TN 16 (11-96)
RS 02001.420 Exceptions to the General Coverage Rule for Employment -U.S. Swedish Agreement
A. THE DETACHED WORKER RULE
A detached worker is an employee who is sent by his/her employer in one country to work temporarily in the other country for the same employer or an overseas affiliate of the same employer. Under the agreement, a detached worker remains subject only to the social security laws of the country from which he/she was sent, provided the following conditions are met:
The employment relationship must exist before the employee is transferred from the home country, although the transfer need not be directly from the home country to the host country but may be via a third country.
The employment in the host country must be expected to last no longer than 5 years. The 5-year period is considered to begin with the date the employment in the host country begins or the effective date of the agreement, whichever is later.
In the case of a worker who is sent by an employer in the United States to work for an affiliate of that employer in Sweden, the American employer must have entered into an agreement under section 3121(l) of the Internal Revenue Code (see RS 01901.070) with respect to the Swedish affiliate.
The detached worker rule does not apply to workers employed as officers or crew members of an aircraft or ship (see RS 02001.420C. and RS 02001.420D.).
B. GOVERNMENT EMPLOYEE RULE
The agreement provides that, in general, the categories of government workers mentioned in the Vienna Conventions on diplomatic and consular relations will not be affected by the coverage provisions of the agreement. The Conventions, to which both Sweden and the United States are parties, apply to members of the staff of a diplomatic or consular mission, including the diplomatic, consular, administrative and technical staffs; dependents of members of those staffs; the domestic service staff of the missions; and, under certain conditions, the private servants employed by members of such missions.
In general, nationals of a country who work abroad in the diplomatic or consular service of their country are exempt under the Conventions from social security coverage and contributions under the laws of the host country unless specific arrangements have been made to waive their exemption. Persons who waive their exemption under the Conventions are subject to the coverage provisions of the agreement.
Under the terms of the agreement, a U.S. or Swedish national who is employed by his/her Government in the other country but who is not exempt from host country coverage by virtue of the Vienna Conventions is nevertheless subject only to the laws of his/her own country.
C. CREWS OF AIRCRAFT
Under the agreement, a resident of the U.S. or Sweden who is employed as an officer or crew member on an aircraft and who would otherwise be covered under the laws of both countries will be covered only under the laws of the country in which he/she is resident. (See GN 01702.230 concerning determinations of residence.)
D. CREWS OF SHIPS
An officer or a crew member of a U.S. or Swedish ship who would otherwise be covered under the laws of both countries will be covered only under the laws of the country whose flag the ship flies. A ship is considered to fly the flag of the United States if it is an American vessel as defined in section 210(c) of the Social Security Act (see RS 01901.150).