Remote Working: The Future for Global Immigration Systems

Remote work is not a new phenomenon, but the COVID-19 pandemic accelerated the pace at which employers have remote and hybrid working schemes. Increasingly, workers expect more flexible remote work policies, supported by the many months spent successfully carrying out their jobs in periods of lockdown and adoption of technology that make remote collaboration more seamless. But the widespread adoption of remote work has brought many headaches, especially as relates to working in a different country, since immigration policies were not designed for an era of remote work.

Adapting to remote work

Some companies have embraced this shift, especially in industries such as tech where remote work was already commonplace before the pandemic, and other industries such as financial services where many duties can be performed remotely (unlike, for example, healthcare, logistics, or hospitality). Remote working arrangements can range widely, from occasionally allowing employees to work from home within the same country, to permitting them to work from a different country for a certain number of days per year, to working with contractors and freelancers in other countries. Some employers have also made use of “parking,” whereby employees are sent to a third country where they have the right to work (or where visas are easy to attain) while they await backlogged visa processing in the country where a company is headquartered.

This period of innovation also revealed the shortcomings of immigration policies and related tax, social security, and employment systems to accommodate remote work arrangements. For example, the rules around remote work on a visitor visa are often unclear, while foreign workers admitted to a destination country may run into issues renewing or applying for a new visa if their employer adopts full-time remote work policies. In turn, the resources required to navigate local rules and obligations for digital nomads may deter employers from offering more flexible remote work policies.

These themes are recognized and analyzed in a new report by the Migration Policy Institute, which addresses how failing to adapt to the concept of remote work in immigration policies is a missed opportunity.

The past three years have already seen policy innovations in this area. More than 25 countries and territories have launched digital nomad visas that admit foreign nationals who work for an employer outside the country, or in some cases are self-employed – especially in areas where economies have historically been reliant on tourism. The opportunity to spend time working on the beach in the Bahamas or Barbados has certainly been tempting for some.

But to truly reap the benefits of remote work, governments must understand the opportunities that lay beyond generating revenue from digital nomad visa programs, in making a country an attractive environment for temporary visitors, business activity and job creation. More flexible remote work policies can align with broader priorities including promoting economic development across regions, widening talent pools and even allowing people displaced by conflict or environmental disaster to earn incomes.

Looking ahead

There is no one answer for what this looks like. Creating flexible immigration policies that permit a greater degree of remote work in line with national economic priorities is a good starting point. Immigration is of course only one piece of this complex puzzle, with implications from tax and social security through to employee benefits, labour laws and cyber security. The report calls for governments to coordinate across portfolios to develop a remote work strategy that integrates immigration priorities with economic development and inclusive growth objectives.

One option is to introduce a standalone route for digital nomads – but alternatively, governments could also consider clarifying the rules around remote work on a visitor visa and allowing some amount of remote work under certain conditions. Not only would this regularize a practice that may in reality happen anyway, but it could help boost tourism expenditures by encouraging people to extend their vacations to include a few days of remote work, for example. Alternatively, companies could take a more permissive and clear approach allowing occasional remote work by foreign nationals admitted to a country on an employment-based visa, in line with fast-changing norms around remote work.

Longer term, it is clear is that a more engaged approach to these issues with relevant adaptations to immigration systems globally can help foster a more attractive and complaint environment for employers, workers, and visitors as remote work continues to become more mainstream.

Until a time of more positive engagement and recognition by policymakers comes, employers can seek advice on any policies they have in place or may be considering implementing, ensuring the flexibility they want to offer does not expose them to increased compliance risks in immigration and beyond. Understanding which jurisdictions do permit remote work and under what arrangements can help support your strategy.

The Migration Policy Institute report that draws on original analysis and data from Fragomen is available here.

Need to know more?

If you have any questions about this topic, please contact Charlotte Wills at [email protected]. This blog was published Friday, 15 July 2022 and due to the circumstances, there are frequent changes.

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