Today’s Financial Times published an important article for employers everywhere on: “The Cross-border pitfalls of working from anywhere.” As the world of COVID-19 changed all of our lives, the world of work continues to evolve, and it is evolving at a pace far quicker than laws around the world can keep up with. Employers would do well to understand that while technology, philosophy, convenience, and economics all point to us changing our game to allow employees to “work from anywhere,” care must still be taken to ensure legal compliance.
In addition to the issues raised in the article regarding taxes, you must also be careful to consider employment obligations and compliance. In many, if not most, jurisdictions, employment relationships are governed by the law where services are performed. This implicates contractual obligations, holidays, leave, discipline, terminations, and the full range of issues that face the employment relationship. These concerns should not be an afterthought. Before undertaking to permit employees to work from home in another jurisdiction, a careful review of compliance obligations should be undertaken.
