EU Framework agreement on cross-border telework 1.7.2023
Some of the EU countries have signed an agreement on cross-border teleworking, according to which an employee working remotely or in-person in two EU countries can, under certain conditions, be insured in the employer's home country instead of their own country of residence.
A teleworking agreement enables more flexible working in Europe. It provides the possibility to make an exemption from the previous regulations. Currently, an employee's social security is based on his or her own country of residence. In future, employers and employees can apply for an exemption based on a telework agreement so that the employee can be insured according to the employer’s country of residence and the related social security legislation would then apply.
The exemption must be applied to the social security authorities where the employer is located. In Finland, the application must be submitted to the Finnish Centre for Pensions. If the conditions are met, the exemption can be applied starting 1.7.2023. So far, approximately 20 EU countries are about to sign the agreement. Only the UK has announced that they are not going to sign.
The telework agreement applies only to workers moving between signatory countries. It is possible to join the agreement even after 1.7., so the list of countries participating in the agreement will be updated further.
The telework contract applies only to workers in cross-border situations who telework in their country of residence via information technology and who work for the rest of the time in their employer's home country.
Employees must telework in their country of residence for at least 25% but less than 50% of their total working time. The rest of the time, i.e. at least 50% of the working time, the employee must work in the employer's home country.
The employer and employee must both wish to agree on the telework contract and the exemption from the normal applicable social security legislation.
The remote work agreement does not apply to entrepreneurs, grant recipients or public officials. It is also not suitable for job-specific work or for workers with only one or more
than two countries of employment or several employers in different countries.
Welcome to the free webinar 27.10.2023
We will organize a free webinar on work abroad and international mobility on 27.10.2023. In the webinar, we will examine the topic extensively from the perspective of different authorities.
We also advise you on how to apply for an A1 certificate for work abroad effortlessly. Book a date now in your calendar!
- Read more and register (in Finnish)
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