Brexit - Impact on social security    

Deloitte Advokatfirma

UK has left the EU and the transitional period ends 31st of December 2020. From 2021, the legal relationship between the countries is determined by each country’s domestic law and bilateral agreements. Some businesses and individuals are not affected, while others experience severe changes in rights and obligations.

Published 08.12.2020

The social security position of an employee has a direct effect on the company’s obligations, and an unforeseen change of social security position impacts both the employer and the employee. Since changed social security positions affect contractual rights and obligations, occupational pension, and also insurances, it is recommended to identify and take action before 31st of December 2020. To avoid unintended consequences, it is recommended to review the following:

  • Ensure the social security position of employees between Norway and the UK before year-end
  • Apply for A1 prolongation
    • In general, certificate A1 determines the social security position for commuters UK/Norway as well as cross border assignments. Working arrangements as described established before year end 2020 are valid until the end date of the A1 certificate and can be prolonged within the EU/EEA social security regulation requirements. 
    • The social security position and the A1 validity is conditional upon no changes to the employee`s contract or work pattern which under normal circumstances would require a new A1 application.
  • Obtain A1 before year-end: 
    • Commuters and multi-state workers without current A1 should apply for one. 
  • Ensure payment of social security costs to the right country – employer and employee contributions: 
    • Employer’s and employee’s social security contribution obligations depend on the social security position of the employee.
    • Be aware of forthcoming changes in social security contribution obligations in case of a changed social security position of the employee.
  • Ensure to align the employee’s contracts in line with the social security position beyond 31st of December 2020
    • Relevant actions may be confirmation on changed working patterns, change of formal employment relationship and/or payroll, followed by necessary employment contract amendments


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