In response to the coronavirus outbreak, many of the EU/EFTA countries have shown flexibility with regard to determination of the applicable social security legislation.

However, with falling virus infection numbers across Europe, the question arises about how long the flexible measures will stay in place.

The Swiss federal social security authority has recently amended its guidelines: it intends to end the flexibility on a country-by-country basis.

In recent months, Switzerland and other EU/EFTA countries have shown unprecedented flexibility with regard to the social security affiliation of employees working from home.

 

During the first wave of the COVID-19 pandemic, most EU/EFTA countries have not considered the time an individual works from home for the purpose of deciding which legislation should apply.

Based on the falling numbers of new infections within the EU/EFTA region, discussions have started on how long this will continue.

The Swiss authorities have now indicated that they intend to go back to considering the time worked from home for the purpose of deciding the applicable social security legislation.

This was announced after the Swiss federal authorities lifted their recommendation on 22 June that employees should work from home if possible.

The first country with which Switzerland has reached an agreement is Germany. It has been agreed that the flexibility will continue until 31 December 2020.

The authorities have stated in addition that from their point of view the current flexibility will continue for as long as nothing else is agreed with neighbouring countries.

The EU Commission is expected to announce a decision soon that will extend the no impact measures until 31 December 2020.

As a reminder:

Art. 13 section 1 of the EU regulation 883/04 determines the applicable social security affiliation for a person who is normally working in two or more member states:

• An employee who is working in the country of residence for more than 25% of his or her time will be subject to the legislation of that country.
• An employee who works less than 25% of the time in the country of residence and has just one employer will be subject to the legislation of the country of the employer has its place of business.

When determining whether a cross-border worker needs to be affiliated to the social security system of their country of residence, factors to consider include work pattern and whether the employer considers that the home office is the ’normal’ place of work for 25% of the individual’s working time.

 

Deloitte's view:

With COVID-19 infection numbers rising again in Switzerland in the past few days and the uncertainty with regard to the timeline and the countries concerned (apart from Germany), further bilateral agreements by Switzerland together with a decision from the EU Commission will go a long way towards providing clarity to employers about how to proceed.

They should now check their existing policies about working from home and on a general level consider the possible implications for social security affiliation of their employees

 

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