Working internationally? Five employer risks often spotted too late

Dit artikel is ook beschikbaar in het Nederlands.

International working arrangements often begin more modestly than organizations expect: an employee working from home in Belgium a few days a week, a sales manager active across several countries, or a temporary period of remote work abroad. What may seem flexible and practical can quickly create additional obligations, higher payroll costs, and unexpected risks. In this blog, we highlight five risks employers commonly overlook and explain how to prevent them from leading to corrections, penalties, or double taxation.

International working arrangements often start small

Many organizations still associate international employment with expats and long-term assignments. In practice, however, it often starts much smaller. An employee works partly from abroad. A cross-border worker wants to work from home more frequently. Or a non-EU employee travels within Europe for projects. It is precisely in these situations that obligations in multiple countries often arise unintentionally. And because tax, social security, employment law, pensions, and immigration are closely interconnected, risks rarely remain limited to a single topic. The key question is therefore not only whether international working exists within your organization, but whether it is truly under control.

1. Tax: the risk is rarely limited to where tax is paid

As soon as an employee works internationally, multiple countries may have taxing rights. This may sound straightforward, but in practice it is often complex. For example, an employee working two days a week from Belgium can already trigger additional payroll obligations. In addition, compensation elements such as bonuses, company cars, or equity packages are often processed incorrectly in cross-border situations.

We also see that employers tend to underestimate the risk of creating a permanent establishment. For example, a commercial employee carrying out structural activities abroad may unintentionally create corporate income tax implications. If the underlying assumptions are incorrect, the consequences usually only become apparent later. This may result in corrections, reassessments, penalties, discussions with foreign authorities, and uncertainty among employees regarding their net income.

2. Social security: less visible, but immediately impactful

While tax is usually on the radar, social security is often overlooked. However, it directly affects employer costs, employee coverage, and the country in which contributions are due. In international situations, we frequently see that A1 certificates are missing, requested too late, or no longer align with the actual working pattern. This may seem administrative, but the impact can be significant. Consider higher employer charges, double contribution obligations, discussions with foreign authorities, and uncertainty for employees regarding benefits, child allowances, or sick leave coverage. Because these risks often only surface during audits, correcting them afterwards is complex.

3. Employment law: practice may override the contract

Many employers assume that a Dutch employment contract sufficiently covers the situation. However, once an employee structurally works in another country, mandatory local rules may still apply. This may concern minimum wages, working hours, local employment conditions, or notification obligations such as Limosa in Belgium. As a result, discrepancies can arise between what is agreed on paper and what actually occurs in practice.

This is exactly where compliance risks emerge. If policies, contracts, and the actual situation are not aligned, the risk of claims, disputes, and corrections increases.

4. Pensions: the impact often becomes visible only later

Pensions are perhaps the most underestimated aspect of international working arrangements. A change in work location, insurance position, or tax treatment can have a direct impact on pension accrual. In practice, this may lead to fragmented accrual, mandatory participation in a foreign scheme, or a tax mismatch where pension contributions are suddenly treated as taxable salary. This risk is often not immediately visible and only comes to light at a stage where remediation is difficult or even impossible. That is why pensions deserve much earlier consideration in international workforce assessments.

5. Immigration: working abroad may require permission

Immigration is also structurally underestimated. Within Europe, there is often an assumption that cross-border work is “free.” However, this does not apply to employees with a non-EU nationality. Even if they hold a Dutch work or residence permit, this does not automatically grant them the right to work in other countries. Without proper assessment, this can result in illegal employment, fines, and—in severe cases—risks to existing permits. This makes immigration not only a legal issue but also a practical and reputational concern for employers.

Why these risks often overlap

International working is rarely about a single rule. It is precisely the combination of factors that creates complexity. A change in work pattern can simultaneously impact tax, social security, employment law, and immigration. As a result, organizations often only recognize the full impact at a later stage.

In practice, international working arrangements tend to evolve faster than policies and processes can keep up, causing risks to accumulate, often unintentionally.

How to bring this under control

Gaining control starts with insight through a practical assessment of your current situation. Where are the main risks? Which obligations are currently being missed? And what are the financial and operational implications? With our Global Remote Working Risk Scan, we bring this into focus. You will receive:

• A practical risk analysis
• Concrete action points
• Insight into priorities and impact

This enables you to clearly understand your position and determine which steps to take first.

Do not wait until international working becomes an issue during an audit or when employees raise questions that cannot be answered immediately.

Want to know more?

Would you like to understand which risks are relevant for your organization and how to manage them? Request the Global Remote Working Risk Scan via the online contact form or get in touch with us using the contact details below this article. We would be happy to show you where the key attention points are and where you can achieve immediate gains in control, compliance, continuity, and peace of mind.