Posting Employees To The EU, EEA Or Switzerland? Don't Forget The Social Security Position

• Published date: 24 February 2021
• Law Firm: lus Laboris
• Author: Ms Victoria Goode (Lewis Silkin) and George Carey (Lewis Silkin)

In a welcome move last week, the EU notified the UK that all EU countries will apply the 'detached workers' exception to UK employees who are temporarily seconded to work in the EU. Similarly, the UK will apply the detached workers exception for EU employees who are temporarily seconded to work in the UK. This article reviews the latest position.

Under the Social Security Co-ordination Protocol in the EU-UK Trade and Cooperation Agreement (the Protocol), the general rule is that employee and employer social security contributions are due only in one country. This is generally the country in which the employee is physically working.

The Protocol contains an exception for detached workers whereby employee and employer social security contributions continue to be paid in the employee's home country rather than in the country in which the employee is physically working (Host Country), subject to satisfying certain conditions.

If an EU country wanted to apply the detached worker exception, it was required to provide formal notice by 1 February 2021.

The deadline came and went and only a handful of countries had formally indicated that they would apply the detached worker exception. Some countries indicated informally that they would apply the detached worker exception; other...