Cross-border telework: new European framework agreement as of July 1, 2023

Hybrid working gained momentum with the corona crisis. Cross-border employment relationships may experience issues with regard to the applicable social security system with a corresponding impact on the employee benefit plans regarding pension, disability and health care coverage for your employees.

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However, a new European framework agreement ensures that teleworking by frontier workers will be facilitated as of July 1, 2023. Employees who telework less than 50% of their working hours in their country of residence will - provided certain conditions are met - remain subject to the social security system of their country of work. This is good news, because it means the collective plans for this group of workers can be maintained.

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