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Definition of cross-border / special travelers types
Definition of cross-border / special travelers types

Why are there different cross-border types / special travelers and what do they mean?

Cara Benecke avatar
Written by Cara Benecke
Updated over 2 months ago

Each cross-border employment type or special traveler type poses unique compliance challenges, especially during business trips or work-from-anywhere arrangements. WorkFlex’s risk assessment engine identifies potential issues, helping your company stay compliant across all borders.

WorkFlex is designed to handle the complexities of cross-border employment, ensuring compliance for four unique employee types—commuters, expats, matrix managers, and remote workers.

Please find a video here from our Co-Founder and Compliance Expert Pieter Manden with an in depth definition of each type.

Here you can also find a shorter written explanation below:

Cross-border employment / Special traveler types

  1. Commuters:

    Commuters live in one country but work in another. This is a common situation in Europe, for instance, where many people live in one country and commute daily to work in another. A notable example is employees who reside in France but work in Switzerland, drawn by economic or personal preferences.

    For these workers, when doing a business trip or working temporary from abroad, tax and social security compliance needs special attention.

    WorkFlex's risk assessment engine takes these scenarios into account, ensuring that cross-border workers are always compliant with the appropriate tax and social security regulations when going on a trip.

  2. Expats:

    Expats are employees temporarily assigned to live and work in a different country. Imagine a German employee who is sent to Japan for two years to help build the company’s operations there. In such cases, expats often remain socially secured in their home country, but their taxation may shift to the host country, either partially or entirely.

    Navigating the tax and social security requirements for expats on a business trip or work-from-anywhere trip requires careful handling. WorkFlex flags these cases and ensures all the necessary documents are prepared, so your expat employees are compliant in both their home and host country, as well as the destination country when doing a business trip or temporary work from abroad trip.

  3. Matrix Managers:

    Matrix managers are balancing responsibilities across functional and project-based tasks in different countries. For example, a director based in Spain may oversee the Latin American market. When these employees travel to the countries they manage, they may trigger not only payroll obligations from day one - especially if their work is directly connected to the local business - but also extended PE risks, data security risks, and more.

    Our platform precisely handles the business trips and work-from-anywhere requests of matrix employees, ensuring that every workday in a foreign market is accounted for and compliant with local regulations.

  4. Remote Employees:

    Remote employees, either employed through an Employer of Record (EoR) model, or directly remotely, add another layer of complexity. In this scenario, an employee lives and works in a different country from their employer but does not regularly commute. For example, a Greek employee may be hired through an EoR by a German company.

    WorkFlex ensures that all cross-border and legal obligations are flagged when your remote workers travel, even when employees are employed remotely, either direct or through a third-party.

Why special cases require special attention

Each of these employment scenarios presents unique compliance challenges, especially when it comes to business trips or work-from-anywhere (workation) arrangements. Failing to account for these differences can expose companies unforeseen compliance risks and legal penalties.

At WorkFlex, our risk assessment engine doesn't just recognize these special cases; it actively manages them. We flag these scenarios, evaluate potential compliance risks across seven risk dimensions (VISA / work entitlement, permanent establishment, wage tax, social security, Posted Worker Directive, labor law and data security), and ensure that the correct measures are taken to stay compliant.

With the click of a button, our platform generates relevant documents, maintains an audit trail, and ensures your business operates smoothly across borders — no matter how complex the employment relationship.

For further assistance, please reach out to our support team or consult the detailed guides available in the Help Center.

Go to this article to see how you can flag these special travelers in the WorkFlex platform.

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