Views from the UK and beyond, Home and away - when working from home means working abroad. RSS feeds What measures should be taken against accidental loss, destruction or damage? Much will depend on the identity of the host country and the nationality of the employee. It is crucial to obtain an A1 (or E101) certificate from HMRC (or the social security authorities in the employee’s country of residence if different). The legal employment status of home workers is defined by the following tests of whether they are a ‘worker’ or ‘employee’: •Mutuality of obligation– is the person legally obliged to carry out some work in return for some payment (contract) •An obligation to work personally– or can they send someone else to do the work for you. The articles are well covered and include the right amount of detail. Flexible working is a way of working that suits an employee’s needs, for example having flexible start and finish times, or working from home. Particular changes to the contract to consider include the following: Place of work – if the employee will be predominantly working from home, the normal place of work will be the employee’s home, although the contract should also include a provision that the employee can be required to attend the office as necessary. Workforce Planning, • About Personnel Today Particular changes to the contract to consider include the following: Place of work– if the employee will be predominantly working from home, the normal place of work will be the employee’s home, although the contract should also include a provisio… Features list 2020 If the employee is using their own computer/phone ensure you have a right to monitor work communications on those devices. In practice, this means that a short stay abroad in many locations is not going to result in the employee becoming liable for host country income tax. They will, however, need to complete the appropriate tax declarations, which could be a complex process. There are also practical considerations to consider when agreeing to a homeworking arrangement. What rules do you have in place regarding the retention of data? However, the local implementation of the PWD may nonetheless end up capturing this situation. Here are the key tax issues you need to know if you will be working remotely permanently Published Sat, May 30 2020 10:15 AM EDT Updated Sat, May … © 2011 - 2021 DVV Media International Limited. Right to enter – do you want include a licence to enter the employee’s home (on reasonable notice) in order to install, maintain or service any company equipment, or retrieve it on termination? Skip to Job Postings, ... Full office-based training will be provided with the role transitioning to working from home 80% of the time. Freedom to cook lunch. Countdown from lockdown: Where are your employees now? So what should employers be aware of if they want to facilitate homeworking? Advertising specifications The size and depth of articles are good too, so we can get to the information one needs very quickly. Equipment – will the employee require specific equipment to perform their work? It is also worth including the right to require the employee to revert to office-based working. Immigration permission is generally not required for business visits. You could also require homeworkers to attend the office for regular meetings. If an employee’s role involves processing personal data, this could give rise to data protection issues, especially if the employee is requesting to work from a country outside of the EEA which is not subject to the General Data Protection Regulation and other EU data privacy laws. This means that employers must conduct risk assessments of all the work activities carried out by employees, including those working from home. You will need to consider, however, whether the employee’s stay in the host country creates risks of income tax or social security liability in that country - or even the risk that you (as the employer) are regarded as having created a permanent establishment there. Employees will also need to comply with applicable public health guidance (e.g. Deciding on working from home arrangements If certain conditions are met, payments by employers to reimburse employees for reasonable additional costs incurred as a result of homeworking can be tax exempt. Cutting out the commute by allowing people to work from home can be a win-win; offering opportunities for the employer to reduce/reallocate office space and, for the worker, the benefit of valuable time-savings. The employee may also need their own advice. Depending on the employee’s activities, it may be possible to characterise their stay as a business visit - for example, if their activities are limited to those typically undertaken during business trips (e.g. The starting point is that the host country has primary taxing rights over the employment income that the employee earns while physically working in that country. This note outlines the issues relevant to homeworking; the benefits and drawbacks and the practicalities that need to be addressed in the event that an employer engages homeworkers or accedes to an existing employee's request to work (full or part time) from home. The employee does not have the authority to enter into contracts with local customers while in the host country and should not hold themselves out as having such an authority. visiting family) may reach the 183-day threshold sooner than you think. Will they be required to account for their time and if so, how? It's a great tool. A new study in the UK suggests that we now have four million people working from home in some capacity - full time, part time, they're doing it. In some situations, there will be a risk that the employee’s activities or presence in the host country will create a permanent establishment for the employer in that country. This article explains the potential legal issues for employers in the UK and how to avoid the traps, incorporating guidance from other jurisdictions. If the employee will be using their own computer equipment, agree whether or not the employer should pay for its maintenance, repair and fair wear and tear. Do staff have access to the equipment that will enable them to work […] For example, if an individual is working from home because of ill-health and receives less favourable benefits than a comparable office-based employee, they may claim disability discrimination. This can be a complicating factor, particularly if a dispute or termination scenario arises and the employee asserts that they have employment rights in another jurisdiction. What protections, if any, an employee acquires will depend on the country in question. Check what data processing the employee will be doing, and that this can be carried out lawfully in line with your usual policies. If employees live and work abroad, even for short periods, they can become subject to the jurisdiction of that other country and start to benefit from the applicable local mandatory employment protections. Tax and social security implications of working temporarily abroad. Homeworking may mean working exclusively from home, but the term “homeworker” can also be used to describe those who divide their working time between home and their employers’ premises, work at home on an occasional basis, or are mobile workers who use their home as an administrative base. Working from home looks set to be a part of many people’s lives for some time to come. Outside the EEA and Switzerland, the position will depend on whether there is a reciprocal agreement between the host country and the UK. UK workers and France: a guide to the new rules from 1 January 2021. (For example, the employer may need to register with local authorities as an employer and/or report on the income that is being paid to the employee.). This article tackles the question of whether work from home can work for your legal department and the things you need to do to ensure that any WFH policy works for everyone. Changes to the PWD, which must be implemented by the end of July, mean that employees will be entitled to the same mandatory pay as comparable employees in the host location. "The newsfeeds deliver us the most recent legal analysis and practical information. The general rule is that employee and employer social security obligations arise in the country in which the employee is physically carrying out their duties. For the time being, working in the EEA is generally more straightforward but this will change after 31 December 2020 when the Brexit implementation period comes to an end. In some countries, work itself is prohibited even as a business visitor. In the UK are things like desks, furniture, internet, etc., obliged to be paid for by the employer even in the circumstances where this home working arrangement is at the request of the employee? Flaxton cites BT as a big employer that is keen on home working… Thank you! Employers must carry out a suitable and sufficient risk assessment of all the work activities you do at I like the fact you can tailor the newsfeeds by jurisdiction and work area, and only receive information relevant to your practice. Organisational Development It is therefore important to understand the local position. Email Newsletters Power up your legal research with modern workflow tools, AI conceptual search and premium content sets that leverage Lexology's archive of 900,000+ articles contributed by the world's leading law firms. Getting work from home insurance is essential if you have employee telecommuting for your small business. Start at a set time and stick to scheduled breaks. Compensation & Benefits On top of the tax, social security and immigration implications explained above, there are various other employment law and data privacy considerations. Performance & Engagement Consider only approving requests for a short, time-limited duration where the employee’s expected return date is clearly documented. The Health and Safety Executive provides useful guidance regarding homeworking. According to the Office for National Statistics, 13.9% of the UK’s workforce were homeworkers in January to March 2014, up from 11.1% in 1998, and the proportion of the UK workforce working from home is likely to rise as employers increasingly recognise that flexible working, including homeworking, can bring benefits to their organisation. Salary and benefits – you should take care that homeworkers are not treated less favourably on grounds of any protected characteristic. So treat working from home as you would working in the office – get dressed for business and set a realistic but demanding schedule. While this may be less of a problem if you already have established operations in the host country, it could be a real headache if you do not. The employee must comply with all applicable public health guidance in both in the country to which they travel and in the UK. meetings and training). For example, in the Netherlands, employers must provide employees with the equipment needed to ensure a safe working environment which in some cases might involve making a contribution or purchasing relevant equipment. Wellbeing to check any potential council tax liability as a result of homeworking; that some of their homeworking expenses may be tax deductible; that, in limited circumstances, they may be entitled to a tax deduction in respect of the expenses of travelling from home to the office; and. Confidentiality and data protection – this can be difficult to supervise remotely so include an express term to address what is considered confidential information and the necessary protections required (such as passwords, encryption, a secure filing cabinet, a shredder etc) and make sure data protection obligations are maintained. Employee Relations Whatever the precise arrangement, there are a number of issues for an employer to consider. Consider how you might regulate stress levels, how to ensure rest breaks and other working time obligations will be met, whether specialist equipment is required or needs to be safety tested, first aid arrangements, and reporting work-related accidents. Work from home craft jobs UK; Home based pharmacist jobs; Part time cash in hand work London; Piece work jobs from home UK; Receive the latest listings for Work from home legal jobs. From a UK perspective, unless the anticipated duration of the stay is so long that it may impact tax residency (see below), the UK employer should continue to deduct income tax under the PAYE system in accordance with the employee’s PAYE code notwithstanding that the employee is temporarily working overseas. When working from home, there may be a new concern for workers other than going without pants. This duty cannot be delegated to the worker, even though your employer is not in your home and cannot control what goes on there. In countries where there is a reciprocal agreement, such as the USA or Japan, it is possible for an employee to remain within the UK system (and not pay local social security contributions) for up to five years if they have a valid certificate of coverage. You may also need to consider any immigration issues that could arise on the employee’s return to the UK. It may also be sensible to provide the homeworker with a dedicated telephone line. The employment contract remains subject to UK law and jurisdiction. Understand your clients’ strategies and the most pressing issues they are facing. In the European Economic Area (EEA) and Switzerland, there are currently exceptions to this general rule which allow a UK employee and their employer to continue to pay UK NICs and not pay social security contributions in the host country if certain conditions are satisfied. Brexit, Italy and the UK: the new rules on working, living and travelling, Can I ‘work from home’ in another country? If an employee is not an EEA national and/or wishes to work from a non-EEA country, you will need to consider what restrictions may be in place. Local health and safety protections may apply. The longer the arrangement continues, however, the greater the risk - particularly if the employee routinely negotiates the principal terms of contracts with customers which are simply ‘rubber-stamped’ without amendment by UK employees. We look at each of these issues below before explaining what practical steps you can take to minimise the risks. However, employers need to ensure the home workers are properly managed and protected to avoid any employment law issues for their businesses. Issues covered: Q: I am seeking legal obligations for UK employers wherein an employee requests to work at home full-time and this is granted. Cookies policy Several tax authorities have issued concessions in the light of Covid-19, but not all have done so, and it will be important to establish the rules in place in the relevant host country. Privacy policy An employer is responsible for an employee’s health, safety and welfare so far as is reasonably practicable. Please contact [email protected]. Employers should consider a variety of issues, including tax, social security, immigration and employment implications, before agreeing to an employee’s request to work from home when ‘home’ is not in the UK. HR Director People Analytics Depending on how many requests you expect to receive, you may even want to consider developing a short policy to ensure that these situations are dealt with consistently and fairly. By Till Hoffmann-Remy, Marco Sideri, Gisella Alvarado, Sophie Maes,Ilse Baijens, Catherine Hayes, Catherine Leung,Katy Lee, Rosie Moore and Colin Leckey. HR Business Partner if computer equipment provided by the employer is used for anything more than “insignificant” private use, a tax charge may arise. Working from home You may be able to claim tax relief for additional household costs if you have to work at home on a regular basis, either for all or part of the week. Make sure your actions (or any lack of action) don’t invalidate the insurance. Employers are advised to take preventative measures—such … HR (General) The spread of coronavirus presents unique issues for employers seeking to protect themselves, their employees and the public. Apply to Home Based Legal jobs now hiring on Indeed.co.uk, the world's largest job site. However, where the employee’s normal place of work is their home and they travel to their employer’s premises or to see clients/customers, this could count as “working time”. While I am focusing on WFH, these same rules apply generally for managers and employees working at remote offices, i.e., offices away from headquarters. Employee Benefits Live, • Occupational Health & Wellbeing This month on 19 May it is “National work from home day”. National work from home day is organised by Work Wise UK, a not-for-profit organisation aimed at making the UK a more progressive economy by encouraging smarter working practices. Only accept requests if the employee’s role can be performed effectively remotely and can be done lawfully from the country in question. Will the equipment need to be insured and, if so, whose responsibility will it be to arrange and pay for this? Prepare yourself for the inherent risks that come with providing staff with work from home opportunities. If a permanent establishment is created, the profits attributable to that establishment would be subject to corporate tax in that country. 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