How to determine the place of remote work for a foreigner?

A foreigner has been hired - a resident of Italy, who will do the work remotely. Can the employee's place of residence be specified as the place of work in the employment contract? In such a case, can trips to Latvia for a foreigner be considered business trips and work trips and be compensated according to the legislation? The company is registered in Latvia and has no representation in other countries.

Employee's workplace

Remote work is a type of work when an employee periodically performs work outside the company using technologies that enable remote work.

Article 53 of the Labor Law (DL) stipulates that the employee is obliged to perform work in the company, unless the employee and the employer have agreed otherwise. The right to agree on remote work is also established in Article 40, Part 2, Clause 4 of the DL, providing for the employee's right to freely determine his workplace, if there are no specific requirements for the workplace for the performance of work duties.

This allows us to conclude that the Latvian company has the right to agree with the employee - a resident of Italy - on the form of the remote work regime, specifying the address of the employee's place of residence outside the company (also outside the territory of Latvia) as the place of work. In addition, it should be noted: if an employee changes his place of residence, he is obliged to report this to the employer in order to agree on amendments to the employment contract in accordance with the part of Article 97 of the Labor Code, which applies to the workplace.

Missions and business trips

When employing a foreigner remotely, whose place of residence is determined as the place of work (if the employee's permanent place of work is abroad), cases may arise when it is necessary to go on a business trip or business trip, including the obligation to come to the company.

Despite the fact that the terms "business trip" and "business trip" are almost similar, there is a difference between them (also in the order of expenses). A more precise explanation is provided in Cabinet of Ministers (MK) regulations No. 969 "Procedure for reimbursement of expenses related to business trips".

In the sense of paragraph 2 of Regulation No. 969 of the MK Republic of Latvia (if the employee's permanent place of work is abroad) to:

  • perform work or service tasks;
  • supplement knowledge and increase qualifications.

On the other hand, a business trip is an employee's work within the meaning of Clause 3 of Regulation No. 969 of the Cabinet of Ministers, if it takes place on the road (for example, in the road transport, railway, maritime or aviation industry) in the Republic of Latvia or abroad, or if the work is related to regular and systematic departures and movements (for example, in the construction or logging industry).

Although Article 76, Part 1, Clause 1 of the DL states that the employer is obliged to reimburse expenses which, according to the employment contract, are necessary for the performance of work, which is related to the employee's business trip or business trip, the regulations of the Ministry of Internal Affairs No. 969 provide for a more precise provision for business trips the procedure for reimbursement of related expenses (for business trips), which must be taken into account when calculating the amount to be paid to an employee for a business trip or business trip.

In addition, it should be noted that according to Article 76, Part 2 of the Labor Code, before going on a business trip or business trip, the employee has the right to ask the employer to pay an advance payment in such an amount that the employee can cover all expenses related to the business trip or business trip.