European Union: Agreement on Exception to Existing Social Security Rules for Cross-border Teleworking
January 8, 2024
Update - January 8, 2024: Effective January 1, 2024, Italy joined the framework agreement (having signed the agreement on December 28, 2023). This news will be of particular significance to the approximately 800,000 Italian residents who work for Swiss-based employers, and who periodically work remotely in Italy.
Original - July 23, 2023: A framework agreement (FA) establishing a further exception to the “pay (social security) where you work” principle for cross-border remote workers in Europe came into force on July 1, 2023. Under the FA, employees who work for an employer in one FA signatory country but who reside and partially telework in another FA signatory country can remain affiliated with the social security system of their employer’s country provided that they spend less than 50% of their total working time in their country of residence. The agreement – which only affects signatories - has already been signed by 18 European countries, including, among others, Austria, Belgium, France, Luxembourg, Germany, the Netherlands, Spain and Switzerland. Notable exceptions include Italy and Denmark (which have yet to announce their positions) and the United Kingdom (which has formally announced that it will not sign the FA). Eligible individuals will have to formally apply for the exception as it will not be applied automatically; however, when the conditions are fulfilled (and, for example, employer and employee agree) approval of the A1 form should be granted without delay once the application management systems are ready.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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