working remotely from another country canada

In some cases, the employee may be unable to return in a timely manner if abroad. For example, while an employee may be permitted to work remotely on a full-time basis, the employer may reserve the right to modify the work arrangement and require the employee to physically attend the workplace on short notice. With the opportunity to work from almost anywhere, employees should be mindful of any restrictions imposed by their employer with respect to their work location. Some countries introduced specialized visa programs for remote workers to further encourage employees to work from abroad by facilitating a more seamless process. Since the start of the pandemic, many countries have actively targeted remote workers and encouraged migration by advertising work from home arrangements. For example, temporary foreign workers are generally issued employer-specific work permits, which often narrowly restrict their location of work. Further, temporary foreign workers who are contemplating carrying out work from their home country or another international location should also be mindful of the implications this may have on their current Canadian work permit, and whether they are permitted to work from outside their location within Canada. ImmigrationĮmployees working remotely from abroad should be aware of any permits or visas they are required to secure to legally carry out remote work outside of Canada. In addition, the employer may also be liable to report an employee’s income in the jurisdiction in which the employee resides, in addition to other tax obligations. While an employee may remain on the Canadian payroll, their presence in another country could subject them to additional tax obligations. Whether the contract related to a dispute was made in Ontario.Įmployees interested in working remotely from abroad are encouraged to be mindful of the tax implications.Whether the matter at issue (i.e., termination, constructive dismissal, etc.) took place in Ontario and.Whether the employer company carries out business in Ontario.Whether the employer company resides in Ontario.In determining whether the ESA continues to apply to an employee working abroad, a court will look at the following four (4) factors: Depending on the jurisdiction, these rights could be more or less generous than those provided by the Ontario’s Employment Standards Act, 2000 (“ESA”), for example. Employment Standardsīy virtue of their presence in a particular country, employees working remotely from outside of Canada may be entitled to the same rights as local workers. This is particularly important as there are a number of practical and legal considerations that arise when an employee works remotely from abroad. Implications of Working Remotely From AbroadĮmployees should be forthright with their employers by disclosing any changes to their work location.

This can help to avoid conflict and reduce the chance of claims such as constructive dismissal or wrongful dismissal. However, a number of practical and legal implications arise with respect to an employee’s work location including, but not limited to, employment standards, taxes and immigration.Īs such, we recommend that employees be not only transparent with their employers with respect to their work location, but that employers develop and clearly communicate expectations and policies with respect to work from home arrangements. We expect remote work to continue for the foreseeable future while the pandemic continues to be managed, as this arrangement reduces the overall health and safety risks for both individuals and workplaces.Īside from the office setting, there may be no obvious distinguishable difference between working remotely from home in Canada or from abroad. The COVID-19 pandemic has therefore not only transformed the workplace, but it has also normalized work from home arrangements. With the onset of the COVID-19 pandemic in March came an abrupt shift towards remote work among Canadian businesses.

Working remotely from another country canada