TN 19 (09-01)

A. DEFINITION

A detached worker is an employee who is sent by his/her employer in one country to work temporarily in the other country for the same employer or an affiliate of that employer.

B. POLICY

Under the agreement, a detached worker remains subject only to the laws of the country from which he/she was sent provided all of the following conditions are met.

• The period of employment in the host country is expected to last no more than 5 years. The 5-year period begins with the date the employment in the host country begins or 12/1/01 (the effective date of the agreement) whichever is later.

• The employment relationship existed before the employee is transferred from the home country.

• If an employee is sent by an American employer to become an employee of the company's affiliate in Chile, the American employer has entered into an agreement with the Internal Revenue Service under section 3121(l) of the Internal Revenue Code to provide Social Security coverage for U.S. citizens and residents employed by the affiliate.

C. REFERENCES

Agreement under Section 3121(l) of the Internal Revenue Code, RS 01901.150

American employer defined, RS 01901.070