Compliance needed by July 1 for Telework Framework Agreement 

Take note of this exception rule when dealing with teleworkers from neighboring countries. 

Since July 1, 2023, new regulations have been implemented for employees working from home/teleworking within the EU, following the adoption of the European Framework Agreement on Telework. These regulations pertain to teleworkers who spend more than 25%, but less than 50% of their working hours at their home office in their home country while employed by a company in a European country that participates in the teleworking scheme. Under this agreement, teleworkers can maintain social insurance coverage in the country where their employer is located. However, this is contingent upon the authorities of that country issuing an A1 statement. This statement must be requested within three months of commencing employment. Additionally, the employer must have been making social security contributions in the country of establishment since the outset.  

The transitional arrangement allowing retroactive application for the A1 statement expires on June 30. Therefore, employers with international teleworkers should promptly review their records to ensure compliance with social insurance requirements. Failure to apply for this certificate of coverage on time may lead to the teleworker’s country of residence initiating contributions after June 30. This could result in double contributions and administrative complexities for employers, who would then need to register in the teleworker’s country of residence and adjust their payroll systems accordingly. For guidance in specific situations or assistance with the A1 certificate application, reach out to your designated Crowe Peak advisor or complete this form for a consultation without obligation.