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Why Your Company Should Have a Digital Nomad Policy

9. october 2022 · 2 minute

Digital nomads are a great asset for any company. They have tons of interesting perspectives, are independent workers, and enjoy stable cooperation. But in return, they are often looking for jobs that have a clear digital nomad policy on the books. So what should such a thing include?

Why do you need a nomad policy?

After the lockdowns of the past few years, more and more people are trying out the location-independent lifestyle. What’s more, companies are trying to attract skilled workers by providing remote work as an option. But most companies still don’t have clear rules surrounding this type of work.

You need clear and official agreements on the types of communication you will use, the healthcare and taxes you will provide, the type of contract you will have, and the sort of administration you need. All these things are not too much of a problem to deal with when the worker comes to the office every day, but with location-independent workers, this needs to be agreed upon and signed before they leave for their destination. If not, you will part ways sooner rather than later as both parties will have problems sustaining an unclear work environment.

Security

One of the first things you need to solve as a company is how you will deal with security risks. Digital nomads will travel all over the world, exposing their working laptops to all sorts of networks and bad actors as a result.

Your policy should ideally include secure VPN access to a data cloud where the employee can store and get the necessary information. Additionally, it is good to invest in laptop encryption as well as good antivirus software. And if this is not enough, there are always ways of making sure the remote worker has reduced access to the overall company network or that they only have access to files through a cloud that does not directly connect to the network.

Tax issues

One of the more nasty problems your company can run into is tax issues in a foreign country. Depending on how you employ the remote worker, you might be liable for taxation in a country where you don’t have offices or even operate in any capacity. The nomad’s presence in and of itself might be enough to put your company into trouble.

What’s more, digital nomads often rely on travel visas as opposed to work visas to stay in countries. If your company is found to be operating in a given country (even though it would be purely as a result of your remote worker moving to the country), the nomad might get forced out. So there are really unpleasant situations that can arise. A good policy will include provisions that guard both you and the digital nomad from extra taxation or legal trouble.

Healthcare

The last thing you need to focus on is providing adequate care. Each country will have its own laws on what it is that your company is expected to provide for your workers. It may be as simple as providing funds for state-run insurance or as specific as covering a list of procedures.

Either way, make sure that your location-independent worker has adequate international healthcare. Talk to them openly about what it is you need to fulfill as a company and help them look over the documentation to ensure their plan has everything you both need. Your policy should ideally include a clear list of things your company needs to cover so that the digital nomad can find a suitable healthcare plan.

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