Cross-border employee mobility: what you need to know before you move

Here are the critical areas every employer should be thinking about early in the process.

Immigration & work authorisation

• Does the employee have the right to work in the destination country? This must be confirmed before anything else is planned.
• Are you clear on what activities require a work visa and what can be done visa-free? The line is finer than most employers assume — even answering emails from the wrong location can cross it.
• Have you factored in processing times, renewal cycles, and the risk of gaps in status? In some jurisdictions, a lapse in permission to stay is a criminal matter.
• Have you considered the impact on accruing permanent residency rights, dependants' visas, and the employee's personal circumstances?

Corporate structure & presence

• Do you have an entity in the destination country, and is it set up to host or employ this individual?
• Could a secondment or remote working arrangement inadvertently create a taxable presence for your business in that jurisdiction?
• Is the arrangement genuinely a secondment — or could it be construed as a de facto or dual employment, with different and potentially enhanced entitlements and protections for the employee?

Tax

• In which jurisdiction(s) will the employee be tax resident, and where will their income be taxed? Short or irregular stays can still trigger obligations.
• If you are considering a dual contract structure, does the allocation of pay genuinely reflect where work is performed?
• Do you need a tax equalisation or tax protection policy as part of the assignment package?
• Are your people aware that even "workcation" arrangements can create corporate and personal tax exposure?

Social security & pension

• What mandatory contribution schemes apply in the host location and will the home location obligations continue? Potential for “doubled-up” costs across two jurisdictions.

Employment law

• Local employment law may apply in the host country, regardless of what governing law you specify for the arrangement. Consider termination and statutory protections.
• Do your restrictive covenants work in the destination jurisdiction? Duration limits, compensation requirements, and general enforceability vary enormously.
• Does your secondment documentation cover continuity of service, repatriation, inter-company cost allocation, and early-recall rights?
• Do you have a remote working policy that defines which jurisdictions are permitted and for how long?

Payroll, reporting & compliance

• Are you tracking days worked in each location accurately? This underpins everything from tax reporting to social security compliance.
• Have you addressed cross-border data privacy obligations where employee information moves between entities and locations?

The common thread across all of these areas is lead time. Plan, structure and document employee moves appropriately in whatever form they take. Involve all relevant internal stakeholders – legal, HR, tax, finance and accounting - and seek external legal advice to clarify, we are here to help if needed.