Law

Plan workation: What must be clarified before working from abroad

Workation needs more than Wi-Fi and a laptop. The guide explains approval, A1, taxes, data protection, and a practical request from Austria.

Adult employee plans an approved workation on a summery terrace abroad

Working a few weeks from a holiday destination sounds straightforward: pack your laptop, book accommodation with Wi‑Fi and head to the sea after work. For employees in Austria, a Workation but more than a change of location. Once the work is actually performed abroad, questions can arise about consent, social security, taxes, residency rights, data protection and accident insurance. A private vacation booking therefore does not replace company approval.

Anyone who owns a Workation from Austria should therefore proceed systematically. This guide shows what employees should clarify in advance, which information the employer needs, and why even a short stay should not be organized on short notice. It does not replace individual legal or tax advice, but it helps prepare a well-founded request and identify common gaps early.

What distinguishes a Workation from vacation, a business trip and telework

The term Workation combines work and vacation, but it is not its own employment-law category with automatically fixed rules. In practice it usually means that employees, at their own request, temporarily work from private accommodation abroad and take vacation before or after. During the agreed working hours they work; only the remaining time is leisure.

For clear planning, four situations must be distinguished:

  • Vacation: The obligation to work is suspended. Someone who voluntarily answers emails does not thereby create an approved workation.
  • Telework: Work is performed regularly or occasionally outside the company. The location and framework must be agreed.
  • Business trip: The employer arranges the trip for business reasons. This affects, among other things, who bears the necessary costs.
  • Workation:The choice of location typically originates with the employee. Whether and under what conditions it will be agreed must be clarified in advance.

This distinction is practically important. Someone who wants to stay privately for a longer period and work from there cannot automatically assume the same expense or travel-time rules as for an ordered business trip. An overview of company-initiated travel is provided by the jobspot.at guide to Business travel, expense reimbursement and mileage allowance.

A workation should not start without the employer's consent

The Chamber of Labour points out that telework must be agreed and cannot be unilaterally imposed by either the employer or employees. According to § 2h AVRAGthe locations of telework must be recorded in writing for evidentiary reasons. The Chamber of Labour on telework explicitly also mentions an agreement on working from abroad as a possible arrangement.

An existing home office rule for one's own apartment in Austria is therefore not a blanket permission to work abroad. The specific country alone can already be decisive for the legal review. The written approval should include at least the country, address or place of stay, period, working days, working hours, availability and the tools or equipment used.

The employment contract can also contain limits. Anyone who has never checked the agreed place of work, reporting obligations, side agreements or cost arrangements should consult the article How to properly check employment contract and written terms of employment consult it.

Seven areas to check before working from abroad

1. Destination country, nationality and residence rights

Whether someone is allowed to work in the destination country does not depend solely on the Austrian employment contract. Relevant factors include nationality, length of stay, the specific destination country and the type of activity. EU citizens can, according to the information from Your Europe grundsätzlich in einem anderen EU-Staat ohne Arbeitserlaubnis arbeiten. Trotzdem können Anmelde- oder Aufenthaltsvorschriften gelten.

Bei Drittstaaten ist eine touristische Einreise nicht automatisch eine Erlaubnis zur Erwerbstätigkeit. Manche Länder bieten spezielle Visa für mobiles Arbeiten, andere behandeln Remote-Arbeit strenger. Deshalb sollte der Arbeitgeber das Zielland kennen, bevor Flüge oder Unterkunft nicht mehr stornierbar sind. Ein Satz wie "I'm only going to be there for two weeks" ersetzt keine Prüfung.

2. Social security and A1 certificate

Social security law is generally tied to the actual place of work. Within the EU, the EEA, Switzerland and in certain constellations with the United Kingdom, European rules coordinate which state is responsible. For a temporary activity abroad or activity in multiple states, a PD-A1-Bescheinigung der Österreichischen Gesundheitskasse can demonstrate which social security regulations apply.

Whether the planned workation is legally to be classified as a temporary secondment, ordinary activity in multiple states, or something else depends on the individual case. Payroll or a competent advisory body should make this classification. For states outside the European coordination area, it should additionally be checked whether a bilateral social security agreement exists and what proof is required.

The European Health Insurance Card does not replace the A1 certificate. It concerns access to medically necessary services during a temporary stay; the A1 certificate, by contrast, documents the applicable social security regulations.

3. Income tax and potential employer obligations

In the case of cross-border work, the physical place of activity is relevant for tax purposes. The well-known 183-day rule is not a general carte blanche for short workations. As the Chamber of Labour on cross-border employment relationships explains, the respective double taxation agreement and several prerequisites must be examined together.

Depending on the country, duration, and activity, registration, payroll tax, or documentation obligations may also arise for the employer. In the case of management functions, contract conclusions, or regularly used foreign workplaces, the question of a tax permanent establishment may also arise. The Economic Chamber on telework abroad therefore recommends an examination according to Austrian law, foreign law, and the applicable double taxation agreement.

For employees, this means: Do not argue with a number of days yourself, but fully disclose the country, period, and activity. Written approval is more reliable if payroll accounting or tax advisors have been able to assess the facts.

4. Employment law, local minimum standards and reporting obligations

The Austrian employment contract does not automatically remain the only relevant level. Depending on the destination country, mandatory local occupational safety, working time or reporting regulations may come into play. In the case of a genuine secondment, formal notifications may also be required. A voluntarily requested Workation is not a classic secondment in every case, but it should not be treated as a purely private matter without review.

Activities involving client appointments, site visits, local power of representation or work in regulated industries are particularly sensitive. Those who only perform internal tasks on a laptop often have a more limited profile. However, this does not change the fact that the specific constellation must be documented.

5. Accident insurance and proof of work-relatedness

In telework, an accident may be insured if it has a causal connection to the professional activity. According to Arbeiterkammer on accident insurance it must be possible to demonstrate that, in the case of an accident in the domestic or mobile environment, it occurred during and because of work.

In a Workation, work, private stay and leisure are spatially closely intertwined. Therefore, clear working hours, a designated workplace and timely documentation help. Going to the beach after the end of the working day is different from going to the agreed workplace. The AK Niederösterreich weist bei Telearbeit an wechselnden Orten außerdem darauf hin, dass nicht jeder Weg denselben Unfallversicherungsschutz wie eine Tätigkeit in der Wohnung hat.

6. Working hours, time zone, availability and costs

The agreed working hours, rest periods and company rules also apply at the holiday location. A different time zone can complicate team meetings, customer availability and daily rest periods. Before approval, the following should be clarified:

  • Which local working hours apply and how they are recorded.
  • During which time window the person is available to the Austrian team.
  • Whether the time difference will result in night, Sunday or public-holiday work.
  • Who pays for internet, a coworking space, additional insurance or the shipping of work equipment.
  • What happens if the connection fails or work equipment is damaged.

When a workation is organized at the employee's private request, no one should tacitly assume that the employer will cover flights, accommodation, or meals. Conversely, necessary company work equipment and agreed costs must be clearly regulated. The more specific the request, the easier it is for the company to assess effort and risk.

7. Data protection, trade secrets and IT security

A hotel Wi-Fi is not an equivalent substitute for a secured corporate connection. The Austrian portal "Online security for public Wi-Fi networks recommends, among other things, encrypted connections, VPN use, and restraint with confidential data. For a workation, only company-approved devices, up-to-date software, multi-factor authentication, and company VPN access should be used.

When personal data or trade secrets are involved, the place of work can also be relevant. Screens, conversations and documents must not be visible to third parties in accommodation, the lobby, or a coworking space. Printouts do not belong in hotel waste bins, and private cloud storage is not an improvised means of data transfer. In sensitive roles, the employer may exclude certain countries or activities for understandable reasons.

Why a company may refuse a workation

A refusal is not automatically a sign of a lack of trust. A company must bear risks related to social security, taxes, data protection, customer requirements, and business operations. Common objective reasons include:

  • The destination country is not approved internally or has not yet been legally reviewed.
  • The activity requires physical presence, secure facilities, or special hardware.
  • Customer contracts prohibit data access from certain countries.
  • Time zone and availability do not match the role.
  • The requested period is too long or is contiguous with many additional days abroad.
  • Payroll cannot complete necessary notifications in time.

A good request anticipates these points. It does not merely ask for a yes or no but provides a verifiable scenario and, if necessary, offers a shorter duration or another EU country as an alternative.

This is how an idea becomes an approvable application.

Step 1: First check the company rules

Check the employment contract, telework agreement, works agreement, IT policy and travel rules. Some companies only allow workations in a list of countries, limit the days per year or require several weeks' notice.

Step 2: Summarize all key details on one page

State the destination country, exact accommodation or region, period, working days, vacation days, time zone, planned working hours, tasks, types of data, work equipment and availability. Also indicate whether there were additional working days in the same country during the current year. This information can be important for the overall legal assessment.

Step 3: Formulate a realistic business benefit

Do not promise higher productivity that cannot be proven. A more sensible approach is a factual plan: ongoing tasks remain covered, key deadlines are met, cover arrangements are clarified and the workation is combined with regular vacation. Those discussing mobile work with a new employer will find additional checklist questions in the article Evaluate job offer, working hours and benefits.

Step 4: Wait for approval and supporting documentation

Book with the option to cancel where possible and do not treat an oral positive response as full approval. Only when responsibilities, A1 or other documentation, IT access and a written agreement have been clarified should the work phase be scheduled definitively.

Template for a concise Workation request

I would like to work temporarily from [Land und Ort] from [Datum] to [Datum]. Planned are [Anzahl] working days and [Anzahl] vacation days. My working hours would be from [Uhrzeit] to [Uhrzeit] local time; this ensures availability for our team from [Uhrzeit] to [Uhrzeit] Austrian time. I will work exclusively on the company device, using VPN and multi-factor authentication. On-site customer appointments or contract signings in the destination country are not planned. Please check whether the Workation is possible under our policies and which documents or additional agreements are required.

The template is intentionally concise. It does not replace company-specific information, but demonstrates that working hours, tasks, IT security and legal review are being taken seriously.

Workation checklist by schedule

Six to eight weeks in advance

  • Check the company policy and permitted countries.
  • Submit a request specifying the location, period, work days and vacation days.
  • Initiate residency, social security, and tax checks.
  • Book only cancellable travel services while the approval is pending.

Before departure

  • Obtain a written telework agreement and necessary documentation.
  • Test VPN, multi-factor authentication, updates, and emergency contact.
  • Confirm time tracking, availability, and backup arrangements.
  • Check insurance coverage and medical care in the destination country.

During and after the workation

  • Work only at the agreed location and during the agreed times.
  • Document working hours and unusual incidents in a traceable manner.
  • Immediately consult if you change location, extend your stay, or encounter a technical disruption.
  • After returning, check devices, return documents securely, and report the actual days spent abroad.

Frequently asked questions about Workation

Can I quickly work from abroad while on vacation?

Vacation and working time should be kept separate. If work is actually to be performed, a prior agreement on telework at the foreign location is required. A spontaneous round of emails from the hotel can also raise issues concerning working hours, data protection, and insurance.

Is a Workation within the EU automatically allowed?

No. The EU facilitates free movement and coordinates social security, but it neither removes the required employer approval nor tax, registration or operational requirements.

Do I need an A1 certificate for a few days?

The length of stay alone does not answer the question. The employer or the competent authority must classify the specific cross-border activity and apply for the required proof in good time.

Can the employer revoke the Workation?

That depends on the agreement and the circumstances. Clear rules on IT outages, security issues, operational necessities and changes to travel arrangements are advisable. A return or cancellation procedure should not only be discussed once a problem arises.

Who pays for travel and accommodation?

For a privately requested Workation, flights and accommodation are not automatically employer expenses. Necessary work equipment, agreed expenses and any additional costs should be expressly regulated. The distinction from a business trip remains decisive.

Conclusion: Check first, then pack your laptop.

A workation can work well if it is planned as temporary cross-border telework rather than an extended holiday with occasional emails. Crucial are a clearly designated workplace, written consent, social security and tax issues checked in good time, secure technology, and clear working hours.

Whoever prepares the application should present the employer with a complete, limited, and organizationally realistic solution. That way a vague wish becomes a verifiable agreement. The next sensible step is therefore not booking the flight, but a one-sided list of key details for the manager, the HR department, and payroll.

Sources and further information