![]() The question of jurisdiction is a complicated one involving analysis of which jurisdiction the employee has a strong connection to.Įmployers also need to be aware that, in a number of jurisdictions, there are mandatory employment laws that apply regardless of the governing law of the employment contract. However, jurisdiction is likely to change if the parties agree that the employee is allowed to work permanently from another country. Generally, the employment law of the employee's domicile will continue to apply, if the employee is employed in another country only temporarily. Nonetheless, this should be checked in the individual country. In these jurisdictions, separate benefits may need to be applied for and provided by the company for the employee.įor the purposes of overseas social-security contributions, it will usually be sufficient to have a payroll service abroad where the employee works instead of involving an employer of record (EOR) or professional employer organization (PEO). Even though they have been quite flexible and issued certificates of coverage for employees working from abroad in the first couple of years of the pandemic, there is no guarantee that the same approach will be taken in 2022.Ĭertain countries do not have a national health care system in place, such as India. In these circumstances, health insurers are not obliged to issue a certificate of coverage to prove that the home country's social-security regime continues to have effect. The employee will not be covered by their home country's social-security system any longer, because of not being posted on behalf of the employer to the other country-instead being there on their own initiative. The employee will become subject to the social-security regime of the country they are working in, unless certain exemptions apply (such as secondment, or simultaneous work in several EU or EEA countries). The parties will have to check whether the employee intends to work in another European Union (EU) or European Economic Area (EEA) member state, in a country that has a bilateral agreement on social security with their home country, or from a country where an international agreement on social security does not exist. ![]() With more employees working remotely in other countries during the pandemic, businesses need to keep an eye on social security, employment and immigration law, and tax implications.ĭuring the COVID-19 pandemic, businesses have gained forced experience of employees working remotely-with some even working from other countries-and many employers are now faced with requests from their employees to continue to work from abroad on a permanent basis.įor employees, this new approach can open up the attractive opportunity to work from their place in the sun for employers, this option can be an ideal way to retain or attract qualified labor and talent.īefore agreeing on this type of regular, cross-border remote work, both parties should consider the legal issues surrounding social security, employment and immigration law, and taxation.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |