Employment contract for an employee working abroad

An employee sent to work abroad takes their English contract with them into a country whose own employment law, tax system and immigration rules apply whatever the contract says. The contract has to decide the structure (a secondment under the existing contract, or local employment by a local entity), choose the governing law knowing that local mandatory rules apply anyway, deal with the tax and social security position the employer and employee will face, make the visa and insurance arrangements conditions of the posting, set the pay and allowances, and provide for the end of the posting and the employee's return. I draft that contract for the employer for a fixed fee of £595, delivered in five working days, on the law of England and Wales, with the points needing local advice identified.

Who this is for

Employers in England and Wales sending staff to work in another country for a project, a posting or a period, and businesses with staff who have asked to work from abroad.

What matters in a contract for an employee working abroad

The structure: secondment or local employment

A short posting is usually a secondment: the employee remains employed by the UK employer under the English contract, with a secondment letter varying the place of work, the duration, the pay and allowances and the obligations during the posting, and any host entity's role stated; a long posting or one with a local entity may need local employment by that entity with the UK contract suspended or ended, which brings local employment law, tax and social security in full; the contract should record the structure chosen and the employer's reasons, because the structure decides which law governs most of the relationship.

The law that applies and the rights that travel

The contract should state that English law governs and the courts of England and Wales have jurisdiction, while recognising that the host country's mandatory employment rules (minimum wage, working time, termination protections, collective agreements) apply to an employee working there regardless, and that the Employment Rights Act 1996 may continue to apply to an expatriate employee whose employment retains a sufficiently strong connection with Great Britain, so that the employee may have unfair dismissal rights in both systems; the contract should say which rights the employer intends to preserve and which the employee may acquire, and local advice should be obtained on the host country's rules before the posting starts.

Tax, social security and the employer's presence abroad

An employee working abroad may become tax resident there, the employer may acquire a taxable presence through the employee's activities, and social security contributions may be due in the host country unless a certificate of coverage under a reciprocal agreement keeps the employee in the UK system; the contract should state the employee's responsibility for their own tax position, the employer's tax equalisation or protection policy where there is one, the employer's withholding obligations in both countries as the accountants advise, and the employee's cooperation with filings, with the tax structuring the accountants' work and the contract drafted to record it.

Immigration, insurance and the employee's safety

The contract should make the grant and maintenance of the visa or work permit a condition of the posting, state who applies and who pays, require the employee to comply with the permit's conditions, and provide for the posting to end if the permit is refused or revoked; it should state the medical, travel and emergency insurance the employer provides, the employer's duties under the Health and Safety at Work etc. Act 1974 which extend to work abroad, the security arrangements where the posting is in a higher-risk location, and the evacuation and repatriation arrangements, with the employer's duty of care to an employee it has sent abroad taken seriously in the drafting.

Pay, allowances and the cost of the posting

The contract should state the salary and the currency of payment, the allowances (cost of living, housing, relocation, home leave, schooling where provided), the treatment of exchange rate movements, the benefits that continue (pension, which may be affected by the posting, and private medical cover), and the employee's expenses, with the written particulars under section 1 of the Employment Rights Act 1996 updated for a posting of more than a month to state the period, the currency, the additional pay and benefits and the terms of return, as the Act requires.

The end of the posting and the return

The contract should set the posting's duration and the employer's right to end it early (on notice, on completion of the project, on loss of the permit, on the employee's breach, on security grounds), the employee's right to return to a role in the UK and the terms of that role, the repatriation of the employee and their family, the repayment of relocation costs on a sliding scale if the employee resigns within a stated period, the handover and the return of property, and the position if the employee wishes to stay abroad after the posting ends; a posting with no return provisions produces a dispute at the end rather than the beginning.

What it costs

Employment contract, £595. One template you can reuse for a grade of staff. Five working days.

Staff handbook and core policies, £995. Five working days.

Buying online forms the engagement on payment. The scope is what the employment contracts and handbooks page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A bespoke contract drafted for how you employ people
• Restrictive covenants drafted at a scope a court will uphold
• Confidentiality and intellectual property provisions that put ownership where it belongs
• The statutory particulars, so the document does the job section 1 of the Employment Rights Act 1996 requires it to do
• Flexibility clauses where you genuinely need them, drafted to survive challenge
• Core policies: disciplinary, grievance, sickness absence, equal opportunities, data protection and, increasingly, AI use
• One round of amendments

What is not included

• Acting for employees
• Employment tribunal representation
• Payroll, pensions auto-enrolment and tax
• Immigration and sponsor licence work
• Day to day HR handling, disciplinaries, grievances and redundancy processes

Questions I am often asked

Can our employee keep their English contract while working in France?

Under a secondment letter, yes, but French mandatory employment rules apply to work done there regardless, and local advice on them is needed. The contract records the structure and the points needing local advice.

Who pays the employee's tax abroad?

The employee is responsible for their own tax, with the employer operating any withholding in both countries as the accountants advise. A tax equalisation policy, where the employer has one, is recorded in the contract.

What happens if the visa is refused?

The posting cannot start, and the contract makes the permit a condition of the posting with the employment continuing in the UK or the posting cancelled, as the contract provides.

Related guidance and services

• Employment contracts and handbooks, £595, the service this page describes
• Consultancy and contractor agreements, £595
• Settlement agreements for employers, £795
• Employment contract for a remote worker
• Consultancy agreement for work outside the UK

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: October 2026. Email geoffrey@caesar.co.uk.