Under the agreement, employment is ordinarily subject to the laws on coverage of only the country where the employee performs the work. A person who otherwise would have dual coverage under the laws of both countries will remain covered only under the laws of the country where this person performs the work.

The agreement provides several exceptions to the territoriality rule to ensure that a worker's coverage is under the system of the country to which the worker has the greater attachment. The reference below shows where to find these exceptions.