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Digital Nomads & The Dangers Of Letting Employees Telecommute From Abroad

Some of your employees who are telecommuting may be doing so from outside Canada. They could be part of a breed of what are called “digital nomads” who benefit from the freedom technology gives them to move from place to place. So, what’s the big deal, you may think. As long as they’re getting the job done, why should I care whether they’re doing it from Toronto, Thailand or Timbuktu?

In fact, you should care about where your telecommuters live. What many employers—and even lawyers—fail to recognize is how employing digital nomads who work abroad could have drastic legal consequences for both you and the employee. The danger is that the digital nomad arrangement may give your organization enough of a legal presence to bring you under the tax, payroll, employment and business laws of the host country.

Just imagine finding out that your organization is a Chinese or French company and is in a whole heap of trouble for not paying income tax in those countries. Go to the HRI website for a complete briefing on the risks and HR policies you need to manage them.