Working from Home in Europe: The Difference Between WFH and Fully Remote Work
Working from home in Europe
Working from home (WFH) has become a popular option across Europe, but it is not the same as working fully remotely. Despite the European Union's freedom of movement, working from anywhere in Europe is more complicated than it seems. Local employment laws, country-specific work visas, and contract terms can restrict your flexibility. Understanding these factors is essential to avoid breaching your employment contract.
The Difference Between Working from Home and Fully Remote Work
Working from home typically means you perform your job from a fixed location, such as your residence. For many, this setup emerged during the pandemic when offices closed. However, fully remote work allows for flexibility to work from any location, be it your home, a café, or even another country. Despite this apparent freedom, most European countries have specific rules about where you can work.
Many European countries restrict remote workers to a single place of work due to tax laws, social security obligations, and employment regulations. Each EU member state has its own laws regarding where employees should pay taxes and contribute to social security. When employees work from another country, even within the EU, this can create complexities for both the employer and the employee.
Even with an EU passport, you can't necessarily work from anywhere in Europe. Here’s why:
Employment Laws at the Country Level
Employment laws are regulated at the national level, not by the EU. These laws govern everything from minimum wage and working hours to social security and termination rules. If you work from another EU country, you could inadvertently breach these laws or your employment contract.
This can get especially messy if you work for a multinational, with entities in different countries. You can’t simply up sticks with your German employment contract and salary, and go and live in Albania, for example, if they pay local staff differently there.
Tax Residency Rules
Working from another country could change your tax residency status. Each EU country has its own rules about how many days you can spend working there before becoming a tax resident. If you exceed this limit, you and your employer may face additional tax liabilities.
It’s not just YOUR tax residency at issue here. If you’re working for a company from overseas, especially if you’re entering into contracts or making directorial decisions, there could be serious implications for their economic substance and establishment.
Digital Nomad Visas are Country-Specific
Digital nomad visas, designed for remote workers, are issued at the country level. These visas do not offer regional or Schengen-wide work rights. You must follow the specific conditions set by each country that grants these visas, even within the EU.
You might have freedom of movement as a tourist, but this is not the same as freedom to work. So if you’re taking your laptop with you on a short trip, be discreet - business travellers have always done this, and there is no legal way to get permission to work for a fortnight in most countries. It’s important that your employer knows and understands though, if you’re planning a workation.
The Risk of Breaching Your Employment Contract
Choosing to work from a different European country without your employer's consent could put you at risk of breaching your employment contract. Many contracts specify a primary location for work, which impacts taxation and legal obligations. Violating these terms could lead to penalties or termination.
Your employer could have specific requirements and expectations for remote work to ensure security, privacy, and productivity. One common expectation is that employees maintain a dedicated workspace at home. This might mean having a separate room or a designated area that is free from distractions. By setting up a specific work area, employees can create a clearer boundary between their professional and personal lives, which often supports better focus and productivity. Additionally, it ensures that confidential conversations or sensitive work materials are not inadvertently exposed to others in the household.
Security and privacy are also major concerns for employers, particularly when employees handle sensitive information or customer data. To address these issues, many organizations require remote workers to use secure internet connections, such as virtual private networks (VPNs), and take measures to protect their home networks from unauthorized access. Some companies even provide specific tools or devices, like encrypted laptops or secure communication platforms, to strengthen data security.
Beyond technical measures, remote workers are often expected to comply with company policies regarding data protection, confidentiality, and the acceptable use of technology. These policies may include guidelines on handling sensitive documents, restrictions on using personal devices for work, or rules about what software can be installed on company computers. They may also require a private environment for taking phone calls dealing with confidential information or client IP.
Recognizing that creating a suitable home office can be expensive, some employers offer financial support to their remote workers. This might take the form of a budget or stipend to help cover the costs of office furniture, ergonomic chairs, high-speed internet, or other essential equipment. Such investments benefit both the employer and the employee, ensuring a comfortable and productive work environment. When you’re looking at ads for remote jobs, this is a very good sign, that the company has considered the needs of the remote worker, and that configuring a workspace at home might involve costs and compromises.
Furthermore, in most employment jurisdictions for working from home in Europe, the employer will have a duty of care for their team members’ health and safety, and a responsibility for the ergonomics of the workstation and home office set-up. For this reason alone, some organisations mandate WFH rather than work from anywhere, because they have greater control over the environment and can inspect and support it (by arrangement.)
Key Considerations for Remote Workers Considering Work From Home In Europe
If you're negotiating the scope and location for your remote work setup, keep these points in mind:
Understand Your Contract: Ensure your employment contract allows remote work from multiple locations. Discuss any plans with your employer to avoid breaching terms.
Research Tax and Employment Laws: Familiarize yourself with local tax rules and employment laws in any country you plan to work from.
Check Visa Requirements: If you plan to work outside your home country, even within the EU, verify if you need a visa or special permission.
Limit Your Stays: Avoid staying too long in another country without checking if it affects your tax or employment status.
Work With Your Employer: Chances are that contracts and policies around remote working are still emerging and being tested, and you may be able to contribute constructively to this - instead of testing them to breaking point or looking for loopholes.
A Look Back: Remote Work in 2000
When I started working remotely in 2000, remote work essentially meant working from home. The idea of working remotely from anywhere was not yet common, and technology was more limited. Most employers still required a fixed place of work, even if it was not the office, and the small business who hired me made very little reference to where I did the work from in my initial contract.
Obviously the main reason for that, was the technological environment at the time. Knowledge-work and business development meant the presence of several huge beige boxes, physically tethered together, and attached to the wall! Laptops existed, but they were expensive and heavy and not designed for daily use at a desk. There was no Wi-Fi, no coworkings, and an internet cafe was a place you went to use their computers.
Today, technology allows for far more flexibility in how we work remotely. However, legal frameworks and regulations have not kept pace, and need to be negotiated on a contract-by-contract basis.