One of the main consequences of the Covid-19 pandemic has led to a significant shift in the way we all work. Many workers are still working from home fully, or on a hybrid model with some days in the office and others at home. Other workers have taken the opportunity to change their lifestyle entirely and may want to work remotely from overseas locations. Technology might make this feasible, but it is important for both employers and employees to be aware of the potential legal implications. There is lots to think about, including tax and social security implications, immigration and Right to Work identity checks, employment law or data privacy implications.

Tax Implications When Working Remotely Overseas

If an employee works overseas temporarily, while taking an extended break overseas, there are no tax implications, and they just keep paying their UK tax in the same way. If, however, the worker is planning on being outside the UK for more than 183 days per year this changes their tax status, and the worker may have to apply for a special PAYE code. In addition, being resident in another country might make the employee liable for tax in the country where they are working remotely, depending on the laws there.

Depending on someone’s status overseas, they may also be governed by local health and safety and other laws, which can cause a complex situation for workers and employers.

Immigration Implications

Even when working for a UK-based employer, different countries may want remote workers to have a special working visa rather than a standard tourist visa. After Brexit, working remotely for a UK employer in countries of the European Union or Switzerland is not as straightforward as it used to be, and should be carefully considered. In terms of Right to Work checks, if the person being employed is working for a UK-based company but has requested to work remotely all or part of the time, the employer must still make sure that the worker is legally entitled to take up the position. Records of checks also have to be kept, as the Home Office may audit businesses suspected of employing people illegally.

Confidentiality and Remote Working

One of the main concerns from employers is around keeping information secure, when they don’t have control over internet security in a foreign country. In some sectors, such as healthcare or financial services, there are legal requirements about keeping information confidentially, and a complete ban on overseas working. An employer who turns a blind eye to someone working overseas could end up in hot water legally.

Minimising Remote Working Risks

All employers should have a remote working policy setting out their expectations. New requests should be evaluated against the policy to address any risks. If there are any complicating factors in the job, then it is always wise to get legal advice around tax and data protection. If there is any possibility of a return to working in the office full time, it may not be wise to employ someone who intends to work full-time from overseas.