Remote work: Legal issues and best practices for expats

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Published on 2023-05-02 at 13:00 by Ameerah Arjanee
Remote working has become popular since the pandemic, but expat workers might still be unsure about how to request it. Are there labor laws that lay down rules for remote working? If you plan on working from abroad as an expat, what issues should both you and your employer take into consideration?

Countries have been creating new labor laws since 2020 to regulate remote working

When the pandemic suddenly forced millions around the globe to work remotely from home in early 2020, there existed few specific labor laws to regulate this kind of work. Various countries, from Argentina to Mauritius to Greece to Australia, have since then legislated new labor laws to give companies and workers a clearer legal framework for this “new normal” of working. 

Unfortunately, some countries still haven't updated their laws concerning this. The US, for instance, hasn't amended its Telework Enhancement Act since it was created by Obama in 2010. Canadian law doesn't have specific regulations for remote working but simply defends that remote workers have all of the same rights as on-site workers. 

But what about countries that have indeed created or amended remote working laws in 2020-2022? What did they add? Angola, Turkey, Argentina, Luxembourg, Spain, Italy, Slovakia, Ukraine, Russia, Norway, and Peru are among the countries now requiring a signed written agreement between the employer and employee before the latter can start working remotely. Similarly, since late 2022, Belgium has required companies with over 20 employees to write down a general list of rules concerning remote working – rules about their right to disconnect after working hours, for using digital tools, etc. 

In these countries mentioned above, a verbal agreement is no longer enough. A written agreement ensures that the remote worker's rights are respected and that he/she can complain to the relevant authorities if they are breached. Some countries have gone a step further by even requiring companies to send a list of all their remote employees to the country's labor ministry. That is the case in Italy, Chile and Argentina. 

In some of these countries, employers are now legally required to put down the reasons for their refusal in writing. In Australia, the employer has to provide a written letter explaining the business grounds for the refusal of a worker's teleworking request within 21 days of first receiving that request. The worker then has the right to use that letter to appeal the decision with the government's Fair Work Commission (FWC). The FWC's arbitrating powers might well indeed overturn the company's refusal.

How can you request remote working as an expat?

First of all, you should check the laws concerning remote working in your country. In some countries, your employer cannot legally refuse your request if you are pregnant, have health problems (e.g., a disability), have young children, or are the primary caretaker of elderly relatives. In Australia, since 2022, even workers who have experienced domestic violence now have the automatic right to work from home. If it is not your automatic right and you want to work remotely from abroad as an expat, you will have to present your manager with a solid argument. 

The trickiest part of working from abroad concerns taxes. Your employer will check if that sits well with the branch of their company in that foreign country and if your two countries have a double-taxation treaty. You might need to file two tax returns but will also earn deductions on what you already paid in one country. You should also discuss how your salary and benefits will be adjusted if you work from another country where the cost of living might differ vastly. Your employer might refuse your request to work from another country if it's too complicated or expensive for them to adjust for. 

Of course, you will require a digital nomad visa or another type of work permit to work from a foreign country. It is illegal to work on a tourist visa. Many countries have created digital nomad visas in the post-pandemic boom in remote working. More and more countries offer these tailored visas in 2023, including Spain, Portugal, Croatia, South Africa, Mauritius, New Zealand, Taiwan, Colombia, and Costa Rica.

Another thorny issue in working remotely from abroad is compliance with data security. Your employer will be required to respect the data laws of the country where you're going to be a nomad worker. For instance, non-European employers will have to comply with the General Data Protection Regulation of the EU if they want to work remotely from a member state of the union. The host country's authorities may also be able to access the company's data on your devices, especially in cases of police investigation. Your company will likely secure your work devices, install a VPN on them and create multifactor authentication to make their company data the least vulnerable possible to cyberattacks in another country.

Your employer might also be required to do a health and safety assessment of the place where you are going to work. This might be the house or co-working space you're renting in a foreign country. 

How about labor laws unrelated to taxes, such as those governing paid and sick leaves or public holidays? It will depend on your remote work contract with your employer. Some will prefer making you keep the same entitlement as in your home country, while others will allow you to follow the local customs of your country of expatriation. Of course, this remains a matter you can negotiate with your company.