Remote working is becoming a norm due to Covid. Many companies are still maintaining their remote or hybrid work arrangements as productivity is not an issue. Remote working has its benefits and downsides but with good measures in place, it can work for companies of any size. Leveraging on remote work arrangements can help give companies and employees more flexibility in the way work is done. However, would it make a difference if employees were working remotely but in a totally separate country?

Overseas remote working is getting more common as countries tighten border controls in an attempt to contain the spread of Covid, resulting in employees being stuck overseas for long periods of time. Since remote working by definition is the practice of employees doing work from a location other than their designated office; working from another country would not be an issue right? Well, that depends on various factors from the period needed for remote work and the country’s laws. Let us take a look at some of the challenges a company and an individual may face when adopting an overseas remote working arrangement.

1. Tax and Labour Laws

When working for long periods of time in another country, individuals may be subjected to the tax and labour laws of the country. Depending on the country, some individuals may be double taxed. Companies may also be subjected to corporate income taxes that apply to the country. Luckily, Singapore has Avoidance of Double Taxation Agreement (DTA) treaty with over 100 jurisdictions which makes it more convenient for countries and individuals to work overseas.

As for labour laws, if an employee is required to abide by the country’s laws due to long term remote work, certain laws like minimum wage, working hours, healthcare, and insurance may have to be adhered to by the company.

2. Different work culture and timezone

The prevalent work culture in the country also plays an important role. With the different time zones and work culture, there may be a problem of misalignment for the company when it comes to employees working remotely overseas. With different time zones, there will be times when work has to be done past working hours to accommodate the company or the employee. This may be disruptive if not properly planned. Differences in culture also may be a struggle for the individual as they’ll be surrounded by people of different races and cultures which may be hard for the person to assimilate.

3. Different expectations of employment benefits

It is common that when an employee chooses to work remotely overseas for short stints, they are aware that they’re not applicable for employment benefits like health care and insurance. For those working overseas for long periods of time, the HR department has to ensure that the contract is drafted to provide the employee benefits based on the country they’re working in. Coordinating this can be a hassle and most companies do not have the necessary resources or knowledge to handle it.

It is wiser for companies to leverage on the services of HR and payroll outsourcing companies to handle their overseas remote working arrangements. The experience, technology, and resources that these companies have are incomparable. Especially for companies with global coverage, they’re more familiar with the labour laws and regulations of multiple countries. This is exceptionally useful for companies looking to expand their business overseas or to establish an overseas remote working arrangement.

It is easier to manage by outsourcing because these companies also have the necessary technological tools to manage employees working overseas. They’re able to track performance, promote better communication, manage overseas payroll, and motivate employees by leveraging on tech as well as utilising their team of specialists.

That is why Talent Spot is the go toHR and payroll outsourcing company in Singapore. With headquarters in China and over 500 employees operating in Singapore, Philippines, Indonesia, Thailand, Malaysia, Vietnam, Japan, Taiwan, and Hong Kong. We have an extensive database  of clients and jobseekers in the Asia Pacific region. Our team of experts are trained to provide industry specific and highly customised solutions to meet the needs of your business. We also provide a one stop solution that encompasses the necessary HR processes you’d need to run a business so that you can focus on your business core competencies.

Speak to our team today to find out what Talent Spot can do for your business!