On July 22, 2023, the ISM/835/2023 Order was published in the Official State Gazette (BOE), marking a significant development in the regulation of Social Security enrollment for workers posted abroad in service of companies operating within Spanish territory.
The Changing Business Landscape
In a rapidly evolving global business landscape, the 1982 regulations of the Ministry of Labor no longer adequately address the demands of today. The internationalization of companies, enhanced global communication, and increased labor mobility have reshaped the business world. Companies now operate globally, establish branches in various countries, and relocate employees, necessitating a reevaluation of labor regulations to accommodate the complexities of expatriation.
Objectives of the Order
The primary objective of Order ISM/835/2023 is to establish a clear and comprehensive regulatory framework that precisely defines the scope and conditions under which a situation equivalent to Social Security registration is considered. This is particularly relevant for workers posted in the service of their respective companies outside national borders.
Protecting Workers’ Rights
The significance of this regulation lies in its role in safeguarding and guaranteeing the rights of workers who are compelled to work temporarily abroad for various employment reasons. This protection covers essential aspects, including social security coverage, medical care, retirement, and other benefits crucial for the welfare and economic security of both workers and their families.
The Order defines specific assumptions that are equivalent to the situation of registration in the social security system. These assumptions, according to Article 3 of the Order, encompass scenarios such as:
- Dispatch of workers to a country where international instruments for coordinating Social Security systems do not apply.
- Dispatch of workers to a country where, despite the application of international instruments, they are not included within its subjective scope.
- Dispatch of workers to a country where international instruments for coordinating Social Security systems apply, allowing the application of the home country’s Social Security legislation during the dispatch.
- Dispatch of workers to a country where international instruments do not allow the dispatch of workers by their companies to the territory of the other party.
Implementation and Transition
The introduction of this new Order represents a significant departure from traditional approaches, opening doors to innovative opportunities in crafting expatriation strategies. Set to commence on November 1, 2023, this Order brings substantive changes and includes a transitional regime to facilitate a smooth transition period.
At ExpatFeliu, we are prepared to offer expert guidance on navigating this new regulation. We conduct individual assessments for each expatriate based on this Order, striving to create the most optimal expatriation strategy for new assignments. Please don’t hesitate to reach out to us for assistance and support.