In this way, both parties can establish their respective rights and responsibilities when it comes to managing the employment contract.
It’s therefore crucial that careful consideration is given to the applicable laws prior to agreeing to a digital nomad working arrangement. In some cases this could provide the employee with enhanced employment rights relating to minimum wage, annual leave, holiday pay, maternity leave and pay, and even rights on termination. Typically, foreign nationals employed in the UK would have the same statutory employment rights as their British counterparts, although they may be afforded additional protection under local employment laws if allowed to return to their country of residence to work on a remote basis.Įqually, a domestic worker physically based in an overseas location may mean that both they and their UK-based employer fall within the scope of foreign labour laws. When employing either a migrant or domestic worker from an overseas location, careful consideration must be given to their employment rights. By agreeing to virtual working from an overseas location, this can trigger all sorts of legal issues, for both the employer and employee: However, the reality of employing digital nomads is more than staff simply having good wireless internet connection.
In theory, as many modern job roles can now be conducted on a remote basis, employees can work for a UK-based employer from almost anywhere, either home or abroad. Legal issues when employing digital nomads Undoubtedly, the pandemic has demonstrated the efficiency and effectiveness of working remotely, which has led to many companies reconsidering their office requirements. Where employers are open to employing staff on a virtual basis, whether in the UK or in another country, this can also result in significantly reduced overheads. In turn, this can often result in increased employee engagement, improved productivity, higher staff retention rates, and a stronger employer brand to help attract talent. It could also include domestic workers travelling overseas for either short or extended periods of time, but continuing to work under their existing contract of employment, albeit on a remote basis.Įmploying digital nomads can bring with it a number of different benefits, especially when it comes to keeping employees safe from the spread of coronavirus at work, as well as providing greater flexibility for employees to work remotely from anywhere in the world.įor organisations with migrant workers looking to spend time with friends and family back home, or domestic workers looking to swap their home-working arrangements for sunnier climes, the provision of flexible working can create a much better work-life balance for staff. In the context of employment, this could include a migrant worker employed by a UK-based organisation, but working virtually from their home country. A digital nomad is essentially someone who can perform their job remotely, without the need to go into the office or any other physical workplace. These individuals can be employed or self-employed, working remotely from their homes, coffee shops, public libraries or co-working spaces, either in their country of residence or a foreign country. The following overview for employers highlights the key legal issues when employing digital nomads.ĭigital nomads are workers who are not bound by geographical borders, but instead use online technology to earn a living and conduct their lives in a nomadic way. However, there are a whole range of legal considerations to be taken into account when employees are located outside the UK. This could include employers allowing existing migrant workers to return to their home countries whilst continuing to work for them virtually, or allowing domestic workers to work remotely from an overseas location. Developments in modern technology, not to mention the significant shift to home-working brought about by the COVID-19 pandemic, has led to more and more UK employers being open to flexible overseas working arrangements.
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