New agreement on cross-border telework - update May 2023

This framework agreement envisages situations of telework where the employee teleworks in his country of residence, which is another country than the country where the employer is established.

Under the current rules (Regulation 883/2004 - to which, however, temporary exceptions have already been introduced), in case of telework of more than 25% in the country of residence, the social security of the country of residence would become applicable.

However, under the new framework agreement, the employee may in the future request to remain subject to the social security of the member state where the employer is established, even in case of substantial performance of more than 25% telework in the employee’s country of residence (under the exception of Article 16 of Regulation 883/2004).

By approving the framework agreement, Belgium undertakes to systematically agree to a request to designate the member state where the employer is established as the competent member state in terms of the social security system in the targeted situations. This will only be approved if the employee (tele-) works less than 50% of the total working time in his/her state of residence.

The aim of this framework agreement is to introduce a more permanent regime on social security for cross-border teleworkers in the EU from 1 July 2023. The framework agreement comes pending a final adaptation of European rules.

Applicable social security law is just one of many areas of concern in cross-border (tele-) working, and the rules are changing rapidly. So make sure you are well informed to avoid discussions and regularizations afterwards.

If you have any questions about this, do not hesitate to contact one of our experts.