Concentration: the New Luxury?
The term ‘workation’ (from 'work' and 'vacation') refers to a practice whereby professionals carry out their usual tasks remotely, often from holiday destinations or picturesque locations, whilst maintaining their usual level of productivity.
The rise of remote working from exceptional locations has led to a dramatic increase in the availability of co-working spaces in Alpine resorts.
However, with rising property prices, these venues are not always profitable, which has led some investors to focus on co-living spaces: comfortable shared flats for workation enthusiasts, with workspaces right inside the flats.
What should you bear in mind when working from abroad? A simple question with a complicated answer.
We asked our legal experts: on paper, most countries require a work permit to carry out gainful employment. If workations fall outside this rule, it is due to their temporary nature, as well as the ignorance or tolerance of local authorities.
Let’s compare this with the situation for cross-border workers: if a company allows remote working for employees who live across the border, the rules in force in our neighbouring countries (France, Germany, Italy, Austria and Liechtenstein) allow up to 49.9 per cent remote working in the country of residence, without any change to social security contributions and subject to a request from the employer. Some countries require at least one day per week to be worked in Switzerland.
It is therefore understandable that many companies restrict working abroad, in order to ensure that Swiss social insurance applies and that tax implications are kept to a minimum.
It should also be noted that, depending on the country, the risks of espionage and cyberattacks are heightened, which may justify further restrictions.
Another key point: the Labour Act, which governs working hours and rest periods, applies only within Swiss territory. Abroad, the regulations of the country in question apply.
To conclude, if your company permits full-time remote working and you are carrying it out from a co-living space in Graubünden, there’s no problem! On the other hand, spending two months working in another country means you mustn’t overlook the administrative and legal aspects of such situations.
In the case of a ‘workation’, prior discussion with your employer and clear contractual provisions are strongly recommended. If this trend continues to grow, a clause setting out the terms and conditions may well become standard practice in company policies!
In the meantime, check out the articles by Lorenz Ramseyer, a remote working consultant, on the benefits of a ‘workation’… and tips on how to convince your employer of the advantages of this practice.