Working With Virtual Expatriate

One of the most general issues of most expatriate couples is the effect on the work of the spouse. In several expatriate places, specialized work similar to the spouse previously held normally does not exist. This would be a vital issue when relocating abroad. The adjustment of being a stay at home spouse, the potential loss of earnings, the prospect of not having the appropriate skills when returning home, these are some of the problems expatriates will face and could result to an expat jobs termination.

This is specially troublesome if the couple have both very specialized work. Though with the aid of technology, several expatriate spouses are now trying virtual employment. With virtual expatriate employee are able to live and work in a different country than their employer. They usually work remotely by using their computer and with the aid of the internet, email, and VoIP (voice over internet protocol). This gives the employee to continue with their employment and allows the employer to gain specialized niche skills.

Employers should consider and examine all the aspects of a request from an employee for them to work as a virtual expatriate:

What is the required company policy, procedures, or precedent regarding previous requests?

What are the outcome regarding other company policies when it comes to security, insurance, business travel, document controls, and data protection management, etc?

When the employee needs equipment, who would install and responsible of maintenance?

Is there a proper working environment at the employee's home in their own country?

What is the company's rule in employing virtual expatriate's spouse and especially when it comes to spousal employment?

Is the time zone of the host country appropriate to managing communication with the virtual expatriate and with the clients?

Who has the responsibility to pay for office running expenses such as internet, computer and utility costs?

How could the virtual expatriate's work be closely manage and especially their performance be measured?

From an international assignment's view, virtual expatriates are generally paid in the similar technique as any other non-virtual expatriate employee. The employer has the edge of not being able to provide big premiums or benefits that are generally given to the spouse employed abroad. Benefits such as transport, housing, medical, education of children and flights home are generally provided to the "non-virtual" expatriate by their employer.

Though there are major differences between non-virtual expatriates and virtual expatriates. See also the expat payroll. The employer of a virtual expatriate is not living in the country that the employee is living.

This is a challenge in registering the employee to charge for local tax, social security contributions and to make sure to follow with local employment laws. It is known that some employers disregard these difficulties, and would continue to pay the employee in their home country; even though this is risky if the local authorities in the host country will become aware of it.

In truth many employers are preferring requests to be a virtual expatriate employee. In various cases the employee have to formally resign from full time employment and creates a contract as a contractor either directly or through a labor broker, wherein they are paid the full amount and they are the ones responsible in declaring their local income as well as their local employment laws too.