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

Under the Agreement, a detached worker remains subject only to the social security laws of the country from which the employer transferred the employee. The following conditions apply:

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  The employer and employee expect the period of employment in the host country to last five years or fewer. The five-year period begins with the date the employment in the host country begins or November 1, 1991 (the effective date of the Agreement), whichever is later; and

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

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  The American employer must enter into an agreement with the Internal Revenue Service (IRS) under Section 3121(1) of the Internal Revenue Code with respect to the employer’s affiliate, if an American employer sends an employee to that employer's affiliate in Austria. The 3121(l) agreement 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 Austrian social security taxes. See RS 02001.690 for more information about certificates of coverage under the U.S. - Austrian Agreement.

RS 01901.070, Employment Outside the United States for a Foreign Affiliate or Subsidiary of an American Employer.