Remote work is here to stay, and with a good reason too, as it offers employers a wide range of benefits, from lowering expenses to improving employee retention. Hiring people who want to work from home, undoubtedly, opens the door to top talent on a global scale.

However, just as there are in-office rules and laws in place, there are also remote work compliance guidelines that companies need to adhere to.

Each region and country has its own laws of employment and remote work regulations to navigate, so we’ll dive into various aspects in today’s article.

Let’s begin!

The Importance of Compliance for Remote Working

Remote and hybrid type of work offers a lot of advantages for employers, though globally, remote operations may come with additional responsibilities.

To ensure full compliance with all labor laws across various countries and continents, companies need to adhere to specific regulations and guidelines. Failing to do so may result in grave consequences, making compliance for working remotely an essential action to take.

Here are some of the negative consequences:

• Litigation – failing to comply may lead to lawsuits from employees, which will lead to loss of resources and working time
• Fines – regulatory violations may end with hefty fines and/or penalties
• Reputational damage – ignoring the regulations within the workplace may hurt a company’s brand image among its customers and employees
• Criminal charges – in some cases, companies may be required to shut down their operations or be prosecuted for criminal offenses

Bearing these risks in mind, a strong compliance strategy is a smart and essential move to make in order to protect a company and maintain its operations.

Basic Remote Work Guidelines

Now that you know how important compliance is for people who work from home, let’s take a look at the basic guidelines and key components:

1. Contracts & Deals

Labor contracts define the company’s obligations to its employees and they cover areas like working hours, overtime pay, salaries, benefits, and statutory leave.

As one of the most important remote work guidelines, do note that labor laws differ depending on country of residence, so it is vital to accommodate each contract based on the employee’s primary work location.

2. Onboarding Process

The onboarding process for international employees is similar to those in-office employees, and is usually the following:

• Confirm the employee’s exact location
• Verify their legal right to work in that location
• Determine eligibility for home office equipment
• Provide any location-specific training (if required)

These are the basic regional requirements and meeting them would reduce remote work compliance risks and help to deliver a more effective and seamless remote onboarding experience.

3. Salaries & Working Hours

Before paying remote employees, it is vital to check and comply with local regulations that would include the following:

• Minimum wage laws
• Employee classification (full-time or part-time)
• Overtime rules
• Payroll frequency requirements
• Pay stub content regulations

These laws vary across countries and regions, and managing payroll compliance for remote or hybrid teams can oftentimes become complex.

4. Workplace Posters

Some countries require their employers to provide legal workplace posters that outline all rights for the employee. It is fundamental to include this aspect in the guidelines for working remotely.

These include the following information:

• Minimum wage laws
• Pay schedules
• Paid sick leave policies
• Immigration inspection notices
• Workers’ compensation details
• Whistleblower protections

Since remote workers don’t have access to office boards, it may become necessary to mail out physical copies or send out digital copies during the onboarding process.

5. Taxes & Benefits

Companies are required to file tax returns in every location where they have employees in. This means adhering to each country’s specific tax rates, charges, and filing deadlines.

Since employee benefits are regulated by laws of each country, these regulations actually determine what companies would offer, depending on the employee’s location and duration of contract.

6. Safety & Security

Many countries require employers to provide workers’ compensation insurance to cover illnesses or injuries related to their work.

However, what happens when employees work from home? In some regions, government agencies may classify a remote worker’s home as a work environment, allowing them to claim compensation under specific circumstances.

To avoid risks like this, your HR department should establish clear remote work guidelines for employees who work from home environments to ensure health and safety standards are in place.

7. Breaks During Work Hours

Remote workers are entitled to the same rest and break times as their in-office co-workers. Even though people work from home, they still have a legal right to take breaks during the workday to rest and recharge.

Depending on the country, these breaks may be required by law and are there to ensure the health and well-being of the person, regardless of their work location.

Employers need to be aware of the specific break regulations in every country where they have people working remotely.

8. Discrimination & Harassment

Employers are also required to take proactive steps to ensure there is no discrimination and harassment in a virtual environment. Even though remote workers may not interact face-to-face with their in-office co-workers, there are still some issues to watch out for, such as the following:

• Discriminatory language in workplace chats
• Inappropriate attire during virtual meetings
• Offensive or inappropriate objects in the background during video calls

To ensure these concerns are addressed and mitigated, it is vital to integrate well documented expectations for online communication.

Moreover, providing harassment training during onboarding may help to avoid any unpleasant situations and ensure employees understand the policies and standards that would promote an inclusive work culture.

9. Contract Termination

If you decide to terminate a contract with an employee, stating they are not the right fit for your company, it is vital to follow adequate protocols before termination.

These include the following:

• Verifying that you have legal grounds for the termination
• Providing the employee with proper notice of their termination in compliance with local laws
• Accurately calculating and paying their final paycheck on time
• Consulting with the Employer of Record (EOR) provider and notifying them before taking any action

When a company adheres to these steps, it can minimize legal risks, reputational damage, and ensure the termination process is handled well and is in accordance with local laws and regulations.

Guidelines for Remote Working in Europe

The European Union does not impose a specific set of regulations for working remotely across its member states, although there are some key principles in place.

Namely, people who want to work from home are entitled to the same employment rights as in-office workers. This means the same legal protections, legal guidelines, tax rules, and other benefits.

Additionally, GDPR compliance in remote work is another important component to consider. Employers need to ensure that all personal data for all employees is handled securely and is in accordance with the latest EU privacy laws and regulations, even for people who work from home.

The EU has set these provisions to help ensure that remote workers are also treated equitably, regardless of the location. These provisions, typically, involve the following:

• Minimum wage
• Regulated work hours
• Health and safety protection

If you’re looking for detailed information regarding the employment rights for workers within the EU borders, please check the official website of the European Commission where you can find all details.

How to Ensure Remote Work Compliance

Now that you’ve learned the challenges and importance of compliance for remote workers, let’s see what you can do to ensure full compliance.

First thing to do is create a remote work policy which would address all important areas of compliance. Make sure your policy covers the following:

• Time tracking and work schedules
• Clear definitions of a remote work environment
• Health and safety standards
• Injury reporting guidelines and procedures
• Employee classification
• Virtual conduct and ethics expectations
• Non-discrimination policies
• Anti-harassment policies

Fortunately, you are not alone and do not need to navigate HR compliance alone. Euro HR Solutions is here to support you every step of the way.

We offer the best practices and advice on how to help you audit, develop, and refine your HR policies to ensure full remote work compliance.

Don’t hesitate to connect with us and book a free consultation call and one of our HR experts will answer all your questions.

Frequently Asked Questions (FAQ)

What Are the Remote Work Regulations in Europe?

Remote employees are entitled to the same legal protections as their in-office co-workers. Regardless of the location, remote workers have rights to the minimum wage, regulated working hours, and health and safety protections outlined by the European Union’s labor laws.

Can You Work Remotely From Europe?

Yes, you can work remotely from anywhere in Europe. As a digital nomad, a term that is mostly associated with remote work, you can work in every country in Europe with some even offering Digital Nomad Visas.

Which EU Country is Best for Remote Work?

Here are some of the best countries where you can work remotely in:

• Croatia – Visa available for up to 1 year. Croatia stands out for its simple process and welcoming environment for remote workers
• Spain – Visa available for 1 to 5 years, offering good weather and long term residency potential
• Portugal – Visa available for 1 to 5 years, and is ideal for those seeking a stable and sunny place in Western Europe
• Greece – Visa available for 1 to 2 years, with the option to renew so you can enjoy a relaxed lifestyle in the Mediterranean
• Georgia – Visa available for up to 1 year, with a low cost of living and easy access for freelancers and entrepreneurs

Do I Need a Visa to Work Remotely for a US Company?

Short answer is yes and no. Yes, you would need a valid work visa if you wish to work remotely for a US company within the United States.

However, if you wish to work remotely for a US company from anywhere else in the world, then no, you do not need a valid work visa.

Is it Okay to Work Remotely From Another Country?

Yes, absolutely! Working remotely from another country is possible and is now more common than ever. Before making that choice, though, make sure to comply with the local tax, visa, and labor laws of the country where you want to work remotely from.