A1 Certificate

Imagine your employee goes on a business trip or workation to a European country and returns with either a hefty fine or a story of being questioned by authorities about a social security certificate. How could this happen? The answer is simple: they didn't have an A1 certificate.

Since July 1, 2019, employers must issue this document whenever their employees travel to an EU country for business or workation to mitigate the social security risk.

In this article, we provide a comprehensive overview of the importance and process of applying for A1 certificates. We explain the relevance of this document, highlight typical challenges, and offer practical solutions to optimize the process. Learn how, with the right preparation and the right tools, you can make the application for A1 certificates efficient and fast, while avoiding penalties and unnecessary administrative burdens.

What is an A1 certificate?

The A1 certificate is a document specifying that the social security legislation present in the country of employment remains applicable to the employee when they work abroad temporarily. The A1 is important for people traveling for business or a workation within the EU and EEA countries, as well as Switzerland. The A1 certificate is issued by the relevant authorities of the country where the employee is insured and employed.

For example:

• ‍In Germany: statutory health insurance providers (gesetzliche Krankenversicherung) and the German pension insurance (Deutsche Rentenversicherung)
• In France: Union de Recouvrement des Cotisations de Sécurité Sociale et d'Allocations Familiales (URSSAF)
• In the United Kingdom: HM Revenue & Customs (HRMC)

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Why is A1 certificate important?

The A1 certificate is there to mitigate social security risks. This document proves that the employee is fully covered by the social security system of their country of employment, thus avoiding any ambiguity about where they must pay social security contributions.

Let's look at the risk in detail. When an employee goes abroad to work temporarily, either for a business trip or a workation, there are two main social security risks:

1. The traveler might drop out of the home country’s social security system, or
2. The traveler might become a part of the destination country’s social security system.

Neither scenario is desirable, as it could result in double payments, covering social security in two countries, or losing access to the domestic social security system.

If there is a social security treaty between the home country and the destination country, it allows the employee to remain insured in the home country's social security system. Within EU countries, this is achieved by applying for an A1 certificate.

If the trip occurs between countries where at least one is outside the EU and the countries have a social security treaty in place, the risk can be mitigated by applying for a Certificate of Coverage (CoC). Although the documents are named differently, in practice, the CoC functions the same way as an A1 certificate.

In cases where there is no social security treaty, there is no definite way to fully mitigate the social security risk. In these situations, WorkFlex clients benefit from tailor-made solutions that minimize the risk, such as the no-risk concept and the WorkFlex Social Security Statement.

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When is an A1 certificate needed?

An A1 certificate is required whenever an employee travels abroad for a workation or a business trip within the EU, to Iceland, Liechtenstein, Norway, Switzerland or the United Kingdom of Great Britain and Northern Ireland. The A1 certificate should be requested from the local authorities in the country of employment.

There are specific cases when an A1 certificate should not be applied for when traveling. For example, in Spain, it is highly recommended for employers to avoid applying for an A1 for their talents (except for posting scenarios). However, in most other cases, an A1 certificate should be applied for to reduce the social security risk. Learn how to determine the need for an A1 certificate with the WorkFlex A1 Certificate Cheat Sheet.

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How long does it take to apply for an A1 certificate?

The short answer: it depends. The duration can vary based on the application process structure of the specific country and the internal company processes.

If done manually, without the use of automated technology tools, it usually takes between 40-60 minutes in total, combined for the employee and HR.

The employee's role is to provide relevant information, including personal details and trip specifics, to the HR team. For HR, the tasks involve identifying the appropriate country-specific authority that can issue A1 certificates, requesting the certificate, distributing it internally to the relevant employee, and conducting internal reporting.

If the process is facilitated by a technological tool, such as WorkFlex, it takes less than a minute for the HR team and employee combined.

This is because WorkFlex handles the application for the A1 certificate on behalf of both the employee and the employer in most cases.

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How quickly do authorities issue an A1 certificate?

The issuance time for an A1 certificate can vary depending on the specifics of the country, but it is usually issued within one month. However, even if the certificate has not yet been received, as long as it has been applied for, the employee can travel abroad. Should they be questioned by social security authorities, providing proof of the application for the certificate is an acceptable response.

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What’s the risk of not having applied for an A1 certificate?

If your employee travels without an A1 certificate (whether on a workation or business trip) and is questioned by local authorities, this could lead to a significant administrative burden for both the employer and the employee.

Consequently, the employee might become liable for social security payments in both their home country and the country where they are temporarily working. This situation could complicate their eligibility for social security benefits and restrict their ability to effectively utilize the social security system.

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Conclusion

In conclusion, the A1 certificate serves as a must-have tool to safeguard both employees and employers from social security risks when conducting international business trips or workations. By ensuring that employees remain within their home country's social security system while working temporarily abroad, the A1 certificate prevents potential issues such as double social security payments and the loss of benefits.

Employers must ensure that the A1 certificate is applied for before the employee embarks on an international trip. The A1 certificate can be obtained in the home country by reaching out to the relevant country-specific authorities. As global work arrangements become increasingly common, this proactive approach not only protects the employee but also supports the employer in maintaining compliance with international social security regulations.

To avoid administrative burdens and manual tasks, technological tools such as WorkFlex are available to apply for an A1 certificate seamlessly, regardless of the country where your employee is located.

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Deep-dive articles about A1 certificate

• A1 Certificate Cheat Sheet
• Social security treaties: What’s it all about?
• Sv.net will be shut down - How to apply for A1 certificates now?