In a rapidly changing world of work, in which flexibility and work-life balance are becoming increasingly important, new working models have developed to meet the needs of employees. Hybrid working has led to the development of the workation trend. This allows employees to work while travelling and thus combine work and leisure. But what legal hurdles underlie this model?
Key facts
- With workation, employees can carry out their professional activities anywhere & travel at the same time.
- In order for workation to work legally, companies and employees must take a few things into account.
- Within the EU, German labour law applies in almost all cases. Nevertheless, it always depends on the duration of the employee's stay. It is also worth setting out the workation in company agreements.
Workation by definition: the fusion of work and leisure
The idea behind a workation is simple: work and holiday are combined to create a balance between professional obligations and personal relaxation.
During a workation, employees have the opportunity to work in an attractive location that is normally associated with holidays and relaxation. These can be beaches, mountains or other inspiring locations. Hybrid working has further strengthened and promoted this trend.
The definition of a workation is not standardised, as different companies and employees may take different approaches. In general, however, the term refers to the idea that employees can fulfil their professional obligations while being in a location other than their regular workplace. The duration of a workation can vary from a few days to several weeks.
What are the legal requirements for a workation?
When planning a workation, both employers and employees should keep the legal framework in mind.
Here are some important aspects that should be considered:
Working time regulations
Employees who are planning to work abroad for a certain period of time should talk to their employer beforehand. In principle, German labour law applies to a workation. This does not provide for permanent employment from abroad or pure workation according to its definition. It therefore makes sense to regulate this possibility in labour or collective agreements or in a company agreement across departments. As the main focus of the activity continues to take place in Germany, the statutory regulations on working hours apply. It states that the employee may not work more than eight hours on weekdays and must observe a rest period of eleven hours between work units.
Location & duration
A workation outside Germany is by definition designed for a specific period of time. This means that employees work for a few weeks at their holiday destination or abroad. The duration should therefore always be clarified in advance of a workation, as the availability of employees may also be limited. The duration of a workation can also have an impact on insurance issues. Due to the freedom of movement in the EU and the European Economic Area (EEA), the workation, which is legally regarded as mobile work, can last up to 183 days. Only then do the tax and insurance framework conditions change. Within the EU, employees do not need to obtain a work permit. In third countries, this can change quickly, whereupon possible additional agreements must be concluded or local national law must be scrutinised more closely.
Workation & tax law
Short-term activities have no tax implications. This is because employees may work abroad for a maximum of 183 days per year without the workation making any difference from a tax perspective. The only important thing is that employees are still only resident in Germany for tax purposes during the workation. Anything beyond this obliges employees to prepare a tax return in both countries.
Data protection & IT security
When working during a workation, it is important to comply with the company's data protection regulations and IT security policies.
Employees should ensure that they have a secure internet connection and take appropriate precautions to ensure the confidentiality and integrity of company data.
Workation & social security aspects
An important aspect of a workation is the employee's social security cover. As the place of work changes during a workation, it is important to clarify how the social security systems work and what rights and obligations apply to both employers and employees.
As a rule, employees are subject to the same social security regulations during a workation as when working at a regular workplace. As soon as employees spend at least 25% of their working time in Germany, they are also subject to social security contributions here. This status is maintained even if companies send their employees abroad.
Validity of health insurance
Health insurance is an important factor in social security during a workation. In most cases, employees retain their health insurance cover during their workation - especially in the EU. However, it is important to check whether this also applies abroad and which specific regulations apply to medical care and emergencies.
Accident insurance also plays a role, especially if the place of work is in an unusual location during the workation, for example when working in the mountains or on the beach. Employers should ensure that their employees are adequately insured during the workation and, if necessary, take additional measures to ensure safety in the workplace.
