A detached worker is an employee whose employer in one country sends him or her to work temporarily in another country for the same employer or an affiliate of that employer.

Under the agreement, a detached worker remains subject only to the social security taxation and coverage laws of the country from which the employer transferred him or her. However, the worker must meet all the following conditions:

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  The employer/worker expects the period of work in the host country to last no more than 5 years. The 5-year period begins with the date the work in the host country begins or November 1, 2018, (the effective date of the agreement), whichever is later;

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

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  If an American employer sends an employee to the company's affiliate in Uruguay, the American employer must enter into an agreement with the Internal Revenue Service (IRS) under section 3121(l) of the IRS Code. The 3121(l) agreement provides, among other things, social security coverage for U.S. citizens and residents employed by the affiliate. In such cases, the employer must still obtain a certificate of coverage to establish the exemption from Uruguayan social security taxes.

For more information on employment within the United States, see RS 01901.030.

For more information on employment outside the United States for an American employer, see RS 01901.050.

For more information on employment outside the United States for a foreign affiliate or subsidiary of an American employer, see RS 01901.070.