Many Dutch employers ask whether their organisation can support truly global employee management when some staff want to work abroad. This question appears often, especially when expats working in the Netherlands hope to spend time in their home country. During the pandemic, many employees faced heavy restrictions, which made this topic even more urgent. As a result, your HR team may now explore a clearer approach to remote work from abroad.
Global employee management and remote work for expat employees
Because global employee management keeps growing more complex, your organisation needs a clear and structured policy. It is possible for expat employees to work abroad. However, they cannot do so in every location or for an unlimited period. Your company must review tax, immigration and compliance risks before approving any request.
At Octagon, we work as a diverse team with more than 18 nationalities in our in-house group alone, and even more with our clients. Throughout the pandemic, we guided many expat employees so they could work abroad safely without putting the employer at risk. This article explains what your HR team needs to consider when building a remote-abroad policy under a strong global employee management approach.
Key considerations when setting up global employee management for remote work abroad
Allowing an employee to work in another country requires careful thought. Remote work continues to grow, and many organisations still adapt.
When you build a remote-abroad policy, your HR team must keep a complete overview of immigration and taxation issues for expats who work abroad. In addition, your team should assess several practical and legal factors before approving long-term work from abroad.
Key points to consider include:
- Travel between the Netherlands and the employee’s normal work location
- Providing a safe and healthy workplace abroad
- Meeting ‘work from home’ standards in the relevant CAO
- Ensuring the employee has suitable insurance cover
- Clear communication about illness, overtime and worked hours
- Transparent communication of the policy to all employees
- Following the “183-day rule”
Long-term remote work can offer great benefits to expat staff. However, your organisation must understand every part of the employee’s situation. If the company overlooks important rules, you risk fines or the loss of your IND sponsor status. The employee may also lose their Dutch residence rights.
Understand each employee’s case to ensure compliant global employee management
To make the right decision, your HR team first needs a complete picture of how long the employee plans to stay abroad. Time spent abroad affects tax responsibilities and immigration status. For example, expat employees with a Dutch residence permit cannot live abroad for more days than they live in the Netherlands.
Gather answers to the following questions:
- How long will the employee live in another country?
- Which visa or residence permit does the employee hold?
- In which country will the employee stay?
- Does the employee own property or assets in the Netherlands?
- Does the chosen country have a tax treaty with the Netherlands?
Even with a Dutch employment contract, you must check local laws before approving the request. This applies even if the employee leaves only for a short period. Most risks appear when the organisation does not follow local requirements.
The 183-day rule explained
To prevent double taxation with global employee management, the Netherlands has signed many international tax treaties. These treaties usually state that employees pay tax in the country where they are employed, not where they are physically present. However, the “183-day rule” determines which country can levy income tax.
In simple terms:
If your employee works in another country for fewer than 183 days, and a tax treaty exists, they will normally continue to pay income tax in the Netherlands. After 183 days, the other country may levy tax on the employee’s income for the entire year.
If no tax treaty exists, Dutch rules apply. Your organisation may then need to withhold wage tax, national insurance contributions and employee insurance contributions. The employee may also owe tax in their home country.
HR support for expats under a global employee management strategy
Remote work continues to expand, and many employees now expect flexible options. When your Netherlands-based organisation employs international staff, supporting them with compliant remote-abroad options can improve wellbeing, engagement and performance. A strong global employee management framework helps your business offer these benefits while managing risks.
Conclusion
Global employee management allows your organisation to support talent across borders. However, you must review tax, immigration and local legal obligations before approving remote work abroad. With the right guidance, you can create a policy that protects your business and supports your expat employees.
If you want expert help creating compliant and effective remote-abroad policies as part of your global employee management strategy, contact Octagon Professionals. We will guide your organisation through every step with clarity and care.
