Remote work was a topic of discussion even before the pandemic, but since COVID-19, many companies have embraced home office as a standard practice, especially amid a shortage of skilled workers. The banking sector is no exception.

The latest evolution of remote work is «workation»—working from abroad as an extension of vacation. While some managers and HR professionals may find this troubling, many companies are adapting to this trend, according to Isabelle Wildhaber, an expert in economic and digital law, in an interview with the Federal SME Portal.

Wildhaber warns against outright bans: "Such measures would diminish the company's appeal in the recruitment market, but it's also doubtful whether it would effectively prevent employees from working abroad. They might work from abroad secretly. This could lead to problematic situations," she says.

Role and Function-Specific Adaptations

Many financial sector representatives have responded by developing programs tailored to this new work trend. Zurich Insurance, for example, offers Flexwork@Zurich, which encourages all employees to work in ways that achieve «optimum results and help to maintain a healthy work-life balance,» according to the company.

This includes hybrid working models. Employees at Zurich Insurance Group Corporate Center can work from abroad, with each request reviewed individually based on role and function.

Pax Insurance's Pilot Program

Pax Insurance is also adopting a similar approach. For Pax, workations must create a «win-win situation» for both the individual and the company or team. Additionally, the job must be feasible from abroad given the employee's personal situation, and explicit approval from supervisors is required.

Pax primarily permits cross-border work in EU/EFTA countries due to data protection and IT security concerns. «For risk reasons, we can only allow cross-border work in other parts of the world very selectively: Working in countries not listed in the data protection regulations is prohibited,» the company told finews.ch.

However, this may change soon. Pax is currently running a pilot program with an external provider's system that analyzes risks for employees and companies and identifies the administrative, social security, and technical requirements needed.

UBS: No Blanket Ban on Workations

Even banks traditionally skeptical of new work models are reconsidering their stance. At Lombard Odier, workations are possible, though not universally, depending on the employee’s role.

UBS, too, does not outright reject workations. «Work-life balance is very important to us. This sometimes includes the opportunity to work while visiting family and friends in other countries,» the bank emphasizes.

Conditions Continuously Evolving

At UBS, combining vacation and work abroad is allowed within a tightly defined framework. Factors such as the specific country, passport situation, role, and legal unit/division are considered.

«Not every case allows for combining vacation and work in another country. Many factors are relevant, and conditions are continually changing: for example, international agreements, social security issues, tax situations, data protection, competition law, licensing, etc.,» the bank stated.

Luzerner KB Rejects Remote Work Abroad

The Luzerner Kantonalbank (LUKB) firmly rejects remote work from abroad, citing potential regulatory, tax, and social security implications.

The bank also notes that its policy of limiting home office to two days a week makes extended remote work from outside LUKB premises impractical.

Luxembourg Tops List for Ideal Workation Destinations

So, what is the ideal location for a workation? Swiss vacation rental specialist Interhome has developed a «Workation Index» to address this question, evaluating factors such as safety, healthcare, and nightlife costs.

At the top of the list is not a Greek island or a South Sea destination, but Luxembourg. The city offers pristine nature, excellent hiking and cycling spots, and a charming city center. Additionally, the free public transportation adds to its appeal.

Museums and Proximity to the Sea

Valencia ranks second. The Spanish city stands out for its number of sunshine days and low costs. And if the weather doesn’t cooperate, Valencia offers seven art museums and more than 50 escape rooms.

In third place is The Hague in the Netherlands. The city excels in safety and health and boasts an accessible beach (Scheveningen) within walking distance.

In terms of art museums, The Hague surpasses Valencia, with twelve art museums compared to Valencia’s seven.