Concerns about the UK workforce and its rapidly depleting talent pool have been widely reported in the media. Figures from Totaljobs Hiring Trends highlight that over 4.5 million workers in the UK are considering moving abroad, citing factors such as the increasing cost of living and the COVID-19 pandemic as reasons for leaving the UK behind. This great migration has presented a huge recruitment crisis across the board, with businesses looking toward more creative solutions.
Many jobs are simply unsuitable for workers based abroad. Perhaps the role requires site visits or face-to-face meetings with customers. But for those roles that can be accommodated, employers who recognise the value in implementing a policy for overseas workers and allows employees to work in such a way that suits them arguably widen the talent pool because they are no longer restricted to hiring staff close to a physical workplace.
But what do you need to know before deciding whether to allow your employee to work from abroad?
An employee working overseas could be subject to local employment laws. This means that things like holiday entitlement and pay or terminating the employee’s contract need to be addressed relative to the law of the country the employee is living in. You should be aware that some countries can have greater employment rights than the UK. Additionally, immigration laws should be carefully considered and carrying out a ‘Right to work’ check is sensible. Some countries offer digital nomad visas, setting out employees’ and employers’ rights and obligations.
Businesses will also need to give meticulous thought to the contractual implications surrounding the implementation of an employee working from abroad. Where employees make a formal request through an existing flexible work policy, and the request is granted, this will constitute a formal change to their terms and conditions of employment.
Remote working, and indeed, any form of flexible working, can be undertaken informally, requiring no contractual changes to be made. However, employers should make employees aware they understand the differences and the implications of both.
Employment contracts should also contain the contractual location. This does not necessarily change for employees working from abroad, but for employees who are working permanently from where they are living, they should have their home address listed as their workplace within their contract.
There may also be tax implications for employees who work remotely from outside the UK.
How PAYE and National Insurance contributions are calculated relies upon where an employee is based and how long they intend to work there. Employees who, over 12 months, spend most of their time abroad may be able to claim full UK tax relief on their earnings.
As part and parcel of working remotely during the pandemic, many businesses have already scrutinised their cyber security. Technology plays a vital role in remote working. Employees must not be able to put any of the business’s data at risk, so security systems and policies should be put in place to prevent this from happening and how to deal with it if it does.
Because staff need to work seamlessly between their home and the workplace, reliable connectivity is required between the two. Think about what you would do if your employee was living in a country where this was not possible, or the connectivity was sporadic.
Besides technology, consideration should be given to other equipment an employee working abroad may need. This may include the provision of things such as wired computers, laptops, office furniture or mobile devices. How and where will this be purchased.
All employers have a duty of care towards their employees and must therefore ensure that their working environment while they are in the workplace, even if they are working from abroad, is safe. This is as much a priority for those working remotely, as for those working remotely from the UK or physically present in the office. Support for any mental health issues they may face should be accessible both in the workplace and at home, wherever they are in the world.
Training and development is an essential part of promoting the successful delivery of employees’ roles, particularly if they are working remotely from abroad.
Line managers will need guidance, information, and training to ensure diversity and inclusion, effective onboarding, and employee engagement within a disparate team.
Communicating and collaborating on a remote basis is not a new concept. Many companies have had to adapt to such arrangements. For example, journalists covering a story abroad must communicate with their teams back home. It is, therefore, not impossible for employees to work effectively and efficiently away from their team.
If you decide to allow your employee to work from abroad, the following should be considered for effective remote communication and applies to those working both in the UK and remotely from abroad:
At IMD Corporate, our employment team understand the challenges businesses face in ensuring compliance with employment law obligations which are constantly evolving to reflect new ways of working and changing social attitudes. We offer a wide range of services, which can either be purchased individually for a fixed cost or accessed in full by joining our employer-protect scheme, which makes us affordable for all. For more information, please contact Marcin Durlak on 0330 107 0106 or email us at business@imd.co.uk.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.
Talk to us today 
0330 107 0106
CONTACT US TODAY