Can UK Employees Work Abroad? The Essential Legal Guide for Employers (2025 Update)

Remote and hybrid working have become permanent features of the modern workplace. As a result, employers are increasingly receiving requests from employees who wish to work abroad on a temporary or permanent basis. While the prospect of international remote working may appear attractive, it presents a range of complex legal, tax, compliance, and operational issues for employers.

Can a UK Employee Legally Work Abroad?

In principle, yes. However, employers must ensure that the arrangement complies with:

• UK employment law;
• Immigration and employment laws of the host country (local advice required);
• Tax and social security rules;
• Data protection and cybersecurity requirements; and
• Health and safety obligations.

Failing to address these issues can expose businesses to significant risk, including the accidental creation of a taxable presence overseas, breaches of immigration law, and disputes regarding employment rights.

Although international remote working is now widely requested, employers should recognise that the default legal position is that employees are expected to work within the jurisdiction specified in their employment contract. Permitting overseas working represents a deviation from the contract and therefore must be formally agreed, carefully documented, and subject to conditions imposed by the employer. The absence of such documentation can create uncertainty regarding governing law, contractual terms, and the enforceability of restrictive covenants.

Key Risks and Legal Considerations for Employers

1.Immigration and Right to Work Issues (Foreign Law Advice Required)

An employee cannot assume that they are free to work in another country simply because they hold a UK employment contract. Most jurisdictions require a specific visa or work permit for foreign nationals undertaking employment activities, even if the employer is UK-based.

Allowing an employee to work abroad without the correct permission could expose both the employee and the business to fines, deportation, or restrictions on future entry.

2. Local Employment Law May Apply (Foreign Law Advice Required)

Although a UK employment contract is governed by the law of England and Wales, many countries apply mandatory local employment protections to anyone working within their borders. These may include:

• Minimum wage and working hours;
• Paid leave entitlements;
• Mandatory social security contributions; and
• Statutory termination protections.

If these rights conflict with the UK employment contract, employers may inadvertently grant employees more favourable terms than intended. Local legal advice will usually be required to understand these obligations.

3. Tax Residency and Corporate Tax Exposure

Working abroad can trigger tax consequences for both the employee and the employer.

For employees, they may become tax resident in the host country, potentially resulting in double-taxation issues arising. Additionally, UK PAYE obligations may change depending on the duration and nature of the arrangement.

For employers, there is a critical risk is the creation of a permanent establishment in the host country. If an employee conducts revenue-generating activities abroad, local tax authorities may consider the business to be operating locally, resulting in corporate tax liabilities. Employers must obtain specialist tax advice before approving any overseas working request.

4. National Insurance Contributions (“NICs”)

Where an employee works in an EEA country or Switzerland, certain reciprocal arrangements may allow the employer to continue paying NICs in the UK for a limited period. Outside those regions, separate social security regimes usually apply.

Employers should confirm whether an A1 certificate or equivalent documentation is required and ensure that contributions are correctly allocated from the start of the arrangement to avoid retrospective liabilities.

5. Data Protection and Cybersecurity

Allowing an employee to work abroad may raise concerns including:

• Cross-border transfer of personal data;
• Compliance with the UK GDPR; and/or
• Use of secure systems in jurisdictions with different privacy laws.

Employers may need to carry out a Data Protection Impact Assessment (DPIA) and update internal IT and information security policies.

6. Health and Safety Responsibilities

Employers retain responsibility for ensuring that employees have a safe working environment, even when overseas. Practical steps may include:

• Risk assessments;
• Verification of remote work conditions; and
• Ensuring adequate insurance cover.

Travel insurance is rarely sufficient, and employers may need bespoke international cover.

Should Employers Permit Long-Term Overseas Working?

Many businesses choose to prohibit long-term or indefinite overseas working because of the legal uncertainty and administrative burden involved. However, some employers allow temporary remote working for short durations (for example, up to thirty days per year) with appropriate safeguards.

Factors to consider include:

• Whether the employee’s role is suitable for overseas work;
• Time zone differences and business disruption;
• Data security risks;
• Whether the arrangement is temporary or permanent;
• Cost of obtaining foreign legal and tax advice; and
• Insurance and compliance requirements.

A clear, consistently applied Overseas Working Policy (“OWP”) is strongly recommended.

Drafting and Implementing an OWP

A well-structured policy helps manage expectations and reduce risk. Employers should consider including provisions on:

• Eligibility criteria;
• Maximum permitted duration of overseas working;
• Requirement for employees to obtain approval before travel;
• Tax, immigration, and compliance obligations;
• Duty to return to the UK if requested;
• Confidentiality and IT security requirements; and
• Consequences of non-compliance.

The policy should be reviewed annually in line with regulatory developments and business needs.

Practical Steps Before Approving a Request

1. Request full details of where, when, and for how long the employee intends to work abroad.
2. Identify whether local immigration permission is required (foreign legal advice will usually be necessary).
3. Assess local employment law implications.
4. Take tax advice on employer and employee liabilities, including the risk of creating a permanent establishment.
5. Conduct a data protection review.
6. Check insurance arrangements.
7. Update employment documents, such as remote working agreements or side letters.
8. Record approvals and maintain compliance documentation.

It is also advisable for employers to diarise review dates for medium to long-term arrangements, ensuring that the working pattern remains lawful as time thresholds relevant to tax, social security, and local employment rights accumulate.

How We Can Assist

We advise employers on the legal and commercial risks associated with employees working abroad. We can:

• Prepare or update OWPs;
• Draft bespoke remote working agreements;
• Advise on UK employment law implications;
• Coordinate foreign legal and tax advice through our international network; and
• Support businesses in assessing compliance and minimising risk.

Please note that we can only advise on matters governed by the law of England and Wales. Any issues relating to foreign employment, tax, or immigration laws will require advice from local counsel.

International remote working offers flexibility and can support employee wellbeing, recruitment, and retention. However, employers should proceed with caution. The legal, tax, and compliance risks can be significant, and each situation requires careful assessment.

A proactive policy framework and early professional advice can help businesses make informed decisions while protecting their commercial interests. We usually offer a no-cost, no-obligation 20-minute introductory call as a starting point or, in some cases, if you would just like some initial advice and guidance, we will instead offer a one-hour fixed fee appointment (charged from £250 plus VAT depending on the complexity of the issues and seniority of the fee earner).

Please email wewillhelp@jonathanlea.net providing us with any relevant information or call us on 01444 708640. After this call, we can then email you a scope of work, fee estimate (or fixed fee quote if possible), and confirmation of any other points or information mentioned on the call.

VAT is charged at 20%.

This article is intended for general information only, applies to the law at the time of publication, is not specific to the facts of your case and is not intended to be a replacement for legal advice. It is recommended that specific professional advice is sought before relying on any of the information given. © Jonathan Lea Limited.

Photo by Théophane Bridier on Unsplash