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The Framework Agreement on social security for cross border telework came into force on 1 July 20231, allowing employees to remain socially insured in the country where their employer is located if they work more than 25%, but less than 50%, of their total working time in their residence country2.
As we mark the two-year anniversary of the Framework Agreement, here are some key aspects that are commonly overlooked in practice.
Application for Framework Agreement A1 certificate
Apply on time: ensure that you apply for the Framework Agreement A1 certificate as soon as possible.
Applications cannot be made retroactively for more than three months, making timely submission essential. In cases where social security contributions have not yet been paid in the employer’s country prior to the application for a Framework Agreement A1 certificate, the A1 certificate will only be issued for the future (no retroactivity).
Restrictions on work locations
Limited business trips: employees under the Framework Agreement cannot work in third countries, other than the employer’s country and the country of residence of the employee.
The rules of the Framework Agreement can only be applied in case of working in (a) the country where the employer is located; and (b) the residency country of the employee. Business trips to third European countries are only allowed within the Framework Agreement in case they are purely occasional, unpredictable and not following a fixed travel pattern.
If one of your employees is working under the Framework Agreement, keep an eye on their working days in third European countries.
Limitations on type of work
Only telework: employees can exclusively perform telework within their residence country under the Framework Agreement.
The employee should remain connected to the employer’s working environment via a digital connection (IT link) while performing work, i.e., telework. Any other type of work conducted in the residence country is not permissible (e.g., client visits).
If you have an employee working under the Framework Agreement, please note that they are not allowed to conduct any work at the client site within their country of residence. While it may be convenient for employers to assign such employees to client meetings in their home country, this practice is not compliant with the Framework Agreement.
Compliance and support
To correctly apply the Framework Agreement, the above key aspects should be considered. Should you need support with applying for the Framework Agreement A1 certificates, or require any further assistance or clarification, feel free to reach out to our team.
1 For the countries that signed the Framework Agreement at that time.
2 Don’t know what we are talking about? Please reach out and we are happy to provide you with more information on the Framework Agreement on social security for cross border telework.