Introduction
Since 1 July 2023, cross-border telework has again been subject to specific reporting obligations. Luxembourg employers must declare these telework situations to the competent institutions in order to determine the competent state for social security (Luxembourg or the employee's country of residence) and to obtain the relevant certificates of affiliation. These obligations also extend to other categories of workers operating outside Luxembourg, such as posted workers, employees on business trips, civil servants, international drivers, seafarers, pilots and cabin crew.
In this context, the Joint Social Security Centre (CCSS) has announced the introduction of new declaration procedures for professional activities carried out abroad, which have taken effect since 2 April 2024. These updates aim to incorporate new forms of remote working and adapt forms to collect more detailed information on employees' employment status. In addition, the SECUline system has been updated to allow Luxembourg employers with a large cross-border population to inject data for all their employees.
Changes as of 2 April 2024
1. Multi-state activities and cross-border telework
Framework agreement for telework between 25% and 50% of working time
- Scope: This agreement applies to telework covered by Article 16 of Regulation (EC) No 883/2004 provided that all the conditions set out in the framework agreement are met. This derogation agreement applies only to persons whose state of residence and the state where their employer is established are both signatory states, (https://socialsecurity.belgium.be/fr/activites-internationales/teletravail-transfrontalier-dans-lue).
- Procedure: Applications should be addressed to the CCSS as the competent institution which assesses whether the conditions of the framework agreement are met. Where applicable, the CCSS issues an A1 certificate and the competent institution of the employee's member state of residence is notified electronically via the Electronic Exchange of Social Security Information (EESSI).
- Practical details: As of 2 April 2024, the employer or their representative must submit an electronic application via SECUline or fill in the new paper form. The electronic platform originally developed by the CCSS is no longer accessible.
Teleworkand multistate activities representing less than 25% of working time
- Scope: This situation concerns multi-state and/or telework workers covered by Article 13 of Regulation (EC) No 883/2004 and carrying out regularly their activities in two or more member states of the European Union (EU), the European Economic Area (EEA), Switzerland or the United Kingdom.
- Procedure: The competent body of the worker's country of residence determines the applicable legislation. If Luxembourg legislation is applicable, the CCSS is notified via the EESSI and then issues an A1 certificate.
- Practical arrangements: The regulatory procedure remains in place in accordance with Article 16 of Regulation (EC) No 987/2009. It must be initiated with the competent body in the employee's country of residence. The CCSS can also act as an intermediary if the employer or their representative submits an electronic declaration via SECUline or fills in the new paper form.
Telework posting
- Scope: Telework falling within the scope of Article 12 of Regulation (EC) No 883/2004 representing 100% telework and applicable for a provisional period due to special circumstances (e.g. inaccessible offices, personal situation of the employee requiring an increased presence at home, etc.).
- Procedure: A prior application must be submitted to the CCSS as the competent institution which assesses whether the conditions for secondment and maintenance under the Luxembourg social security scheme are met. Where applicable, the CCSS issues an A1 certificate and the competent institution of the employee's member state of residence is notified electronically via the EESSI.
- How to proceed: The employer or their representative must submit an electronic application via SECUline or fill out the new form.
2. Posting outside Luxembourg
Posting to another EU member state, EEA, Switzerland or the UK
- Scope: The posting of workers outside Luxembourg is governed by Article 12 of Regulation (EC) No. 883/2004 when it is a member state of the EU, the EEA, Switzerland, and for an initial period not exceeding 24 months. Regarding the posting to the United Kingdom, the conditions are specified in Article SSC.11 of the trade and cooperation agreement which was signed on 30 December 2020.
- Procedure: A prior application must be submitted to the CCSS, which is the competent institution to determine whether the employee can remain affiliated to the Luxembourg social security system during the posting. If the conditions are met, the CCSS issues an A1 certificate and the competent institution of the employee's member state of residence is notified electronically via the EESSI.
- Practical details: The employer or their representative must submit an application to the CCSS either via the SECUline system or fill in the new paper form.
Posting to a treaty country
- Scope: The posting of employees to a state with which Luxembourg has concluded a bilateral social security agreement is governed by the provisions of this agreement. These bilateral agreements set out the rules applicable to posted workers, in particular with regard to their affiliation to social security. To identify the countries that have signed such agreements with Luxembourg, it is necessary to consult the list available on the Luxembourg social security website.
- Procedure: A prior application must be submitted to the CCSS, which is the competent institution to determine whether the employee can remain affiliated to the Luxembourg social security system during the posting. If the conditions are met, the CCSS issues a certificate of affiliation.
- Practical details: The employer or their representative must submit a request to the CCSS either via the SECUline system or fill in the new paper form.
Posting to a non-treaty country
- Scope: The posting of employees to a state with which Luxembourg has not concluded a bilateral social security agreement is governed by the provisions of the Luxembourg social security code.
- Procedure: A prior application must be submitted to the CCSS, which is the competent institution to determine whether the employee can remain affiliated to the Luxembourg social security system during the posting. If the conditions are met, the CCSS issues a certificate of affiliation.
- Practical details: The employer or their representative must submit a request to the CCSS either via the SECUline system or fill in the new paper form.
Conclusion
Multi-state activities that have not yet been secured since 1 July 2023 (or since the start of the employment situation) can be declared using the new forms made available by the CCSS.
It is important to note that the transition period set out in the framework agreement will end on 30 June 2024. After this date, it will no longer be possible to apply for a framework agreement for the period from 1 July 2023 to 30 June 2024.
In addition, as of 1 July 2024, the possibility of retroactivity of the framework agreement will be restricted to a period of three months. This implies that for cross-border teleworkers who have not been declared before 1 October 2024, the opportunity to benefit from the increase in the authorised telework threshold to 49% will no longer be available.
It is therefore crucial for employers and their representatives to take the appropriate measures now in order to secure the situation of the employees concerned.
