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What does cross-border remote working entail?

Sitting on a beach, sipping coconut water and banging away on the laptop sounds like a dream for many employees. Better yet, looking for jobs within companies based in another country may also bring a number of added benefits for both employees and employers. But before you consider these cross-border remote working roles, you should know that it’s not all roses and peaches. In this Pacific Prime UK article, we’ll share with you what these roles entail. 

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Benefits of cross-border remote working

So, what’s the fuss all about? Let’s quickly recap on the benefits of cross-border remote working for both employees and employers, as this will give us a good understanding of why there’s been an increase in demand for and supply of these types of roles. But of course, it’s important to remember that these benefits are only at the tip of an ‘iceberg’ and we’ll need to dig deeper to get the full picture. 

Employees

Being able to work remotely from any location (including abroad) provides employees with a large degree of freedom and flexibility. They can choose to spend time in their home country or another country that suits their needs. For instance, they can relocate to be closer to family or to a place with a lower cost of living. 

Employers

The impending ‘talent tsunami’ means that cross-border remote working roles are a way for employers to tap into a global talent pool. Offering this as an employee benefit is also a good idea as it can lead to better work-life balance for employees, which can result in higher productivity and profits for employers, as well as reduced office costs for employers. 

Hidden implications of cross-border remote working

In theory, cross-border remote working sounds great. But unfortunately, there are hidden implications in the categories of legal, compensation and benefits, taxation and resourcing. While these aren’t drawbacks per se – because they can be mitigated by HR teams, they do require careful consideration on behalf of employees and employers before finalising the terms of employment.  

Legal 

What are the local labour laws? Employees may be able to acquire employment rights locally such as termination and consultation rights. What’s more, regulatory requirements may limit what employees are able to do. Another issue is whether employees have the right to work in a country and what the data protection laws in each jurisdiction are. 

Compensation and benefits 

There might need to be an adjustment on the organisation’s pay structure to take into account location-based compensation. The way that pension and mandatory employee benefits work may also be different in the country the employee is in. And, of course, employers will also need to rethink employee benefits for a remote workforce. 

Further reading: Rethinking employee benefits for remote workers in the UK

Taxation 

Taxation matters are something that can’t be ignored. This includes whether there are any obligations for payroll taxes and whether social security payments have been triggered. In addition, tax treatment implications for any expenses paid locally also need to be considered and adhered to.  

Resourcing 

Finally, how will talent be managed? It may be difficult to instil company culture, deliver training and development, facilitate career progression and ensure safety and security when it comes to remote employees. Likewise, it may be challenging to ensure that employees are actually working their contracted hours without micromanaging them

Get in touch with Pacific Prime UK for all things employee benefits!

Cross-border remote working roles clearly need a lot of thought, so it’s a good idea to get help from third parties. If you’re looking for an employee benefits specialist, Pacific Prime UK can help. With over two decades in the sector, we can help you tailor your employee benefits to a remote workforce in a way that meets your organisational goals. We take the entire stress and hassle out of the process as we can design, implement and administer plans for you using industry-leading expertise and cutting-edge technology

Contact us today to learn more about our approach!

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Content Creator at Pacific Prime UK
Suphanida aims to demystify the world of insurance by creating informative and engaging content. As a wordsmith, she spends the majority of her day writing and editing website content, blog posts, in-depth guides, and more.

Outside of work, Suphanida enjoys travelling to new places and immersing herself in different cultures.
Suphanida