Legal Implications of Remote Work Arrangements: Perspectives From the U.S., UK, and France | JDSupra

Many employers continue to adjust work practices and policies to enable remote and hybrid work. And while many workers and organizations are embracing these changes, these decisions have various implications. As noted in a Gallup Workplace article I shared, “although physically and theoretically people can work anywhere, they can’t be employed everywhere.” Or said differently in this new article, employers need to be aware of several legal issues and considerations that may apply when employees work from home and that “home” is located in another state or country. This article covers remote work implications for employees and organizations in the U.S., U.K., and France to consider, such as tax implications, the applicability of pay and labor laws, and changes in employee status. For example, in the U.S., employers withhold and pay taxes in the state where the employee works, even if the employer does not have an office in that state. Thus, if an employee works from home and moves to a different state, the employer must withhold and pay taxes in the employee’s new state. However, in the U.K., an employee’s tax position will generally not change if they are working from home and move within the U.K., unless they move to or from Scotland. In France, remote working will, in principle, have no impact on the employee’s tax position. Several other ideas are discussed.