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Due to moving restrictions during a Covid19 pandemic, many companies experienced remote work assignments and started to talk about it more often. Such emerging trend, when employee, assigned to another country, works from home location may continue in the future establishing new path and experience in global employee relocation world.

No doubt it’s a reasonable question to which extent remote virtual assignments will continue, what are benefits and challenges, what are the aspects of employment, legal and taxation policy of such projects.

We share insights on the challenges and opportunities of virtual remote relocation, based on our experience and global trend analysis to guide companies and employees.


- Broader talent pool

- Cost saving

- Easier family arrangements

- Faster relocation process


- Tax consideration

- Legal & labor code regulations

- Assignment policies

- Performance measurement

- Balancing Employer – Employee expectations

What shall be considered in remote assignments:


- Appropriate work permit

- Assess residency status

- Consider restrictions for remote residency permits


- Consider permanent establishment (some employee functions can trigger registration of tax entity in foreign country)

- Assess income and social taxes payment and declaration

- Consider payroll requirements and income reporting

Legal & Labor rules

- Define proper documentation of assignment

- Assess signature rights and access to documents

- Consider and match cross-country labor rules (working, free days, vacation, eligibility for employee benefits, etc.)

- Consider how labor safety and health standards are followed

Internal policies

- Is remote assignment policy established?

- Assess the intercompany agreements

- Determine performance tracking and monitoring

- Consider compensation of payroll and additional costs strategy

Employee & Employer

- Clarity of tasks and expectations

- Determine resources, costs of assignment

- Assess employee engagement

- Balance Employee – Employer expectations and benefits

- Consider administrative burden



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