The boundaries between professional obligations and personal autonomy are becoming increasingly blurred in today's working world. One notable trend arising from this transition is the concept of "workation"," which combines work and holidays and allows employees to fulfil their duties from attractive, sometimes remote locations. In the post-pandemic era, organisations are redefining the workplace by introducing codified workation policies to attract and retain top talent while increasing productivity and wellbeing.

This article looks at the concept of workation, its increasing use by organisations, the key HR and legal aspects and the best practices for implementing successful workation policies.

What is a Workation?

A workation is a flexible employment relationship in which employees temporarily move to a leisure-oriented location while maintaining their work duties remotely. Unlike traditional remote work from home, workation often involves working from a foreign country or location for a short, authorised period of time. It's appealing because it gives you the opportunity to fully immerse yourself in a different environment and culture without having to take time away from your career.

Professionals are increasingly combining work and pleasure, utilising locations such as a property on the coast of Bali or a mountain lodge in Switzerland, coining phrases such as "zoom with a view" and "slack from Santorini".

Why Are More Companies Choosing Workations ?

Below are some key reasons why workations are becoming increasingly popular amongst companies.

Talent Attraction and Retention

 In a competitive employment landscape, particularly in the areas of technology, digitalisation and creativity, providing more flexibility has proven to be a key differentiator. Workplaces demonstrate confidence and forward thinking, enabling organisations to attract Millennials and Gen Z who value independence, lifestyle and autonomy combined with career progression.

Improves Mental Health & Prevent Burnout

It is possible that a change of working environment is beneficial to mental health. You can help your employees avoid burnout and break the monotony of the daily grind by allowing them to work from a holiday location, a rural retreat or a cultural capital. This will also make them more motivated and engaged at work.

Global Mobility Without Long-Term Commitments

In contrast to permanent remote work or migration, workations are temporary and usually last between two weeks and three months. This simplifies administration from a human resources and legal perspective while offering the benefits of global engagement.

Hybrid and In-Office Companies Offering Workation Options

Organisations that opt for a hybrid or on-site model can introduce Workations as a formal incentive. This method allows organisations to maintain their personal culture and team cohesion while meeting the travel and lifestyle flexibility needs of their employees. However, these work assignments often come with strict approval procedures, restrictions on destination and duration of travel to ensure compliance with labour standards and avoid international tax or immigration complications.

Advantages of Offering Workation Options

• Maintain awareness of organisational culture and physical presence
•  Mitigates logistical difficulties by limiting time parameters and locations
•  Attracts employees seeking a dual advantage 

Challenges:

• Demand for comprehensive planning and monitoring instruments
•  Coordination of time zones and facilitation of communication within the team
•  Ensuring compliance with labour, tax and data protection regulations

HR and Legal Considerations

Although the idea of enjoying a coffee on a terrace in Lisbon while studying reports is appealing, the realisation of this scenario is somewhat complicated from a legal point of view.

 Immigration and visa regulations

 Employees working from another country may require a visa or work permit as many countries prohibit employment or temporary work on a tourist visa.Countries such as Estonia, Portugal and Barbados have introduced visas for digital nomads for this reason; however, companies must still give their employees cautious instructions.

Tax implications

An employee who spends more than 183 days a year in a country may be classed as a tax resident, imposing tax obligations on the company. HR departments must monitor the length and characteristics of each employment period to avoid unexpected tax implications.

 Compliance with labour law regulations

Labour laws vary from country to country. If a company is managing remote teams from abroad, it may unintentionally fall under local labour restrictions. This can affect all aspects, including termination rights and liability for overtime pay.

Cybersecurity

Public Wi-Fi and local internet networks jeopardise the security of company data. Organisations need to set up secure VPNs, use encrypted devices and enforce certain standards for international access to critical information.

Optimal Strategies For The Implementation of Workation Policies

To avoid risk and ensure a positive experience for both the company and the employee, organisations implementing workation policies should consider the following steps.

Establish an authorisation process: This will require employees to submit location, travel dates and emergency contact information for assessment.

Use tracking tools: Use HR platforms or apps such as Deel, Remote or WorkFrom to monitor compliance and paperwork.

Train your employees: Provide manuals or webinars on tax regulations, visa requirements, cybersecurity and time zone coordination.

Encourage team cohesion: Encourage frequent meetings, virtual gatherings and joint projects to ensure alignment between all members.

The Bottom Line

Workations are more than just a perk; they are a sign of a larger shift towards work-life integration. Companies that adopt flexible models while respecting laws and cultural norms will lead the way as the world of work becomes more global and digital.

As technology makes it easier for people to collaborate remotely, and as governments enact regulations that accommodate digital nomads, workation could become a typical part of today's job offerings.