EU
home
working
Social security when doing cross-border homeworking in EU
When a person performs work within EU/EEA which involves a cross-border element, e.g. working in another country than where the employer is based, working in two or more EU countries at a time, working as a cross-border commuter or are posted to work in qnother EU country, the EU regulation has coodination rules on how to determine where the person must be covered by social security (including unemployment insurance).
The main rule/principle is that a person must be covered by social security in the country where the person physically performs his/her job (The principle of "lex loci laboris").
Where do we work?
The Court of Justice of the European Union ("CJEU") has stated in the Partena judgement, Case C-137/11, that the place of work should be considered to be the place where in practical terms, the person concerned carries out the actions connected with that activity.
The case concerned a director of af belgian registered company who was managing the company from his residence in Portugal.
The workplace definition is challenged when we talk about working from home on a computer or by using other information technology ("cross-border telework"). However, the Administrative Commission for the Coordination of Social Security Systems, has in a guidance from 2023 emphasised that "the principle of lex loci laboris enshrined in Article 11 of Regulation (EC) No 883/2004 has to remain the main principle for determining the legislation applicable to a person carrying out a professional activity".
The Guidance also say that some cases of telework could be covered by Article 12 of Regulation (EC) 883/2004, which is a "posted worker" and some by Article 13 which is "pursuing activities in two or more Member States".
Using article 13 on homeworking
If you have the right to work from home in your country of residence, but are employed by a company based in another EU/EEA country, you will - according to Article 13 - be covered by social security in the country where your employer is based if you work less than 25% of the total working time from home. If you work more than 25% from home you will be covered by social securtiy in your country of residence.
Framework agreement on cross-border telework
In order to take account of the changed working patterns, the Administrative Commission in 2023 introduced a new framework to ensure flexibility for cross-border telework.
The framework Agreement offers a solution which combines the interests of the workers, the employers, and the social security institutions to face the reality of telework until the coordinating Regulations on social security will be adapted.
The framework agreement is legally based on Article 16 (1) of Regulation (EC) No. 883/2004, and came into force on July 1, 2023.
How is "telework" defined?
The main characteristic of telework is that the employee can carry out their work activity from any location all over Europe and it is thus completely location-independent. This distinguishes telework from all other activities that require or imply the work activity to be carried out at a certain place.
A digital connection (IT link) with the company’s infrastructure is an integral part of the definition of working remotely as a teleworker. The teleworker needs to remain connected to the employer´s working environment to fulfill the tasks assigned. This IT link must be normally and habitually present but not necessarily during a 100% of the working time (e.g. reading materials or offline grading of tests by a professor). This entails that, as a rule, manual activities outside the employer’s premises or business place do not fall within the scope of the definition.
Conditions for using the framework
- both the state of the employer’s seat and the state of residence must be signatories to the framework (see below)
- work is divided between remote work at home and on-site work in the State where the statutory seat of the employer is established (registered office or place of business). Work remote at home and at the premises (branch) of the employer in another EU country than where the employer is official registered is not covered by the framework.
- only employees who are employed by one single employer (or several employers all situated in the same Member State) are covered.
- The cross-border telework must be agreed between employer and employee formally or informally.
Deciding the country where to be covered by social security
The framework has increased the allowed extent of remote work (to 50%, from normally 25%) as a condition for being covered by social security legislation of the Member State in which the employer(s) is/are based.
The different scenarios:
- Telework in the worker’s state of residence is less than 25% of working time. In this scenario, the worker remains insured in the state of their employer under standard rules. Their state of residence should be notified.
- Telework in the worker’s state of residence is between 25% and 49% of working time, and both states are framework signatories. In this case, upon request to the employer’s state under the framework, the worker may be insured in the employer’s state (with consent from both the worker and employer) for a maximum period of three years, which can be renewed.
- Telework in the worker’s state of residence is 25% or more of working time, and one/both states are not framework signatories or telework is 50% or more. In such instances, the worker’s state of residence should be notified. Generally, the worker will be insured in their state of residence. However, requests for exemption under Article 16 of Regulation 883/2004 can be made, which could allow them to be insured in the state of the employer. Both states involved must approve this.
Status of signatory states
Be aware the the framework agreement is only binding for the countries who have signed it.
Belgium acts as depository state for the Framework Agreement. See the list of countries who have signed.
As of 21 May 2025, 22 countries hereunder German, France, Spain, Italy, Sweden and Norway have signed the Framework Agreement.
Procedure of using the framework
A request made in consent by employer and employee shall be submitted in the Member State, whose legislation the employee or person concerned requests to be applied. This means that the request must be filed with the competent institution of the Member State where the employer has its statutory seat.
- Unemployment insurance in Europe →
- Social security coordination →
Cross-border homeworking
You might also be interested in:
⇒Unemployment Insurance Schemes in EU
⇒Unemployment Insurance in the Nordic countries
Key points of EU Unemployment Insurance coordination
- Transferring periods of work and insurance between EEA countries As an EU citizen you can transfer acquired rights from Unemployment Insurance when moving between EU/EEA contries. In this way it may be easier to become entitled to unemployment benefit in the country you move to.
In the vast majority of the Member states the aggregation rule become fully applicable as soon as you starts to work in the country. However in Denmark, Belgium and Finland you must work some period there before you can use the aggregation rule.
You need a PD U1 document in the country you leave or if the involved countries use electronically exhange (EESSI) there will be issued a SED U002. The countries who issues the highest number of PD U1 documents are Germany, Austria, Switzerland and the Netherlands. The countries who receives most PD U1 documents are Lithuania and Italy. - Transferring unemployment benefits Under certain conditions you can go to another EU country to look for work and continue to receive your unemployment benefits from the country where you became unemployed. The period you can export your unemployment benefits varies from 3 to 6 months in the different Member states.
You have to apply for a PD U2 document in the country you leave, or if you haven't done that the institution in the receiving country must request a SED U008 from the competent institution in your last country.
The countries who issues the highest number of PD U2 documents are Germany, Switzerland, the Netherlands and Denmark. Poland is the country who receives by far most PD U2 documents. - Unemployment benefits coverage According to OECD the net replacement of income after 2 months of unemployment, for a single person without children whose previous in-work earnings were 67% of the average wage varies from 33 percent (Ireland) to 91 percent (Belgium). Read more here..
- Having residence in another EU country than where you work? According to EU social security coordination rules you must only be insured against unemployment in one country at a time. As a generel rule this country is where you work.
In Member states who have compulsory insurance, you will automatically be covered when you start working there.
However you may be insured by your country of residence if you are posted to a EU/EEA country or work in two or more EU/EEA countries at a time. In these situations you can not your self decide where to have unemployment Insurance, but you (or your employer) must apply for a PD A1 document which states in which country you are covered by social security, including Unemployment Insurance. Special rule also apply for cross-border workers ("frontier workers"). - Third-country Nationals working in EU/EEANON-EEA citizens are covered by Unemployment Insurance in the EU countries who have compulsory Unemployment Insurance. In countries with voluntary Unemployment Insurance (Denmark, Sweden and Finland) third-country nationals can become member of an Unemployment Insurance Fund.
In the most countries Third-country nationals can also use the EU Coordination rules when moving within EU/EEA (however not in Denmark, Iceland, Liechtenstein, Norway and Switzerland).
Third-country nationals in short-tem working relations often faces problems with actually get Unemployment benefits, even though they have contributed to the system. This is due to the fact that one normally need a residence permit which allow one to take any job, and also because of a qualifying period in most countries between 6-12 months.