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Transnational service provision and remote working – new framework agreement

The Framework Agreement reached by some EU States for the application of the exemptions contained in Regulation 883/2004 for the promotion and regulation of cross-border teleworking came into force on 1 July 2023.

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Application of the agreement

The Agreement applies to employees of companies with their registered office in one Member State but residing and working (even partially) in a different Member State. These workers will be able to continue to pay social security contributions in the state to which they belong, under certain conditions:

  • the Member State where the employer has its registered office and the Member State of destination of the employee must both be signatories to the Framework Agreement.
  • the activity carried out remotely in the country of destination must be at least equal to 25% and less than 50% of the total working hours.
  • the employee is integrated into the employer’s operational reality through telematic methods and the appropriate IT structure.
  • the employee does not carry out any other work activity in the Member State of destination or in different States.
  • the worker must not carry out other activities in his country of residence or in another country.

The application of the exemption does not take place automatically, as those entitled will have to submit a formal request for A1 Model in the country of origin.

For the moment, the Agreement has been signed by the following countries: Belgium, the Netherlands, Luxembourg, Germany, Finland, Norway, Austria, Switzerland, Liechtenstein, the Czech Republic, the Slovak Republic and Portugal. Only the United Kingdom has communicated its intention not to sign the agreement.

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