Due to the specific nature of the EU market and the freedom of movement for workers within the Member States, many entrepreneurs choose to send employees to work abroad. This includes both short-term business trips and the formal posting of employees to other European Union countries.
In such cases, it is essential to obtain an A1 certificate, which confirms the applicable social security legislation. Both the employer and the employee should remember that obtaining this certificate is mandatory before commencing any professional activity outside of Poland.
The article below explains the purpose of the A1 certificate and highlights key aspects to consider when applying for it.
What is the A1 certificate and what is its purpose?
The A1 certificate confirms which country’s social security legislation applies to a given individual. This document is issued by the competent social security institutions – in Poland, these are the Social Insurance Institution (ZUS) or the Agricultural Social Insurance Fund (KRUS).
Issuing the A1 form means that the person to whom the document pertains is subject to the Polish social security system during the period specified in the certificate, even if they are working abroad at that time. In other words, thanks to the A1 certificate, an employee or self-employed person remains insured in Poland despite performing work in another EU or EEA country.
An application for the issuance of an A1 certificate may be submitted by:
– the employer,
– a self-employed person,
– the employee.
As a rule, the A1 certificate for posted workers is issued by the social security institution of the sending country. In the case of individuals working in several countries simultaneously, the key factor is the country of residence; therefore, the local social security institution should be contacted first.
ZUS generally issues certificates without delay, provided the application is complete and contains all the required information. In more complex cases, the processing time may be approximately 1 to 2 months. It is important to note that if the issuance of an A1 certificate is denied, the applicant has the right to appeal the decision.
Applications for the A1 certificate must be submitted to ZUS electronically via the PUE ZUS platform.
The A1 certificate is binding on all institutions and employment authorities of other Member States until it is withdrawn or invalidated.
Criteria for obtaining an A1 certificate
To successfully obtain an A1 certificate, the posting employer must normally pursue substantial business activities in the sending country. Moreover, throughout the entire posting period, there must be a direct relationship between the employer and the posted worker.
According to the Practical Guide on the Applicable Legislation in the European Union (EU), European Economic Area (EEA), and Switzerland (“Practical Guide”), the concept of “normally pursuing business activities” refers to a company that typically carries out a significant part of its operations in the country where it is established. When assessing whether this condition is met, social security institutions examine all relevant aspects of the company’s operations. These criteria are not exhaustive and may vary depending on the type and nature of the business.
The most commonly considered criteria include:
– the location of the company’s registered office and management,
– the number of administrative staff in the sending country and the country of employment,
– the place of recruitment of posted workers,
– the place where most contracts with clients are concluded,
– the governing law applicable to contracts with clients and employees,
– the number of contracts executed in the sending country and in the host country,
– the proportion of turnover generated in the sending country and in the host country,
– the duration of business activity in the sending country.
A particularly important indicator is the company’s turnover. According to the Practical Guide, generating approximately 25% of total turnover in the sending country may, in principle, indicate that the requirement of “substantial activity” is met.
However, if the turnover in the sending country is less than 25%, a broader and more detailed examination of the company’s situation will be required.
When assessing substantial activity, the institution also verifies whether the posting employer is the actual employer of the worker (especially in cases involving temporary employment agencies).
As a rule, turnover is assessed based on data from the past 12 months.
Withdrawal of the A1 certificate
An A1 certificate may be withdrawn if it is found that the circumstances on which its issuance was based have changed, or if the documents and information submitted in the application prove to be inconsistent with the actual facts or with legal provisions.
Please note that the withdrawal of an A1 certificate may result in the insured person being retroactively excluded from the Polish social security system, which can lead to the obligation to pay contributions in another country.
Is the European Health Insurance Card (EKUZ) necessary?
It should be noted that the A1 certificate does not replace the European Health Insurance Card (EKUZ), and, as a rule, a posted worker should obtain both documents before departure.
The European Health Insurance Card (EKUZ) may be issued to a person who is registered for health insurance in Poland or who is entitled to healthcare benefits under the Polish social security system in accordance with national regulations.
The EKUZ confirms the right to access public healthcare in another EU/EFTA Member State under the same conditions as citizens of that country. However, it is important to note that the EKUZ only entitles the holder to receive necessary medical assistance in the event of a sudden illness, accident, or unexpected deterioration of health. The EKUZ does not cover the costs of planned treatments or pre-arranged medical consultations or procedures.
Retroactive issuance of the A1 certificate
Obtaining an A1 certificate with retroactive effect is possible and may be particularly important for employees who started working abroad without having previously obtained this document. A retroactive A1 certificate makes it possible to regularize the employee’s social security status for a past period, thereby helping to avoid double payment of contributions in two countries simultaneously.
To obtain an A1 certificate retroactively, an appropriate application must be submitted to ZUS, along with documentation confirming employment abroad and fulfillment of the conditions for being subject to Polish social security legislation. It is especially important that the application includes precise information regarding the period of employment, the place where the work was performed, and the nature of the work, as this enables ZUS to properly assess whether the legal conditions have been met.
Penalty for not holding an A1 certificate
The most severe consequence of not holding an A1 certificate is the imposition of financial penalties, which may be applied both in Poland and in the country to which the employee has been posted. In practice, these penalties can be significant, especially in countries that strictly monitor the legality of employee postings.
Additionally, if an employee does not possess an A1 certificate, it may be assumed that they are subject to social security contribution obligations in both countries simultaneously – in Poland and in the host country. As a result, there is a risk of double contribution payments, which may burden both the employer and the employee, and could lead to disputes with foreign social security institutions.
Important!
If you are planning to work abroad – whether as an employer, a self-employed individual, or an employee – make sure to apply for the A1 certificate in advance.
Failure to obtain this document may have serious consequences, particularly in the event of an inspection abroad.
If you require support in the area of employee posting, please contact our law firm. We have many years of experience in this field. In addition, we cooperate with foreign partners and posting companies, which enables us to provide comprehensive and effective advisory services.
