The temporary assignment of employees from Portugal to another European Union (EU) country involves specific legal and Social Security obligations that employers must consider before the assignment begins.
Under the applicable European Social Security coordination rules, employees temporarily assigned to work in another EU Member State may remain covered by the Portuguese Social Security system, avoiding the obligation to make contributions in the country where they are temporarily working.
However, this exemption is subject to specific conditions and requires the appropriate documentation.
As a general rule, employees working in another EU Member State are subject to the Social Security legislation of the country where they perform their professional activities.
Nevertheless, an exception may apply to employees temporarily assigned from Portugal to another EU country.
Under this regime, eligible employees may continue contributing to Portuguese Social Security while being exempt from Social Security contributions in the country of assignment.
One of the relevant conditions is that the employee must have been subject to the Portuguese Social Security system for at least one month immediately before the assignment.
This mechanism aims to ensure continuity of Social Security coverage and avoid unnecessary changes between national systems during temporary assignments.
To benefit from this regime, employers must obtain an A1 Form, which certifies the Social Security legislation applicable to the employee during the assignment.
The A1 Form serves several important purposes:
The certificate is therefore an essential document for employers sending employees to work temporarily in another EU Member State.
Under the standard rules governing temporary assignments, the A1 Form may cover a period of up to 24 months, provided that the relevant legal conditions are met.
During this period, the employee may remain covered by Portuguese Social Security legislation instead of becoming subject to the Social Security system of the host country.
In specific and duly justified circumstances, an extension beyond the standard 24-month period may be possible, subject to the applicable procedures and agreement between the competent authorities.
Employers should therefore assess the expected duration of the assignment in advance and ensure that the necessary documentation remains valid throughout the relevant period.
In addition to Social Security requirements, employers must ensure that employees assigned abroad have appropriate work accident insurance coverage.
Before the assignment begins, the employer should confirm that the existing insurance policy provides coverage in the destination country and throughout the entire assignment period.
This verification is particularly important because international assignments may involve different working environments and risks.
Ensuring adequate insurance coverage is an essential part of the employer’s responsibilities when organising temporary work assignments within the European Union.
Companies planning to assign employees from Portugal to another EU country should carefully assess the applicable legal and administrative requirements.
In particular, employers should verify the employee’s prior Social Security coverage, confirm eligibility for the temporary assignment regime, obtain the A1 Form and ensure adequate work accident insurance.
They should also monitor the duration of the assignment and any circumstances that may affect the employee’s Social Security status.
It is important to note that the A1 Form concerns the applicable Social Security legislation and does not, by itself, replace other employment, tax or administrative obligations that may arise in the host country.
Temporary assignments within the European Union can provide important opportunities for companies operating internationally. However, compliance with the applicable Social Security and employment requirements is essential to avoid administrative difficulties and potential liabilities.
At EDGE International Lawyers, we assist companies and individuals with cross-border employment matters, helping them understand their legal obligations and navigate the requirements applicable to international assignments.
For further information or legal assistance, contact EDGE International Lawyers.
