The A1 certificate for workers posted from Romania: what to know

What the A1 certificate is

The A1 certificate, also called the portable document A1, shows which social security legislation applies to a worker who works in another EU Member State, in the European Economic Area or in Switzerland. For an employee posted by a Romanian company, the A1 confirms that the employee remains insured under the Romanian system and that social contributions are paid in Romania rather than in the country where the work is done.

The core rules are set out in Regulation (EC) No 883/2004 on the coordination of social security systems and in Regulation (EC) No 987/2009, which lays down the implementing procedure.

Who issues the A1 in Romania

In Romania, A1 certificates for posted employees are issued by the National House of Public Pensions (CNPP) through its regional pension offices. The application may be filed by the employer or by an authorised representative, including electronically, under the conditions set by CNPP.

The application should ideally be filed before the posting begins. In practice, A1 certificates are sometimes requested after work has started, but such a delay creates unnecessary risk in the event of an inspection.

When assessing the application, the authority may ask for documents showing that the posting is genuine and that the company is active in Romania, such as the employment contract, the contract with the foreign client and information on turnover and headcount. A consistent file, in which all the details match, reduces the risk of further questions or refusal.

The basic conditions for posting

Under Article 12 of Regulation 883/2004, an employee sent temporarily to work in another Member State remains subject to the legislation of the sending state if, mainly, the following conditions are met:

• the anticipated duration of the work in the host state does not exceed 24 months;
• the employee is not sent to replace another posted person;
• a direct relationship between employer and employee continues throughout the posting, including the contract, pay and the power to terminate employment;
• the employer normally carries out substantial activities in Romania, not merely internal administrative ones;
• as a rule, the employee was insured in Romania immediately before the posting.

Risks of having no A1 during an inspection abroad

Authorities in the host country may check, during an on-site inspection, whether posted employees hold an A1. In Germany, for example, such inspections are common on construction sites and in other sectors with a risk of undeclared work.

If no A1 is available and there is no proof that one has been applied for, the authorities may take the view that the employee should be insured in the host country. The consequences may include claims for social contributions there, possibly for past periods, further checks and fines. Even if the matter is later resolved, the procedures can take time and disrupt the work. A valid A1 issued for the correct period and place of work is the main line of defence.

Other obligations: the posting declaration and working conditions

The A1 concerns social security only. Separately, most Member States require a prior posting declaration, usually filed online before work begins. In Germany, for the sectors covered by the relevant legislation, the declaration is filed through the online portal of the customs authority (Zoll).

The employer must also comply with the working conditions of the host country, in particular the applicable minimum wage, working time and rest periods. For long-term postings, EU rules on the posting of workers extend the application of the host country's labour law. In Romania, the posting must also be reflected in the employer's records under the rules on the national employee register.

Practical recommendations

The information in this article is general, and each posting must be assessed individually, depending on the host country and the activity.

• plan the posting early and apply for the A1 before departure;
• check that the details on the A1 (period, place of work, client) match reality;
• request an extension or a new certificate if the posting changes;
• keep copies of the A1, the employment contract and the posting declaration at the place of work;
• check the pay rules of the host country before signing the contract with your client.

This article is for information only and does not constitute legal advice. For an analysis of your specific situation, contact a lawyer.