EU/EEA | Social Security | New EU court ruling for multi-state workers across EU/EEA and Switzerland

Global Social Security

EU/EEA | New EU Court ruling for Multi-State Workers Across EU/EEA
and Switzerland

Summary

A new judgement from the European Court of Justice provides guidance on handling employees who normally work in two or more countries across the EU/EEA and Switzerland (multi-state workers). Previously, these cases were managed under a single treaty covering the full case. However, the EU Court has ruled that each underlying treaty combination must be examined separately, meaning that social security contributions may not always be limited to just one country.

The detail

Key points

1. The case: A self-employed doctor based in Austria, working in Austria, Liechtenstein, and Switzerland, had his case examined by the EU Court. The court found that different social security coordination regulations applied in parallel in each country combination, meaning multiple social security coordination regulations had to be considered separately.
2. Complexity: This makes it more complicated to determine which country’s (or countries’) social security legislation applies. In some cases, multiple applications might be needed to ensure compliance with different regulations. Cases always must be reviewed on a country-by-country basis.
3. Simplified Solutions: There may be ways to simplify this, such as applying for a so-called
   Article 16-exemption, allowing countries to agree on one social security system for the
   employee. However, this solution may not work for the UK due to its post-Brexit agreements.

Key points How This Can Affect Businesses

• Companies must now carefully review employees working across multiple EU/EEA countries to ensure they are following the correct social security coordination regulations.
• Red flag-cases are especially cross-border commuter cases involving Norway, Switzerland, or the UK.
• The Court judgment could also have some advantages, for example for cases involving the new EU/EEA framework agreement for teleworkers that also involve business trips to the UK.

How We Can Help

• We can review your current multi-state workers to ensure compliance with these new rules.
• We can guide on how to simplify and manage the process for employees who travel frequently across borders, helping to avoid unnecessary complications.

This judgement adds new layers of complexity to managing international workers’ social security, requiring more detailed legal checks and, in some cases, multiple applications.

 

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Adam Rewucha
Director

Gary Chandler
Director

Further information on Vialto Partners can be found here: www.vialtopartners.com

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