Insurance of employees engaged in “teleworking“

The Czech Republic has concluded framework agreements with Germany and Austria regarding persons working remotely in the other country by means of "teleworking". Both agreements are effective from 1 March 2023 and they reflect the current trends in working from home from abroad. The agreements increase the limit of the scope of work in which the employee working from home from abroad stays within the insurance system of the employer's country. Under the new framework agreements, the limit for keeping an employee in the Czech insurance system will be increased to 40 per cent in comparison to the original 25 per cent of the total time spent working in the other country through the medium of information technology.

The employee must apply for an exemption. The application should be filed at the respective authority of the member state to whose legal rules the employee wishes to be subject; in the case of the Czech Republic, this is a respective Social Security Authority. The exemption can be requested for up to two years, and can be requested again after that period has elapsed. At the same time, a framework agreement is being negotiated with all member states of the EU. This should allow working from home up to a maximum limit of 49.9 per cent. It is expected that the agreement will be effective from 1 July 2023.