What's Happening?
UK businesses are increasingly adopting policies that allow employees to work remotely from international locations, a trend known as 'workcations.' According to a survey by Grant Thornton, the number
of mid-market businesses with policies supporting international remote work has risen from 59% in 2023 to 77% in 2025. This shift is driven by the benefits of global mobility, such as expanded talent pools, reduced costs, and enhanced flexibility and retention. However, businesses face challenges related to evolving tax and compliance rules. The survey found that while nearly 30% of employers did not track the location and duration of remote work in 2023, this figure has dropped to just 2% in 2025, indicating increased investment in monitoring and compliance processes.
Why It's Important?
The expansion of remote work policies to include international locations reflects a significant shift in workplace dynamics, offering employees greater flexibility and potentially improving job satisfaction and retention. For businesses, this trend can lead to cost savings and access to a broader talent pool. However, it also necessitates careful management of tax compliance and regulatory issues, which can pose risks if not properly addressed. As remote work becomes more structured, companies that successfully balance flexibility with compliance may gain a competitive edge in attracting and retaining talent.
What's Next?
As remote work policies continue to evolve, businesses are likely to further refine their strategies to manage international remote work effectively. This may involve investing in technology and processes to ensure compliance with tax and regulatory requirements. Additionally, companies may explore new ways to leverage global mobility as part of their workforce strategy, potentially leading to more structured and strategic approaches to remote work.
Beyond the Headlines
The trend towards international remote work raises questions about the long-term implications for workplace culture and employee well-being. While 'workcations' offer flexibility, they may also blur the lines between work and personal life, impacting work-life balance. Furthermore, businesses must consider the ethical and legal dimensions of remote work, particularly in terms of employee rights and data privacy.
