Multinational companies are increasingly allowing employees to work across borders—whether through short-term remote work arrangements, extended assignments, or informal relocations. While these arrangements can support talent retention and operational flexibility, they can also create unexpected legal and operational exposure.

During our recent webinar, lawyers from our employment, immigration, tax, and data protection teams discussed how these four interrelated areas shape location strategy for global employers. A consistent theme emerged: where an employee performs work can carry significant consequences for the employer even if the arrangement appears temporary or informal.

The following takeaways highlight key issues for in-house employment counsel and human resources (HR) professionals managing cross-border work arrangements.

Location Strategy Requires a Cross-Functional Approach

Employee location decisions are often driven by business needs or employee requests. However, approving cross-border work arrangements increasingly requires coordination across HR, legal, tax, and information technology and data privacy teams.

In practice, employee mobility can trigger obligations across four interconnected areas:

• Immigration: Work authorization requirements and visa sponsorship obligations
• Employment law: Mandatory local labor protections that apply where work is performed
• Tax: Corporate tax exposure, employee tax residency, and payroll obligations
• Data protection:...

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