The Czech Republic, specifically the Czech Social Security Administration, has concluded a Framework Agreement on the application of Article 16(1) of Regulation (EC) No 883/2004 in cases of habitual cross-border telework.
The legal basis for the Agreement is Article 16(1) of Regulation (EC) No 883/2004, according to which an exception may be made in the interest of a certain category of persons by agreement of the competent institutions of the Member States. The Framework Agreement is effective from July 1, 2023, and replaces in its entirety the previous bilateral agreements concluded with effect from March 1, 2023, with Austria and Germany.
A request under the Framework Agreement may only be made in relation to States that have acceded to the Framework Agreement.
To date, these are the following States:
- Austria
- Belgium
- Croatia
- Czech Republic
- Finland
- France
- Germany
- Liechtenstein
- Luxembourg
- Malta
- Netherlands
- Norway
- Poland
- Portugal
- Slovakia
- Spain
- Sweden
- Switzerland
An updated list of countries that have signed the Agreement can be found on the website of the Belgian Federal Public Service Social Security.
As you can read on the website of the Czech Social Security Administration at https://www.cssz.cz/-/telework-eu, the purpose of this Agreement is to allow employees who carry out cross-border telework below the set limit and who would have to be insured in their State of residence under the standard rules of the coordination regulations to request the application of the legislation of the employer’s State of residence. This should help to prevent discrimination against cross-border workers who are now allowed to work from their place of residence to a greater extent than hitherto without their employer having to register and pay insurance premiums in the State of residence of such foreign workers.
If the employee meets all the conditions set out in the Framework Agreement, he/she is entitled to be granted an exception.
What conditions must be met?
- the employee carries out telework (usually from home) in a State of residence other than the Member State in which the employer’s registered office is situated;
- the same type of work is carried out from home as if it were carried out at the employer’s registered office using information technology;
- the employee does not carry out the work in any Member State other than his/her State of residence and the State of the employer’s registered office;
- the employee works more than 50% of his/her working time in the State of the employer’s registered office (the employee spends no more than 49.9% of his/her working time in the State of residence);
- the employee has an employer (one or more) in only one Member State;
- the employee and the employer jointly request a special exception under the Framework Agreement;
- both the State of residence and the State of the employer’s registered office have signed the Framework Agreement.
Who/what is not covered by the Framework Agreement:
- persons who habitually pursue an activity other than telework in their State of residence;
- self-employed teleworkers;
- an employee who performs any other employment for an employer with its registered office in another Member State;
- self-employment;
- manual work;
- an employee working in the State of residence from a branch of his/her employer or business partner/client.
If no request for an exception is made, the employee will be subject to the insurance regulations under the EU basic coordination rules.
How to request an exception:
A request for an exception must be submitted to the competent institution of the Member State (social security administration having local competence) to whose legislation the employee wishes to be subject, i.e. in the State of the employer’s registered office, from July 1, 2023, for up to 3 years (also repeatedly). For requests submitted no later than June 30, 2024, it is possible to request an exception retroactively as of July 1, 2023, but only on condition that social security contributions were paid in the State of the employer’s registered office during that period.
The request form for an exception under the Framework Agreement is available on the Czech Social Security Administration’s website: https://eportal.cssz.cz/web/portal/-/tiskopisy/szzvpp
