All you need to know about the legal framework for remote work abroad

Being able to work abroad at remote work can be very attractive for your employees. But can they work from anywhere in the world, from Switzerland to Thailand, for example? Do they need to declare it, or obtain prior authorization from their employer? Deskare gives you its advice and details the legal rules applicable to remote work from abroad, for both employer and employee.

Teleworking abroad for French employees: is it legal?

Does French law authorize remote work abroad?

Legally speaking, there is no law preventing a company's employees from remote work abroad. The French Labor Code is silent on the subject.

However, remote work poses both practical and legal problems, which need to be addressed in advance.

Drawing up a company charter or agreement on the remote work

All companies with a remote work policy are strongly advised to set up a company-wide agreement or a charter on remote work. In this document, the employer can lay down specific rules concerning the location of remote work employees. For example, remote work abroad may be expressly forbidden.

Include a remote work clause in your employment contract.

Employers can also add details directly to the employee's employment contract. To establish a clear framework, it is important to include at least the following information:

• Indicate that the employer agrees that the employee may telework from abroad;
• Specify the law applicable to your employment contract. If this is not specified in the contract, EC Regulation n°593/2008 of June 17, 2008, known as the "Rome" Regulation, indicates that the applicable law is that of the country where the employee usually works.

What legal rules apply to remote work abroad?

Although French labor law does not set out specific rules for remote work abroad, more general or international rules do apply.

Teleworking abroad: obtain prior agreement from your employer

Generally speaking, company or group collective agreements, or employment contracts, stipulate that any employee wishing to work abroad remote work , whether for a short or long period, must inform his or her employer and obtain his or her explicit agreement.

The employer may refuse this request for several reasons:

• The need to keep the employee available to go to the physical workplace, if justified by the nature of the employee's work;
• Time zone constraints that may hinder communication during working hours;
• The employer must guarantee the employee's health and safety in the host country under the same conditions as in France, even in emergency situations (e.g. quarantine). The employer may be required to cover health costs not reimbursed by French Social Security, as well as repatriation or travel expenses;
• The employee's status can no longer be that of a teleworker, and his or her employment contract must be amended accordingly if he or she moves abroad permanently;
• A move decided unilaterally by the employee may impose an unagreed mode of remote work , requiring the agreement of both parties. Caution: Employers may not unilaterally impose a new place of residence on their employees, as this may infringe on their right to private and family life.

Sandra Thiry, a partner at Kopper, explains in an article for Cadre Dirigeant Magazine that :

"The must not be discriminatory. It is not possible, for example, to consider the employee's family situation. However, it may be based on objective objective criteria related to working abroad: immigration, security, social security coverage, time zone, etc.".

If the employee fails to inform his employer or overrules his refusal, he runs the risk of being dismissed for real and serious cause (judgment of the Versailles Court of Appeal, ruling no. 20/02208 of March 10, 2022, concerning an unauthorized move to Brittany, even though the contract explicitly stated that the place of work was in the Paris region). Following on from this ruling, we can assume that moving abroad without authorization would in principle be punishable by a penalty of equal severity.

Teleworking abroad: anticipating legal formalities and obligations

Whether employees work in France or elsewhere, their employer's obligations remain the same:

• Employers must declare their employees' professional activity (to Social Security, mutual insurance companies, Urssaf and tax authorities).
• Employers are obliged to ensure the health and safety of their employees (pursuant to article L4121-1 of the French Labor Code). To this end, all teleworkers must sign an availability agreement and use a self-declaration system. The manager is responsible for ensuring that the employee complies with the regulations and working hours set out in article L3121-10 of the French Labor Code (for example, by checking the hours of connection to the company's IT system).
•  Please note: Specific safety measures may be required if the country presents particular risks (health, natural, security, nuclear, or political/diplomatic tensions).
• According to the Accord National Interprofessionnel (ANI) of November 26, 2020, companies must cover the professional expenses of their employees in remote work, including abroad (examples: telephone, internet costs, computer equipment, office equipment for remote work, allowance remote work...). If the employee's presence is required on company premises in France, the company must finance the employee's return from abroad.
• If the employee works more than 25% of his time in one of the member states of the European Union (EU), the law of the state in which he has his habitual residence applies (articles 13, § 1 and 14, § 8 of regulation (EC) no. 883/2004). Consequently, they must be affiliated to the social security system of the host country. If this does not cover all costs, the employer may be required to cover the remainder. To avoid this, the employer can second the employee (for a maximum of 3 years). Secondment enables the employee to remain covered by the social security system in the country of employment.
•  Please note: If the employee works outside the EU, please refer to the bilateral agreement on the coordination of social security schemes.

Good to know: Professional equipment entrusted to employees is generally insured in France, but this insurance may not be valid abroad.

Please note: If an employee teleworks outside the EU, it is important that he or she obtains the appropriate visa. If immigration rules are not respected, the employer may be held liable. From a tax point of view, employing an employee abroad can lead to the recognition of a permanent establishment of the company abroad, requiring it to declare, deduct and pay tax (via withholding tax) in the host country.

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In conclusion, offering employees the option of remote work at 100% and from abroad is a very attractive benefit. But it's vital to think carefully beforehand about the procedures, legal obligations and additional costs this may entail for the company.

Are you planning to offer your employees the benefits of remote work? Book a free demo of Deskare, the tool that simplifies tracking remote work.