Switzerland and some EU and EFTA countries have signed a multilateral agreement derogating from the ordinary rules of subjection to facilitate telework beyond June 30, 2023, in the interests of the workers involved and their employers.

This agreement provides that persons working in one State for an employer established there may carry out up to 50% of cross-border telework (up to a maximum of 49.9% of working time) from their State of residence, in principle using electronic means, while maintaining the competence of the State of the employer’s establishment for social security. This derogation can only apply to situations involving two States that have signed the agreement.

The updated list of countries concerned, the text of the agreement and an explanatory memorandum are available at: https://socialsecurity.belgium.be/en/internationally-active/cross-border-telework-eu-eea-and-switzerland

The multilateral agreement applies to persons to whom the LCA respectively the EFTA Convention applies. It does not apply to:

persons who also habitually carry out an activity other than telework in the signatory State of residence (e.g. regular customer visits, ancillary independent activity);
persons who also habitually carry out an activity in the EU respectively in the EFTA outside their signatory State of residence and Switzerland;
persons who, in addition to their Swiss employer, work for another employer located in the EU respectively in the EFTA;
self-employed persons.
OASI/IV information sheet no. 470 provides detailed information on the multilateral agreement and its implementation in the ALPS platform: https://sozialversicherungen.admin.ch/fr/f/5595

It is planned to adapt the European coordination rules in the longer term to take account of cross-border telework.

This communication concerns only social security, not tax law.

Impact of the agreement on cross-border workers in relations with Germany, Austria, France and Liechtenstein

From July 1, 2023, cross-border workers employed by a Swiss employer (or by several Swiss employers) who telework up to 50% (up to a maximum of 49.9% of working time) from Germany, Austria, France or Liechtenstein can remain insured in Switzerland.

On the other hand, cross-border workers who live and telework for less than 50% in Switzerland for an employer (or several employers) based in Germany, Austria, France or Liechtenstein can remain subject to the social security of the employer’s headquarters.

Practical information

In order for the agreement to apply to their employees, Swiss employers must apply for an A1 certificate (maximum validity of 3 years, renewable) from their OASI compensation fund using the ALPS platform (Applicable Legislation Portal Switzerland) which has been adapted (new case type “Cross-border telework”).

It is not necessary to submit the application immediately, as the A1 certificate will be able to retroactively cover the period starting July 1, 2023 for all applications submitted until the end of June 2024.

No change of competence and application of the ordinary rules in case of telework below 25% in relations with all EU/EFTA countries

The agreement applies to cross-border telework between 25% and 49.9% of working time. The ordinary rules and procedures continue to apply to cross-border telework below 25%, even if it is carried out in a signatory State to the agreement.

In the case of telework carried out on the territory of a State that has not signed the multilateral derogation agreement, or for an employer established in a State that has not acceded to the agreement, the ordinary rules and procedures applicable before the pandemic are again applicable from July 1, 2023 for the application for an A1 certificate (the subjection is determined by the competent institution of the State of residence): cross-border telework up to 25% (maximum 24.9%) is possible without any impact on social security.

Posting in case of temporary full-time telework in an EU or EFTA State

**The States applying the European coordination rules have agreed to interpret the posting provisions in such a way that posting under Art. 12 of Regulation (EC) No 883/2004 is also possible in case of temporary and punctual full-time telework (100% of working time). Therefore, a Swiss employer can post an employee to telework in an EU/EFTA State, regardless of who initiated the cross-border telework, insofar as it has been agreed between the employee and the employer. It is also irrelevant whether the temporary cross-