As a result of the flexibilisation and digitalisation of the labour market and the increase in cross-border teleworking since the COVID-19 pandemic, telework has become the “new normal” way of working for many. To mitigate the effect of cross-border telework, the EU Member States have drawn up a new framework agreement to regulate cross-border teleworkers' social security position.

 As a general rule, every individual is subject to the social security legislation of their State of employment. In the case of cross-border teleworkers, employers may be subject to pay contributions in the employee's country of residence, which would imply higher costs and administrative burdens.

Under the Framework Agreement, a person who carries out habitual cross-border telework will be, upon their request, subject to the legislation of the State in which the employer has his registered office or place of business, provided that the cross-border telework in the State of residence is less than 50 per cent of the total working time. The remaining (minimum) 50 per cent must be physically worked in the Member State where the employer is established.

The Framework Agreement covers all cross-border workers provided that their residence is in a signatory State and the registered office or place of business of the undertaking or employer is situated in another signatory State.

If the above-mentioned conditions are met, the social security legislation of the Member State where the employer is established continues to apply.

Employees or employers who wish to benefit from the Framework Agreement must submit an application form to the Member State's competent authority, where the employer has its registered office.