Telework is nowadays no longer an exception, but the new reality for the employer and employees. The employer may introduce a telework policy and e.g foresee the employees may telework 40% of their time, which is on average 2 days per week.
If an employee does not live in the same country where his employer is located, this would lead to the application of the social security scheme of the country of residence. The employer will have to register to the social security authorities in this country, set up a payroll, etc.
To mitigate the undesired consequences, a “neutralization period” was introduced until 30 June 2023, whereby the period of telework was not taken into account for the determination of the applicable social security scheme. However, as from 1 July 2023 the regular coordination rules of EU Regulation 883/04 on the coordination of social security will be applicable again.
A group of European experts was mandated to research on this and in April this year they have drafted a Framework Agreement. The Framework Agreement is applicable to cross-border teleworkers to whom the social security legislation of the State of residence would be applicable as a result of habitual telework. The Agreement will enter into force on 1 July 2023, immediately after the neutralization period for cross-border workers on the condition that the involved Member States have signed the agreement by that date. For the moment, Belgium and several other countries have signed the agreement, but since not all countries have done so yet, a certain vigilance is required.
By answering a few questions, you will be able to assess whether your employee fulfills the conditions for the application of the Framework Agreement. The Framework Agreement will only apply if the 2 countries (country of employee’s residence and country where employer is located) have signed the agreement.
Please note that the outcome of the assessment is no binding advice.
There are 5 questions in this survey.
