Teleworking Framework Agreement
Under EU regulations for cross border workers, where an employee works for at least 25% of their time in their State of Residence, the social security obligation would shift from the Employer State to the State of Residence. In our experience the social security authorities in Ireland and across Europe would not issue A1 certificates (to retain the employee within Social Security of the Employer State) for cases where employees were working remotely. This can cause complexities for both employees and employers where they may have to register for and comply with the social security obligations in other jurisdictions.
In 2023 18 EU countries signed up for the Framework agreement on cross-border teleworking. The Teleworking Framework Agreement provides an opt-in for employers and employees to allow employees who are employed in one state (Employer State) to work remotely in their country of residence (State of Residence) and to remain subject to social security in their Employer State, provided that the cross-border telework in the State of Residence is less than 50% of their total working time.
Ireland signed up to the new Framework on 20th May 2024 which is effective from 1 June 2024. This is a welcome change which bridges the gap left following the ending of the no-impact COVID-19 concession on remote working. It is a practical agreement recognising that teleworking is a core part of many organisations and is becoming more prevalent. It is however worth noting that the UK are not party to the agreement, which is disappointing considering the close link between Ireland and the UK and the number of individuals who are teleworking across both jurisdictions.
The signed framework agreement can be found here: Cross-border telework in the EU, the EEA and Switzerland | Federal Public Service - Social Security (belgium.be)
A1/Certificate of coverage applications
The Department of Social Protection recently announced their new online services platform, Welfare Partners. Going forward agents who apply for A1 and Certificate of Coverage (COC) applications will be required to use the platform to complete the application online. All applications to the department will have to be made through Welfare Partners from 1 July 2024.
The previous system was paper based and it is hoped that the new system will provide a more streamlined service for A1 and CoC applications which will in time reduce the long waiting times for A1 applications which can be anywhere from 6 – 12 weeks.
Contact Us:
For further details on Global Mobility / Teleworking Framework Agreement, contact our Tax Team:
- Ronan McGivern, Partner - 01 6440100
- Tanya Dooley, Manager - 01 6440100
