In an increasingly digitalized work environment, the concept of Workation – the combination of work and vacation, for example, in a holiday destination – is becoming more and more popular. Employees appreciate the flexibility of working from inspiring locations, while companies can benefit from fostering motivated and productive teams. But what legal and organizational aspects must employers consider to enable “Workation” or "Remote Work Everywhere"?
Generally allowed but requires clear regulations
Legally, Workation or remote work from anywhere in the world is generally permitted. However, there are several key aspects that companies must take into account. While flexibility and freedom are priorities for employees, employers must ensure that all legal requirements are met. These include:
- Data Protection: The protection of sensitive company and customer data must remain a top priority, even during a Workation. Working from coworking spaces or public locations presents risks that can be minimized with clear guidelines.
- Occupational Health and Safety: Employers must ensure that working conditions comply with legal regulations, even during a Workation. Clear agreements on working hours and communication channels are therefore essential.
- Tax Considerations (more on this below)
Tax and Social Security Considerations for extended Workations
After a certain period, Workation arrangements may have tax and social security implications. If employees stay in another country for an extended period, the following aspects may become relevant:
- Tax Obligations: Employees may become subject to taxation in the country where they are working. This applies to both income tax and potential employer obligations, such as withholding payroll taxes locally or registering the company as a taxable entity in the host country.
- Social Security: Social security regulations vary by country. As a general rule, if an employee stays abroad for more than three weeks per year, different certifications may be required to ensure continued social security coverage in Switzerland, and social security implications may arise in the foreign country. Employers should seek early clarification to ensure compliance with all necessary requirements.
Clear Guidelines for Workation from an Employer's Perspective
To facilitate smooth implementation of Workation and Remote Work Everywhere, it is advisable to establish company-specific regulations. These should cover all relevant aspects, including:
- Approval Process: How and by whom is a Workation requested and approved?
- Data Protection and IT Security: What requirements apply when using company devices and data?
- Maximum Duration and Country Restrictions: What limitations apply regarding the duration and the countries where remote work is permitted?
We have created a checklist for employers to help ensure that all critical points are considered when planning and implementing a Workation. With this checklist, you can make sure nothing is overlooked – from legal requirements to organizational details.
If your company already has staff regulations, Workation rules can be integrated directly into it.
Conclusion and key Takeaways
Workation and Remote Work Everywhere offer great opportunities – for both companies and employees. However, to fully leverage these benefits, clear guidelines and a structured approach are essential. Our regulation and checklist provide the perfect foundation for successfully implementing Workation in your organization.
If you need a Workation Regulation, do not hesitate to order our fixed-price product here.
