International Remote Work: Addressing Social Security and Dental Care Challenges

International Remote Work: Addressing Social Security and Dental Care Challenges

11/27/2024 5:29:30 AM   |   Comments: 0   |   Views: 589
In the post-COVID-19 era, advancements in technology have enabled many employees to request continued remote work arrangements from abroad, whether temporarily or permanently. This shift has led businesses to integrate international remote work into their global mobility policies, balancing employee flexibility with operational demands.

Offering policies for international remote work is not only a competitive advantage for employers in attracting and retaining talent but also a key factor for many candidates when evaluating job offers. However, these arrangements come with complex challenges, particularly regarding social security and associated benefits like dental care, which are often tied to national employment systems.

International or transnational remote work—still awaiting a standardized legal definition—can be described as a work arrangement where an employee provides services from a country other than that of their employer's headquarters. This choice is typically motivated by personal reasons, can be temporary or indefinite, and avoids directly impacting the host country’s labor market.

The lack of a specific legal framework, both nationally and internationally, introduces risks for companies and employees alike in areas such as taxation, immigration, labor law, and social security.

Social Security and Dental Care Implications

The general principle of lex loci laboris governs social security, requiring compliance with the laws of the country where services are rendered. In practice, this means companies may need to make social security contributions in the remote worker's location. Without proper regulations, this creates two significant issues:

For employees, maintaining contributions to their original country’s social security system becomes challenging, particularly if they plan to return after a temporary remote work arrangement. Additionally, benefits like dental care, often tied to social security systems, may be disrupted or unavailable during their time abroad.

For employers, compliance often requires establishing an entity in the remote work location or navigating complex legal structures to meet contribution obligations.

Unlike expatriates, who are governed by specific regulations allowing them to maintain ties with their home country’s social security system, international remote workers do not benefit from such provisions. This gap has led many businesses to rely on provisional solutions, such as requesting social security coverage certificates for temporary assignments, even when these do not technically apply to remote work scenarios.

While some countries validate these irregular approaches, others, such as Spain, have begun to restrict them. For example, Spain’s General Treasury of Social Security has refused to issue such certificates for remote workers employed by Spanish companies who choose to work from abroad.

Finding a Partner to Reduce Risks 

For companies, partnering with organizations capable of absorbing compliance risks can offer significant advantages. These partners, whether specialized in remote staffing or international recruitment, take on critical responsibilities such as managing social security contributions and ensuring access to benefits like health and dental care.

This approach reduces the administrative burden on businesses, helps them meet local regulatory requirements, and ensures that employees working abroad receive appropriate protections and support. Such partnerships provide a reliable framework for handling the challenges of international employment while maintaining operational efficiency.

Toward a Comprehensive Framework

The impact of international remote work on social security and benefits like dental care is gaining attention at the European Union level, particularly within the Administrative Commission for the Coordination of Social Security Systems. However, international remote work continues to outpace current legal frameworks, creating a disconnect between workers and the countries where their employers are based.

Furthermore, alternative solutions, such as employer-of-record services, offer businesses a way to provide employment contracts locally, ensuring compliance with local laws while offering employees benefits such as social security and dental care. However, the legality and sustainability of these solutions remain under scrutiny in certain jurisdictions.

A comprehensive legal framework for international remote work is urgently needed. This framework should not only address social security but also extend to associated benefits like dental care, ensuring fairness and legal clarity for employers and remote workers alike. Remote staffing agencies play a pivotal role in bridging these gaps, offering a viable solution to manage risks and responsibilities in the absence of clear regulations.
You must be logged in to view comments.
Total Blog Activity
997
Total Bloggers
13,451
Total Blog Posts
4,671
Total Podcasts
1,788
Total Videos
Sponsors
Townie Perks
Townie® Poll
Who or what do you turn to for most financial advice regarding your practice?
  
Sally Gross, Member Services Specialist
Phone: +1-480-445-9710
Email: sally@farranmedia.com
©2025 Dentaltown, a division of Farran Media • All Rights Reserved
9633 S. 48th Street Suite 200 • Phoenix, AZ 85044 • Phone:+1-480-598-0001 • Fax:+1-480-598-3450