As days have a strong impact on compliance risk factors, such as wage tax, permanent establishment, work entitlement, social security, etc., the employer must be aware of the accumulated presence days per country.
This way, the employer can limit the compliance risk – both for them, but also protect the employee. Another reason to limit the number of days abroad is to ensure office presence. For this, only working days need to be taken into consideration.
Why do also presence days matter for compliance?
While for some dimensions, such as labour law or permanent establishment, (only) working days need to be taken into account, for most risk factors also presence days have a tremendous legal impact. Such as for:
E.g. wage tax
E.g. social security
E.g. work entitlement & registration
To correctly assess the compliance risks, WorkFlex needs to know how long someone is gone, e.g. for Center of Vital Interest Discussions and the 25% rule remainder in home country social security. So not only working more than 183 days in one country triggers compliance risks, but also vacations, business trips, & weekends count into the 183-day rule as well.
See a more detailed article on this topic here.