...
NEWS

Jurisdictions applicable to remote working from abroad

A guide on the jurisdiction applicable to contracts for remote working from abroad, in the presence and absence of international agreements.
Share:

Table of Contents

Consultation on Remote Work Abroad

As a result of globalisation and the COVID-19 pandemic, teleworking and remote working from abroad have increased.

However, these practices raise many legal and juridical issues, including those related to the jurisdictions applicable to work abroad.

For an overview of the legislation applicable to working abroad on social security, read our guide on social security in labour law.

Foreign employment contracts in the absence of international agreements

One of the main challenges in determining applicable jurisdictions to remote working from abroad is the lack of agreements between the countries involved.

In the absence of specific agreements, workers and employers may find themselves in a legal grey area. In this case, it is not easy to understand which labour law legislation is to be applied.

These circumstances make it necessary to analyse the laws of the country of origin and the host country.

Remote working from abroad: international treaties

To address these challenges, many States have entered into international treaties. These agreements establish rules and procedures for determining the jurisdiction of employment contracts abroad.

The treaties may include provisions determining whether remote-working employees should remain subject to the law of the country of origin or of the country where they actually perform their duties.

In the European context, Regulation (EC) No. 593/2008 (“Rome I”) and Regulation (EU) No. 1215/2012 (“Brussels I”) apply to teleworking and remote working from abroad.

More information on the matter in our guide on the application of the Rome I Regulation to remote working abroad.

Legal certainty is crucial in labour law, especially in the context of international employment. Workers and employers must be aware of the laws governing their employment relationship, to avoid legal disputes and sanctions.

Conclusion

In conclusion, the jurisdictions applicable to remote working from abroad are a complex area of labour law. Mastering them requires a thorough understanding of international laws and regulations.

With the right legal advice and knowledge of international treaties, employees and employers can successfully address the legal challenges associated with remote working abroad.

Studio A&P offers an advisory service for transnational smart working contracts, to ensure compliance with the obligations of the relevant jurisdictions and the application of EU regulations.

Regulatory Framework

Authority Source Number Article Type Date Link
A&P related service:

Remote Working Abroad

Studio A&P provides full support in structuring and managing cross-border remote working projects, assisting companies and professionals in assessing tax, social security, labour and immigration risks related to working remotely from abroad.

Contact us for this service

Form ID: “192”

Complete the form to get a response from our experts

  • This field is for validation purposes and should be left unchanged.

Related Insights

Remuneration
EU Directive 2023/970, in force since 10 May 2023, obliges Member States to monitor, prevent, and sanction pay discrimination, strengthening pay equality oversight in the EU labour market....
Labour Law
Directive 96/71/EC constitutes the main pillar of European legislation on the posting of workers for transnational provision of services. However, Directive 2018/957/EU establishes important amendments to the 1996 Directive. Such...
Remote Working Abroad
The Rome I Regulation is the main reference on the law applicable to cases of teleworking and smart working abroad....
Loading...

Related News

Labour Law
The CJEU clarifies how to determine the applicable law to an employment contract when the employee’s habitual place of work changes, in case C-485/24 (Locatrans)....
Posting of Workers for Provisions of Services
The European Court of Justice has ruled on a case concerning a rejection to issue temporary residence permits to carry out work activities in the Netherlands....
Labour Law
Employers who post or send their employees to EU countries become subject to the administrative obligations established by the legislation in force in each EU country of destination....

More related Services

Labour Law

Studio Arletti & Partners evaluates the risk that a company may be subject to foreign tax withholdings by certain countries on fees for consulting and services provided abroad, based on local regulations that may conflict with international treaties. Thanks to a preventive analysis, it is possible to request the disapplication or refund of such withholdings, thereby avoiding unrecoverable costs for the company.

Labour Law

Through the AtlasPosting software, Arletti & Partners monitors employees’ periods of stay abroad and notifies the company when tax obligations related to employment income arise. The firm provides an overview of the applicable compliance requirements and operational support to ensure full compliance.

Labour Law

Arletti & Partners offers fully online tax consulting for companies that provide ongoing and/or long-term services in a foreign country. The software flags any risk of permanent establishment arising from such circumstances and provides an analysis to identify legal obligations and explain what needs to be done to remain compliant.