REGULATION (EC) No 883/2004 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 29 April 2004 on the coordination of social security systems (Text with relevance for the EEA and for Switzerland) we quote:
A person who pursues an activity as an employed person in a Member State on behalf of an employer which normally carries out its activities there and who is posted by that employer to another Member State to perform work on that employer’s behalf shall continue to be subject to the legislation of the first Member State, provided that the anticipated duration of such work does not exceed 24 months and that he/she is not sent to replace another posted person.
The question that arises is, whether a company, that makes use of the services of a foreign subcontractor or temporary employment agency, can be held responsible, if the A1 document was acquired illegally.
The A1 document (formerly E 101) is a personal document.
Employees, who have been seconded by their employer on a project in a member state of the European Union, must have this document in their possession, in order to prove that they are insured under the legislation of their country of residence.
If the employee will be working in more than one country of the European Union (EU), employer must inform the competent social insurance agency in the country where the employee lives.
If the employee works for at least 25% of his or her working hours in the country where he or she lives, he or she will be covered under the social insurance system of that country.
Are the employee’s family members also insured?
Family members continue to be insured as long as they live in the country where employer is registered.
Illegally acquired A1 documents
Unfortunately, a lot of A1 documents have been acquired illegally, simply, because the employer and/or the employee does not meet the criteria to be eligible to apply for the document. This has serious consequences, namely, the employee is NOT insured and will be liable for all consequences that are caused by not being insured.
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In many countries, labour inspectorates will check whether an employee is insured for social security purposes. The company where the employee is seconded to,may also carry out this check. By showing an A1 certificate, the employee has proof that he or she is insured in the country of residence. If your employee does not have an A1 certificate of coverage, he or she may get fined by the inspectorate. In some countries, an employee will not be allowed to start working for certain companies without a valid A1 certificate.