With the series of lockdown in early 2020, there was an evidently abrupt shift from traditional office setup to remote working. One had to adjust their working style to the fast-changing business priorities. By the end of 2020, there was a clear trend about drastic change in post-pandemic working style i.e., ‘Virtual Working’ is here to stay.
Earlier, in a pre-pandemic Global Mobility World, it was common to witness:
Now, practically speaking, the new norm of “Virtual Working”, can also take different forms. The primary ones are as follows:
Work from Home wherein employer is allowing an employee to remain in the home country and continue with his current role. Example: An employer in Barcelona, Spain may allow his employee to work for his current role from employees’ home in Barcelona
Remote Working wherein the employer is allowing an employee to work in another country of choice that is neither the home country nor the location benefitting from the task performed. Example: An employer in Barcelona, Spain may allow his employee to work for his current role from Dubai, UAE.
Focus on Virtual Working Programme (‘VWP’)
A few months ago, countries have started opening their international borders. In lines with the new norm of Remote Working, certain countries have announced VWP over the last few months.
The primary idea is to welcome foreign citizens to work remotely (host location) and legally for their employer or their own company registered abroad (home location). In general, such programs are designed for freelancers, full-time employees or business owners. Each country has its own regulations and eligibility criteria around such programs viz, minimum monthly income threshold, nationality, mandatory health insurance in host location, etc.
Important points to consider
Given the situation, two major stakeholders are the Employee & the Employee. Hence, it is always good to focus on relevant points from both perspectives:
Undoubtedly, VWP could help bring synergy between employees’ aspirations and business needs, while securing business continuity. However, at the same time, organizations need to have an adaptive way of thinking and evaluate compliance constraints and issues.
You should always consult with a mobility expert before you take actions, get in touch with myself or your local Crowe expert for more information around this topic.
Partner - Tax
Manager - Global Mobility