Working from abroad: remote work or business trip? Legal risks every employer should know

“I’m flying to Barcelona for a week but will keep working as usual.”
This might sound like a typical summer message from any team member – but for the employer, it’s a risky one.

When an employee works from abroad, it’s essential to define the working arrangement: is it remote work or a business trip? The difference matters – legally, financially, and in terms of compliance.

Let’s break it down.

Remote work vs business trip: the key difference

In many companies, these terms are still confused. But the legal distinction is clear:

🔹 Remote work – the employee works from a different location (e.g. home, summer house, another city or country) on their own initiative, and only with the employer’s prior approval.
Key requirements: clearly agreed workplace, working hours, expenses, data security measures, and health & safety conditions.

🔹 Business trip (assignment) – the employee is sent by the employer to perform work at a different location, often abroad.
In this case, it’s the employer’s initiative – and formal requirements apply: a written order, daily allowance (per diem), compensation of travel expenses, and proper travel documentation.

What if an employee travels “on their own” but keeps working?

This is where employers often step into a legal grey zone.

If an employee travels abroad for personal reasons but continues to respond to emails, join calls, or work on projects – and the employer knows and allows it – this is still considered work. Which means:

• if the employer initiated the work – it qualifies as a business trip, and all formalities (e.g., order, per diem, expenses) apply;

• if the employee requested it and the employer formally agreed – it’s remote work, and the relevant internal policy should apply.

How to reduce legal and tax risks?

The safest way is to have a clear and practical internal policy on remote work, including from abroad. This should define:

• what type of work and duration is allowed,

• how approvals are requested and documented,

• how working time, IT security, and costs are handled,

• and how the employer distinguishes between rest time and working hours.

The policy doesn’t need to be long – it needs to work

A short, understandable and accessible remote work policy can prevent disputes and tax liabilities. It should be:

• easy to implement using existing tools (e.g. online forms, HR software, or even a simple written request),

• applied equally to all employees,

• and updated for the hybrid or flexible work models that are now the norm.

Without clear rules, even one week of casual “work from abroad” may later be considered a business trip – with unexpected obligations for the employer. Or worse: a breach of the employee’s right to rest time, if there’s no formal distinction between work and leisure.

Final word for employers

If your employee is working from Spain, Italy or a summer house in another country – it’s your responsibility to make sure the work mode is clearly defined and documented. Otherwise, a relaxed summer may lead to serious legal headaches.

📞 +370 664 42822
📩 info@prevence.legal