A1: certificate of coverage needed for working assignments abroad
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As a result of the globalization, employees at all levels increasingly travel abroad for professional purposes. In the EU and EFTA states (Switzerland, Norway, Iceland and Lichtenstein), such trips were facilitated by the Agreement on the Free Movement of Persons as of 1 June 2002. In the case of cross-border activities of employees, it must be proven that the business traveller pays social charges. For this purpose, every business traveller traveling in other European countries must carry a so-called A1 certification of coverage.
What is an A1 certificate of coverage?
The Agreement on the Free Movement of Persons (AFMP) also coordinates the social security systems of all contracting parties. Regulation EC No 883/2004, which came into effect on 1th May 2010, requires employers and / or employees to inform the responsible insurer about each posting and to obtain their consent. This is done with the A1 certificate, which proves that the employee is socially insured. Coverage gaps or double contribution charges are thereby avoided.
The A1 certificate is required not only for obvious and longer-term secondment of employees abroad, but for all cross-border business activities. This also means for employees who, for example, stay abroad (even on an hourly basis) for the following reasons:
The certificate is needed for all EU and EFTA countries (Switzerland, Norway, Iceland and Lichtenstein). The traveller must be able to present the A1 certificate during the entire stay abroad. Please note that controls are carried out at various locations, for example at the border, but also directly at the hotel, at conferences or at trade fairs. Without the certificate of coverage, high fines can be imposed. Furthermore, there is a possibility receiving an invoice for estimated social security contributions owed - up to a high six-figure amount - which then has to be painstakingly averted by the relevant evidence. In addition, access to the destination or to the temporary place of work may be denied.
Since January 2019 it is only possible to apply for the A1 certificate of coverage online at the “Ausgleichskasse AHV” of the employer. In Switzerland this has to be done via the online platform ALPS (Applicable Legislation Platform Switzerland), through which the entire exchange between companies and the compensation fund takes place. It is important that the certificate must be requested before the trip starts. In the case of frequent traveling employees, we recommend that you apply for the certificate for the maximum period of two years.
Important: This A1 certificate is only needed for business trips.
Recommendation: For private and business trips abroad, we recommend having the European health insurance card with you at all times.
Do you have questions about social security and the A1 certificate of coverage? Our expert Holger Wanke looks forward to hearing from you.
