Since the implementation of the Order of the Ministry of Labor and Social Security of January 27, 1982, until today, the Global Mobility has been growing considerably. The increasing number of workers moving abroad, the international mobility as a common practice in companies and the various events that have occurred over the last few years, have converted many of the precepts included in the aforementioned regulation into obsolete.
That is why, after more than forty years, a new regulation has been implemented in this field, effective as of November 1, 2023. This is the “Order ISM/835/2023, of July 20, which regulates the situation assimilated to the registration in the Social Security system of posted workers who work abroad employed by companies that carry out their activities in Spanish territory“.
The regulation covers the posted workers when they are obliged, in accordance with the regulations of the country of destination, to terminate their registration with the Spanish Social Security, in order to continue paying contributions in Spain. The new scenarios apply to seconded workers, when they are posted:
- To countries without a bilateral agreement
- To countries with a bilateral agreement, but without subjective coverage (such as Chile, Philippines, Mexico, Morocco, Ukraine, Russia…).
- To countries with bilateral agreements that do not contemplate the figure of secondment.
- Or when they have used the maximum period covered by the bilateral agreement, having already extended it.
For each of these situations, it will be possible to continue paying contributions in Spain, despite the general lex loci laboris rule, as long as the deadlines and formalities designed for each of the cases are complied with and within the limit of the protective action established by the law.
The aim is to cover situations that were not covered by the previous regulations, dispensing the protective action in a more flexible way and undoubtedly favorable for both companies and workers. Especially for those groups that until now were discouraged from relocating, such as workers closer to retirement.
Whereas in the past, workers’ acceptance of job offers involving secondment abroad was likely to be rejected due to the shortcomings of the Spanish Social Security coverage system, such cases will now be overcome. Very often these offers include more favorable working and economic conditions, and there will no longer be uncertainty as to the continuity of Social Security coverage.
Now more than ever, it is important to coordinate the actions of companies and their employees when relocating abroad, so that they are carried out in an orderly and joint manner, and to guarantee an effective protective action.
At Audiconsultores ETL GLOBAL, our Global Mobility department can advise you on how to comply with these formalities.