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With remote work becoming increasingly common, many employees and businesses are embracing cross-border telework.
However, working from a different country than your employer presents legal and social security challenges.
To address this, the European Framework Agreement on Telework establishes clear rules on social security affiliation, ensuring stability for both employers and employees.
This article explores the key aspects of the agreement, its application, and how businesses and workers can navigate its requirements efficiently.
Definition and application of regular cross-border telework
The European Framework Agreement on the Determination of Social Security Legislation Applicable to Cross-Border Teleworkers was published in the Spanish Official Gazette (BOE) on 4 August 2023 and has been in effect since 1 July 2023.
This agreement establishes a clear legal framework for regulating social security obligations for employees who engage in regular telework across EU member states and participating countries.
The primary aim of the European Framework Agreement on Telework is to ensure that cross-border teleworkers—employees working remotely from a different country than their employer’s registered office—can maintain a stable and predictable social security status.
This prevents unnecessary administrative burdens or disruptions to benefits such as healthcare, pensions, and social security contributions.
Under this framework, employees who engage in regular cross-border telework may request to remain under the social security system of their employer’s country rather than switching to the system of their country of residence.
To do so, the employer or employee must apply to the competent authority of the Member State where the employer or company is domiciled.
Once approved, the teleworker will continue to be subject to the social security legislation of the employer’s country, ensuring consistency and compliance with European labour regulations.
Characteristics of the European framework agreement on telework
The European Framework Agreement on Telework provides a comprehensive structure for teleworking across EU member states.
It defines telework as a form of organising and performing work using information technology, where tasks that could be performed at the employer’s premises are carried out away from those premises regularly.
In 2023, recognizing the growing prevalence of cross-border telework, the EU introduced a new framework to address social security concerns.
The Framework Agreement on Cross-Border Telework, effective from 1 July 2023, allows employees to work remotely from a different member state than their employer’s location for up to 49.9% of their total working time without altering their social security affiliation.
This agreement applies when both the employer’s country and the employee’s country of residence are signatories.
This European framework agreement on telework ensures that cross-border teleworkers can maintain their existing social security coverage, providing stability for both employees and employers in the evolving landscape of remote work.
Signatories to the agreement and duration
As of today, the EU framework agreement on cross-border telework has been signed by 19 countries:
– Austria
– Belgium
– Croatia
– Czech Republic
– Finland
– France
– Germany
– Italy
– Liechtenstein
– Luxembourg
– Malta
– Netherlands
– Norway
– Poland
– Portugal
– Slovakia
– Slovenia
– Spain
– Switzerland
The agreement is valid for an initial period of five years and will be automatically extended for further five-year periods unless otherwise decided.
The European framework agreement provides stability for cross-border teleworkers by maintaining their existing social security coverage, benefiting both employees and employers in the evolving remote work environment.
Simplifying cross-border telework: Legal compliance and expert support
The European Framework Agreement on Telework marks a significant step toward facilitating cross-border remote work while ensuring social security stability for employees and employers alike.
By allowing teleworkers to maintain their social security affiliation in their employer’s country for up to 49.9% of their total working time, the agreement fosters greater flexibility and legal certainty in the modern workforce.
Navigating cross-border work arrangements can be complex, requiring careful compliance with regulations related to social security, taxation, and residency.
At Delaguía y Luzón, we specialise in supporting cross-border professionals and businesses by handling essential services such as NIE applications in Spain, tax filings, and accounting.
Our expert team ensures that you remain compliant with legal requirements, allowing you to focus on your career and business growth with confidence.
Contact Delaguía y Luzón today to streamline your cross-border work experience with trusted legal and financial guidance.
