Legal pitfalls with workation: How to avoid problems abroad!

Legal pitfalls with workation: How to avoid problems abroad!

In an increasingly mobile working world, in which home offices and flexible working models are very popular, the concept of “workation” has become more important. This is a combination of work and vacation. But what is behind this new form of work and what legal aspects need to be taken into account?

Like the news portal Radio Herford reported, mobile work abroad may only be carried out with the consent of the employer. Employers have the right to determine the content, place and time of work. In the worst case, working abroad without prior agreement can lead to immediate dismissal. Employees should therefore prepare thoroughly for discussions with their employer and clarify important questions, such as residence and work permits or health and accident insurance.

The legal framework

An often overlooked point is the various legal issues that can arise during a workation. In addition to the right of residence, this also includes aspects of social security and insurance. Employees often have to check whether social security contributions have to be paid in the holiday country during their stay abroad. In many cases, contributions must be made in Germany if at least 25% of the activity remains there, explains lawyer Emma Lotz from the Frankfurt law firm Bluedex Labor Law, who wrote in an article by TK is quoted.

It is advisable for employers to set clear contractual regulations for work. Particularly for stays of less than four weeks, there is generally no need for action under labor law, although the legal requirements of the respective holiday country must be observed.
The European Union also offers certain relief for EU citizens through its freedom of movement: they can work abroad for up to three months without any major problems.

Important considerations before workation

An additional agreement to the employment contract is highly recommended if employees want to work abroad for longer than a month. This document should record the type and scope of the activity in detail. When it comes to legal questions about labor law and taxes, early planning is crucial to avoid unpleasant surprises. Not only the various requirements in the country of residence must be taken into account, but also tax regulations such as the 183-day rule, which states that the right to tax remains in the country of residence if the stay in the country of activity is less than 183 days.

Whether working in the EU or in third countries, the challenges are diverse. Employers should prepare for new legal issues arising from mobile work. Companies that send employees abroad are recommended to take a close look at the relevant legal framework and, if necessary, create a company agreement on working abroad.

The topic remains exciting and shows how important flexibility and legal clarity are for the modern working world.