Under the agreement, a detached worker remains subject only to the laws of the country from which the worker was sent provided all of the following conditions are met:

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  For U.S. purposes, the period of employment in the host country is expected to last no more than 5 years. The 5-year period begins with the date the work in the host country begins or October 1, 2008 (the effective date of the agreement) whichever is later. Or, for Danish purposes, the period of employment in the host country is expected to last no more than three years. The 3-year period begins with the date the work in host country begins or October 1, 2008 (the effective date of the agreement) whichever is later.

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  The employment relationship existed before the employee is transferred from the home country.

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  If an employee is sent by an American employer to become an employee of the company's affiliate in Denmark, the American employer must have entered into an agreement with the Internal Revenue Service (IRS) under section 3121(l) of the IRS Code to provide Social Security coverage for U.S. citizens and residents employed by the affiliate.

  In such cases, the employer must still obtain a certificate of coverage from SSA to establish the exemption from Danish Social Security taxes.

  NOTE: The detached worker rule may apply even if the employee does not go directly from one country to the other but first works in a third country.

Any family member who accompanies a detached worker from one country to the other is subject only to the laws of the country from which the detached worker was sent, unless the family member becomes employed or self-employed in the host country.

Coverage for family members working in the host country is determined in accordance with the provisions of the agreement without regard to the worker’s coverage. This means, for example, that family members who accompany detached workers transferred from the United States to Denmark are not covered or eligible for benefits under the Danish Social Security laws unless they work in Denmark.