Under the agreement, employment is ordinarily subject to the coverage laws of only the country where the employee performs the work. An employee who otherwise would have dual coverage under the laws of both countries will remain covered only under the laws of the country where the employee performs the work.

The agreement provides several exceptions to the territoriality rule to ensure that an employee's 's coverage is under the system of the country to which the employee has the greater attachment. The references cited below list these exceptions.