The Framework Agreement for Social Security in Hybrid Work situations - Update

In cross-border Hybrid Work situations (also called-Teleworking), employees divide their work between the country where their employer is located and the country where they live. Under certain conditions, this setup can be considered as working simultaneously in multiple countries, which can lead to a shift in social security coverage from the country where the employer is located to the country where the employee resides.

To avoid this change in social security entitlements, a Framework Agreement was introduced on July 1, 2023. From that date onwards, Hybrid Workers can continue to be covered under the social security legislation in the Member state of their employer, provided that:

• The employee is employed with an employer in another member state than their member state of residence;
• Both countries have signed the Framework Agreement;
• The working time in the country of residence is less than 50%;
• The employee habitually works in the country where the statutory seat of the employer is situated and works in the country of their residence;
• An A1 Certificate under Article 16 is mandatory.

The Framework Agreement will be entered into for a period of five years and can be renewed for five years at a time. The maximum period for which an A1 Certificate can be issued will be three years, after which a new A1 Certificate can be applied. 

The framework agreement does not apply to employees who normally perform work activities outside the country of residence or the state where the employer is based. Nor will it apply to the self-employed. 

Although this agreement promises to protect the social security rights of Hybrid Workers, it raises many questions and practical obstacles for their employers.

In this week's Webinar, Karima Taouil of Ernst & Young will address the implications of the Framework Agreement and its repercussions for Hybrid Workers' employers.