Remote Working Legislation, Laws & Regulations in Monaco

Please note that with respect to Monaco, we need to distinguish between “Telework” which enables employees to work from their main home or from a declared third location and “Remote Working” - implemented during covid-19 periods – which can be carried out at any location (employee's main home, third location, other).

As mentioned below, Telework is authorized and strictly regulated by Monegasque law, whereas Remote Working is no longer authorized.

The Monaco legislator issued Law no. 1.429 dated 4 July 2016 on telework, which defines the telework modality, the conditions necessary to implement it and the entitlements due to employees who telework.

This law was supplemented by a ministerial order whose last version was published on 2 September 2016, which essentially provides the contractual provisions necessary for telework. 

The employer must define the general terms and conditions of Telework in a specific Telework scheme – the “dispositif cadre”.

This document, which contains the various Telework modalities, must be sent to the Labour Inspectorate, which will approve it explicitly within two months as of the communication, or implicitly, which is deemed to have happened if the Labour Inspectorate fails to answer within this timeframe. 

Staff delegates must then be informed of the content of the “dispositif cadre”.  Further modifications can only be implemented after certain formalities have been completed (e.g. receiving the Labour inspectorate’s approval and informing staff delegates).

Once implemented, the use of Telework by an employee requires a specific clause in his/her contract (or a specific rider), which must contain statutory provisions defined by a ministerial order.

For each employee, the Telework modality and place of performance must be declared to the employment services in charge of the work permits.

No, Telework relies on the agreement of both the employer and the employee concerned. The Law specifically states that an employee’s refusal to Telework for part of his/her duties is not a valid ground for terminating the contract.

No, Telework is only possible if both parties agree, which is then reflected in the employee’s employment contract (or a specific rider).

The employer is bound to bare the costs of the necessary equipment and supplies, and any costs directly incurred by the Telework activity (e.g. for software, subscription, communication tools and their maintenance).

Yes, the employer must reimburse the cost of any professional expense incurred due to Telework, plus any usual reimbursement of professional cost that the employee would incur, just as with any other employee.

The law expressly states that Teleworking employees have the same collective rights as all other employees. Any collective benefit, such as lunch vouchers for example should be provided to Teleworking employees.

Law 1.429 does not provide for any other specific allowance for working from home. However, the Ministerial order refers separately to indemnifying the employee for using his/her home as a place of work. In practice, there is no fixed amount for working from home. This is generally dealt with in the “dispositif cadre”. 

The employer remains responsible for the employee’s health and safety, and must define in the employment contract clause the modalities through which this protection is ensured, including any relevant information related to workstation ergonomics.

The employer must do the following:

• draft a written Telework agreement to be signed by both parties;
• set the requirements for a Teleworking employee, in terms of hours and days worked, workload, and expected productivity;
• control the employee’s working time (hours and days) and determine the time slots during which he/she can be reached;
• organise an annual individual interview with the employee, which will cover Teleworking conditions;

Yes, and the employee must provide the employer with a certificate of insurance coverage before Teleworking can begin.

The employer also needs to ensure that the risks related to the use of the company’s equipment in the employee’s home is duly covered, either by entering into a specific insurance contract to that end or by reimbursing any insurance fees the employee incurs for that purpose. The employer must also extend workplace accident coverage for employees to include Teleworking.

Compared to other countries such as France, there is no legal presumption that an accident occurring at home during working hours is necessarily a work accident. In Monaco, however, Teleworking employees benefit from the same protective provisions related to work accidents as any other employee, provided that Telework has been set up in accordance with the legal requirements in force, and that the Monegasque insurer has been informed that there are Teleworking employees. Indeed, according to the law, a work accident is defined as any accident occurring due to work regardless of where the work is performed.

No. Employee cost savings cannot be deducted from the amounts owed due to Telework.

No.

There has been no new legislation on Telework since 2016 and no change is currently being contemplated.

Remote Working was exceptionally authorised during the period of the COVID-19 pandemic for all employees of the Principality of Monaco (outside of Teleworking), and has been extended for Italian residents until the end of 2022 on an exceptional basis.

Today, Remote Working is again strictly forbidden.

Telework is authorised and strictly regulated by Monegasque law, whereas Remote Working is no longer authorised.

Monegasque labour law remains applicable to the employment contract during Teleworking periods even if the place of residence or third location is in France (or in Italy when agreements between Monaco and Italy are applicable).

Employees are not allowed to Work Remotely from abroad or Telework outside the third place or their main domicile located in Monaco, France (or Italy when a Telework agreement is applicable).

Not applicable. (Remote Work is forbidden).

In the case of Teleworking, the employee's tax situation remains unchanged as there is no personal taxation in Monaco and no withholding tax levied at source on Monaco income.

As far as the employer is concerned, the implementation of Teleworking may have an impact and generate a risk of permanent establishment in the state where the activity is carried out under domestic laws or tax treaties.

According to Article 5 of the OECD Model Tax Convention, a company is deemed to have a permanent establishment in another state if it carries out business there through a fixed place of business or through a dependent agent duly authorised to bind the company in law or in fact.

As a result, it is highly recommended to – prior to any implementation – assess the risk of permanent establishment either in France or in Italy.  

Employees must already hold a residence permit to work and/or reside in France or Monaco if they are not nationals of the European Economic Area. Note that this must be distinguished from the tax residency, which is determined according to the domestic rules and double tax treaties.

Teleworking may not represent more than two-thirds of the employee's weekly working time. (For a full-time employee, Teleworking may not exceed three days per week).

Teleworking days are fixed and must be included in the mandatory telecommuting rider.

Once the probationary period is over, Teleworking for an indefinite period can only be called into question with the agreement of both parties.

Telework (from the employee's place of residence or a designated third location) can only be carried out from Monaco, France (and Italy when the agreements between Monaco and Italy are applicable).

France and Italy are the only two jurisdictions to have signed a bilateral social security agreement with Monaco, enabling these two countries to avoid double social security contributions in the event of a secondment.

These are the only jurisdictions where a Monegasque employer is authorised to employ employees (subject, of course, to compliance with the legal provisions referred to above).

In other words, remote working from an employee's second home, or from a hotel room in France or abroad in another jurisdiction, is strictly forbidden.

Note: The use of Telework by Italian residents working in Monaco is not yet applicable despite agreements signed between the two countries. Until the end of 2022, Italian residents enjoyed flexibility through Remote Working implemented for the COVID-19 crisis. Since January 2023, employees are no longer allowed to work remotely from their home or another location, and must travel to their place of work.