TN 16 (11-96)

RS 02001.465 General Coverage Rule for Employment - U.S. Spanish Agreement

The agreement establishes a general territoriality rule which stipulates that ordinarily a person's employment in a country is subject to the laws on coverage of only that country. Under this rule, a person working in employment which would otherwise be covered under the laws of both countries remains covered only under the system of the country where the work is performed and is exempt from coverage under the system of the other country. However, there are several exceptions to this general rule which are designed to ensure that coverage is provided under the system of the country to which the worker has the more direct connection. These exceptions are explained in RS 02001.470.