country. Workations are not only an expression of flexibility but also a sign of companies' willingness to adapt to modern requirements. Workations are becoming a decisive advantage for employees by overcoming the fixed boundaries of the traditional workplace. But while this flexibility often comes at little cost, it can create unexpected obligations for employers.
But not only workations create risks when working abroad. Also, the classic standard form of short-term working abroad, when an employee travels for company reasons– the so-called business trip – creates hefty compliance risks and triggers many “To-Do‘s“ for the employer.
Remote Work Compliance Handbook
This handbook focuses on compliance risks associated with working abroad in all forms. We'll explore a range of risks, spanning adherence to social security, immigration, and work entitlement rules, managing tax implications, by passing the need to prepare payroll in the destination country, taking financial responsibility for medical assistance abroad, and more.
Workations gone wrong are costing companies dearly:
Examples of repercussions:
⚠️ Employees deported from Malaysia and Thailand for workations (Source: DER SPIEGEL)
⚠️ €50,000 fine for incorrectly paid social security (Source: Wirtschaftswoche)
⚠️ Immigration and fines up to €5,000 for missing visas and documentation (Source: Wirtschaftswoche)
⚠️ Record in the central business register (Source: Wirtschaftswoche)
⚠️ €25,000 medical expenses for an employee on a workation (Anonymous Case: EY)
Business travel gone wrong:
🚩 Bosch pays a EUR 320 million settlement in Italy.
🚩 Netflix faces a USD 2 million corporate tax bill in India.
🚩 Infosys shells out USD 34 million in VISA-related penalties in the US.
🚩 Austrian caterer banned from sending employees to the USA for 35 years due to visa issues.
🚩 EUR 30,000 fine in Switzerland for incorrect registration/PWD.