Remote Working Legislation, Laws & Regulations in Monaco

Please note that, with respect to Monaco, a distinction should be made between “Telework”, which enables employees to work from their main home or from another declared place, subject to the conditions and formalities provided for by Monegasque law, and the exceptional “Remote Working” regime implemented during the COVID-19 period.

As mentioned below, Telework is authorised and strictly regulated by Monegasque law, including in cross-border situations where the relevant social security arrangements must be taken into account, whereas the exceptional Remote Working regime introduced during the COVID-19 period is no longer in force.

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 Ministerial Order no. 2016-425 dated 1 July 2016, as amended, which essentially provides for the mandatory contractual provisions and general implementation rules applicable to Telework. This Ministerial Order was notably amended by Ministerial Order no. 2024-619 dated 4 November 2024.

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

Prior to the implementation of Telework, the employer must inform the relevant staff delegates of the general terms and conditions under which Telework is contemplated within the company. These terms and conditions must then be submitted to the Director of Labour (“Directeur du Travail”) for approval.

Further modifications to the “dispositif cadre” can only be implemented after the same formalities have been completed, i.e. informing the relevant staff delegates and obtaining the Director of Labour’s approval, whether explicit or implicit.

Once implemented, the use of Telework by an employee requires a specific clause in the employee’s employment contract or a specific rider, which must contain the statutory provisions defined by ministerial order.

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

No, an employer cannot unilaterally require an employee to work from home. Under Monegasque law, Telework relies on the agreement of both the employer and the employee concerned. It may either be provided for in the initial employment contract or introduced during the performance of the employment contract by mutual agreement, through a specific addendum.

The Law specifically states that an employee’s refusal to Telework for part of the employee’s duties is not a valid ground for terminating the employment contract.

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

Yes. Where Telework is lawfully implemented, the employer is required to bear the costs incurred by the Telework activity, including costs relating to equipment, software, subscriptions, communication tools and their maintenance.

Yes. The employer must reimburse or bear the professional expenses incurred in connection with Telework. 

The law expressly states that Teleworking employees are also entitled to the same collective rights as other employees; therefore, any collective benefit, such as lunch vouchers, should in principle also be provided to them where applicable.

Law no. 1.429 does not provide for a specific fixed allowance for working from home. However, the employer must bear the costs directly generated by Telework, and the employment contract or specific addendum must set out the terms under which the employee is compensated for the occupation of the employee’s home as a place of work.

Yes. The employer remains responsible for the employee’s health and safety, including where the employee works under a Telework arrangement.

The employment contract or specific addendum must set out the modalities through which this protection is ensured, including any relevant information relating to workstation ergonomics. The employer must also organise an annual interview with the employee, notably covering the employee’s working conditions under Telework.

The employer must in particular:

• set out the Telework arrangement in writing, either in the employment contract or in a specific addendum signed by both parties;
• define the Telework conditions, including Telework days, working time organisation, workload and expected productivity;
• define in advance the modalities through which will be determined the Telework days, with a minimum of one day per week;
• record the employee’s working days and activity time slots, keep such records for five years and provide them to the Labour Inspectorate upon request;
• inform the employee of any restrictions on the use of equipment, IT tools or electronic communication services, and of any sanctions in case of breach;
• organise an annual individual interview covering the employee’s Telework conditions;
• respect the employee’s private life and determine, in consultation with the employee, the time slots during which the employee may be contacted;
• take appropriate measures to protect professional data used or processed by the employee.

Yes. As part of the implementation of Telework, the employee must provide the employer with a certificate relating to the employee’s insurance contract.

The employer must ensure that the risks related to Telework, including the use of the company’s equipment at the employee’s home, are duly covered. The employment contract or specific addendum must therefore set out the terms under which the employer bears the cost of insurance covering Telework-related risks. The employer should also ensure that work-related accident and occupational illness coverage applies to Telework situations, where relevant.

Compared to other countries such as France, there is no specific legal presumption in Monaco that an accident occurring at home during working hours is automatically a work accident.

However, employees working under a valid Telework arrangement benefit from the general rules on work-related accidents and occupational illnesses. A work accident may be recognised if it occurs by reason of, or in connection with, work, regardless of where the work is performed.

No. Employee cost savings resulting from Telework, such as reduced commuting costs, should not be offset against the employee’s remuneration or against amounts owed in connection with Telework.

There are no specific obligations imposed on employees comparable to the employer’s obligations.

No. Monaco has not introduced any specific legislative or immigration-law regime designed to encourage short-term remote working. Ordinary residence permit rules continue to apply.

Under Monegasque law, “remote work abroad” does not mean a general right to work from any foreign country. It may only be carried out within the regulated Telework framework, from Monaco or from a State where the applicable social security arrangements allow the employee to remain affiliated with the Monegasque social security system.

At present, Telework may be carried out from Monaco, France or Italy, subject to the conditions and formalities provided for by Monegasque law. 

During lawful Telework abroad, the Monaco International Private Law Code rules would define whether the employment relationship remains subject to Monegasque labour law, depending essentially on how frequent the employee is teleworking from abroad. In most cases, Monaco Labour law would remain applicable.

Yes, provided that the remote work abroad qualifies as lawful Telework under Monegasque law and that the applicable social security arrangements allow the employee to remain affiliated with the Monegasque social security system.

At present, Telework may be carried out only from Monaco, France or Italy, subject to the conditions and formalities provided for by Monegasque law. Remote work from any other country is not authorised under the current Monegasque Telework framework and may trigger social security risks.

Short-term remote work abroad, for example before or after a holiday, is not authorised as a “work from anywhere” arrangement under the current Monegasque framework. It may only be carried out where it qualifies as lawful Telework, subject to the conditions and formalities provided for by Monegasque law.

From a Monegasque tax perspective, there is no specific tax regime for short-term remote work abroad. However, the tax rules of the employee’s country of residence or of the country from which the work is performed may need to be considered.

For the employer, remote work abroad may create a risk of permanent establishment in the country where the activity is carried out, depending on local law, applicable tax treaties and the employee’s role. It is therefore recommended to assess this risk before authorising any work from abroad.

Residence requirements depend on the employee’s nationality and the country concerned. In France and Italy, non-EEA nationals may need to hold an appropriate residence permit. In Monaco, foreign nationals residing for more than three months must hold a Monegasque residence permit. This should be distinguished from tax residency, which is determined separately under domestic rules and applicable tax treaties.

Telework may not exceed two-thirds of the employee’s working time. The remaining part of the employee’s activity must be performed in Monaco.

The organisation, recording and monitoring of working time must be provided for in the relevant contractual documents.