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Safe and sound during assignments abroad

With these tips, make sure you are on the safe side when it comes to secondments.

In the case of a posting, workers pursue their activity in another Member State on a temporary basis. If employees are posted abroad on business by their employer, insurance contributions abroad may be payable in addition to social security contributions in Austria. In order to prevent this, posted employees need the so-called A1 form as proof of posting. They can use it to document which social insurance system is responsible for them in an EU/EEA country.

Missing A1 form can have unwanted consequences

The A1 certificate must not only be used for longer-term assignments, but must also be presented by the employee for short business trips abroad. If the employee forgets the A1 form, e.g. at a meeting, this can cause some inconvenience:

  • High fines: France, for example, imposes a fine of more than 3,200 euros per employee in the absence of an A1 certificate.
  • Refused access to business premises, company premises or trade fair grounds
  • Immediate collection of social security contributions under the law of the country of residence

Practical advice for employers

In order to avoid sanctions, companies should apply for the A1 form in good time before the start of the business trip and ensure that the posted employees always have the form with them.

In some countries, fines are not imposed. However, it must be proven that the A1 certificate was already applied for before the posting.

Regulation under review

The European Union is currently revising these directives. In the future, it may be possible to dispense with the A1 form for short business trips. However, it is not clear when this may come into force and it is likely to be a long-term development.

Our Global Mobility experts will be happy to answer any questions you may have about secondments. With our international Grant Thornton network, we ensure that you meet compliance requirements abroad, wherever you or your employees are.

For any questions our Global Mobility Experts Julia Saric-Bischof and Christoph Schmidl will be happy to assist you.