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Employees asking to work whilst abroad

In our company, employees have the ability to work from home anywhere in the UK. This is something we've continued since the start of the Covid pandemic when we required working from home. 

However, some employees now are asking if they can work from abroad for short periods, e.g. 2 - 3 weeks, on an occasional basis.

I understand this can be an issue with local taxes and employment rights arising, if the employee works abroad for a long period of time (seems to be more than 180 days in a lot of the EU).

The managers are generally fine with these requests as long as the employee works the same hours, are available during those hours, and it doesn't affect their output.

As we have a few requests now, I think we need to have a policy in place so we treat everyone consistently and are covering the risks.

Some issues I can think of are:

- If they bring IT equipment abroad (whether personal or company owned) and it breaks or they lose it, what happens? We can't really ship a new laptop abroad to a country we have no presence and where we didn't even require that employee to travel abroad in the first place. Do we make it a condition that if their equipment breaks or is lost whilst abroad, it is their problem to sort out, and they must find an alternative computer to continue working from and if they can't - take the down time as holiday etc.

- Should our employers liability insurance cover employees while working abroad?

- Do we need any other insurance while employes are working abroad?

- Data protection issues while abroad?

May I ask how others handle these requests to work whilst abroad? It seems like a minefield.

Thank you

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  • If they bring IT equipment abroad (whether personal or company owned) and it breaks or they lose it, what happens?

    They buy a new one and submit an expenses claim.

    Should our employers liability insurance cover employees while working abroad?

    Ask your insurer.

    Do we need any other insurance while employes are working abroad?

    Why would you? Ask your insurer.

    Data protection issues while abroad?

    Exactly the same as data protection anywhere else. Don't use public WiFi. If you do, use a VPN. Don't store or process personal data outside company systems.
  • Johanna

    | 0 Posts

    CIPD Staff

    19 Jul, 2022 11:19

    Do they have a safe place to work and also reliable wifi (their responsibility) - other considerations :)
  • In reply to Johanna:

    Thanks.

    Hi Johanna, with the recent requests we've had, one said she will be working from an AirBnB and the other said she will work from her house in her home country. They will be in abroad for around 3 weeks each.

    Is there anything I should be concerned about? Do we need to carry out a risk assessment of the place they will be working, like wfh? We have guidance on safe wfh - should we reiterate that?
  • In reply to Luis:

    Also, would we, the employer, have any liability if the employee got into trouble in a country they're visiting for working whilst on a holiday visa?

  • Johanna

    | 0 Posts

    CIPD Staff

    25 Jul, 2022 08:29

    In reply to Luis:

    Hi Luis - I am a line manager and can't give you HR advice, however, I do have a team member that sometimes works in a European country due to family reasons and so far it's been absolutely fine. She takes her own holiday time to travel over there and then works just as she would if she was here in the UK. We use MS teams and email to keep in touch and I checked that she had a safe and comfortable place to work (she does as is at a family house). Also she has access to reliable broadband. You have to make your own checks re your company policies on insurance etc but from a line manager point of view it's worked in a seamless way for me and my team member. Open communication and a trusting relationship is key, plus a clear idea of objectives/tasks. Obviously the nature of our work means we can happily work remotely.

  • In reply to Johanna:

    Thanks very much!
  • Johanna

    | 0 Posts

    CIPD Staff

    26 Jul, 2022 08:33

    In reply to Luis:

    This is useful from the CIPD website too: www.cipd.co.uk/.../remote-working-top-tips
  • One issue can also be what they’re doing. If you’ve got sales people you can run the risk of creating a ‘permanent establishments’ this can trigger corporate taxes for your organisation. Esp sales people.

    If you pay bonuses or other benefits you can also trigger tax events and this might be in a country where you don’t have a payroll set up.

    In terms of residency here there is risk too. It can be 90 days. In some cases depending on tax years you can run the risk of being resident in two countries at the same time. It’s not always an issue as a lot of countries have double tax treaties in place but this is not always the case.
  • In reply to Celia:

    Thanks Celia. Interesting point about the sales people.
  • In reply to Luis:

    Is it best to create a policy around this?
  • In reply to Luis:

    If it becomes a common practice, yes. Although I would call it a procedure rather than a policy. A policy is a top-level statement which, in this case, is just "the company allows employees to work from overseas for short periods of time as long they abide by the following terms". Everything else is procedure.
  • Steve Bridger

    | 0 Posts

    Community Manager

    13 Sep, 2022 07:01

    In reply to Luis:

    Hi Luis...

    Some more pointers on this page. If you scroll down you'll see the question relevant to your thread...
    www.cipd.co.uk/.../hybrid-questions