Article 4 of the Administrative Arrangement clarifies the manner in which the coverage rules of the Agreement (specifically, Articles 6.1 and 7.2) apply in the case of employed or self-employed persons from one country who have successive assignments or periods of work in the other country.  Under Article 6.1 of the Agreement, an employee who is transferred by his employer from one country to the other for a period not expected to exceed 5 years will remain subject to the social security laws of the sending country and exempt from the laws of the host country.  Article 7.2 of the Agreement provides a similar rule for self-employed persons who transfer their trade or business from one country to the other for a period not expected to exceed 24 months.

Articles 6.1 and 7.2 of the Agreement are intended to eliminate dual coverage while maintaining the worker’s coverage in the country to which he or she has the greater economic attachment.  Article 4.1 of the Administrative Arrangement ensures that Article 6.1 of the Agreement will be applied in a manner consistent with its intent when employees are posted for a series of assignments.  Under Article 4.1, if an employer sends an employee from one country to the other for a series of assignments, the employee will remain subject to the laws of the sending country and exempt from the laws of the host country during the second or any subsequent assignment only if that assignment is expected to end within 5 years of the beginning date of the first assignment or if a period of 1 year has elapsed since the end of the most recent assignment.