Many employers have changed their polices from remote working to hybrid working or they have decided to implement RTO policies (return- to- office). An employer decides what type of employment relationship suits its needs and its employees needs based on certain criteria such us type of business activity, productivity and maintaining customer relationship at a certain level among others.
However, whether it will be a remote or a hybrid or an onsite working status, there are certain compliance requirements that should be met. While hiring remotely can connect you with skillful employees around the world, it can add complexity to your compliance status. Every country has its own labor laws, mobility rules and different tax systems can add some more complexity to a business.
1) Employment Laws
First and foremost, achieving compliance with labor laws in all jurisdictions where employees are located, including minimum wage, overtime, paid leaves and working hours can be a complicated and time-consuming procedure. Moreover, you need to check and properly classify remote workers as employees or independent contractors based on their contractual agreements. For that reason, it is crucial to keep updated employment contracts that will reflect remote working terms, including work location, working hours, job description and performance expectations.
2) Workplace Policies, employee rights and benefits
Develop comprehensive remote work policies covering communication, performance expectations, time tracking, and availability. An employer should clearly define policies for providing work equipment and reimbursing remote work-related expenses. Equal treatment is protected under EU regulations therefore it is crucial to ensure that remote workers have equal access to benefits, training, and career development opportunities as on-site employees. Finally, local laws per each country contain certain provisions for health insurance and other benefits therefore, do not miss to ask consultation from experienced advisors.
3) Tax Compliance
Withholding the correct amount of state and local taxes based on the employee’s remote work location will secure tax transparency to a complex working environment. An employer should understand the tax implications of creating a business nexus in different states or countries due to remote workers. Moreover, an experts’ advice is needed to explore any tax credits or incentives available for remote work arrangements.
4) Data Privacy and Security
Comply with data protection regulations such as GDPR and other relevant laws in jurisdictions where remote workers are based. A company should implement robust cybersecurity measures, including secure VPNs, encryption, and regular security training for employees. Furthermore, the creation of confidentiality agreements to protect sensitive company information in a remote work environment distinguishes responsible and caring employers.
5) Local Laws and Regulations
Stay informed about local laws and regulations that may affect remote work arrangements, such as right-to-work laws, mandatory leave policies as well as international considerations. For international remote workers an employer should understand and comply with employment laws, tax obligations, and work visa requirements in each country. Maintaining thorough documentation to demonstrate compliance with all applicable laws and regulations will lead to a robust compliance status avoiding risks of non-compliance with severe consequences.
Greece might fit your criteria for choosing the country while working remotely, apart from offering a stunning landscape for digital nomads, mixing ancient history with modern culture and a welcoming spirit for newcomers, Greece is an ideal destination for those seeking a work-life balance. The Greek Digital Nomad Visa launched in 2021, ensured a straightforward legal process for those who want to relocate to Greece while working for employers based outside of Greece.
Please feel free to express your questions to our team at payroll@privelpartners.gr
