Today, temporary employee transfers are commonplace. Both employers and employees have to move temporarily outside Spain. Either to attend conferences, congresses, establish business relations, etc. Or simply to provide services in a company of the group or client that has contracted the services provided by the company.
Next, from our Labour Consultancy we gather a series of recommendations that must be taken into account. In order to avoid complex situations and to comply with the rules that apply.
Temporary employee transfers outside Spain.
In order to avoid complex situations and comply with the applicable rules.
Conditions of service provision
In any case, the working conditions that our legal framework establishes for this purpose must be guaranteed. Included among others in the applicable collective agreements and individual employment contracts. Without prejudice to the application of the most favourable working conditions derived from the provisions of the legislation applicable to the field of work in the place of posting.
EU membership and contributions
Any journey made outside our borders must be reported to the Social Security authorities in Spain. This is without prejudice to whether or not your membership and contributions are compulsory in the country of destination. By virtue of an agreement with the country of destination
The purpose of this obligation is to be able to protect the worker while the services are being provided abroad. In the event of an accident at work, if the worker had not been notified of the posting, he would not have the necessary cover in his country of origin.
In the case of temporary postings to the territory of Member States of the European Union or States that are signatories to the Agreement on the European Economic Area, there is freedom of movement of workers. It guarantees the provision of service in any of its States without the obligation of their inclusion in the social security systems in application of Regulation EC 883/04. This does not exempt from complying with the previous communication to the Social Security about the posting. As well as filling in the forms corresponding to the existing bilateral agreement for this purpose.
Affiliation and contribution with other countries
Likewise, there are bilateral and multilateral agreements and arrangements with other countries to provide social coverage for workers in the different countries. At present there are agreements with Andorra, Australia, Canada, Korea, USA, Philippines, Japan, Morocco, Mexico, Russia, Tunisia. As well as various agreements with the countries of Central and South America. And a multilateral agreement with the entire Ibero-American community (Argentina, Bolivia, Brazil, Chile, Ecuador, El Salvador, Paraguay, Peru and Uruguay). This list is not closed and other countries are joining it.
In the case of travel to third countries without an agreement, the employee must remain registered and affiliated with the Social Security system in Spain. Without prejudice to their inclusion in the social security systems of the country of destination. In order not to lose assistance rights or future benefits.
During temporary assignment to another EU country or to a country with which there is an agreement, the Spanish Social Security authorities must be informed of the assignment, which will in turn inform the destination country. Once the communication has been made, it will issue the form known as the “portable A1 document” (PD A1). The PD A1 confirms that the posted worker is registered with the social security system in Spain, which will exempt him from having to pay contributions in the country of destination.
Recommendation
The rules on social security during displacement may be different for self-employed workers. However, depending on the country of destination, it is advisable to review the applicable regulations beforehand. And confirm maximum periods of posting and compliance with regulations to be taken into account.
When traveling within the European Union, the employee must have the corresponding European Health Insurance Card (EHIC).
In any case, it is advisable to have health insurance that covers any contingency that may occur to the employee. In addition to a travel and return insurance policy.
Residence and work permit
The requirements of the country of destination should be reviewed beforehand. The type of visa and work permit that is required and that allows the employee to stay in the country of destination legally and to comply with the local regulations that affect him/her.
Prevention of Labour Risks
With regard to the prevention of occupational risks with respect to displaced persons, the company must continue to comply with occupational risk prevention regulations. Taking into account among others:
- Before the displacement, update the evaluation of labor risks including the risks of the trip and the conditions of the country of destination.
- Analyze the risks of the position that the employee is going to occupy.
- Offer the employee a medical check-up before the trip, especially on long journeys or to exotic countries (assess whether vaccinations are necessary).
- Inform the employee about the security risks of the country, prepare a file with the health conditions, violence, road safety, meteorology and any other issue of interest, and give it to the employee who must sign an acknowledgement of receipt.
- Carry out specific training on the specific risks of the job and those factors that may affect it as a result of culture shock (there is usually a psychosocial risk that can generate anxiety, depression, etc.).
Fiscal area
In the case of the temporary displacement of employees in which they do not lose their status as tax residents, it is not necessary to carry out any act or communication with the tax office.
However, Article 7.p of the Personal Income Tax Law regulates income that is exempt from income received from work carried out abroad. Thus, when an employee provides services outside Spain to another company in the group or a client company, the income from work received may be exempt from personal income tax provided that the requirements established for this purpose are met.
Checklist for temporary assignments
- Checking compliance with regulations in the country of destination
- Arranging for a visa/residence and work permit, if required
- Formalize a travel agreement between the company and the employee
- Formalize the appropriate communications to the different authorities:
- Social Security in Spain of the displacement
- Communication to the social security of the country of destination (if applicable)
- To any other body at destination (if applicable)
- Contact the mutual insurance company for occupational accidents and diseases in Spain. For the purposes of obtaining information on the coverage and actions to be taken in the event of a professional contingency during the trip.
- To review compliance with occupational risk prevention
- Formalize evaluation of the work center at the destination
- Carry out training for the employee on the risks at the destination and provide an information file corresponding to the country of destination
- Perform medical examination (observing the conditions of the destination country).
- Have health care insurance
- Have travel insurance with return coverage (if necessary)
- Verify compliance with the application of the exemption in the income from work obtained during the trip by application of article 7.p of the
- Income Tax. If so, complete a documentary file for the purposes of justification if required by the AEAT. In the event of a possible tax inspection.
- Review any other issue considered necessary, such as security issues in the country of destination, currency, accommodation, etc.
Conclusions
These are some of the issues that must be taken into account when dealing with temporary employee movements. Whether it is the employers themselves, managers, etc. to other countries outside Spain. However, each trip must be analysed individually. Taking into account the peculiarities of the destination country, the duration of the trip. As well as the work to be carried out and the verification of the regulations both in Spain and in the destination country, in order to comply with them.
Arrabe Integra
Labour Consultancy and Human Resources Management
