BREXIT and social security contributions for internationally mobile employees

The following was published by Richard in LinkedIn on 24 June:

The UK belongs to the EU social security contributions system which is governed by the locus labori principle. The result of this is that UK workers employed in another EU member state are only required to pay social security contributions in that member state.

As a result of BREXIT UK workers employed in an EU state could face double social security contributions - in both the UK and the EU member state in which they are working.

Looking at Switzerland which is not an EU member as an example, there are three choices for the UK:

- Conclude an Agreement on the Free Movement of Persons (AFMP) with the EU. This would cover UK citizens and citizens of an EU member state who are or were subject to the social security legislation of one or several of these states. The agreements would also cover the family members or surviving dependents of these individuals.

- Conclude a similar agreement with EFTA. An EFTA Convention would apply to UK nationals and to citizens of an EFTA member state and would work the same way as an AFMP . This could be negotiated simultaneoulsy with an AFMP with the EU.

- Conclude bilateral social security agreements with each EFTA and EU state individually.

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