WERNLI Tax Law Firm also takes care of your social legislation needs
We advise you on all social security issues related to secondments and business trips:
A1-applications for business trips and (short-term) postings (EC regulation 883/2004)
Special agreements to remain in the social security system of your home country (long-term postings - EC regulation 883/2004)
Exemption agreement / applications within the framework of bilateral social security agreements
Advice on other social security law issues
The legal situation is briefly explained below:
EU, Switzerland, Norway, Lichtenstein and Iceland
In order to coordinate the social security systems of the EU member states as well as Switzerland, Norway, Lichtenstein and Iceland, the following regulations have been issued:
Regulation (EC) No. 883/2004
Implementing regulation (EC) No. 987/2009
Regulation (EU) No. 1231/2010
Annex II of the agreement on the freedom of movement between the EU and Switzerland
Annex VI of the EEA agreement
The regulations govern which social security system is to be applied in the matter of a business trip or a secondment / posting as well as in the case of simultaneous employments in several states (so-called multi-state worker rule). The implementing regulation 987/2009 imposes numerous obligations upon the employer. A non-compliance with those obligations may result in vast and inconsiderable fines. In addition, some countries stipulate a pre-announcement of business trips and postings via electronic reporting offices. Please note that there is also an obligation for a A1-certificate for business trips which last only one day.
In a secondment / posting of up to two years, the employee’s native country’s social security law usually still applies. When an assignment lasts longer than two years or is extended, it is possible to remain in the social security system of the home country by means of an exceptional agreement. We will check the social security options for you and will also apply for the necessary A1-certificates and exemption ordinances.
Switzerland has concluded bilateral social security agreements with numerous third countries.
These agreements regulate which social security system is to be applied to the posted employee. However, these agreements usually do not cover all branches of insurance. Therefore someone’s remaining in the Swiss social system has to be checked for the other branches by means of voluntary insurances (e.g. unemployment and health insurance). A double payment of dues (in the home country and the host country) can not always be avoided. Wernli Tax Law Firm supports you with application for certificates and advises you on social security issues.