Work From Anywhere: How to Create a Compliant Policy in 2025

Are you struggling to implement a work-from-anywhere (WFA) policy that keeps both your employees and legal department happy?

You're not alone.

An increasing number of employees are seeking roles that offer flexible work as a company benefit. In fact, two-thirds of workers are willing to make concessions for greater workplace flexibility, proving the importance of company culture and attitude towards working from anywhere.

This trend not only benefits workers but also offers tangible advantages to hiring companies, including enhanced productivity, improved talent acquisition, and higher retention rates.

As a result, companies are racing to offer WFA as a benefit without fully understanding the compliance risks involved.

From visa and immigration laws to tax implications and permanent establishment risks, there’s a lot for businesses to take into account, particularly when operating across multiple jurisdictions.

At Deel, we’ve helped hundreds of companies create legally sound WFA policies. As a result, these companies now offer one of the most sought-after employee benefits effectively and compliantly.

In this guide, we’ll discuss how you can strike the right balance between flexibility and compliance, so you can enjoy the benefits of WFA schemes without compromising regulatory adherence.

The fundamentals of work-from-anywhere programs

Through work-from-anywhere (WFA) programs, employees can temporarily work internationally while maintaining employment in their home country. WFA programs are a hugely appealing employee benefit, but they require careful planning to ensure compliance with legal factors across multiple jurisdictions.

What is a WFA scheme?

A WFA scheme is a remote working arrangement that allows employees to temporarily work from different countries while maintaining their current employment in their home country.

Unlike global hiring (sourcing talent from different countries), WFA policies are an employee benefit designed to address cross-border temporary working arrangements. Employees are typically allowed to work from overseas for a set number of days each year while still officially residing in their home country.

Why more companies are adopting WFA policies

In recent years, our way of working has shifted dramatically due to the rise of remote workers. Employees have grown to truly value their flexibility. In fact, research by Owl Labs and Global Workplace Analytics has indicated that 74% of employees feel happier when they work remotely.

The good news for employers? Research has shown that happier employees are more productive.

So, if you want to benefit from happier employees, increased productivity, better employee satisfaction, and lower turnover rates, why not implement a WFA policy in your organisation today?

Deel Immigration can help you navigate the maze of visas with ease. Our employee immigration experts handle visa sponsorship, applications, and compliance in a fraction of the time. We’ll do all the heavy lifting so you can dedicate your time to your key business priorities and keep your teams productive.

Read more: A Guide to Work From Anywhere Schemes: Best Practices, and Compliance

How to create a compliant WFA policy: Step-by-step

There are six key steps for successfully implementing a WFA program, from assessing your organization’s readiness through to monitoring compliance and obtaining expert advice. Let’s run through each step:

1. Assess whether you’re ready

Before you start drafting your WFA policy, take the time to evaluate how prepared you are for a WFA program.

You’ll need to ensure your leadership team understands and supports the WFA concept, map your current workforce distribution, verify that your technology infrastructure is suitable for remote work, and identify which roles are compatible with WFA.

Once you’re happy with all of these factors, you’re ready to start planning your WFA scheme.

2. Create a risk management framework

Build a country risk matrix based on your organization’s risk tolerance. This will provide a structured approach to assessing risk.

Categorize countries as low, medium, or high risk based on tax treaties with your home country, visa requirements, permanent establishment thresholds, data security and protection regulations, and political stability. You should also consider other health and safety aspects.

Deel's legal experts maintain up-to-date knowledge of immigration and tax requirements in over 150 countries, helping you understand the specific risks associated with each potential work location.

3. Design your approval process

Start planning how employees will request WFA and how managers will approve this request. You’ll need to establish a clear system for WFA requests with a standardized application form, clear guidance on who can approve WFA requests, set timeframes for approval, and clear criteria for evaluating requests.

HR or other teams managing operations should establish a clear system for keeping track of WFA days used by each employee.

Deel HR makes it easy for employees to request days off and other benefits, such as WFA days. These can be requested in just a few clicks and sent to the relevant managers for approval.

4. Create your policy

Creating a detailed policy helps establish clear expectations and guidelines for both the worker and the company, avoiding any compliance risk and ensuring a good uptake of the scheme.

Your WFA policy should include:

• The definition of work from anywhere/work from abroad
• Who the policy applies to
• Rules around remote working abroad and limitations such as time zones
• Clear communication expectations
• Information on work hours and response times
• The policy’s impact on compensation and benefits
• Best practices for remote employees
• Equipment best practices
• Country risk matrix appropriate for your organization

We recommend combining your WFA and remote working policies since the two must co-exist.

Get your free WFA policy template in our Guide to Work From Anywhere Schemes.

5. Inform employees

Ensure all employees understand the program and set expectations through targeted training. HR staff will need detailed knowledge of compliance requirements, managers must understand the approval processes, and employees should receive clear guidelines about the program’s benefits and limitations.

6. Monitor your program

Once your WFA scheme is up and running, we recommend continuously improving your program by tracking adoption and compliance, gathering participant feedback, staying updated on regulatory changes, and refining policies based on employees’ experiences.

Key compliance considerations with WFA schemes

When implementing a WFA scheme, it’s crucial to consider four main compliance aspects:

• Visa and immigration laws (specifically their provisions for work or remote work in the intended country)
• Potential personal tax implications for the worker
• Potential corporate tax and social security obligations for the company
• Permanent establishment (PE) risks

Let’s dive into each of these considerations.

Visa and Immigration laws

Certain countries, like Canada, permit foreign workers to do productive work remotely while on a visitor visa. However, some nations require workers to hold work permits or digital nomad visas for such activities.

Generally, countries establish specific criteria defining lawful activities and the scope of work-related activities permissible within their borders under different visa categories.

Personal tax implications for workers

A worker’s tax obligations primarily hinge on their tax residency status, which is determined by various factors, such as the physical location where the work is performed, their center of household, and sometimes also their visa status.

Being a tax resident means that the individual is recognized as a resident for taxation purposes and is required to fulfill tax obligations in that jurisdiction. The specifics of tax liabilities can vary significantly across different countries, with some applying taxes from the very first day of arrival, whereas others may establish a threshold of up to 183 days.

Example: In the UK, an individual who spends over 183 days in a tax year and has their only home in the UK for at least 91 consecutive days—30 of which are within the tax year—is likely to be considered a resident under the automatic UK tests.

However, a person might also still be deemed a tax resident of their home country if they meet certain conditions, such as maintaining family connections, owning property, having a permanent home at their disposal, and engaging in significant economic activities there.

Plus, the nature of an individual’s work and the type of visa they hold can affect their residency status. Some visas may automatically bestow tax residency upon the holder in the host country.

Corporate tax implications for companies

Tax and social security obligations can vary significantly between individuals and organizations, influenced by various factors, including the size of the business, its industry, and its market presence.

For instance, an individual living and working in the UK might find that their business activities trigger a corporate tax liability before any personal tax obligations arise.

This scenario could unfold if local tax authorities determine that the company has established a permanent establishment in the country. In such cases, the income attributed to the PE would be subject to the country’s corporate income tax regulations.

With Deel, managing these compliance considerations couldn’t be simpler. We’ll take care of all tax implications and country-specific laws and regulations on your behalf. Our immigration experts are based all over the globe and have extensive knowledge of complex compliance issues that could easily be overlooked.

Who is responsible for ensuring WFA compliance?

In WFA schemes, the responsibility for compliance is a shared duty between the employer and employee. It is crucial for both parties to comply with local and international laws and regulations to avoid legal complications.

Given that companies face the most significant reputational and financial risks if local authorities uncover issues such as permanent establishment or tax evasion, it is imperative that they take a proactive approach. Companies can safeguard themselves against potential legal issues by implementing appropriate policies and practices.

Worker classification plays a role in responsibility

The classification of workers also plays a vital role in determining responsibility. Independent contractors who are self-employed bear the responsibility for their own tax obligations, including income and self-employment taxes, whereas the employer bears the responsibility for employees.

Adopting the contractor model for business relationships can simplify compliance administration for both the company and the contractor. Contractors are tasked with managing their tax obligations across all relevant jurisdictions and have the autonomy to organize their work schedule, allowing for travel and flexibility.

This arrangement can benefit both the company and the contractor by minimizing compliance burdens and enhancing work-life balance.

With Deel Contractor of Record, you can hire and classify contractors with ease, avoiding any compliance or misclassification risks. We’ll assess the correct worker classification and handle the hiring process on your behalf. We also bear all legal liability if misclassification were to occur.

See also: How to Hire & Manage International Contractors in 2025

Ready to start offering WFA to your employees?

Don’t let compliance concerns hold your organization back from offering the flexibility today’s talent demands. Deel is here to help.

Our in-house immigration experts become an extension of your team, assessing visa eligibility, providing visa sponsorship, and handling the entire visa process from start to finish. This enables your workforce to operate from 50+ countries—and counting.

Deel is the only provider that combines immigration, HR, payroll, and compliance in one system, so you can get a clear view of your entire organization. Explore our immigration services or book a demo today.