The remote-working revolution: how to get it right

Summary

The video explores the lasting impact of remote work post-pandemic, with a focus on policy and employer challenges. Donna Sarkar's move to Barbados on a remote work visa exemplifies the trend. Legal issues like immigration, tax liabilities, and employment laws are discussed. The video highlights the importance of a supportive work environment, with Finland's successful remote work culture as a model. It also touches on the potential for legislation to address work-from-home challenges and the market's role in determining remote work compensation.

Takeaways

• 🏡 The shift to remote work is likely to continue post-pandemic, with many employees preferring to work from home at least one day a week.
• 🌐 International remote work poses challenges like visa and immigration issues, as well as potential changes to employee benefits and company tax liabilities.
• 💼 Employers have a duty of care to provide a safe and suitable work environment, which now extends to employees' homes.
• 👥 The experience of remote work can be deeply unequal, with factors like home environment and career stage affecting productivity and career development.
• 🌐 Remote work can blur the lines between work and personal life, raising concerns about privacy and work-life balance.
• 🇫🇮 Finland is highlighted as a leader in remote work, with a supportive culture, infrastructure, and legislation that facilitates effective remote working.
• 💼 Companies are considering changes to office spaces and are grappling with how to maintain employee well-being and productivity in a remote work context.
• 💼 The pandemic has accelerated the need for governments and organizations to develop policies and laws around remote work.
• 💼 There is a debate over whether remote workers should face salary adjustments, with some companies proposing pay cuts and others suggesting increased compensation.
• 💼 The future of work is likely to involve a hybrid model, with ongoing discussions needed between employers and employees to define working arrangements.

Q & A

What is the current trend in working from home post-pandemic?

Despite the easing of pandemic restrictions, many office employees prefer to continue working from home at least one day a week, indicating that remote work is likely here to stay.

Why did Donna Sarkar decide to work from Barbados?

Donna Sarkar, a software engineer for Microsoft, moved to Barbados after learning about their one-year remote work visa for foreigners. The visa allowed her to work remotely while paying income tax in America.

What are some potential legal issues employers face with employees working remotely from different locations?

Employers may face immigration or visa issues, potential voiding of employee benefits, and tax liabilities in foreign countries where employees work remotely.

How can working from home affect an employee's benefits like private medical insurance?

Working abroad might void certain benefits that employees have due to their employment, such as private medical insurance, depending on the terms and location.

What is the current debate over state taxes for remote workers in the northeastern United States?

There is a legal battle over whether states like Massachusetts should tax people who officially work there but are currently working remotely from outside the state.

What is the employer's duty of care regarding a safe work environment when employees work from home?

Employers have a duty of care to provide a safe work environment, which includes ensuring that home workplaces are safe and adequately equipped for employees' well-being.

How does the experience of working from home differ between senior and junior employees?

Senior employees like Sarah, who have established networks, may find remote work beneficial, while junior employees like Luke might struggle with building networks and find it challenging to advance their careers without in-person interaction.

What role does Finland's culture of trust play in remote working?

Finland's culture of trust, supported by legislation and digitalization, has contributed to a high satisfaction rate among remote workers, with many feeling productive and able to balance work and personal life.

What challenges do governments face in updating laws to accommodate remote work?

Updating laws to accommodate remote work is challenging due to the complexity of considering factors like work-from-home equipment provisions, expense claims, and the division between work and home life.

Why might some companies consider getting rid of the office post-pandemic?

Some companies are planning to review or even eliminate their office spaces to save on costs, as remote work has proven feasible and in some cases, more productive for employees.

What proposal has been made by Deutsche Bank regarding remote work taxation?

Deutsche Bank proposed that remote workers should be taxed an additional five percent to compensate those who cannot work from home, with the tax being paid by the employer if a permanent desk is provided, or by the employee if they choose to work from home.

Outlines

00:00

🏠 Remote Work's Lasting Impact

The script discusses the permanence of remote work post-pandemic, with many office employees favoring a hybrid model. It introduces Donna Sarkar, a software engineer for Microsoft, who relocated to Barbados under a special remote work visa. The visa allowed her to work remotely while paying taxes in the U.S., highlighting the complexities employers and policymakers face regarding immigration, visas, and employment benefits when employees work abroad. The script also touches on legal issues like potential tax liabilities for companies when employees work in different countries.

05:00

👩‍💼‍ & 👨‍💼‍ Work from Home: Inequalities and Solutions

This paragraph explores the unequal work-from-home experience, contrasting the setups of a senior manager with a dedicated office space and an entry-level employee working from a shared living space. It emphasizes the challenges junior employees face in network building when working remotely and suggests looking to Finland, a leader in remote work, for solutions. Finland's remote work culture, supported by broadband access, digitalization, and a culture of trust, eased the transition during the pandemic. The paragraph also discusses the need for laws and employer policies to support remote work, including providing appropriate equipment and defining work-life boundaries.

10:00

💼 The Future of Remote Work and Its Financial Implications

The final paragraph delves into the financial aspects of remote work, such as Deutsche Bank's proposal to tax remote workers to compensate for those who cannot work from home. It contrasts this with the idea that companies, saving on office space, might consider paying remote workers more. The script also mentions companies reducing pay for those choosing to work from different locations and the potential need for legislation to address work-life balance and privacy concerns. It concludes by acknowledging that the transition to a new world of work will take time and that experiences, like working from Barbados, are valuable even if they come with a salary cut.

Keywords

💡Remote Work

Remote work refers to the practice of working outside of a traditional office environment, often from home. In the video, this concept is central as it discusses the shift towards remote work due to the pandemic and its potential permanence. Donna Sarkar's move to Barbados while continuing to work for Microsoft exemplifies the flexibility that remote work allows.

💡Work-from-Home Visa

A work-from-home visa is a special type of visa that allows individuals to work remotely from a country other than their own, typically for a specified period. The video mentions Barbados offering such a visa, which enabled Donna to work for an American company while physically located in Barbados.

💡Hybrid Working

Hybrid working is a work model where employees split their time between working in the office and working remotely. The video discusses how employers and employees are grappling with the balance between in-office and remote work, highlighting the need for policies that address both settings.

💡Employment Law

Employment law encompasses the legal framework that governs the relationship between employers and employees. The video touches on how employment law is evolving to address issues arising from remote work, such as tax implications and the provision of a safe work environment at home.

💡Duty of Care

A duty of care is a legal obligation for employers to ensure the health, safety, and well-being of their employees. The video explains that this duty extends to the home environment when employees work remotely, requiring employers to provide a safe and suitable workspace.

💡Work-Life Balance

Work-life balance refers to the equilibrium between an individual's work and personal life. The video discusses how remote work can impact this balance, with some employees finding it easier to manage their personal life while working from home, as seen in the case of Finnish workers.

💡Digitalization

Digitalization is the process of converting information into a digital format. The video mentions that digitalization at the workplace has facilitated remote work by reducing the need to physically transport documents and by enabling seamless communication and collaboration.

💡Cultural Shift

Cultural shift refers to a significant change in societal norms and behaviors. The video describes the cultural shock experienced by Donna due to the sudden shift to remote work, highlighting the broader cultural changes that have occurred as a result of the pandemic.

💡Tax Implications

Tax implications involve the financial consequences of certain actions or decisions, particularly in relation to income and employment. The video discusses how working remotely can affect tax obligations, such as when an employee works in a different country or state from their employer.

💡Legislation

Legislation is the process of making or enacting laws. The video highlights the need for new or updated legislation to address the complexities of remote work, such as defining work hours, providing necessary equipment, and delineating the boundaries between work and personal life.

💡Right to Disconnect

The right to disconnect is a legal concept that allows employees to disconnect from work-related communications outside of working hours. The video mentions this in the context of France's legislation, which aims to protect employees' personal time and prevent burnout.

Highlights

Working from home is likely to continue even after the pandemic, with many office employees preferring at least one day a week of remote work.

Donna Sarkar, a software engineer for Microsoft, moved to Barbados and continued working remotely with a special visa.

Employers and policy makers are grappling with unforeseen issues related to remote work, which could affect workers globally.

Employers need to consider immigration and visa issues when employees want to work from different locations.

Benefits like private medical insurance could be voided if employees work abroad.

There's a risk that foreign authorities may regard remote employees as setting up a permanent base for their company, leading to tax liabilities and employment law compliance.

Employers have a duty of care to provide a safe work environment, which now extends to employees' homes.

The experience of working from home can be deeply unequal, affecting employees differently based on their home environment and career stage.

Senior staff like Sarah, who has a separate office room, may have an easier time working from home compared to junior employees like Luke, who works from his bedroom.

Building professional networks is more challenging for junior employees working remotely.

Finland is a world leader in remote working, with a long tradition and specific legislation supporting it.

Finland's remote working law allows employees to work from somewhere other than their office for at least half the week.

The pandemic has prompted governments worldwide to consider laws around remote working, including work-from-home days, equipment provisions, and work-life balance.

Legislation changes are challenging and may take years to implement, suggesting that employers will likely develop their own policies in the meantime.

The blurred line between work and social life is a significant problem with remote work, with some countries like France having specific legislation around the right to disconnect.

Deutsche Bank proposed taxing remote workers 5% more to compensate those who cannot work from home, with the tax paid by the employer if a desk was provided, or by the employee if they chose to work from home.

Some American companies have announced pay cuts for remote workers, while others argue that companies are saving on office space and should consider paying remote workers more.

The future of remote work is likely to involve a mix of company policies, legal considerations, and market evolution, with the aim of balancing work-life integration and employee well-being.

Transcripts

what has your desk look like for the

past year

despite the means tweets and videos it's

likely working from home is here to stay

even after the pandemic most office

employees

want to keep doing it at least one day a

week but this brave new world of working

is forcing policy makers and employers

to wrangle with some

unforeseen issues many of which will

have far-reaching effects on workers

around the world

for decades to come

[Music]

this is donna how's that

and this is donna's office hey

i'm donna sarkar and right now i am in

barbados

donna works as a software engineer for

microsoft

[Music]

before the pandemic she rarely worked

from home

when this pandemic set in i honestly had

culture shock

i've never worked a job where i have

zero human interaction

in my 20 years of tech so

it all started in june of 2020.

we'd been now in lockdown since march

we're not going outside we're not

meeting anyone

i see this random article that said

barbados has offering a one-year remote

work visa to foreigners all over the

world

and i thought that's kind of interesting

three months later donna and her husband

said farewell to their home in seattle

and up sticks to barbados

last night we sat out on the boardwalk

and had rum punches and tacos and

overlooked the ocean

and it was magical it was a throwback to

a time like

almost a year ago when you could do that

working from paradise was made possible

by a special visa

which allowed donna and her husband to

continue doing their jobs in barbados

while still paying income tax in america

when i dial into meetings people are

like oh look at you and your beautiful

sunny skies outside

and i'm like yeah yeah sorry not sorry

at all given that in seattle it's gloom

and doom and dark at four o'clock and

raining

but before you start packing your bags

for your own overseas adventure

you may want to heed the advice of an

employment lawyer

we're seeing quite a lot of requests

coming through

from employees to employers to work in

other locations

i think employers need to consider those

requests very carefully

depending on the location of where the

employee wants to work and their own

nationality there could be immigration

or visa issues

as to whether or not they're actually

entitled to work in that other location

i think they would need to be mindful of

some of the benefits that they have as a

result of their employment could

potentially

be voided if they're working abroad so

i'm thinking of things like

private medical insurance

and having employees working abroad

could cause a headache for their

employer too

say for instance an employee based in

britain

decided to relocate to india but to keep

working for their british company

just by being in india there's a risk

that the indian authorities would regard

the employee as setting up a permanent

base for their company

which means their employer might be

liable for indian taxes

and they might have to abide by india's

employment laws too

and this question doesn't just arise

when crossing national borders

there are some interesting legal battles

now developing

across the world including in in the

north eastern united states where

massachusetts and some sort of nearby

states are in this kind of interesting

battle over

whether or not massachusetts should be

allowed to tax people who

officially work in massachusetts their

offices in massachusetts

but at the moment they're actually doing

most if not all of their work from where

they live which is outside massachusetts

and employees are not only having to

consider challenges around

where people work but how they work

in the early days of the kova 19

pandemic i think we saw

quite an ad hoc approach to the

provision of

office equipment to home workers

we saw in the press those photos of

people taking their

monitor under their arm or even their

office chair on the tube

employers do have a duty of care in

relation to providing a safe place of

work and that extends to

an employee's home if that is where they

are working because what might have been

an okay chair to sit on for

a week or two you know six months down

the line and perhaps isn't suitable

a work environment however is much more

than a desk and a laptop

and the experience of working can be

deeply unequal

take two employees of an imaginary

company sarah is a senior manager

and has worked at the company for 20

years luke

is an entry level graduate who has been

in the job for less than a year

sarah lives in a big house and has a

separate room that can be used as an

office

luke lives with three flatmates and

works from his bedroom

sarah has reached the top of her

industry as she no longer has to commute

she gets more time to spend with her

family luke meanwhile is sick of his

flatmates

his career would benefit from being

around senior colleagues

like sarah so when you're at the start

of your career perhaps the biggest thing

you want to try and get right is to

build your your networks both within

your firm and

outside your firm and in a world where

there's more working from home

that does become a bit more difficult

it's not really so much of an initial

issue for senior staff because they've

kind of already developed their networks

so i think that would probably be the

biggest challenge uh faced by junior

employees as we

move towards a more hybrid way of

working

more than half of british 18 to 34 year

olds

then working from home challenging

compared with less than a third of 55 to

75 year olds

so how can employers ensure the physical

and mental well-being of their employees

when they work from home

for inspiration it might be worth

looking to the world leader

in remote working finland has been at

the forefront of flexible working since

the 1990s

even before the pandemic almost a third

of finns occasionally work from home

including gersomai blinkfest

i got a small electronic desk and i have

this large screen before

and i have a good chair and i have a

window now out to the

yard of garden and forest and also this

is my yoga studio as well so it's

perfect

gesimae is a finnish professor who's

been researching remote working

in finland there's a long tradition for

remote work

there's several reasons but one is that

we have

a good broadband all across the country

and then also i would say that the

digitalization at the workplace so you

don't have to take all the papers from

work to home

and the high portion of knowledge

workers in finland

and then another thing which i also

think is quite important

is the culture of trust and that is

something we also see

in our research finland even has a

specific remote working law

which allows employees to work from

somewhere other than their office

for at least half the week all this

meant that when the pandemic hit

the shift to remote working for many

finns was

surprisingly easy by april 2020

finland had the highest proportion of

people working from home

of any other eu country

although many countries already had

employment laws on flexibility

working hours and health and safety few

had specific remote working legislation

like finland the pandemic has changed

that

around the world governments are playing

catch-up considering laws not just

around how many days a week people can

work from home

but also what equipment an employer

needs to provide

what workers can claim on expenses and

even the division between work and home

life

but changing laws is not easy

even if legislation was proposed at this

stage

with the various readings and

consultations that would be required it

would be

some time likely a couple of years

before we'd actually see it come through

i think the more likely route for the

moment is development by

individual employers of policies perhaps

further guidance for example from

health and safety executive on health

and safety requirements for working from

home and yes perhaps in the longer term

specific legislation but for the moment

i think we're likely working within the

framework of what we already have

for many perhaps the biggest problem

with working from home

is the blurred line between work and

social life

some people you know like the commute

to actually get that physical removal

from the office and

you know any issues or stresses that

might be associated with that

i think if there were to be legislation

potentially one area could be working

ours

and that delineation between work and

home life

there's kind of growing concerns i think

about the question of privacy

the right to have a personal life and

the right

uh to be sort of for your

for your boss to have some oversight of

what you're doing as they would when you

were in an office

but not so much oversight that you feel

that you're never able to actually have

privacy and personal space so i think

sort of negotiating those boundaries is

going to be

a kind of quite interesting area over

the next few years

some countries like france already have

specific legislation around the right to

disconnect

in finland legislation on flexible

working hours

has helped the work-life balance gears

and maya's research

found that during the pandemic 75

percent of finns

felt they could well balance their work

and personal life demands

and 86 were satisfied with working

remotely

people have been very happy for working

remotely

they feel that they are very productive

they are highly satisfied for their work

and they have been able to also have a

work life

balance a survey of british businesses

found that more than a third were

planning to review their office space

requirements after the pandemic

but some companies have already

announced that they will be getting rid

of the office

altogether

i think it will require a conversation

between employer

and employee to reach agreement if

possible

as to what the working arrangements will

be going forward

and i think that there does need to be a

degree of recognition that

not everyone's home is

sufficiently set up to enable them to

comfortably and efficiently

work from their home so how can remote

working

be made more equal one proposal by

deutsche bank

is that those working from home should

be taxed five percent more

to compensate those who cannot work from

home

if the worker was provided with a

permanent desk the tax would be paid by

their employer

but if the employee chose to work from

home they'd pay the tax themselves

some american companies have already

announced pay cuts

for those who want to work from a

different city or state

i mean there is another way of looking

at this which is that companies are

saving

large amounts of money on office space

and in somewhere like san francisco

those savings can be fairly significant

so there's also i think a theoretical

argument for saying that when people are

working from home

you need to pay them more rather than

less i think really this is a question

for the market rather than for the state

and we'll just sort of see how it

evolves over time

even if companies did insist on a salary

cut for remote workers

some may see it as a worthwhile

sacrifice to have a different

working environment i probably would

have taken a salary cut to come work in

barbados if it required that

because it's an experience and one thing

we've learned from

this entire pandemic period is money

cannot buy you experience

even after the pandemic it's likely

remote working is going to be here to

stay

the switch from the office to home may

have been forced to happen overnight

but ironing out the intricacies of this

new world of working

is going to take many years

you're on mute

sorry i'm calling williams the senior

economics writer at the economist

you can read my special report on the

future of work by clicking on the link

opposite

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