Options for employing staff based overseas

There a number of options for employing staff who will work more than 3 months overseas.

Directly employed by the University

  • University conditions of employment apply
  • Both UK and the host country’s employment, equality, health and safety laws apply
  • Continue to pay in GBP unless otherwise agreed
  • May have to pay income tax and social security in host country – will need professional advice and ongoing costs of calculations/filing
  • May need personal health insurance
  • Consider how performance, absence, maternity, IP etc will be managed
  • It may be helpful to have secondment agreement with organisation where he/she is working
  • Visa issues will need to be addressed
  • Suitable for current UK based employees working abroad for a limited time period, with expectation of return
  • Risk of creating a permanent establishment
  • On University HR systems/payroll and reportable to HESA

Employed by partner organisation in host country and seconded to University

  • Local conditions of employment can be applied
  • Only the host country’s employment, equality, health and safety laws apply
  • Payment made in host country
  • Host employer address payment of income tax and social security in host country
  • Suitable for long-term employment, particularly if recruited solely to work in that country (no expectation of return)
  • A secondment agreement will be necessary
  • The host employer may charge an additional cost and seek indemnities
  • Avoids risk of creating a permanent establishment
  • Not on University HR systems/payroll and not reportable to HESA

Self-employment/consultancy in host country (contract for services with University)

  • Maybe suitable for short-term assignments provided the contractor is already self-employed in that country
  • Payment made gross in host currency
  • However, there is a risk that the arrangement may be deemed to be employment under the laws of the host country, in which case the University may be liable for back payment of income tax and social security (and fines)
  • A contract for services will be necessary
  • Not on University HR systems/payroll and not reportable to HESA
ACTIONS
Manager decides on the most relevant employment option for the employee, after taking account of professional