Brexit: Social Security Changes for UK Employers with Employees in the EU, EEA or Switzerland

UK employers who have people working in the EU, the EEA or Switzerland may need to make changes to their procedures in respect of social security if the UK leaves the EU without an agreement.

Current regulations ensure employers and their workers only need to pay social security contributions such as UK National Insurance Contributions (NICs) in one country at a time. Should the UK leave the EU without an agreement in place, your employees may need to make social security contributions in both the UK and the country in which they are working at the same time.

What should you do?

If your employees who are currently working in the EU, the EEA or Switzerland have a UK-issued A1/E101 form, they will continue to pay UK NICs for the duration shown on the form. If the end date on the form exceeds the day the UK leaves the EU, you will need to contact the relevant EU, EEA or Swiss authority to confirm whether or not your employees need to start paying social security contributions in that country from that date.

This doesn't apply to UK or Irish nationals working in Ireland.

In this case you won't need to take any action.

A replacement for the A1/E101 form will be issued for new applications after Brexit which will ensure employees can continue to pay UK NICs.

The UK Government is working to protect UK nationals by seeking reciprocal arrangements with the EU or Member States to maintain existing social security coordination for a transitional period until 31 December 2020.

For more information, visit https://www.gov.uk/ or contact:

Tim Baker
Director
+44 (0)20 3667 5971
tbaker@fitzandlaw.com

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