Strikes are currently being organized in France over the planned pension reform, which involves extending the retirement age in France. Does the pension reform in France apply to employees posted to France ? It turns out that in many cases, yes—it can.
But what are the pension rights of a posted employee?
Any employee sent abroad by an employer for a specified period of time will be considered a seconded employee. This should not be confused with an expat, who does not have the same rights and obligations. Being a seconded employee does not entail a loss of social security rights . A seconded employee remains covered by the host country's social security system for the appropriate period (pension, unemployment, sickness, etc.).
Pursuant to Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services, after 12 months of posting (and in justified cases after 18 months), posted workers will be entitled not only to the minimum employment conditions provided for in the directive but also to all applicable employment conditions in the host country, including pension rights . In practice, a posted worker will be treated as an employee of the host country. The employer will be required to complete documentation and establish the posted worker's pension entitlement and pay pension contributions according to the guidelines of the sending and host countries. Under the new regulations, the posted worker will generally be considered an employee of the host country after 12 months.
Therefore, in the case of the pension system, the period worked abroad will be recognised in the same way as the period of work in the country from which the employer sent him.
Example: A Polish employee sent to France by a Polish employer – in the event of retirement, you will continue to benefit from the mandatory system as if you worked in Poland.
WHAT FORMALITIES MUST BE COMPLETED TO OBTAIN A PENSION FOR A POSTED EMPLOYEE?
The employer is solely responsible for the formalities, committing to paying all contributions in Poland and the host country, if necessary for the duration of the posting. In other words, the posted employee has no formalities to complete. Depending on the posting destination, the rules vary.
In the case of posting to a European Union country or to a country that has signed a social security agreement with the sending country, the duration of the system is specified in the agreement. It should be noted that the agreement is an agreement between the two countries that regulates different methods of paying social security contributions and benefits.
It should be noted that the European Economic Area (EEA) in this context encompasses the twenty-eight European Union countries, as well as Iceland, Liechtenstein, and Norway. If a posted worker needs to travel to a country outside the EE, they should familiarize themselves with the bilateral social security agreements concluded with the countries in question.
On the official websites of the country where the employee is resident, you can find access to agreements concluded with selected countries.
Please note that a bilateral agreement has a direct impact on other periods spent working abroad, so a career spent in different countries within and outside the EU, but with an agreement, may not allow for certain periods to be approved.
Example: French law stipulates that an employee posted outside the EEA (European Economic Area) for a period of less than six years* will be retained in the French system.
After six years of posting, your social security agreement may no longer provide for continued membership in the French system. You can then join the voluntary insurance scheme for expatriate workers, the CFE (Caisse des français de l'étranger). It's important to note that your employer can opt into this scheme from the beginning of your posting.
* In the event of a posting to a country that does not have a social security agreement with France, the French system is valid for a maximum period of three years. This period is renewable once (for a total of six years). After this period, the posted worker will no longer be covered by the system unless they voluntarily pay contributions to the Caisse des français expatriés dits de l'étranger (CFE).
