The effective commencement of the Framework Agreement pertaining to the implementation of Article 16 (1) of Regulation (EC) No. 883/2004 regarding the circumstances of habitual cross-border telecommuting is set to enter into force on the 1st of July 2023. Its primary aim is to offer employers and employees the opt-in option to maintain social security coverage within the employer’s country when the employee engages in telework from another country for less than 50% of their working hours. This agreement extends its reach to all European Union member states and Iceland, Liechtenstein, Norway, and Switzerland as well.
A total of ten nations have endorsed this agreement, including Austria, Belgium, the Czech Republic, Germany, Finland, Liechtenstein, Luxembourg, the Netherlands, the Slovak Republic, and Switzerland to date.
Relevant Article (Article 3) quoted below:
‘Upon request, a person who carries out habitual cross-border telework within the meaning of Article 1 of this Framework Agreement and is covered by Article 2, will be subject on the basis of Article 16 (1) of the Basic Regulation to the legislation of the State in which the employer has his registered office or place of business, provided that the cross-border telework in the State of residence is less than 50% of the total working time’.
The Explanatory memorandum further states
‘In order to take account of the changed working patterns, this framework Agreement offers a solution which combines the interests of the workers, the employers, and the social security institutions to face the reality of telework until the coordinating Regulations on social security will be adapted. It lays down the rules for the efficient and timely conclusion of individual article 16 agreements for the cases in its scope’.
The views in all sections are personal views of the author.