Other considerations

The European Commission issued initial guidance to Member States urging a relaxation of the normal social security coordination rules for workers displaced due to COVID-19. Many Member States subsequently relaxed their requirements including the need of an A1 certificate to be exempt from local social security contributions. As travel restrictions begin to ease across the continent, authorities across Europe are phasing out their concessions and a majority of Member State authorities now require A1 certificates to be obtained in various displaced worker scenarios.

The European Court of Justice (ECJ) has issued a long-anticipated judgment on the interpretation of who is the ‘employer’ of a cross border worker. This determination is important in European social security coordination legislation (Regulation no. 883/2004 and Regulation no. 987/2009) because where the employer is registered may determine whether social security will be payable in one member state or another. In this recent case, the court ruled that the employer was the undertaking that in reality exercised the functions of the employer rather than the other undertaking with which the employees had their formal employment contracts.

Many organisations have taken some immediate steps to understand the social security and healthcare implications for employees now working remotely across borders. However, challenges continue as employers seek to satisfy their social security compliance requirements – both monetary obligations as well as access to benefit entitlements including healthcare access. At the same time, employers also are looking for cost saving and cash flow options

Tackling the issue of “social dumping” has long been an area of focus for the EU and for almost 20 years they have tried to address this issue. Since the launch of its 1996 Directive, EU Member States have been given EU-wide instructions on how to guarantee the minimum employment rights of workers moving temporarily to other member states to deliver services. The EU Posted Workers Directive is just one more reason for organisations to consider reviewing business travel on a pre rather than post travel basis to ensure full compliance.

The world of tax as we know it is changing. Dealing with globalisation and the digitalisation of the economy is posing taxpayers and policymakers a significant headache. What is feeding this tension, and where might we end up? More importantly, what should businesses be doing to engage with these changes and prepare themselves? PwC’s David Murray and Alenka Turnsek seek to answer these important questions.

By Clare Coley. Imagine spending your spare time in a chalet in France; skiing in the winter, day trips to the South coast with your family (who love the outdoor lifestyle), a glass of wine in the warm setting sun, views over the mountains….