What is remote work?
Definition
Remote work is an arrangement where employees perform their job duties from a location outside of the employer’s office, typically from home or another remote location. Remote work can be full-time, part-time, or hybrid. For example, a marketing manager who works from home three days a week and visits the office twice is considered a hybrid remote worker.
Why remote work matters
Remote work has transformed the modern workplace, offering flexibility, access to broader talent pools, and cost savings for both employers and employees. It also raises new challenges related to tax compliance, equipment provisioning, legal jurisdiction, cybersecurity, and performance management. For global teams, remote work can trigger permanent establishment or tax nexus issues if not carefully managed.
How remote work operates
Employers and employees agree on a remote arrangement, which may be formalized in a contract or policy. Key components include:
Eligibility based on role or location
Expectations around work hours, availability, and performance tracking
Provision of tools, software, or stipends for home office equipment
Rules for communication, data security, and collaboration
Compliance with local labor and tax laws for cross-border remote workers
Some employers offer remote-first environments, while others require in-office presence on certain days.
Example
A software engineer based in Spain works remotely for a U.S. company. She attends daily virtual stand-ups, uses company-provided tools, and follows standard working hours from her home office. Her employment contract reflects her remote work status and outlines equipment and reimbursement terms.
FAQs
Is remote work the same as telecommuting?
Yes, the terms are often used interchangeably, though remote work can also refer to international or long-term arrangements.
Do remote employees have the same rights as office workers?
Generally yes, but local laws may vary for benefits, tax withholding, and work hours.
Can remote work create tax or legal risks?
Yes. Hiring employees or contractors in a new country can trigger tax obligations or permanent establishment risks.
How is productivity measured in remote work?
Companies often use goal tracking, time logging, or regular check-ins to monitor output.
What tools support remote work?
Video conferencing, cloud collaboration tools, secure VPN access, and asynchronous communication platforms are commonly used.
Stay up-to-date on payroll & HR news and best practices.
Sign up for Plane's monthly newsletter.