Teleworking has spread during the pandemic and, in many cases, has become established as a company policy in many organisations. Teleworking can take place between companies and employees located in the same country or between companies located in one country and workers in another, although there is no legislation specifically regulating this situation.
We have prepared a series of articles in which we address the three main options for companies and employees for offshore teleworking. In this first article we discuss the possibility of freelancing for the company.
Option B: register as self-employed
The worker registers as self-employed in the country where he/she resides and provides services for the company located in another country. In this case, it is not an employment relationship but a commercial relationship. The worker is a supplier. Both parties must sign an agreement regulating the conditions of their activity and the obligations and rights of each party.
This option has risks that should be known in advance:
- If the worker had an employment relationship with the company it will end, as well as the benefits circumscribed to it. A new negotiation with the company must take place.
- If the self-employed person only invoices to that company, he/she may be falsely self-employed. This may pose a risk for the company, which may be penalised.
- The self-employed person assumes new obligations with the country's administration and new costs derived from his/her activity.
But it also has advantages for its activity development:
- It has the possibility to diversify its activity, working for a wider range of clients.
- You can organise your time and have the freedom to work offshore without your employer's permission.
And if you want to check out the other two options for teleworking for a company abroad, you can access them through these links: