Under the agreement, employment is ordinarily subject to the laws on coverage of only the country where the worker performs the work (territoriality rule). A person working in employment or self-employment, who otherwise would have dual coverage under the laws of both countries, will remain covered under the system of the country where the worker is working.

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 more direct connection.