Digital nomad employees — those who work while continuously travelling — present unique challenges for leave management. Time zone differences, local employment laws, and the blurred line between work and travel require a purpose-built approach to leave tracking and compliance.
Key Takeaways
- Digital nomads must have clear working hours in their home time zone to avoid leave confusion.
- Public holidays follow the employer’s home country, not the employee’s current location.
- Sick leave procedures must account for accessing healthcare in different countries.
- Annual leave should be booked in the employer’s time zone and clearly separated from work days.
- Compliance risk increases with each country the employee visits — employer must track location for tax and legal purposes.
Time Zone Leave Booking
When a digital nomad employee is in a time zone that differs from the employer’s home office, leave booking creates confusion:
- Whose time zone counts? The employer’s. If the employee is in Thailand (UTC+7) and the employer is in London (UTC+1), a “Monday” of leave in London starts 6 hours later in Thailand.
- How to book leave: Leave should be booked in the employer’s time zone. If the employee needs all of “Monday” off in London time, that covers their Monday evening in Thailand.
- Partial days: If the employee needs a half-day for travel, it should be booked as leave for the hours that overlap with their core working hours.
The simplest solution: the employee maintains a fixed working schedule in their home time zone regardless of where they are. Leave is then booked against that fixed schedule.
Public Holiday Confusion
Digital nomad employees often ask: “Do I get the public holiday of the country I’m in, or my home country’s?”
The answer is clear: the employer’s home country public holidays apply. If a UK employer has a digital nomad employee in Mexico, the employee gets UK bank holidays — not Mexican public holidays.
However, the practical challenge is that the employee may want to enjoy local festivals or events. The solution:
- If the employee wants a local public holiday off, they book annual leave
- If the employer chooses to offer local holiday flexibility, it should be documented as a policy
- The employer’s holiday schedule is the legal baseline
Sick Leave Across Borders
Sick leave for digital nomads raises practical challenges:
- Medical certification — a certificate from a local doctor in a foreign country may be in a different language or format. Employers should specify what evidence they accept.
- Access to healthcare — the employee may not have access to their usual GP. Telehealth services that work across borders are a good solution.
- Returning home — if the employee becomes seriously ill, who pays for repatriation? This should be covered in the policy.
Best practice: require employees to have comprehensive international health insurance and a clear sick leave notification process that works across time zones.
Tracking Location for Compliance
For digital nomad employees, the employer must track:
- Current location — for tax residency and PE risk assessment
- Time spent in each country — cumulative days to assess tax thresholds
- Visa status — the employee must have the right to work in each country
- Emergency contact — updated contact details for each location
This tracking is not micromanagement — it is a legal requirement for tax and compliance purposes. The employer should use a simple location tracking system (e.g., a shared calendar or HR tool) rather than invasive GPS tracking.
FAQ
Can I take annual leave while being a digital nomad?
Yes — but you must clearly separate work days from leave days. Taking a “sick day” to explore a city is not acceptable. Leave is leave, work is work.
What time zone do I use for leave booking?
Your employer’s time zone. Book leave against your normal working schedule, not your current location’s time zone.
Do I get local public holidays?
No — you get your employer’s home country public holidays. If you want a local holiday off, use annual leave.
What if I’m sick in a country without good healthcare?
Your employer should have a policy for this. You may need to travel to a country with adequate healthcare or return home. Comprehensive travel insurance is essential.
Can my employer require me to be available during specific hours?
Yes. Your employment contract defines your working hours. Being a digital nomad does not give you the right to set your own schedule — it is a location flexibility arrangement, not a schedule flexibility arrangement.