Is global mobility grappling with remote work?

Many companies are still out there wondering how most effectively integrate remote and hybrid workers into their "new" (post pandemic) work environment. There have been studies showing that remote workers are happier and stay in their jobs longer. Forbes reports that although power is shifting away from employees back to employers, remote work applications have nearly doubled this year and there are no signs of that slowing down in 2023. A lot of organizations have invested in building a global remote work policy and automated approval process that not only ensures employee and employer tax compliance, but also maintains a strong company culture and positive employee experience. However, there are many more companies still trying to figure things out!

Remote, hybrid work, digital nomad: these are new buzzwords in global mobility and we hear more and more discussions going on around them. We know many employees have experienced a new way of working and many have re-evaluated and are seeking those opportunities. Nearly twice as many people (64%) applied for at least one remote job in July 2022 as they did they year before (37%). Forbes Advisor spoke with more than a dozen recruiters and employers who all said working from home has taken off in the last two years because people want more flexibility to balance work with their personal life. And because more people are reluctant to return to the office full time, companies are retooling their policies.

But that can come with many things to consider. This newsletter from Convinus shares some interesting examples of the things that need to be considered and addressed, explores what employers need to know about remote work visas for traditional remote workers and digital nomads, and explains why tax and social security aspects must be taken into account. In order to keep compliance costs low abroad, comprehensive advice is required in advance. 

One example includes handling remote work in Switzerland for an employee of a French company without a branch or subsidiary in Switzerland. The review of the situation has to take into account employment, immigration, social security requirements, and tax law aspects as well as payroll implementation (or adjustments). The employment contract has to be in alignment with Swiss law, and there are are no "remote work" or "digital nomad" visas options in Switzerland. A foreign employer can currently only grant "remote" working in Switzerland to a Swiss or EU/EFTA national. The study is an interesting read to see whether the company could allow the employee to work from Switzerland, and why or why not!

This newsletter is packed with examples and information on how to avoid tax and legal issues like permanent establishment (PE). If you mismanage PE, you could incur fines, penalties, and reputational damage. After reading these articles, you might also look at this one from our friends at GTN, which provides an excellent case-study: "Establishing the Global Policy and Approval Framework for Remote Work Requests".

We have also published previous posts relating to remote and hybrid work structures and digital nomads. In case you wanted to revisit any of these, here's what we've talked about:

If you could really work from anywhere...? 

Flex appeal: Which work model will be most attractive to top talent and where will relocation fit? 

What does the future look like for digital nomads? 

Hybrid work is here to stay — but are organizations ready?