Transnational Secondment: Why You Need an A1 Form

As companies expand their operations across borders, transnational secondment, a temporary work arrangement that involves sending an employee from one country to another, has become an increasingly common tool. It comes with specific legal and regulatory obligations that employers need to understand.

What transnational secondment means

Transnational secondment involves sending an employee from one country to another, usually within the same company or corporate group. During the secondment, the employee, also known as a detached worker or secondee, remains employed by their home country employer while working in the host country for a set period. This arrangement is subject to legal and regulatory frameworks at both national and international levels, including labor law, tax law, and immigration law.

Who the law applies to

Romania's transnational secondment law applies to enterprises established in a member state other than Romania, or in Switzerland, that second employees into Romania, subject to certain conditions. It applies equally to enterprises established in Romania that second employees to another member state or Switzerland. The law is designed to regulate the cross-border provision of services and protect employees' rights regardless of where they are working, and organizations should consider working with a tax and labor professional to ensure compliance.

Working conditions during secondment

Employees seconded from Romania for transnational service provision are entitled to certain working conditions established by legal and administrative acts, collective agreements, or arbitration awards of general application, regardless of the law governing their employment relationship. These conditions should include:

• The maximum duration of working time and the minimum duration of rest periods
• The minimum duration of paid annual leave
• The applicable remuneration in the host EU member state or Switzerland, including overtime pay, with certain statutory exceptions
• The conditions for making employees available, particularly through temporary employment agencies
• Health, safety, and hygiene at work
• Protective measures for pregnant employees, those who have recently given birth, and children and young people
• Equal treatment between men and women and other non-discrimination provisions
• Conditions for employee accommodation, where offered by the employer
• Allowances or reimbursement of transportation, accommodation, and meal expenses for travel related to the posting

The detachment addendum

When an employer sends an employee to work in another country, it must prepare an addendum outlining the terms of the detachment. Under Romanian labor legislation, this addendum must include:

• The components of the employee's remuneration under the host member state's applicable legislation, and their level
• The total amount of remuneration granted during the detachment period, with the detachment allowance indicated separately where applicable
• The actual expenses generated by the detachment, such as transportation, accommodation, and meals, along with how they are granted or reimbursed
• A link to the host member state's official national website required under Directive 2014/67/EU on the enforcement of the posting of workers directive

What the A1 form is and why it matters

The A1 form, previously known as the E101 form, verifies that social contributions have been paid in the worker's country of origin. It applies to employees posted in an EU member state or working across multiple European countries, and confirms the worker's affiliation, along with that of any dependent family members, to their home country's social security system for up to two years.

Without an A1 form, or proof that one has been requested, host country authorities will require enrollment in the host country's social security system, along with the corresponding contributions. This applies to both temporary employment and short-term business activity abroad, and failure to comply can lead to legal action.

Why this matters

Transnational secondment allows companies to move talent across borders while requiring compliance with specific working-condition protections and documentation, including the A1 form. Employers that understand these requirements are better positioned to second employees smoothly while protecting their rights under both home and host country law.

Sources: Directive 2014/67/EU, Romanian Labor Code