Future Jobs, Metaverse and Employment Law

With the rise of the metaverse, the concept of virtual workplaces is becoming a reality. While this has the potential to revolutionize the way we work, it also presents challenges for employers and employees who need to navigate complex legal requirements related to immigration, employment, and social security.

In this article, we explore some of the key issues that arise when it comes to working in the metaverse and the potential solutions that can help ensure compliance with the law.

Remote Work and the Metaverse: Navigating Legal and Compliance Challenges

The metaverse has the potential to offer new opportunities for a global workforce, but it also raises concerns about compliance with various employment, immigration, and social security regulations across the world.

With the pandemic leading to remote and hybrid working models becoming the norm, employers are still trying to navigate allowing their employees to work from abroad to attract and retain talent. However, with the advent of the metaverse, there are further questions to be answered about where exactly employees are working and which laws apply to them. For instance, where servers are located, where the employee logs in from, or where the company that owns the platform is based could all be factors.

Immigration Laws in the Metaverse: Where is the Employee Working?

Work authorization is typically required for someone to work while physically present in a foreign country. For instance, non-EU nationals would need a German work permit to work in Germany, but not necessarily if they were working for a German company outside Germany. Similarly, EU nationals would not need work authorization to work in Italy for the same German company, but might need a work permit if working for the same employer from outside the EU. However, determining where someone is working in the metaverse and which immigration laws apply remains a challenge. Currently, it is the law of the place where the employee is physically working, even if they are working virtually, that determines the need for work authorization.

Employment Laws in the Metaverse: Which Country’s Laws Apply?

The applicable employment law is usually the law of the place where the employee usually works, or the law of another place where there is a “sufficient” connection. However, it is unclear how this will apply to work done in the metaverse, where there are no borders. The answers to these questions are crucial because they will determine the minimum wage, working time, paid holidays, sick pay, employee well-being obligations, disciplinary procedures, and dismissal laws that apply to work done in the metaverse. Additionally, geographical limitations for non-compete clauses are difficult to define in virtual reality.

Social Security Laws in the Metaverse: The Principle of Physical Presence

Although the metaverse offers new opportunities for a global workforce, it is important to take special care in complying with various employment, immigration, and social security regulations. While solutions for remote and hybrid working models are already in place, the same cannot be said for work done in the metaverse. Therefore, determining where employees are working and which laws apply to them will remain a challenge until further clarity is provided.

Non-compete Clauses in the Metaverse: The Challenge of Geographical Limitations

Determining the applicable social security law for work done in the metaverse is similar to determining the applicable employment law. Currently, solutions are based on national social security laws and social security treaties that typically focus on the place where the employee is physically working. This means that employees are subject to the social security laws of one country only – the place where they physically work. For example, if an employee works in Italy for an employer in Germany, they are covered by Italian, rather than German, social security law.