Framework Agreement on social security in cases of cross-border telework within the EU, the EEA and Switzerland

Italy executed the Framework Agreement on social security related to cross-border telework within the EU, the EEA, and Switzerland on December 28, 2023, with effect from January 1, 2024. This agreement addresses the challenges arising from the increase in remote work in the scope of Article 16 (1) of Regulation (EC) no. 883/2004 in cases of habitual cross-border remote work.

The main focus of this agreement is to establish clear criteria and rules for determining which country’s social security regulations apply to employees who engage in cross-border remote work, where they work in a different country from their employer. The Framework Agreement allows member States to create specific rules for remote workers, ensuring flexibility in remote work arrangements without changing the applicable social security legislation.

The agreement applies to employees who work remotely in a Country different from their employer’s location and residence, provided that cross-border remote work in the employee’s home Country is less than 50% of his total working time. Self-employed individuals and those pursuing activities other than cross-border telework are not covered by the agreement.

The Framework Agreement is also detailing the process for requesting an A1 form, which allows maintenance of social security contributions in the employer’s Country. Retroactive requests are not covered unless specific conditions are met, and the A1 form can be applied for a maximum of 3 years with possible extensions. As of today, several EU countries have executed the Framework Agreement, including Austria, Belgium, Croatia, Czech Republic, Finland, France, Germany, Italy, Liechtenstein, Luxembourg, Malta, Norway, Poland, Portugal, Spain, Sweden, The Netherlands, The Slovenian Republic, and The Slovak Republic.

Federal Public Service of Begium is providing a useful web page where where the updated list of member Countries together with the execution copies of the documents can be found.