Remote and Hybrid Work: EU, EFTA and the Middle East

Remote and hybrid work are no longer exceptions - they are defining how global organisations operate. The flexibility is attractive to both employers and talent, but it introduces a complex web of compliance requirements. From employment law and tax obligations to data protection and immigration rules, companies must tread carefully to avoid costly missteps.

Remote work is a work arrangement built around output and connectivity rather than physical presence, including fully remote and hybrid models where the company has no physical office and all employees work remotely.

Remote work has existed since the 1980s gaining traction during the internet era of 2000 to 2010s, but the turning point was the COVID-19 Pandemic in 2020. Almost overnight companies around the world were forced to adopt remote work due to the global lockdowns.

After the pandemic, remote and hybrid work continued to define the global workforce.

Within the European Union and EFTA countries (Iceland, Liechtenstein, Norway, and Switzerland), freedom of movement makes cross-border hiring easier, but not risk-free.

Remote and hybrid work within the EU and EFTA benefit from freedom of movement but still pose compliance challenges. Employees working across borders may trigger tax residency if they spend more than 183 days in another country, while social security obligations generally follow where the work is physically performed under EU Regulation 883/2004. Labour law protections such as pay, working time and leave typically align with the host country, and hybrid arrangements can blur which rules apply. Employers must also ensure GDPR compliance and uphold health, safety and equipment responsibilities for remote staff across borders.

Practical compliance steps include:

• Registering employees correctly with local authorities.

• Applying for A1 certificates for workers where applicable.

• Ensuring contracts reflect the governing law and jurisdiction.

Middle East

In the UAE, remote work in or from the UAE offers flexibility but brings specific compliance considerations. Labour law coverage depends on where the employment relationship is registered - locally under UAE law or abroad - influencing visa status, benefits and dispute resolution. Remote workers in the UAE generally need an approved residence visa, such as the Remote Work Visa, and employers should maintain secure data protection, cybersecurity and health and safety policies.

In Saudi Arabia remote work isn't officially recognised for noncitizens; employers cannot simply hire noncitizens to work remotely under any form of employment agreement. They can only do so via an employment visa arrangement or as indicated and approved by local authorities. In Saudi Arabia, any foreign national who wants to live and work in the country needs a work visa and residence permit (Iqama).

Practical compliance steps include:

• Engaging an EOR partner to legally employ staff where you don’t have an entity.

• Ensuring all work permits and visas are issued before the start of employment.

• Maintaining accurate payroll and social insurance contributions in line with local law.

Making Compliance Practical

Compliance does not need to be a barrier - it should be built into the way your workforce is managed.

Use an EOR partner to hire compliantly in countries where you lack an entity who can assist you with:

• Verifying the right-to-work and visa status before a payroll begins.

• Onboarding: with every hire, they are  registered correctly for tax, payroll and social security.

• Keeping up to date with legislative changes. Egypt enacted new labour laws effective as of 3 May 2025 promoting and protecting worker’s rights. For the first time, the law addressed new work models including remote work, platform work based jobs, flexible hours and job sharing.

Final Word

Remote and hybrid work unlock opportunities in the EU, EFTA and the Middle East, but every jurisdiction has its own rules. The most effective companies combine global policies with local expertise, ensuring every worker - whether employee or contractor - is fully compliant.

By ensuring compliance in everyday operations, businesses can enjoy the benefits of flexible work without exposing themselves to unnecessary risk.

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Our Employer of Record (EOR) services enable businesses to employ contractors as full-time staff in their respective countries, while we handle all employment-related responsibilities. Click here to find out more about our EOR services.

We also provide support to self-employed contractors and freelancers with advice on compliance, as well as tax and payment management. This service is available to those who are already established as self-employed or need assistance in setting up as self-employed in their country of work. Click here to find out more about our self-employed services.

Contact us for tailored advice and solutions to keep you and your organisation fully compliant.