Work entitlement
The risk that a workationer or business traveller has no right to work in the destination country, creating an illegal labour situation.
This dimension assesses the company risks of potential illegal labour situations if an employee works from abroad without the pertinent permit to work in the destination country, which is generally heavily penalised. A particularly interesting topic is the question of how employees working temporarily abroad qualify for immigration purposes. The options are generally limited to (a) vacation, (b) business travel or (c) local employment. It is clear that mobile work abroad does not fit into any of these boxes, which raises the question of whether the employee needs a work permit in the destination country and, if so, what type of permit. A misinterpretation can have serious consequences. Performing work activities without a valid work permit can be classified as undeclared work, which is severely punished. Fines can easily amount to €5,000 or more and affect both the employee and the employer. Further penalties can include a ban on entering the destination country for several years.
Consequences
Entering ban or ban of business
Fines exceeding €5,000 for employer and employ
Handling of risk
To assess and mitigate risks the following information is needed
· Nationality
· Second nationality
· Visa & Immigration Status
· Reason of stay
· Duration of trip
· Previous trips in that country
· Tax payment
In order to assess work entitlement potential risks a workation can entail some information is required such as the employee nationality (and second nationality if it's the case), duration of the trip and reason of the trip among others. Not all the countries have the same immigration policy which means that depending on the country the employee may need to apply to BT visa or not, each trip should be assessed separately and many factors could become relevant as the talent nationality and which business activities will carry out in the destination country.
WorkFlex solution
Find out how you can easily eliminate the risk and automate the process through WorkFlex.
Deep-dive articles about work entitlement
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