Changes for UK employers sending workers to the EU, the EEA or Switzerland in a no deal situation 20 August 2019
In the event the UK leaves the EU without a deal, there may be changes for UK employers who have people working in the EU, the EEA or Switzerland.
Currently the EU Social Security Coordination Regulations ensure employers and their workers only need to pay social security contributions (such as National Insurance contributions in the UK) in one country at a time. However, if we leave without a deal, the coordination between the UK and the EU may end.
This will mean that your employees working in the EU, the EEA or Switzerland may need to make social security contributions in both the UK and the country in which they are working at the same time.
You need to do the following to prepare: •
If your employee is currently working in the EU, the EEA or Switzerland and has a UK-issued A1/E101 form, they will continue to pay UK National Insurance contributions for the duration of the time shown on the form. • However if the end date on the form goes beyond 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 employee needs to start paying social security contributions in that country from that date. The European Commission’s website will help you find the relevant country’s authority. • If your employee is a UK or Irish national working in Ireland their position will not change after the UK leaves the EU, they are covered under the international agreement signed by the UK and Ireland in February 2019. You, as their employer, won’t need to take any action. • A replacement for the A1/E101 form will be issued for new applications after the UK leaves the EU. This ensures your employee continues to make UK National Insurance contributions to maintain their social security record. You can still use the same form on GOV.UK to make an application after the UK has left the EU. The UK Government is working to protect UK nationals in the EU in a ‘no deal’ scenario by reaching reciprocal arrangements with the EU or Member States to maintain existing social security coordination for a transitional period until 31 December 2020. Individuals in scope of these arrangements will only pay social security contributions in one country at a time.
You can find more information about sending workers to the EU, the EEA or Switzerland in a no deal situation on GOV.UK.
This information was highlighted in the April 2019 EU Exit edition of the Employer Bulletin. It contains important information on a range of issues that businesses and citizens need to be aware of should the UK leave the EU without a deal.
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EU Settlement Scheme – one million people granted status 20 August 2019
Whether or not the UK and EU reach a deal before 31 October 2019, EEA and Swiss citizens living in the UK will have until at least 31 December 2020 to apply.
Although there is no legal obligation for employers to communicate the EU Settlement Scheme to their employees, you may wish to signpost the information that the Government is providing.
Over one million people have been granted status under the EU Settlement Scheme – just five months after the Scheme fully opened.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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