Mobile working has numerous benefits for employees and companies alike. It gives the workforce more flexibility and allows the work-life balance to be significantly improved. For many, this is a reason to work remotely abroad or to immediately do a workout from vacation. But what is the legal status of mobile working abroad? Find out more here!
Key facts
- Mobile working is also a popular option for employees abroad.
- Before you start, you should always check the legal regulations. This includes, for example, the legal situation in the country of residence.
- Within the EU, mobile working abroad can be implemented quickly and easily.
- For long-term stays, employees should obtain details on work permits, occupational safety and payment of social security contributions & taxes.
- A works agreement for mobile work abroad can be useful in some cases.
What is mobile working?
Mobile working Is usually used as a synonym for hybrid work used. This allows employees to work regardless of time and location. It is therefore a typical model of alternation between working from home and regular Returning to the office. However, this not only includes working from home, but mobile working is also becoming popular abroad. This involves moving the home office to the country of an election.
For many employees, this is an active incentive to combine travel and work. Workations are becoming increasingly popular. Mobile working is thus becoming an attractive hiring feature for many companies. This helps in particular to War for Talents to decide for yourself.
How do you best manage mobile working abroad?
For the model to work in general, it is worthwhile for companies to Operational agreement or draw up a similar service agreement.
This works agreement for mobile working abroad should clarify the following points:
- Possible time limits for mobile work
- Establishing working hours
- Provision & reimbursement of work equipment
- Where applicable, private uses of the work equipment provided
- Rules for successful data protection
- Regulation on Working time recording
- Regulations for mobile working abroad
In addition, employment law prescribes a number of regulations. Especially when it comes to the permanent regulation of mobile work abroad.
What do companies & employees have to consider when working remotely abroad?
Here, it always depends on where and for how long mobile working abroad should take place. The works agreement can clearly specify which countries of residence are suitable for working.
Work and residence permit
But the free movement and visa exemption in the European Union enormously simplify many regulations. As long as there are no restrictions on the part of the employer, mobile working in other European countries can be implemented quickly and without a work permit. Only states that belong to the European Economic Area (EEA) but are not part of the EU can face a time limit. These include Norway, Switzerland and Iceland, for example.
Outside the European territory, it is necessary to apply for a work permit and an official residence status. For this purpose, the respective employment regulations of the state must be observed.
occupational safety
In Germany, the Occupational Health and Safety Act regulates occupational safety and safety measures for employees. These regulations may also apply when working abroad on the go. This is because the legislator has determined that even in such cases, a minimum of safety precautions must be taken if employees are employed in Germany. If the labor regulations are below German standards, parts of the German Occupational Health and Safety Ordinance may also apply in other EU countries.
In countries outside the EU, national labor regulations may also apply. It is therefore always recommended to take a look at national law.
social security
Here, too, EU citizens have an enormous advantage. This is because social security contributions are paid in the country in which employees work. It is also possible to work outside the EEA for up to 24 months without being subject to social security contributions in the respective state.
If mobile work abroad is carried out in a third country, it is different. The Federal Republic has concluded agreements with a number of third countries to simplify international work. Anyone working abroad on a permanent basis should check in advance how and whether social security contributions are to be paid.
tax payments
When paying income tax, things get complicated for employees. If the country of residence does not have a double tax agreement, taxes are paid at the place of residence. These agreements apply in almost all European countries. But not in third countries. Depending on the length of mobile work abroad, taxes may have to be paid locally.
However, if employees no longer reside in Germany, there is no need to pay taxes in the Federal Republic of Germany. The so-called “habitual residence” legally describes the length of stay. If employees live outside Germany for 183 days, taxes must be paid in the host country.
How do you introduce mobile working in your company & abroad?
Communication is the key to success here! It is not always necessary to draw up a service agreement for mobile work abroad. Sometimes it can still be useful to set up some guidelines. After all, the hybrid collaboration & teamwork succeed.
It is important that employers and employees talk to each other. Flexibility is an important factor that gives employees a great deal of freedom. This should absolutely be retained, but any plans for mobile working abroad should be openly communicated — especially during long-term stays abroad.
