Labour law
The risk that local labour law becomes applicable to the employment of a workationer or business traveller.
This dimension assesses if the labor law provisions of the destination country will apply to the employee's employment. This may have an impact on the employee's minimum wage, working hours, applicable termination regulations, etc.
In this context, the question of whether the employee is considered a so-called "posted worker" is also important. EU legislation protects several labor standards for such posted workers. In addition, the posting of a worker must be reported to the authorities in the destination country. Most EU countries have confirmed that workers who temporarily choose to work from another location are not considered posted. So far, only Belgium has declared that employees who work temporarily from abroad are also considered posted workers due to national regulations.
Consequences
local entitlements such as termination arrangements
Handling of risk
To assess and mitigate risks the following information is needed
· Nationality
· Second nationality
· Reason of stay
· Duration of trip
· Previous trips in that country
· Tax payment
· Posted worker - Status
In order to assess labour law potential risks a workation can entail some information is required such as the duration of the trip and the reason of the stay. Depending on the length, the destination country labour law could apply which would have an effect on the employer/employee relationship and labour conditions. The reason of the trip are often also relevant as different rules apply for business travels and the posted of workers.
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Deep-dive articles about labour law
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