MHA’s Head of Global Mobility explores how OMBs can leverage global mobility to enhance their operations.
Global mobility used to be perceived as a concept exclusive to the largest multinational employers. However, with technological advancements and evolving work expectations, it has become essential for almost all employers. So, how can owner-managed businesses leverage global mobility to enhance their operations?
Global remote working – an employee proposition
Employees view the opportunity to work remotely for a limited time as an exciting prospect. This flexible approach provides considerable advantages, such as the chance to spend more time with family, improved work-life balance, and heightened loyalty to an employer. In recent years, we have witnessed significant growth in this area, with many employers establishing formal short-term remote working policies.
With appropriate structuring and risk mitigation strategies, the advantages are huge – however, this structuring is crucial. Without it, employers may inadvertently breach local employment regulations (e.g. does your employee acquire employment rights in the remote work location); immigration laws (e.g. does your employee have the legal right to work there), or create unintended reporting obligations (e.g. a payroll or other tax/social security liability).
Action: if you’re looking at flexibility in this area we’d recommend advice on policy implementation is taken early.
When hiring employees to live and work outside the UK, employers should be aware that they may trigger additional compliance obligations. This may mean that employment contracts need to be compliant with local employment law, requirements to setup and operate payroll as well as risks that an international employee creates a corporate presence in that location (e.g. having to file local corporate tax returns).
Action: our biggest advice is to budget and plan; whilst hiring internationally has some great advantages, businesses often forget the complexities and additional budget considerations needed.
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