The most important facts about A1 certificate summarized. Companies must apply for A1 certificates before business trips to EU/EEA countries in order to prove that posted workers are still enshrined in German social security.

A package of measures aimed at combating social fraud and wage dumping in the European Union could appear to be a sensible solution at first glance. However, the A1 certificate, which is required for workers in other EU countries to prove their social security, has now taken on an enormous amount of bureaucracy. This can result in employers facing heavy fines if there are violations.

Although EU Regulation No. 883/2004, which has regulated the A1 certificate since 2010, has existed for a long time, it has only been strictly enforced since January 1, 2019. As a result, checks on workers, managers and self-employed people on business trips are increasing, and some countries are imposing severe fines on infringements. In such cases, employers often have to pay several thousand euros.

What is the A1 certificate?

If employees from Germany work temporarily in a European country, for example as part of a business trip, training, an international conference or a trade fair, social security contributions may theoretically apply in the host country. However, as the employee is already insured in his home country, a double financial burden would be unreasonable.

Therefore, the A1 certificate introduced, which proves during an inspection that the employee is already paying social security contributions in another country. This makes the matter fairer, but also involves considerable administrative effort. Because for every business trip to other EU or EFTA countries, however short, companies must have a Apply for an A1 certificate for your employees.

When do you need the A1 certificate?

Even short-term appointments, spontaneous meetings or a short trip across the border in a company car can result in a violation if a valid A1 certificate is not carried along.

In general, it is the responsibility of HR departments to issue the certificate if employees have worked in a business context in other European countries for up to 24 months.

To ensure the necessary overview, we have created an alphabetically sorted list of countries in which the A1 certificate is required:

• Belgium, Bulgaria
• denmark
• estonia
• Finland, France
• greece
• Ireland, Iceland, Italy
• croatia
• Latvia, Liechtenstein, Lithuania, Luxembourg
• malta
• The Netherlands, Norway
• austria
• Poland, Portugal
• romania
• Sweden, Switzerland, Slovakia, Slovenia, Spain
• Czechia
• hungary
• United Kingdom (UK only until October 31, 2019)
• cyprus

How do you apply for the A1 certificate?

The application for the A1 certificate can be made electronically, without the need for paperwork. However, the application process can be very time-consuming if there is an increased volume of services. Companies are required to submit the application electronically, either via standard payroll software or via the website app.sv-meldeportal.de. It is advisable to submit the application early to ensure that the certificate is issued before the business trip. If the certificate is not available in time, the printed application can be used as proof.

Depending on the type of insurance the employee has, the application for the A1 certificate is made to the competent authority. If the employee has statutory insurance, the application is made to the employee's health insurance. If the employee has private insurance, the German Pension Insurance must be contacted. For employees who are not legally insured and are members of a professional institution, the application must be submitted to the Association of Professional Pension Institutions.

It is important to note that the A1 certificate must be applied for separately for each country and each assignment abroad. Employees who regularly work in two or more EU/EFTA countries are an exception. For these employees, a type of permanent certificate can be applied for from the German International Health Insurance Liaison Office.

What happens if you get caught without proof?

If employees are unable to produce the corresponding A1 certificate during an inspection, this has unpleasant consequences. According to a study by KPMG, the responsible authorities in countries such as France, Austria, Switzerland and Romania in particular are not joking.

• Austria faces fines of between 1,000 and 10,000 euros, which can be imposed on both employers and employees.
• If an employee without an A1 certificate is caught in France, he or she must pay 3,269 euros.
• Other countries collect social security contributions instead — for every day spent working abroad.

In addition, bans on access to exhibition centers and workplaces are used as a popular measure to punish employees without a certificate. In this case, it may happen that your sales team is standing in front of the exhibition building and is not allowed in.

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