32 | TECHNICAL
Maximising global mobility: what the OECD’s work means for payroll professionals F or payroll teams, the world of work has never been more complex, or more international. The rise of hybrid and global guidance designed to simplify how employers navigate these obligations.
Potential for a ‘safe harbour’ framework One of the most impactful ideas discussed at the OECD’s recent conference
remote working means employees can now work almost anywhere, often without setting foot in the country where their employer is based. Technology has made the traditional office commute optional and, in many cases, obsolete. As a result, employees now increasingly view remote working, domestically or overseas, as an expectation rather than a benefit. The Organisation for Economic Cooperation and Development’s (OECD’s) January 2026 conference on ‘the global mobility of individuals’ marked a turning point in recognising that the way people work has changed significantly. With over 100 countries looking to align on how to manage cross-border working, this is a substantial step towards delivering some much-needed clarity and consistency for payroll professionals. The OECD has also recently released its guidance on whether a remote worker can create a fixed place of business for corporate tax purposes. Why this consultation matters for payroll teams You can view the consultation, here: https:// ow.ly/j2lA50YvjAY. Recognition of the compliance burden Remote and cross-border working has created a web of tax, social security, payroll and immigration obligations, most of which initially fall at payroll’s door. Even short periods of work abroad can trigger foreign tax withholding, host-country payroll setups and other reporting obligations, with rules varying significantly by jurisdiction. Tracking employees’ movements and ensuring accurate withholding is already a major operational challenge. The OECD’s recognition of these complexities is significant. For the first time, there’s real momentum behind creating
was the introduction of a ‘safe harbour’ – a globally agreed threshold of days that an employee could spend working in another country
without immediately triggering payroll or reporting requirements for employer or employee. For payroll, this could be transformative. It would vastly reduce the volume of ad hoc international payroll
assessments, limit the need for new in-country payroll registrations for short stays and provide a clear, consistent rule set to apply across the organisation.
Support for smaller employers Small and medium-sized employers often struggle most with cross-border payroll compliance because they may not have the significant budget and resources needed to navigate every country’s rules. Many feel forced to reject employee requests for overseas working or avoid employing overseas talent because the compliance risks feel unmanageable. The OECD’s focus could help level the playing field. What this means for employers Greater ability to approve remote working requests and recruit globally Many employers already receive requests such as, “Can I add a working week to my overseas holiday?”, “Can a prospective
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