Regular cross-border teleworking within the E.U. is regulated by the application of a framework agreement. This agreement relates to the application of Article 16(1) of Regulation (EC) No. 883/2004.
Given the flexibilization and digitalization of the labor market, as well as the increase in cross-border teleworking in the wake of the Covid-19 pandemic, teleworking has become, for many workers, a structural form of work. Although the above regulation was adopted when teleworking was not so common, an update was needed. Especially given the wide variety of teleworkers, and the complexity of the social security framework.
The competent authorities have reached the framework agreement detailed below, which is summarized by our experts at Labour Consulting.
Framework agreement on regular cross-border teleworking in the EU
First of all, two things should be noted:
- This agreement is in force as of July 1, 2023.
- It is concluded for five years, and will be automatically extended for further 5-year periods.
- It has been signed by the following countries: Germany, Switzerland, Liechtenstein, Czech Republic, Austria, Netherlands, Slovakia, Belgium, Luxembourg, Finland, Norway, Portugal, Sweden, Poland, Croatia, Malta, Spain and France.
- Further countries may join, and it will enter into force on the first day of the month following signature.
- Any of the signatory States may terminate its accession to the Agreement by giving 3 months’ notice in writing to the depositary State.
Therefore, we are going to look at the different important concepts to be taken into account.
Definitions to keep in mind
For the purposes of this Framework Agreement, the following definitions shall apply:
- Basic Regulation. Regulation (EC) No. 883/2004.
- Implementing Regulation. Regulation (EC) No. 987/2009.
- Cross-border telework. Any activity which can be carried out from any location and which could be carried out on the employer’s premises or at the employer’s domicile and which:
- is carried out in one or more Member States other than the one in which the employer’s premises or domicile are located; and
- relies on information technology to stay connected to the employer’s or company’s work environment and stakeholders/clients in order to accomplish the tasks assigned to the worker by the employer or clients, in the case of self-employed workers.
- IEISS. Electronic Exchange of Social Security Information.
- Residence. The place where a person habitually resides.
Scope of the framework application
The Framework Agreement covers all persons to whom Article 16(1) of the basic Regulation may apply, provided that their residence is in a signatory State. And the seat or domicile of the company or employer is located in another signatory State.
This Framework Agreement refers to persons to whom the legislation of the State of residence would be applicable as a result of habitual cross-border teleworking in application of whether he/she carries out a substantial part of his/her activity in that Member State or if he/she depends on several companies or employers having their headquarters or domicile in different Member States.
Upon request, persons who carry out regular cross-border telework are subject to the legislation of the State in which the employer has its registered office or domicile. Provided that the cross-border telework performed in the State of residence is less than 50% of the total working time.
And provided that the duration of the work does not exceed 24 months. Also applicable to self-employed persons.
In case of any doubt, it is always better to have a good advice from a labour lawyer.