TN 50 (10-22)

RS 02001.765 Detached Worker Rule - U.S. - Luxembourg Agreement

A. Definition of a detached worker

A detached worker is an employee sent by the employer in one country to work temporarily in the other country for the same employer or an affiliate of that employer.

B. Detached worker rule

Under the agreement, a detached worker remains subject only to the social security laws of the country from which the employer transferred the worker. However, the worker must meet all of the following conditions:

  • The employer/worker expects the period of employment in the host country to last 5 years or fewer. The 5-year period begins with the date the employment in the host country begins or November 1, 1993 (the effective date of the agreement), whichever is later.

  • The employment relationship existed before the employer transferred the worker from the home country; and

  • If an American employer sends an employee to that employer's affiliate in Luxembourg, there must be an agreement in effect between the American employer and the Internal Revenue Service (IRS) with respect to the affiliate. The agreement under section 3121(l) of the Internal Revenue Code provides, among other things, for Social Security coverage for U.S. citizens and residents that the affiliate employs. In such cases, the employer must still obtain a certificate of coverage to establish the exemption from Luxembourg social security taxes.

The detached worker rule may apply even if the employee has not been sent directly from one country to the other but is first assigned to work in a third country.

C. Reference

For more information on coverage under section 3121(l) of the Internal Revenue Code, see RS 01901.070.

 


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0302001765
RS 02001.765 - Detached Worker Rule - U.S. - Luxembourg Agreement - 10/05/2022
Batch run: 10/05/2022
Rev:10/05/2022