• Replies 8 replies
  • Subscribers 2 subscribers
  • Views 5112 views
  • Users 0 members are here
Options
Related

Working remotely... overseas

Rosie

Hi there

I have a few questions on remote working (both in the UK and Overseas) and would appreciate understanding how other employers approach this.

The reason for the question is that we seem to be receiving more frequent requests from employees, who due to personal reasons have decided to relocate, either elsewhere in the UK or overseas. Where possible we have tried to accommodate the move, especially if it is an employee we really do not want to lose. If the request is for a move within the UK, this is somewhat easier to address but if it is overseas and it is in a country we do not have a business presence in (which is typically the case) it has proven to be a bit of a headache. As the requests seem to be increasing we would like to understand how other employers approach these requests, for example, would you only consider it if it is business driven and you have an office set up in that country or would you also consider requests if they are employee led and you nothing in place?

I would also really appreciate advice on how you obtain information and who you approach for advice on the options for opening an office/establishing a presence in the country, taxation, social security, payroll, employment law, salary and benefits (including statutory requirements etc.) to be able to employ the individual. Other than approaching a large international accountancy firm for advice, which can be incredibly costly, what other options are available for smaller organisations with just a few employees moving overseas?

Many thanks for your help

Parents
  • Hi Rosie
    By and large there are two simple solutions, when you only have a single person in a country where your company has no representation.

    1) the person resigns and sets themself up as self employed in the other country, agreeing a contract for services with the UK company. Here they accept total responsibility for conformity with local legislation (tax, social security, immigration, employment law) as well as organising their own life insurance, medical cover, pension etc.

    2) You identify a local "body shop" which employs the person and sets up a contract for services with the UK company. All employment issues are now with the body shop and no longer with you.

    Any other solution will be hellishly complicated to organise out of the UK and will almost certainly lead to an expensive disaster in one or more of the following areas employment law, tax law (company and individual), social security law, company law......... Similarly failure to correctly operate statutory reporting and withholding processes without an intimate understanding of national processes is a near certainty.
  • in reply to Ray
    Hi Ray,

    Thank you for your advice that is really helpful.

    Currently we do have former employees working overseas as Contractors (this is an option also used at other companies I have worked at). In fact ,we have one individual in Japan whose 1 year contract comes to an end shortly and we are going to be reviewing the arrangements with an in country lawyer to ensure we can continue in this way.

    Regarding Contractors some of the concerns we have in terms of using this as an option is that the individual is only going to be working for us and given that they have previously working for us as an employee (in some cases many years) would this not pose a big problem in your experience and if so, how could we reduce/remove this risk?

    In addition, would it make any difference on the type of role they are performing (i.e if it is a Sales or a Developer role?) and the work they are producing?

    You also mention a local "body shop" - what do you mean by this and how would you go about sourcing this overseas? Do you have any experience of using this as an option yourself and did it work?

    Apologies, one last question, would your approach be different if someone where moving within Europe to moving say, the US?

    Many thanks for your help
Reply
  • in reply to Ray
    Hi Ray,

    Thank you for your advice that is really helpful.

    Currently we do have former employees working overseas as Contractors (this is an option also used at other companies I have worked at). In fact ,we have one individual in Japan whose 1 year contract comes to an end shortly and we are going to be reviewing the arrangements with an in country lawyer to ensure we can continue in this way.

    Regarding Contractors some of the concerns we have in terms of using this as an option is that the individual is only going to be working for us and given that they have previously working for us as an employee (in some cases many years) would this not pose a big problem in your experience and if so, how could we reduce/remove this risk?

    In addition, would it make any difference on the type of role they are performing (i.e if it is a Sales or a Developer role?) and the work they are producing?

    You also mention a local "body shop" - what do you mean by this and how would you go about sourcing this overseas? Do you have any experience of using this as an option yourself and did it work?

    Apologies, one last question, would your approach be different if someone where moving within Europe to moving say, the US?

    Many thanks for your help
Children
  • in reply to Rosie

    Hi Rosie and sorry for not responding earlier
    By a "body shop" I mean an intermediary company who becomes the legal employer of the person, and puts them at your disposal by an intercompany agreement. A fairly common practice worldwide in the engineering world for example.
    Many of the larger temp agencies or recruitment firms in the target country will be happy to do this for a price - it costs to be sure, but in the long run it is less expensive than major tax, social security or employment law issues. The key thing is to make sure that the company in question services other companies as well as your own.
    If I went down this route, I wouldn't act differently between Europe and the US.
    Another solution I should have mentioned would be to use a quality payroll bureau with company-law related services to set up a local branch of your UK company and ensure local compliance. Most of the biggies (ADP, SD Worx for example) can do this for you, but it will not be cheap. Google "Country name" and "hr and payroll providers"....

  • in reply to Ray
    Hi Ray,

    No need to apologise and thank you for your advice, it has been really helpful.

    Many thanks, Rosie