New EU Agreement on the Impact of Cross-Border Telework on Social Security Legislation

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The applicable social security system is regulated by Regulation (EC) No. 883/2004. When COVID-19 forced everyone to work from home, the normal rules were temporarily set aside so teleworking (remote working) from another member states did not have any impact on the applicable social security legislation (the “no-impact exception”). Until 30 June 2023, a transition period is in force that has maintained the no-impact rule. As this general exception cannot last forever, but cross-border telework is clearly here to stay, the EU had to find a more permanent solution. A work group of the EU Administrative Commission for the Coordination of Social Security Systems (the “Administrative Commission”) now has concluded a draft framework agreement, which can be signed by the EU Member States.

The agreement is based on Article 16 of Regulation (EC) No. 883/2004, which allows the competent authorities to provide for exceptions by common agreement in the interest of certain persons or categories of person. The agreement of will apply as from 1 July 2023 to all EU Member States who will sign the agreement. Belgium has already announced that it will sign. Read more

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