International Remote Workers: Is there a Hidden Risk in Your Workforce?

The world of work has changed.....dramatically! With international remote working (IRW) on the rise and more talk of “work from anywhere” (WFA) policies, many UK employers are trying to navigate a new landscape of flexibility and may not realise the risks.

Remote or hybrid working is now the norm, but what if your employee is quietly working from Spain… for months? Or your developer is checking in from France or Belgium?

You could be hosting IRWs without even knowing it, and that might expose you to unexpected legal, tax, and compliance issues.

A Patchwork of Rules and No Global Standard

One of the biggest challenges with IRW is the lack of consistency between countries.

There's no overarching EU-wide or global framework for IRW’s, just a patchwork of national rules, often designed before this trend emerged.

This can lead to friction:

• A UK employer may believe they are compliant, but a host country may see a tax presence or employment relationship.
• Some countries will tolerate informal IRW arrangements if short-term; others expect full registration and compliance.
• Even social security coordination, covered by A1 certificates in the EU, can be complex and time-limited.

Until there is more global consensus, businesses must navigate inconsistent expectations, uncertain obligations, and fragmented guidance; increasing the risk of errors, delays, or penalties.

What is an International Remote Worker?

An IRWis someone who is:

• Employed by a UK company
• Working (even temporarily) from a country outside the UK

Examples include:

• A team member visiting family abroad, working remotely “just for a while”
• A digital nomad working across Europe
• A UK-based employee who went to the Netherlands during COVID and stayed
• A new hire working from Ireland on a UK contract

Even short-term arrangements can trigger compliance obligations; especially in the EU!

“Work from Anywhere” Sounds Great, but…..

WFA policies sound like they could be the future of work. They are great for employee engagement, they promote flexibility, and are often seen as a powerful recruitment and retention tool, but they come with complexity.

While formal data is still evolving, here’s what we know:

• According to the Littler 2023 European Employer Survey, 48% of European employers (including UK firms) already allow employees to work remotely from abroad to some degree, often referred to as “wandering workers”
• A 2022 Flexa (now Hubble) analysis found that approximately 10% of employers surveyed had launched full WFA policies, while an additional 15% were actively consideringsuch schemes.
• 42% of UK employees expressed in October 2024 that they’d like to use their existing remote working policies to work from abroad. This is based on a survey of over 1,000 UK professionals by Hubble (formerly Flexa).

However, many businesses underestimate the complexity. Cross-border working brings employment law, payroll, tax, and data protection responsibilities; even when initiated by the employee.

Why It Matters

Once someone starts working from abroad, your business may face:

• Employment law exposure – local contracts, working hours, dismissal rules
• Payroll & tax liabilities – local tax registrations and withholdings
• Social security obligations – unless covered by an A1 certificate
• Corporate tax risk – especially if the role is revenue-generating or client-facing
• Data protection compliance – GDPR and beyond

The employee may also face issues with local:

• Income tax
• Social security
• Immigration rules or visa status

You Might Not Know!

Many organisations only realise the risks after an incident, because:

• Employees don’t always report moves abroad (especially post-COVID)
• Line managers may not flag it
• HR assumes being on UK payroll = compliance

Unfortunately, host country authorities may see things differently!

My Perspective: Cautious Optimism

WFA is a lovely concept, it builds trust and promotes flexibility, but I do feel some nervousness around its rapid emergence.

Some businesses, in their eagerness to offer flexibility, may underestimate the operational and legal complexity. This topic can be polarising: some see WFA as the future; others worry about compliance headaches.

What You Can Do

• Identify your international remote workers
• Assess risks by country, role, and duration
• Mitigate the risks with contracts, A1s, or tax guidance
• Educate managers and employees early

Let's Talk

• Have you introduced (or considered) a WFA policy? What worked? What surprised you
• Did you originally allow unrestricted remote working and later apply limits?
• Have you discovered someone working abroad unexpectedly? What challenges arose?

Please share your experiences in the comments. I’d love to hear your perspective 👇

Need Support?

I help UK HR professionals and businesses:

• Spot international remote workers
• Understand exposure
• Resolve risks discreetly and compliantly

International remote working isn’t the problem; unrecognised IRWs are!

Message me for a confidential review.