Exemption agreement for cross-border teleworking (home office)

According to the multilateral framework agreement concluded, the responsibility for social security in the employer's country of domicile remains in place if employees regularly work for

• one or more employers in the same country of employment,
• independently,
• using information technology,
• less than 50% of the working time,
• in the state of residence

performing telework that they would otherwise perform at the employer's place of business.

While the IT connection is a mandatory prerequisite for the applicability of the multilateral framework agreement, this does not have to be permanent throughout the working hours.

The individual may not engage in any other gainful activity in any other state (except the state of acquisition), no matter how minor.

Occasional, spontaneous business trips are irrelevant for the application of the multilateral framework agreement. For them, A1 certificates must be applied for from the AHV institution in each case in the context of postings in accordance with Article 12(1) of Regulation (EC) 883/04. However, if such work is a regular and customary part of the employment relationship, the multilateral framework agreement does not apply, unless the regular business trips are made to the country of residence

The multilateral framework agreement does not apply to self-employed persons.

Neither does it cover situations in which persons perform other work, albeit for the same (foreign) employer, in addition to telecommuting in the country of residence.

The multilateral framework agreement is only applicable to constellations involving two states that have signed this agreement and to persons who are subject to the EU coordination rules. Persons to whom these coordination rules were already not applicable cannot benefit from this multilateral framework agreement (e.g.: EU citizens residing in Switzerland and working in Liechtenstein or Swiss citizens residing in Germany and working in Liechtenstein).

The current status of the signed multilateral framework agreements or participating states can be viewed at EU Cross-border telework in the EU | Federal Public Service - Social Security (belgium.be).

The multilateral framework agreement allows telework in the state of residence under the stated conditions of "less than 50% of the working time."

Over what period of time the "less than 50%" is to be calculated is not regulated in the multilateral framework agreement and is currently still the subject of discussions among the signatory states. It is assumed that, in line with Regulation (EC) No. 987/09, a calculation period of 12 months will be used.

The multilateral framework agreement will enter into force on 1 Jul i2023. An application to make use of it can therefore only be submitted from that date.

For applications submitted by the end of June 2024 at the latest, the A1 form confirming subordination to Liechtenstein social security law can be issued retroactively to 1 July 2023 if social security contributions have been paid continuously in Liechtenstein during this period.

If the application is submitted after June 30, 2024, a confirmation can only be issued retroactively for three months under the same condition of continuous payment of contributions.

The multilateral framework agreement will only be applied to individual employment relationships if the employer or employee so requests, whereby both must agree to the request and it must be in the interest of the employee, which will usually be the case.

The online form for this will be available here as of July 1, 2023.

A corresponding application is only necessary if the share of telework in the state of residence is between 25% and less than 50% of the total working hours. For cross-border telework up to 25%, an application for the issuance of an A1 form must be submitted to the competent office for this purpose (the AHV-IV-FAK Anstalten for persons residing in Liechtenstein who work within the scope of the EU coordination rules; otherwise, the respective competent office of the state of residence), as was the case prior to the exemptions during the Corona pandemic, even if the state of residence has also signed the multilateral framework agreement on telework.

If the application is positively processed, the applicant and, if applicable, the person concerned receive an A1 form. This is essentially a confirmation that Liechtenstein social security law applies to the employee in question.

The application must be submitted in writing

An exemption agreement is issued to an individual for a maximum of three years at a time, with extensions issued upon reapplication.

The multilateral framework agreement only governs a person's subordination under social security law. However, cross-border activities may also have tax law implications. These are not covered by this multilateral framework agreement.