Webinar: Mobile workforce – employers beware…
Join us on Wednesday 16 December for a free live webinar with co-hosts, James Cowper Kreston accountants.
Date: Wednesday 16 December 2020
Time: 11:00am – 12:00pm (including Q&A)
Where: Your desk (live webinar)
Panellists: Imelda Reddington and Ian Machray, Field Seymour Parkes, Charlotte Firth and Jaouad Chakht, James Cowper Kreston
To register for this free live webinar, click here.
We are seeing an increasing trend of employees wanting to work remotely from overseas.
For the employee, working abroad may be preferable many reasons. Many employees can perform their roles from most locations in the world, as the employee’s physical presence may have no impact on their role or output. Do employers even know where their employees are based?
Employers should be aware of a number of legal and practical issues that arise when an employee works remotely from overseas.
Employees working remotely from another country may be entitled to the same rights as local workers, which may be more generous than under UK law. Their contract of employment may also need amendment and there can be issues with data protection, health and safety and employer insurances.
Employers who hold a sponsor licence may encounter problems if a sponsored migrant works remotely from overseas. The sponsored employee may no longer be permitted to return to live and work in the UK. The Home Office may take compliance action against the employer for failing in its monitor and control duties.
Employees or workers visiting the UK without visa paperwork, may be subject to checks at the border.
Tax and social security
Remote working employees may become subject to local income taxes and social security and the employer may also be subject to tax and social security reporting and collection obligations in the employee’s country of residence.
Employees working from overseas may cause an employer to become established in that country which may incur taxes and VAT implications.
Remote workers with occasional or ongoing UK workdays could trigger UK PAYE obligations for the employer, even if only reporting requirements, so each case should be considered carefully with regard to the Statutory Residence Test, as well as the nature and quantity of UK duties to ensure compliance.