Updated – 04/11/2020
Internationally mobile employees
With only weeks to go until the UK officially leaves the EU, UK employers should prepare for a no-deal scenario and understand what affect a no-deal Brexit will have on their internationally mobile employees, in particular how it will affect their local social security contributions.
Employers should assess their internationally mobile workforce and should find out whether the existing rules of their local social security authorities continue to apply for current assignment between the UK and country/countries where their employees will be working.
Whilst we cannot predict the outcome, employers are strongly urged to think about how they will send employees abroad as of January 1 2021. If you send employees as posted workers, there is a risk of double charges to social security. Alternatively, you can employ them in the host country with the likelihood that you and your employee will be liable to pay social security contributions in the host country, which could be higher than the UK.
How will Payroll Taxes and Healthcare be affected
When an employee is sent on an overseas placement, determining the country that can tax the employee’s income should not be affected by Brexit as there is no EU-wide rule that determine this. This will be decided on a country-by-country basis, based on each country’s national law, as well as tax treaties between the UK and the EU countries.
Although nothing is set in stone at the moment, from January 1 2020, employers may need to purchase travel and private medical insurance for their employees working abroad. Currently, for any employees going to Europe on business trips, their European health insurance card (EHIC) will provide access to local healthcare service. For those workers on longer temporary assignments, such as posted workers, they can apply for an S1 Form, which provides access to local healthcare services.
How will UK business be affected as a whole?
Losing freedom of movement isn’t the only issue business will face. Currently industry regulations are set at the European level. This means that anyone accredited to do business in the UK can do business in the EU. In the event of a hard Brexit, or a no-deal Brexit, UK business may need to obtain accreditations and qualifications that are recognised in EU countries.
GDPR regulations will also be affected in the event of a no-deal Brexit. The UK will be regarded as a third country when it exits the UK. Therefore, it is advised that businesses should work with any partners they may have that are located in the EU to ensure the compliant transfer of data between the UK and the EU. The government is advising that data protection clauses should be added to contracts to cover the rights of individuals when data is being transferred.
How TCP can help
TCP is a European Professional Employer Organisation and compliance specialist with over 25 years’ experience. Our expertise lies in the employment of skilled temporary/contract workers on behalf of clients. TCP operate in 8 countries across Europe, with partners worldwide. Take a look at the countries we operate in here.
We are always aware of changes in legislations in all countries we operate. We are closely monitoring the Brexit situation and will be able to help regardless of the outcome of negotiations. Would you like to know more? Call our UK office on: 0044 208 5 800800 or fill in our contact us form here and a member of our sales team will get back to you as soon as possible.
As always with Brexit, the situation has the potential to change on a daily basis as the negotiations between the UK and the EU continue. To keep up to date with all changes taking place, please take a look at the government website – https://www.gov.uk/uk-nationals-living-eu