Workation: Everything employers and managers need to know

Workation: What is it?

Workation is a so-called portmanteau word that is made up of “vacation” and “work.” The idea behind it: Employees can work from anywhere – even from abroad – thanks to increasing digitalization. Instead, they can explore their surroundings before and after work – and enjoy the vacation feeling away from the daily work routine after work and on weekends. 

By the way, a work assignment is not the same as work and travel. With the former, you already have an employment relationship that they simply perform abroad. In the latter, they travel to another country to take a job there. 

For whom is a work on vacation job suitable?

Workations are not feasible for every profession. As a rule of thumb, if you can do your work from your home office without any problems, you can also do it from your vacation destination. 

Workation is particularly suitable for jobs in the following industries:

• IT

• Marketing and content creation

• HR

• Accounting

Work and vacation: What are the requirements?

The respective requirements for employees vary from company to company. However, there is one legal guideline: According to labor law, employees are allowed to work abroad for a maximum of 183 days per year in order to still be liable to pay taxes in Germany. Above this, employees become liable for income tax in the respective country. However, the 183-day rule does not entitle employees to this many days. Many companies allow their employees, for example, 30 days to 90 days per year. 

Of course, it is crucial that employees are able to perform their work properly. Probably the most important requirement is therefore a stable Internet connection. 

Also important:

Time zone: Not every company allows workations in other time zones or in workation in other EU countries. Employees should therefore consider in good time when planning their workation what limits there are here. In any case, it will be necessary for employees to coordinate with colleagues and supervisors for meetings. 

Workstation: What hardware do employees need at their workplace? And are employees allowed to change places or use coworking spaces, for example, during the Workation? These are all questions that need to be addressed before the stay. 

Working hours: Should employees keep their working hours – or do flex time apply to them? Can care be taken to ensure that they can finish work on time so that they can also benefit from their stay?

Planning: Flights, vacation home, return travel – these are all crucial points that employees need to consider in order to apply for a workation. 

Communication: Be clear about what you expect from your employee during their stay – and what you hope to gain from the workation. 

Visa: Does the employee need a visa to work in the target country? Many countries have now adapted to the increasing number of workations – and offer corresponding visas.

In the meantime, there are various providers who advise companies on their workation offer – in an uncomplicated and professional manner. 

Advantages and disadvantages of a workation for employees and employers

Combining vacation and work – this has both advantages and disadvantages. But: Workation has a particularly positive effect on the relationship between employee and employer. Clear rules and guidelines regarding the work model help to avoid disappointment on both sides. 

Advantages of a workation

For employees:

• Better work-life balance

• Higher motivation, employees can focus better on work.

• More creativity

• Mental health

• Team mentality and cohesion

• Finding new networks

• Flexibility

• Broaden horizons

For employers: 

• Strong employer branding

• Team building is promoted

• Employee loyalty is strengthened

• Showing appreciation

• Better work results

• High employee satisfaction

• Attractiveness as an employer increases 

Disadvantages of a Workation

For employees:

• The blurring of the boundaries between work and vacation can create pressure to always 

• Lack of personal communication.

• Possible technical difficulties.

For employers:

• Increased coordination effort.

• Little control over the employee and their work. 

Who pays for the workation?

Basically, employees pay for their workation. In some cases, companies pay for accommodation, employees then “only” have to secure airline tickets or meals. Regardless of how you want to resolve the issue of costs in your company – make sure that the associated rules are known to everyone involved at all times. This ensures that no false expectations arise when combining work and vacation.

What insurance is needed for workation? 

Short stays abroad are usually covered by health insurance. Exactly how long this period is depends on the respective health insurance. In addition, the health insurance is only valid in the EU and not for Workation outside the EU, as well as only for basic care. So a travel health insurance makes sense in any case.

As a rule, employees remain socially insured during the workation. The decisive factor is that the place of residence is in Germany and that at least 25% of the work is performed there. If employees wish to work outside the EU, a social security agreement must exist between the destination country and Germany.