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Implications for employers of overseas working

09 February 2021 / Joe Beeston , Kelly Noel-Smith
Issue: 4779 / Categories: Comment & Analysis
Employer beware

Key points

  • Employers should consider whether having an employee working overseas could create a permanent establishment or affect company residency.
  • Employees should consider the impact of relocating overseas if applying for UK settled status.
  • An employee may benefit from better employment rights (such as rights on termination) if based in a third country.
  • The employer may need to check that the employee is carrying out data processing according to relevant legislation.
  • Working overseas may affect or invalidate group insurance leading to additional costs for employers.
  • The employer must check tax social security and data protection laws in the other country before they accept an overseas working request.

Covid-19 has made remote working the ‘new normal’ for many employees across the UK. Some employees are taking the opportunity to spend time in other jurisdictions whether for the experience or simply to return to their home nation to avoid spending...

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