What exactly is Workation? 

A workation – a blend of "work" and "vacation" – refers to the practice of combining professional duties with leisure time in an attractive location. Unlike traditional home office setups, employees temporarily relocate their workspace to a destination typically associated with vacation – whether it’s the beach, the mountains, or another inspiring place.

What are the benefits for you and your employees?

For many employees, a workation offers the opportunity to combine work and leisure in inspiring surroundings. This flexible work arrangement allows professional responsibilities to be paired with the desire for variety and new experiences. It can boost motivation and creativity. Companies, in turn, benefit from more satisfied and productive employees. Another advantage: employees can combine a workation with a few weeks of vacation to get the best of both worlds – being productive on projects at first, and then enjoying time off without having to change location. It’s the ideal way to link work and recovery.

Challenges of workations

The idea of working from a scenic location may sound tempting – but in practice, distractions can impact productivity. Sun, beaches or mountains may evoke a vacation mindset that makes it hard to fully concentrate on work. The shift from a structured office environment to a holiday setting can disrupt work rhythms. There’s also a risk that the line between work and personal life becomes blurred, making it harder for employees to disconnect. This can harm work-life balance rather than improve it. Legal risks must also be considered – from tax and social security obligations to labor law regulations.

Legal framework of workation

Without clear rules, a seemingly flexible arrangement can quickly become a liability risk – for both employers and employees – especially in cases of legal disputes or social insurance claims. In Switzerland, there is currently no overarching labor law that regulates workations. Many companies distinguish between stays in EU/EFTA countries, where internal guidelines are defined, and non-EU/EFTA destinations, which are often not permitted due to unresolved issues regarding insurance coverage and tax consequences. In Germany, a parliamentary hearing took place in December 2024 to discuss the legal framework for flexible work models such as workation. Australia, by contrast, has already introduced specific regulations to support remote work for international professionals.

Key considerations when planning a workation

Before employees pack their bags and relocate their desk to another country, several points should be clarified in advance:

1. Duration and timing: The length of the workation must be coordinated with the employer.
2. Working hours and availability: Clear agreements should be made regarding working hours, goals, productivity expectations, and participation in meetings.
3. Technical requirements: A stable internet connection is essential. It should also be clarified whether additional hardware such as an external monitor or VPN is required.
4. Workplace setup: A quiet, ergonomic workplace is important for productivity – though employees themselves are often best placed to assess what they need to work effectively.
5. Legal aspects: Especially when working from abroad, legal, data protection (especially when processing personal data), and tax implications must be clarified.
6. Insurance coverage: Verifying adequate insurance coverage is essential.
7. Managing expectations: While workations can boost short-term motivation, it’s uncertain whether this effect lasts. Employees may come to see workations as a standard benefit, which could reduce their impact. Unclear expectations may also lead to questions like: if some can work from abroad, why not everyone? Such issues can affect team dynamics and company culture.

Workation: a magnet for talent

Workations offer an exciting way to combine work and leisure in an innovative format. With the right preparation and structure, they can become a win-win situation for employees and companies alike. Employers also gain the opportunity to position themselves as modern and flexible and to attract top talent. Would you like to learn more about how to optimise your recruitment processes and prepare your organisation for the future of work?