Immigration

Middle East | Workforce mobility and rising compliance risks as temporary arrangements extend

Summary

Several weeks after the escalation of instability across parts of the Middle East, operating conditions remain fluid. While recent announcements of a ceasefire and related de-escalation measures may signal a shift in the immediate risk environment, the situation continues to evolve; the full impact on business operations, mobility, and workforce deployment is not yet clear.

Across the region, immigration processes, travel routes, and government responses continue to change with limited notice. As a result, organizations are navigating an environment where mobility feasibility remains highly dependent on nationality, immigration status, documentation, and logistical constraints.

Employee safety remains the primary priority. At the same time, organizations are increasingly balancing immediate response measures with the need to sustain operations over a longer period. What began as short-term crisis management is now evolving into more structured workforce stabilization, even as underlying conditions remain unpredictable.

This alert builds on our earlier regional updates and reflects how organizations are adapting workforce strategies in real time, with a continued focus on immigration, tax, social security and payroll considerations.

The detail

Evolving workforce strategies face continued uncertainty

In the initial phase of the escalation, organizations implemented rapid cross-border movements and remote working arrangements to respond to immediate risk. These decisions were often made under significant time pressure and with limited visibility into how long disruption would persist.

As conditions remain fluid, organizations are now reassessing these arrangements. Temporary measures are increasingly being extended, requiring a more structured approach to workforce deployment.

A key shift we are seeing is a move away from purely reactive relocation decisions toward more deliberate evaluation of where work can be performed on an ongoing basis. However, this is occurring within a context where mobility options remain constrained and inconsistent.

Current market practice shows that organizations are:

• Identifying alternative locations where employees can continue working, while recognizing that entry requirements and processing timelines may change rapidly
• Applying internal time thresholds—often around 20 to 30 days—as governance triggers to assess emerging tax, payroll, and corporate exposure
• Exploring remote work and digital nomad visa options where available, while acknowledging that eligibility, permitted activities, and processing capacity vary significantly by jurisdiction
• Supporting repatriation to home countries as a stabilizing measure, despite the additional tax and compliance complexities this may create
• Conducting location risk mapping across multiple jurisdictions to retain flexibility as travel routes and immigration policies evolve

At the same time, organizations are increasingly aware that mobility decisions cannot be standardized across all employees. Feasibility continues to depend on individual circumstances, including nationality, immigration status, and documentation, as well as the operational status of travel infrastructure.

Scenario planning remains critical in this environment. Organizations are actively modeling multiple workforce deployment options and reassessing these as conditions change.

Different starting points, similar strategic direction

Organizations are approaching workforce stabilization from different starting points, depending on their existing mobility frameworks.

Those with established remote-working or cross-border policies have generally been able to extend and adapt these frameworks. Policies originally designed for short-term flexibility are being recalibrated to support longer durations, with enhanced compliance oversight introduced as exposure increases.

In contrast, organizations without preexisting frameworks are building structured approaches in real time. This typically involves:

• Confirming where employees are currently located
• Identifying a short list of viable host jurisdictions based on immigration feasibility and operational constraints
• Communicating risks and limitations to employees
• Providing targeted support, including immigration guidance and individual tax briefings
• Developing governance processes to manage ongoing workforce deployment

Across both groups, a common outcome is emerging: Organizations are moving toward more deliberate workforce design, balancing the need for agility with the requirement for greater control and visibility.

Immigration and mobility constraints remain a key driver

Immigration considerations continue to play a central role in shaping workforce strategies.

Performing productive work under visitor or business visitor routes presents increasing risk as stays lengthen. While remote work and digital nomad visas can offer alternative pathways in some jurisdictions, their availability and suitability remain limited and highly variable.

As a result, organizations must continuously reassess whether employees’ immigration status aligns with their actual activities and duration of stay. This is particularly important given the limited administrative leniency currently being applied by authorities.

Compliance risk increases as arrangements extend

As temporary arrangements become longer-term, compliance risk is increasing across multiple areas.

Most regulatory regimes assess obligations based on where work is physically performed. In the current environment, authorities are applying domestic rules and treaty provisions with a strong focus on actual working location.

Key risks include:

• Employees becoming a tax resident in host jurisdictions over time
• Employment income becoming taxable where work is performed, regardless of contractual arrangements
• Immediate or early-stage social security liabilities, including the risk of double contributions where no bilateral agreements apply
• Employer payroll registration and reporting obligations arising even in the absence of a local legal entity
• Potential corporate tax exposure, including permanent establishment risk in certain scenarios

These risks can crystallize quickly if not actively monitored, particularly where initial crisis-driven decisions are not revisited as circumstances evolve.

What organizations should be considering now

Given the continued uncertainty and evolving regulatory landscape, organizations should focus on the following priorities:

Immediate visibility

• Confirm where employees are physically performing their work.
• Avoid reliance on assumed or historical location data.

Immigration alignment

• Ensure immigration status reflects actual activities and duration of stay.
• Reassess the use of visitor routes for ongoing work.

Risk assessment

• Evaluate potential tax residency and employment income exposure.
• Assess social security obligations and the risk of double contributions.
• Identify employer payroll registration requirements.

Governance and tracking

• Implement internal time thresholds as triggers for deeper compliance review.
• Monitor cumulative days spent in each jurisdiction.
• Review whether historical exposure has already arisen.

Strategic alignment

• Align workforce decisions with broader business continuity planning.
• Maintain flexibility to adapt to changing immigration and operational conditions.

Scenario planning should remain an ongoing process, with organizations regularly reassessing workforce strategies as conditions evolve.

How we can support

Managing workforce mobility in a fluid and rapidly changing environment requires coordinated input across immigration, tax, social security, and payroll.

Our global mobility specialists support organizations by:

• Monitoring real-time developments in immigration and travel conditions
• Assessing cross-border exposure and compliance risk
• Advising on available immigration pathways, including remote work options
• Supporting payroll and reporting obligations across jurisdictions
• Designing practical, compliant workforce stabilization frameworks

We work closely with organizations to ensure workforce strategies remain operationally effective, compliant, and responsive to evolving conditions.

Ongoing support and real-time updates

Operating conditions across the region continue to change with limited notice. We recommend maintaining active monitoring of immigration developments, travel restrictions, and government guidance.

We continue to monitor developments closely and will share further updates as official guidance evolves.

For the latest updates and practical guidance, please refer to our:

• Previous regional alerts on Vialto.com
• Real-time crisis support dashboard (available on request)

If you require access to the dashboard, please email crisis_support@vialto.com and include:

• Name
• Organization
• Work email address
• Relevant Vialto contact (if applicable)

Contact us

For immediate assistance or case-specific support, please contact our Crisis Support team at crisis_support@vialto.com, or your usual Vialto contact.

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