There’s no doubt about it: flexible working is an employment trend that is very much here to stay. The 2019 IWG Global Workspace Survey found that not offering flexible working was a real deal-breaker for more than 80% of potential employees. Flexible working has numerous benefits for both businesses and their employees, from increased productivity and reduced office costs to a better work-life balance. But while the benefits for companies are proven to be extensive, having a flexible or remote workforce isn’t without its issues.

A recent feature in Forbes, which referenced the survey, looked at the different ways companies can avoid the most common compliance issues when employing a flexible or remote working strategy. There are a number of statutory requirements that companies who employ or contract remote workers – especially those based overseas – must comply with. Local employment laws will often differ to those under a home-country contract and it’s important to abide by these in order to keep a business running smoothly.

Compliance around tax can be also become an issue if not addressed correctly. Compliance problems can occur when a company based in one country has remote employees or contracted staff working in another. For example, if a non-domestic company does not withhold the right amount of income tax from an employee they can be liable for the overdue amount – and even fined.

The misclassification of employees and contractors is another challenge a business often has to contend with. Companies who use contractors to avoid paying a local tax can be penalised for misclassification if they treat their contractors the same as they treat their employees. For example, independent contractors who do not receive a salary but are paid on a per project basis are not allowed to work the same set hours or have the same perks and benefits as company employees.

For a business employing overseas workers, immigration non-compliance also needs to be considered when offering remote or flexible working. The two most common violations are entering the country on the wrong visa or overstaying a visa. While in the past, employees could travel on business with a tourist or business visa and go largely undetected, new technology makes it much easier for the authorities to identify a non-compliant worker. This can lead to heavy fines and sometimes even legal consequences, so it’s not an issue to be taken lightly.

While it can feel overwhelming to consider all of these issues, there are ways to keep on top of compliance considerations. Companies that employ remote workers should have a complete set of guidelines to address flexible or remote working. These should address the company policy in all areas of compliance, and state precisely what a remote employee can and cannot do. Of course, as the rules and regulations in different countries often change, these guidelines must be monitored and updated regularly to ensure compliance is adhered to.

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