In previous practice, if telework was habitually exercised in more than one EU member state based on an agreement between the employer and the employee, Article 13 of Regulation (EC) No 883/2004 became applicable to determine social security jurisdiction. Consequently, if telework in the State of residence exceeded 25% of the total working hours, the employee was subject to the social security system of the State of their residence.

On 1 March 2023, the provisions of the Czech Republic’s new Framework Agreements with Austria and Germany on the application of Article 16 (1) of Regulation (EC) No 883/2004 came into force. These brought a significant extension in terms of flexibility. It is now possible to perform up to 40% of the working hours from home, i.e. in the State of residence where the employer is not established or has no establishment, without any change in the applicable social security system.

For persons who carry out cross-border telework from their home, the legislation of the state where the employer has its registered office or establishment may continue to apply upon the submission of an application to the competent Social Security Authority. This is subject to the condition that it is in the interests of the person concerned and that, at the same time, the applicable limit of a maximum of 40 % of the total working hours performed in the State of residence is also respected, i.e. outside the territory of the state in which the employer is established. A decision on the application will be issued for a maximum of two years at a time, with the possibility of renewal on the basis of a new application.