It may also be sensible to provide the homeworker with a dedicated telephone line. It would also mean that the income tax exemption in the DTT would not apply. It's a great tool. Working from home, telecommuting, flexible hours, – whatever you call it, it is part of the Gen Y paradigm of focusing on work product rather than work process. Working from home You may be able to claim tax relief for additional household costs if you have to work at home on a regular basis, either for all or part of the week. A right to enter may also help enable you to carry out risk assessments for health and safety purposes, although legal advice in terms of enforcing this right would be needed if the employee (or another person) was refusing entry. visiting family) may reach the 183-day threshold sooner than you think. UK employers have a duty to protect the health, safety and welfare of their employees, which includes providing a safe working environment when … Normally, time spent by an employee travelling to their place of work would not count as “working time” under the Working Time Regulations 1998. The war for talent is alive and well and people are demanding to work differently. Outside the EEA and Switzerland, the position will depend on whether there is a reciprocal agreement between the host country and the UK. In other countries where no agreement exists, the UK employer must continue to deduct employee UK NICs and pay employer NICs for the first 52 weeks. Respite from … Keep a step ahead of your key competitors and benchmark against them. The Health and Safety Executive provides useful guidance regarding homeworking. The spread of coronavirus presents unique issues for employers seeking to protect themselves, their employees and the public. Will they be required to account for their time and if so, how? Change Management However, if there is a double tax treaty (DTT) between the UK and the host country, the employee may be exempt from income tax there if certain conditions are satisfied, including that the employee is not a tax resident in the host country. For example, EU nationals should consider whether to secure settled or pre-settled status in the UK before they travel overseas. Home working opens up a new range of possibilities for the way businesses can work and structure themselves.With the outbreak of the coronavirus (COVID-19) pandemic, home working has given some employers the flexibility they need to continue their business operations while prioritising staff and customer health and wellbeing as part of their public health responsibility. My thoughts turn to childminders, they work from home and have children around them. We look at each of these issues below before explaining what practical steps you can take to minimise the risks. There should also be a provision for what happens if the employee moves house – particularly if the move is further away from the office which may have financial implications for the employer (see “expenses” below). Here are the key tax issues you need to know if you will be working remotely permanently Published Sat, May 30 2020 10:15 AM EDT Updated Sat, May … Expenses – consider whether or not employees will be entitled to expenses for travel to the office or a contribution towards telephone, broadband, heating and lighting costs. A work from home policy that sets out requirements to be observed by employees while they are working from home. Recruitment & Resourcing Nondiscriminatory Application of Work-From-Home Policies. If the employee will be using their own computer equipment, agree whether or not the employer should pay for its maintenance, repair and fair wear and tear. They will, however, need to complete the appropriate tax declarations, which could be a complex process. However, restricting an employee’s activities in this way is unlikely to be practical for many employees and, in general, the longer an employee works without permission, the more difficult it will be to characterise their stay as a business visit. National work from home day is organised by Work Wise UK, a not-for-profit organisation aimed at making the UK a more progressive economy by encouraging smarter working practices. Ensure that flexible workplace policies … In the European Economic Area (EEA) and Switzerland, there are currently exceptions to this general rule which allow a UK employee and their employer to continue to pay UK NICs and not pay social security contributions in the host country if certain conditions are satisfied. However, the local implementation of the PWD may nonetheless end up capturing this situation. Become your target audience’s go-to resource for today’s hottest topics. Photograph: Stephen Parker/Alamy. Put procedures in place so you can keep in direct contact with home workers so you can recognise signs of … What is this doing to employees’ health, especially physical health? Tax and social security implications of working temporarily abroad. For example, will the employee be required to observe strict office hours, have complete flexibility over when they work, or have certain “core hours” when they must be available. If an employee works from home abroad, you should also ensure that it is compliant with any local health and safety requirements. ", © Copyright 2006 - 2021 Law Business Research. Introducing PRO ComplianceThe essential resource for in-house professionals. OH&W subscription terms. Cutting out the commute by allowing people to work from home can be a win-win; offering opportunities for the employer to reduce/reallocate office space and, for the worker, the benefit of valuable time-savings. Talent Management It is crucial to obtain an A1 (or E101) certificate from HMRC (or the social security authorities in the employee’s country of residence if different). What protections, if any, an employee acquires will depend on the country in question. In countries where there is a reciprocal agreement, such as the USA or Japan, it is possible for an employee to remain within the UK system (and not pay local social security contributions) for up to five years if they have a valid certificate of coverage. Employee Benefits Live, • Occupational Health & Wellbeing Generally speaking, there is no legal obligation on an employer to provide the equipment necessary for homeworking. Employee Relations Also, the full details of the conditions can differ from DTT to DTT (particularly the period over which the 183-day test must be satisfied), and the employer and/or employee may still have obligations in the host country even if the DTT applies. Occupational Health Enter your email address to receive alerts when we have new listings available for Work from home legal jobs. Countdown from lockdown: Where are your employees now? Yes, if the contract of employment permits you … A new study in the UK suggests that we now have four million people working from home in some capacity - full time, part time, they're doing it. The employee takes responsibility for ensuring they have the necessary technology and arrangements in place to enable them to work effectively. Email Newsletters Depending on the employee’s activities, it may be possible to characterise their stay as a business visit - for example, if their activities are limited to those typically undertaken during business trips (e.g. Home working can cause work-related stress and affect people’s mental health. What rules do you have in place regarding the retention of data? Working and living in Spain after Brexit: what changes for UK nationals? Update existing policies to include Covid-19 specific language. Other non-British nationals should consider whether their absence from the UK may affect their visa, or their eligibility to apply for other types of status in future where absences are assessed, such as indefinite leave to remain, permanent residence or naturalisation as a British citizen. Particular changes to the contract to consider include the following: Place of work– if the employee will be predominantly working from home, the normal place of work will be the employee’s home, although the contract should also include a provisio… Always take expert local advice on any tax, social security, immigration and employment obligations you may have in the host country, and on any Covid-19 concessions that have been issued. Social security position is complex and depends on what agreements are in place. HR Consultant Freedom to cook lunch. The key practical steps for minimising the risks are as follows: If you would like to learn how Lexology can drive your content marketing strategy forward, please email [email protected]. An employer is responsible for an employee’s health, safety and welfare so far as is reasonably practicable. From a UK perspective, unless the anticipated duration of the stay is so long that it may impact tax residency (see below), the UK employer should continue to deduct income tax under the PAYE system in accordance with the employee’s PAYE code notwithstanding that the employee is temporarily working overseas. Working from Home: Legal Issues for Employers. Employers and employees should be practical, flexible and sensitive to each other's situation when working from home because of the coronavirus (COVID-19) pandemic. Consider how you might regulate stress levels, how to ensure rest breaks and other working time obligations will be met, whether specialist equipment is required or needs to be safety tested, first aid arrangements, and reporting work-related accidents. It can be all too easy to spend the day in your pyjamas, dipping into work in between doing household chores and running errands. Make sure your actions (or any lack of action) don’t invalidate the insurance. HR Director Consider only approving requests for a short, time-limited duration where the employee’s expected return date is clearly documented. In some instances, it may also be sensible to put in place specific policies to cover off some of the more practical arrangements. Check your employer’s liability insurance covers employees working from home. Employers should consider a variety of issues, including tax, social security, immigration and employment implications, before agreeing to an employee’s request to work from home when ‘home’ is not in the UK. While I am focusing on WFH, these same rules apply generally for managers and employees working at remote offices, i.e., offices away from headquarters. Can we cut the pay of people who work from home? Agree the terms of any temporary overseas working arrangement and record them in writing. Ideally, these should clarify that: The employee will be liable for any additional income taxes or employee social security which may be charged because of their decision to work for a short period in an overseas location (and that the employer is authorised to make additional deductions or seek reimbursements, if necessary, for this purpose). meetings and training). With employees increasingly welcoming the opportunity to work from home, employers that are able to offer this should reap the rewards from this competitive advantage. Depending on how many requests you expect to receive, you may even want to consider developing a short policy to ensure that these situations are dealt with consistently and fairly. Contact us Workforce Planning, • About Personnel Today to check any potential council tax liability as a result of homeworking; that some of their homeworking expenses may be tax deductible; that, in limited circumstances, they may be entitled to a tax deduction in respect of the expenses of travelling from home to the office; and. Note that these rules are due to expire on 31 December 2020, when the current Brexit implementation period ends, and it remains to be seen whether there will be a trade agreement between the UK and EU which will replicate any of these features. OH&W subscriptions The general rule is that employee and employer social security obligations arise in the country in which the employee is physically carrying out their duties. However, there still remains numerous challenges with this almost-overnight switch to remote working. Particular changes to the contract to consider include the following: Place of work – if the employee will be predominantly working from home, the normal place of work will be the employee’s home, although the contract should also include a provision that the employee can be required to attend the office as necessary. This article tackles the question of whether work from home can work for your legal department and the things you need to do to ensure that any WFH policy works for everyone. This means that employers must conduct risk assessments of all the work activities carried out by employees, including those working from home. This would be the case if, for example, the employee has a sales or business development role and is habitually exercising an authority to conclude contracts in the name of the employer while in the host country. The starting point is that the host country has primary taxing rights over the employment income that the employee earns while physically working in that country. Payroll The employee will be responsible for any personal tax declarations that may need to be made. RSS feeds While novel coronavirus­ (or COVID-19) has not yet been declared a global pandemic, people in 81 countries and 13 US states have been infected with the virus, and state and local public health departments are reporting new cases every day. So treat working from home as you would working in the office – get dressed for business and set a realistic but demanding schedule. By Till Hoffmann-Remy, Marco Sideri, Gisella Alvarado, Sophie Maes,Ilse Baijens, Catherine Hayes, Catherine Leung,Katy Lee, Rosie Moore and Colin Leckey. For example, if they want to work in Hong Kong but don’t have permission to stay there indefinitely, they should not undertake any work without permission, even for a limited period and even if the employing entity is not a Hong Kong entity. There are three particular areas to consider from a legal perspective: 1. While this may be less of a problem if you already have established operations in the host country, it could be a real headache if you do not. Employers are advised to take preventative measures—such … The legal employment status of home workers is defined by the following tests of whether they are a ‘worker’ or ‘employee’: •Mutuality of obligation– is the person legally obliged to carry out some work in return for some payment (contract) •An obligation to work personally– or can they send someone else to do the work for you. It is possible that you will receive more such requests in future, as employees look to take advantage of increased remote-working opportunities to ask if they can work abroad for a short period on a regular basis. Homeworking may mean working exclusively from home, but the term “homeworker” can also be used to describe those who divide their working time between home and their employers’ premises, work at home on an occasional basis, or are mobile workers who use their home as an administrative base. It will normally be appropriate to tailor a standard employment contract in order to reflect any homeworking arrangements. Akshay Choudhry of Burges Salmon LLP examines the legal and practical considerations. The mere fact that an employee is working from home should not change their tax status – you should still deduct income tax and national insurance contributions as normal. Training Flexible working is a way of working that suits an employee’s needs, for example having flexible start and finish times, or working from home. However, employers need to ensure the home workers are properly managed and protected to avoid any employment law issues for their businesses. Adapting your reporting and review procedures, as well as individual management styles, will be important both for the homeworker – who may otherwise feel isolated and without support – and the employer – as you will need to monitor the quality and/or quantity of the homeworker’s output and retain the relevant level of control over the relationship. I like the fact you can tailor the newsfeeds by jurisdiction and work area, and only receive information relevant to your practice. These may include minimum rates of pay, paid annual holidays and – perhaps most importantly in the event of a dispute - rights on termination. Only accept requests if the employee’s role can be performed effectively remotely and can be done lawfully from the country in question. The articles are typically of high calibre and from high-calibre authors who provide sufficiently succinct articles so that one can learn much about new developments in a short amount of time. Deciding on working from home arrangements It is also worth including the right to require the employee to revert to office-based working. Trial period – consider allowing the homeworking for a trial period, and include this in the contract, so you can assess whether or not the arrangement will work in the longer term. What rules do you have regarding encryption, use of passwords, and the transfer of data between home and office? If you have a home based contract, isn’t the employer supposed to provide an office chair ( if requested by the employee ) and also carry out a DSE assessment? Hours of work – specify when the employee will need to be available for work. However, where the employee’s normal place of work is their home and they travel to their employer’s premises or to see clients/customers, this could count as “working time”. Whilst most homeworkers will be doing low risk, desk-based jobs, you should ensure appropriate risk assessments are conducted both at the start of the homeworking arrangement and periodically thereafter. Currently, if the employee is a UK or EEA national, they have the right to live and work in an EEA country (although this position will change for UK nationals from 31 December 2020 when the current Brexit implementation period ends). The UK has a DTT with most countries, including all 27 EU countries and most other major world economies. By Lisa Stam on September 19, 2012. Views from the UK and beyond, Home and away - when working from home means working abroad. In practice, this means that a short stay abroad in many locations is not going to result in the employee becoming liable for host country income tax. Flaxton cites BT as a big employer that is keen on home working… HR Systems For example, if an individual is working from home because of ill-health and receives less favourable benefits than a comparable office-based employee, they may claim disability discrimination. Right to enter – do you want include a licence to enter the employee’s home (on reasonable notice) in order to install, maintain or service any company equipment, or retrieve it on termination? quarantine periods) both in the host country and on their return to the UK. Start at a set time and stick to scheduled breaks. The employee’s residence status is determined in accordance with the DTT by reference to their personal circumstances, and whether the number of days they are present in the host country over a 12-month period (however briefly and irrespective of the reason) exceeds 183 days. This duty cannot be delegated to the worker, even though your employer is not in your home and cannot control what goes on there. COVID-19: the practical implications of employees working abroad temporarily. There are about 1.7 million UK employees working from home, according to the TUC. Organisational Development Thank you! In addition, the employer should continue to deduct employee national insurance contributions (NICs) and pay employer NICs. Apply to Home Based Legal jobs now hiring on Indeed.co.uk, the world's largest job site. The employee must comply with all applicable public health guidance in both in the country to which they travel and in the UK. Health & Safety The employee may also need their own advice. Posted in Workplace Policies. Local health and safety protections may apply. Employees will also need to comply with applicable public health guidance (e.g. Learn more about and how to prevent the liabilities of letting employees work from home … Maintaining Nondiscriminatory Work-From-Home Polices Compile a list of legitimate, nondiscriminatory reasons that would preclude an employee from working-from-home. Carry out a risk assessment of the data protection implications of homeworking. For the time being, working in the EEA is generally more straightforward but this will change after 31 December 2020 when the Brexit implementation period comes to an end. If so, who will provide and pay for this equipment and who is permitted to access it? Questions? Wellbeing People Analytics For example, in the Netherlands, employers must provide employees with the equipment needed to ensure a safe working environment which in some cases might involve making a contribution or purchasing relevant equipment. Immigration permission is generally not required for business visits. Several tax authorities have issued concessions in the light of Covid-19, but not all have done so, and it will be important to establish the rules in place in the relevant host country. Employers must carry out a suitable and sufficient risk assessment of all the work activities you do at When working from home, there may be a new concern for workers other than going without pants. This applies where an employee is “posted” from one undertaking or establishment to another cross-border within the EEA (and, until 31 December 2020, the UK). Worker’s compensation. The next generation search tool for finding the right lawyer for you. Check what data processing the employee will be doing, and that this can be carried out lawfully in line with your usual policies. Follow the latest government advice about working from home on GOV.UK. Please contact [email protected]. Multiple court cases have held companies liable for covering costs incurred … On top of the tax, social security and immigration implications explained above, there are various other employment law and data privacy considerations. HR Shared Services Salary and benefits – you should take care that homeworkers are not treated less favourably on grounds of any protected characteristic. The articles are well covered and include the right amount of detail. It is therefore important to understand the local position. Cookies policy Much will depend on the identity of the host country and the nationality of the employee. We briefly outline the issues below. The size and depth of articles are good too, so we can get to the information one needs very quickly. You've worked for this firm for many years, seems to me this new manager is being over zealous. Work from home craft jobs UK; Home based pharmacist jobs; Part time cash in hand work London; Piece work jobs from home UK; Receive the latest listings for Work from home legal jobs. This is also true of the UK, where employees have certain minimum statutory rights from day one. For example, most will want homeworkers to use only company computer equipment to ensure compatibility as well as maintenance of virus protection and other security measures. HR (General) The PWD itself was not designed to cover the situation of an employee working from home temporarily in another EEA country, and it would not be directly engaged unless you opt for a formal secondment to a local group company or ask the employee to work on a contract for a local client. I realise this isn't what you're planning on doing as you work from home but surely having your own children at home while you work shouldn't cause any issues. So what should employers be aware of if they want to facilitate homeworking? If you are self-isolating but cannot do your work at home, then, by law you should at least receive statutory sick pay. Features list 2020 (For example, the employer may need to register with local authorities as an employer and/or report on the income that is being paid to the employee.). There seems to be a broad analysis which is beneficial to us in analyzing various areas of law. Is the employee’s home adequately secure? What measures should be taken against accidental loss, destruction or damage? Performance & Engagement In the UK are things like desks, furniture, internet, etc., obliged to be paid for by the employer even in the circumstances where this home working arrangement is at the request of the employee? This article explains the potential legal issues for employers in the UK and how to avoid the traps, incorporating guidance from other jurisdictions. This can be a complicating factor, particularly if a dispute or termination scenario arises and the employee asserts that they have employment rights in another jurisdiction. Privacy policy Remember, though, that employees who have already spent other periods in the host country in the same 12-month period (e.g. © 2011 - 2021 DVV Media International Limited. Assuming the working-from-home arrangement is only short term, it would be difficult for the tax authorities to argue that a permanent establishment had been created. Keep in touch. "The newsfeeds deliver us the most recent legal analysis and practical information. If the employee is using their own computer/phone ensure you have a right to monitor work communications on those devices. For example, in Belgium the local implementation of the PWD requires that all employment, remuneration, working terms and conditions and collective bargaining agreements that have been declared generally binding apply as of day one to any employee working temporarily in Belgium. Advertising specifications In some instances, it may also be sensible to put in place specific policies to cover off some of the more practical arrangements. But work should be your priority. The employee does not have the authority to enter into contracts with local customers while in the host country and should not hold themselves out as having such an authority. Prepare yourself for the inherent risks that come with providing staff with work from home opportunities. Changes to the PWD, which must be implemented by the end of July, mean that employees will be entitled to the same mandatory pay as comparable employees in the host location. The shorter the period the employee is working abroad, the smaller the risks are likely to be. Employee Benefits Awards Income tax may be payable in host country if employee becomes tax resident. Consider formalising the contact that homeworkers should have with their manager (for example being required to report in at least once per day/week). Within the EEA, there is also the Posted Workers Directive (PWD) to consider. Skip to Job Postings, ... Full office-based training will be provided with the role transitioning to working from home 80% of the time. Mandatory employment protections may apply. As with tax and social security, some countries have implemented emergency Covid-19 legislation that will affect the normal immigration position, but this is not the case everywhere. If the employee does become subject to tax in the host country but remains UK tax resident, they will remain subject to UK income tax on their worldwide income but should be able to obtain credit for some or all the tax they pay in the host country. If employees live and work abroad, even for short periods, they can become subject to the jurisdiction of that other country and start to benefit from the applicable local mandatory employment protections. In some situations, there will be a risk that the employee’s activities or presence in the host country will create a permanent establishment for the employer in that country. The employee is still working solely for the UK business. If an employee is not an EEA national and/or wishes to work from a non-EEA country, you will need to consider what restrictions may be in place. Equipment – will the employee require specific equipment to perform their work? Home Advice for Parents & Carers Discrimination as a parent/carer Flexible working and the law – a guide for employees Flexible working and the law – a guide for employees Alongside the Right to Request Flexible Working, employees have several legal rights which may help them to get the flexible working pattern they want. There are also practical considerations to consider when agreeing to a homeworking arrangement. You will need to ensure that homeworkers do not exceed the 48-hour limit on their working week when travel is taken into account (or that they have opted out of the maximum hours’ cap). If certain conditions are met, payments by employers to reimburse employees for reasonable additional costs incurred as a result of homeworking can be tax exempt. You will need to consider, however, whether the employee’s stay in the host country creates risks of income tax or social security liability in that country - or even the risk that you (as the employer) are regarded as having created a permanent establishment there. , Sagardoy Abogados, Claeys & Engels, advocaten, Lewis Silkin LLP, the profits attributable that! If an employee acquires will depend on the country to which they and. Has launched a new concern for workers other than going without pants business! To attend the office for regular meetings when the employee is using own... Their employees and the most pressing issues they are facing countries, work itself prohibited... Ensure that any Work-From-Home, remote work, and that this can be performed remotely! Employees working from home as well as office-based workers employee to revert to working. ’ strategies and the most pressing issues they are facing, you should take care homeworkers! 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