Two years ago, Covid-19 triggered the remote working trend. Today, most employees who are used to the work from home format are understandably reluctant to return to office. But some others are hesitant because they are hiding a big secret — they are working remotely from abroad.
Coming back to the office means an international move and figuring out the logistics of a stay. The most popular remote working trend is to move abroad, preferably someplace with a lower cost of living. MoveHub saw a 15.9% increase in moves internationally between 2020-21.
Can you work for a company outside of the US?
With the help of technology, WFH jobs are more popular than ever. The remote working trend comes with its own set of benefits and complications.
As a digital nomad they must juggle their work judiciously to avoid raising suspicion. The most common factor among them is that they avoid video calls. One employee, John Smith, told Vice that he moved from England to Thailand during the pandemic to support his partner.
Smith admits that hiding the truth is hard as working remotely from abroad means some additional work in the background, like staying up-to-date on the weather in your “home country” and managing the time of the day when you do decide to take calls. In his case, he also tries to downplay the differences but natural elements often make it difficult. While his boss is home in England complaining about the chilly weather, Smith has a huge fan running as the tropical country’s temperature rises.
He Smith admits that although work from home has its own perks, keeping up the facade can take a toll. With the pandemic losing steam, companies are insisting that employees return to office. But employees have resisted citing a better work-life balance and saving commute times. Remote workers are also happier than their peers who work from the office. The remote work from home jobs trend has also made human resources wary of pushing the envelope too much.
Is it legal to work remotely from another country?
Robby Wogan, the CEO of global mobility company MoveAssist, told Vice that companies are struggling to safely deal with employees relocating to “nicer” places. The remote working trend gave workers the power to decide where they live and how.
HR company Topia found that: Nearly 40% of HR professionals recently discovered that many employees were working outside their home state or country.
Furthermore, less than 50% are confident that they know where their workers are located. In the same survey, 66% percent of the 1,500 full-time employees surveyed admitted that they were not truthful about their WFH careers. Most of them did not inform HR about the dates they were working out of state. Also, an overwhelming 94% said that they should be allowed to work from anywhere as long as work is done on time. Employees prioritize flexibility when it comes to their jobs
International remote jobs are a tricky affair as taxes for remote workers vary from country to country. There are stringent HR and payroll considerations that employees need to be aware of as regular rules might not apply to digital nomads.
There are some countries that allow people to work from home on a tourist visa but it is not common and working for a longer duration in a foreign country can make the company eligible for corporate tax in that country.
How long can I work outside of US?
Some employers have laid off employees after discovering that their people are working from abroad while others have tried to keep them on as independent contractors.
Remote work rules are hardly uniform and while the pandemic has prompted some countries, like Antigua and Barbuda in the Caribbean, to frame special rules it is not the norm.
Robby Wogan, CEO at MoveAssist, told Vice that HR departments are trying to accommodate employees’ desire for WFH jobs without exposing the company to regulatory issues. Experts reveal that if an employee works from a wrong place long enough, the tax liability for the individual and the company can be a real nightmare.
One way to deal with employees working remotely from abroad is to have a clear Digital Nomad Guidebook. The handbook must outline exactly what is acceptable and unacceptable during remote work.
It can suggest possible itineraries, limits for how long one can stay in which countries, and which destinations are forbidden due to legal complications. Having these things on paper will save both the company and employee from a host of compliance issues related to remote work.
Companies must understand that the remote working trend is here to stay. It is beneficial to all parties to stay ahead of the game by framing rules to avoid HR and compliance issues in other countries.
