Working remotely: Is it the employee's or the company's choice?
Are you dreaming of remote working from abroad? Before choosing your destination, it is essential to discuss it with your employer. While the choice to work remotely can be yours, the procedure can only be initiated with your employer's approval. Employers can also implement remote work solutions for their employees. Keep in mind that remote work remains a choice, not a right, and your employer has the option to say no.
At first glance, working remotely from abroad seems simple. You just need to bring your work and continue your activities. However, not all professions are suitable for long-term travel. You must also consider legal and tax issues, employer responsibility, health insurance, administrative procedures, and visas. While more and more companies are transitioning to "full remote work" (100% telecommuting with complete autonomy), others still resist, even if their activities would allow it.
Remote work abroad can be either permanent (without returning to the home country) or temporary (a few months a year). Regardless of your choice, as an employee, you remain in a subordinate relationship with your employer. It is up to you to organize yourself to fulfill your tasks. Of course, it is assumed that you and your employer have previously revised the work arrangement. Although remote work inherently offers greater autonomy to employees, remote working from abroad grants even more freedom. Working hours may not be the same as those of your colleagues, but work organization is more flexible, as long as the assigned tasks are completed.
How to choose your location for remote work
Before embarking on your new life as a remote worker, you need to consider several essential formalities. Which law will apply in the foreign country? To which social security system will you be affiliated? Will your employer cover your professional expenses? What visa do you need, and what are the requirements?
Employment contract
It is highly recommended that you establish an employment contract (or an amendment) to define your remote work conditions. Which law will apply? For European citizens working remotely in another EU country, Article 8 of Regulation (EC) No. 593/2008 of June 17, 2008, states that, in the absence of established rules, the applicable law is that of the country where the employee "habitually" performs their work. The regulation also indicates that the applicable law must be defined by the employer or, under certain conditions, the other country's law. The employment contract should also specify rules regarding working hours and the employee's obligations (participation in meetings, frequency, etc.).
Visa
While digital nomads have specific visas designed for them, it isn't the case for remote workers. Remote workers abroad are often confused with digital nomads. While digital nomads can be employees, the majority are self-employed entrepreneurs. In fact, some countries offering digital nomad visas have this prerequisite.
However, there's good news for European workers: you can travel within the European Union (EU) without a visa, provided you inform your employer in advance. However, the principle remains the same for all other cases: an entry visa and work and/or residence permit are required. Be sure to comply with these rules to avoid violating immigration rules. Your employer would also be held responsible, even if you are working remotely.
The choice of location and visa to apply for should be balanced with the possibilities of the company and your own plans. Are you planning to work remotely only for a few months a year? Do you intend to stay abroad permanently?
Professional expenses coverage
As a remote worker abroad, you may use your professional equipment (PC, printer, phone, internet connection, desk, etc.) for work purposes. You may also need to purchase additional equipment to work under optimal conditions. The company may cover the cost of these equipment purchases unless you are responsible for buying your own supplies. In countries like France, for example, employers have the legal obligation (Interprofessional National Agreement of November 26, 2020) to reimburse all professional expenses incurred while remote working from abroad. The employer is not allowed to deduct these expenses from your salary.
Check the legislation in your home country regarding the employer's obligations concerning remote working from abroad. This provision should be included in your contract. If no mention is made, request for the contract to be amended to include this. If any issues arise (such as an employer refusing to reimburse your expenses), you will be protected and able to assert your rights.
Health coverage
Your affiliation depends on the time you spend in your home country and the host country. The legislation of your home country determines the threshold beyond which you become affiliated with the local law of the foreign country. Keep in mind that if the social security system of your host country only provides minimal health coverage, the costs can quickly add up for your employer. In fact, your employer remains obligated to pay the social security contributions related to your employment, following the host country's legislation.
Check for bilateral agreements between your home country and the host country. If you are a European citizen working remotely in another European country, then Regulation (EC) No. 593/2008 of June 17, 2008, applies. According to this regulation, you are affiliated with the European host country's social security system if you spend more than 25% of your working time there.
What are the best countries for remote working?
Spain, Malta, Portugal, Australia, New Zealand, Canada, South Africa, Iceland, Israel, Costa Rica, Japan, Panama, Mexico, United Arab Emirates, etc., are some of the best locations for remote work. They include popular expat destinations as well as emerging ones. However, the feasibility of your project needs to be assessed.
Before thinking about beaches, mountains, or vast prairies, consider the time zone differences. Some remote workers opt for a few months in a neighboring country or within the same continent. Others choose more distant destinations and reorganize their work arrangement with their employer (meeting attendance, deadlines, etc.).
Pay particular attention to taxation. Remote work can affect both your and your employer's tax liabilities. Is your employer also present in the chosen location? If they have subsidiaries abroad, things will be much easier as the employer already has a "tax framework" in place. Otherwise, your remote work could be deemed a form of business by the foreign country, and your employer might be subject to double taxation.
Therefore, it is understandable why companies are cautious, as various legal standards need to be verified. Usually, large companies, such as Microsoft, Johnson & Johnson, Meta, Dell, Indeed, Philips, IBM, Shopify, Chanel, and L'Oréal, are keener on offering remote work opportunities as they have already embraced this new organization of work.
