Working in another European country can take different forms. Are you a cross-border worker or a detached worker? These two statuses do not have the same consequences for your contract, your taxes, or your social security. Here’s the difference explained.
What is a detached worker?
Secondment involves the temporary assignment by an employer of an employee:
- to a place of work different from that specified in the contract;
- for a limited period;
- while maintaining a subordinate relationship with the company that is seconding the employee.
Seconding an employee abroad has consequences in three specific areas:
- Social security: In which country will the employee be affiliated for social security purposes, and what procedures must the employer follow?
- Labor law: Which labor regulations will apply to the employee during the period of the assignment abroad?
- Taxation: In which country will the employee be liable for taxes?
Note that the concept of “secondment” in these three areas is independent of each other.
An employee may be considered seconded from a social security perspective but not necessarily from a tax perspective.
For example, consider a cross-border worker who resides in France, works in Luxembourg, and is seconded to Germany for 7 months:
| Labor law | Social security | Taxation | |
|---|---|---|---|
| Cross-border worker | Luxembourg | Luxembourg | Luxembourg |
| Seconded worker | Luxembourg + mandatory German rules for the period of secondment | Luxembourg | Germany |
Note: Certain conditions and thresholds may apply. We recommend consulting our pages for more details (link at the end of the article).
What is a cross-border worker?
For social security purposes, you are considered a cross-border worker if you carry out your professional activity in a country of the European Union, the European Economic Area, Switzerland, or the United Kingdom, while returning to your country of residence every day or at least once a week.
For example, if you work in Belgium but return to France (your country of residence) at least once a week.
This status applies to all types of workers, whether employees or self-employed, and regardless of the type of contract: temporary work, fixed-term, permanent, etc.
Can a cross-border worker become a detached worker?
Yes, if your foreign employer temporarily sends you to a country other than the one where you usually work, you can be considered a detached worker during that period.
For more details regarding the secondment of a cross-border worker, we recommend consulting our partner’s section : Secondment of Employees – Luxembourg, Germany, Belgium, France.
There you will find all the applicable information and conditions, particularly regarding taxation, social security, and labor law.
