Social Security

This dimension assesses the company risks of the temporary remote worker abroad becomes socially insured in the destination country and/or drops out of the coverage of the home country's social security, both of which are not desirable. 

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Consequences

• Contributions of € 5.000 to € 15.000
• Administrative obligations exceeding € 5.000
• Penalties and interest

Explanation

Social Security risk around temporary work from abroad is twofold. First, the employee might no longer be part of the home country social security system. Second, the employee might become part of the social security system - with the obligation to contribute premiums accordingly.

In practice, both risks are managed through obtaining so-called A1´s or CoC´s. These certificates confirm that the employee remains covered only by the social security system of the home country, and can be requested from insurance companies and/or authorities. The process for doing this can be very complex and issuing the certificate generally takes weeks - if not months.

Upon approval of the employee request, WorkFlex can apply for an A1 or CoC in Germany, Austria, the Netherlands and the UK. After it has been issued - it will be uploaded to the platform. However, WorkFlex will always and immediately issue its unique WorkFlex Social Security Statement, the content of which is similar to an A1 or CoC (see example here). Moreover, for short requests (60 days or below) and for cases where a social security treaty applies, WorkFlex Social Security Statement ensures that the no-risk concept applies.

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