Taxes, social security and labour laws in remote working times

How have you experienced telework during the pandemic? ?

As most of you may know, telework brings many benefits, such as wearing more comfortable clothes during work, or not losing time commuting in the morning. On the other hand, there are also some negative aspects, such as losing focus more easily or being distracted by family members. ?

On top of daily life and our work routines, telework also has other implications for both employers and employees. For instance, how does free movement across EU Member States change? How do taxes work in this case, are there any issues related to telework? How is recruitment for foreign employees impacted? ?

Online Conference on Taxes, Insurance, and Labour Laws ?

During an online conference organized by 6 European countries, Portugal, Hungary, Ireland, Finland, Spain and Slovenia, and the @European Labour Authority, three professionals in the above-mentioned fields provided their insightful knowledge and advice, explaining how the COVID-19 pandemic, and the related telework, impacted taxes, insurance, and labour laws.

Gaabriel Tavits, Professor of social security rule and EURES training expert, shed light on three aspects which should be considered when talking about remote work and free movement inside the European Union:

1. Social Security
2. Taxation Issues
3. Labour Law Coverage

Mr.Tavits raised interesting questions, such as whether traveling to another country is necessary to work, or if changing platforms online is enough. ?

The second speaker, Geraldine Hegarty Chief Financial Officer & Company Secretary, explained what types of tax issues can arise from teleworking. Her presentation focused on Ireland specifically, meaning that some aspects may differ in other countries. Mrs. Hegarty outlined the different factors that are involved in taxes, highlighting the most important considerations to make when teleworking. ?

Last but not least, Carla Caló, Chief People Officer, explained how the pandemic proved to be an opportunity in her tech company to hire employees based in other countries. However, it is interesting to notice that different legal constraints stopped their hiring process from abroad.

How is This Applicable to Me? A Look into the Future ?

Have you ever worked in a different country than your own? Or to make it more complex, have you ever worked in a foreign country to yours for a company that is foreign to both your country of origin and of residence? ?

Sometimes there are connections to multiple states in a worker’s job, which is why taxation, insurance and labour laws can be tricky to unravel. Additionally, the unpredictable future connected to the pandemic makes it challenging to foresee the upcoming regulations on telework, which may impact these aspects further. ?

For these reasons, the online conference recording published by EURES might help to see the situation more clearly. The speakers’ knowledge and guidance can provide answers to different queries.

There is also another source which you might want to check out, a report published by the @European Labour Authority.??

The report provides an overview of measures taken by the EU Member States to facilitate a flexible approach to the applicable social security for cross-border workers who telework from their country of residence. Second, it explains different categories of cross-border workers who could be affected by the measures introduced by the EU Member States. Proving the country fiches, the report also gives the contact details of the relevant national competent authorities, should further assistance be required.?

The report is available on the following link: https://www.ela.europa.eu/sites/default/files/2021-07/ELA%20Report%20-%20Cross-border%20teleworking%20during%20the%20COVID-19%20pandemic%20%282021%29.pdf

Remember, EURES Adviser and Helpdesk can be the first port of call for most of your work-related issues. Find initial support here: https://ec.europa.eu/eures/public/eures-services

You can find the full video of the conference here: ?https://www.youtube.com/watch?v=rUhn3Juua9g&list=PLW_7qQldJBjBjxprG7q-kJx7crV3aPKHo&index=13