FAQ - Employer
Within the EU/EEA and Switzerland, it is a legal requirement that all business travellers have an approved A1 social security application from their country of social security with them for all business travels, even those lasting only one hour.
Compliance with Social Security Requirements for Cross-Border Activities.
Within the EU/EEA countries, it is a legal requirement that all personnel have an approved A1 social security application to certify continued coverage in the country of social security—typically the home country—when traveling for business purposes to another country.
This regulation has been established and issued by the EU and is applicable in all EU member states, as well as in the EEA countries and Switzerland.
Relocare Compliance App is an easy and efficient way to track and trace business travels and to streamline and secure the compliance process of filling out and filing A1 applications.
The overall goal of the EU Directive and regulation is to ensure that individuals are covered by social security in one specific country and to determine which country that is. The purpose is to regulate that individuals can maintain social security coverage (usually in their home country) during periods of work in other countries. Due to the EU Directive promoting free labour across borders, an EU national working in another EU country is immediately under social security coverage in the hosting country as soon as they set foot on the soil of the workplace.
The employer must file an application on the employee’s behalf with the authorities using ‘form A1.’ While the responsibility for filing an A1 application can be directed to the employee, the compliance risk ultimately lies with the company. Therefore, at Relocare, we do not recommend this approach.
Form A1 serves as documentation for both foreign and home country authorities, certifying that the individual is covered by social security during the work assignment and that no contributions will be required from either the individual or the employer.
Failure to document coverage in one country through this process may result in the loss of coverage for your employee and potential claims for payment of contributions in the country they are visiting. Fines may be issued for both you and your employee. Since social security contribution rates vary between countries, a lack of accurate documentation may lead to claims as high as 20%, 30%, or even 36% of the salary.
In practice, the documentation may be required to gain physical access to a workplace, and failure to present it may result in entry rejection and the imposition of fines. Additionally, there is a risk of claims for payment of actual social security contributions in the host country. For instance, in the case of France, the fine can be as high as €3,600, and the social security contribution is approximately 36%.
Furthermore, this situation can create uncertainties regarding actual coverage and may impact employees’ rights to receive benefits both during the assignment and upon retirement. It may also affect entitlements to unemployment or sick benefits in Denmark.
To avoid uncertainties, ensure compliance, and protect against potential expenses, you can choose to use the process supported by the Relocare Compliance App and Relocare on your behalf.
If an A1 certificate is provided under incorrect assumptions, it will not be considered valid and can result in similar issues for both the employee and the employer. It will not guarantee coverage or prevent loss of benefits or claims for payments.”
Authorities will not have access to the information in the app. Only individuals relevant to the application process will have access to it.
Relocare Compliance App is an online track and trace app with geo location and an option to automatically initiate and facilitate filing of A1 applications at the Authority.
There is no specific minimum time limit to determine the need for such documentation. This means that even a one-day work-related trip to another country on behalf of the employer may require documentation in place before the travel begins. Such documentation is not only relevant but also necessary for any longer-lasting assignments.
When applied correctly and in a timely manner, obtaining an A1 certificate may, in many cases, be considered a formality, essentially confirming that the conditions for remaining covered in the home country are met.
However, travel patterns and work obligations may change over time, and these changes should be considered at the time of the application. Monitoring changes and adjusting as needed is crucial to support compliance throughout the assignment.
In the context of an actual work assignment that involves moving from one country to another, an application for continued home country social security coverage is typically made for an extended period, often up to 2 or 3 years, to cover the relevant two countries.
Relocare can assist you in determining whether your travel falls under Article 13 in the Directive or whether your work aligns with Article 12 in the Directive.
However, if an employee is expected to work in other countries for an unspecified number of days during a specific period—such as traveling for work on an ad-hoc basis for their home country employer—it’s possible to apply for home country social security coverage for each of these countries for up to one year at a time.
The Relocare Compliance App handles all the underlying data and calculations required when applying for A1 certificates. This means that, for example, a Danish resident responsible for customers in the Baltic region can proactively apply for continued Danish social security coverage for all relevant countries for up to a 12-month period. When making the initial application, an estimate should be provided for the split of physical presence. If this estimate changes, with more time spent in one or more countries than expected, or if other countries become relevant, an amended application should be submitted.
Social security in Denmark encompasses various benefits and obligations as defined by domestic legislation. It covers aspects like medical treatment, hospitalization, dental treatment subsidies, child allowances, sickness benefits, and public pensions. Contributions are primarily managed through the income tax system. While social security specifics vary in other countries, it’s crucial to investigate and define these details locally. Maintaining coverage in one’s home country is often preferred, as it ensures continuity during work assignments abroad. To achieve this, it’s important to apply for documentation during foreign work assignments to secure long-term benefits, including public pensions, which may only become relevant many years later.
All information will be collected and processed solely for the purpose of ensuring compliance with social security requirements during work-related travel, as outlined in the description.
Relocare Compliance App
True Care for Business Traveler
