Brexit: publication of a Q&A related to social security issues

France

The French body for the collection of social security contributions (so-called the Urssaf) published a Q&A on its website on November 27th, 2020 in order to explain how to handle different situations in terms of social security during the transition period which started on February 1st, 2020 and will elapse on December 31, 2020.

The Urssaf indicates how to determine applicable social security legislation in several cases, including for seconded employees, employees working in several countries and flight crews.

Seconded employees

So far and until December 31, 2020, employees usually working for their employer in the UK who are seconded to France for a 2-year period maximum remain subject to the UK social security system. No social security contribution is due in France.

Likewise, employees usually working for their employer in France who are seconded to the UK for a 2-year period maximum remain subject to the French social security system and social security contributions are due in France.

Based on this, the Urssaf considers that the validity of social security certificates issued before December 31, 2020 (and any request re. their extension) does not have to be reduced: the validity of these documents will depend from the duration of the secondment situation.

On top of the payment of social contributions, it is important to remind that for secondment processes such as self-secondment, intra-corporate transfers and service providers, the SIPSI declaration is an important formality to be performed in France. This SIPSI declaration should be requested by the host company or the principal and can be done through the following dedicated platform: https://www.sipsi.travail.gouv.fr/

Employees working in several countries (so-called “pluri-activity”)

Social security legislation of the State Member of residence shall apply if:

  • More than 25% of the activity is executed on the territory of the State of residence, or
  • If the employer is established outside of EU, or
  • If the employee has several employers.

On the contrary, social security of the State where the employer is based shall apply if the employee carries out less than 25% of his activity in the State where he lives.

As for seconded employees, current European rules for social security matters will continue to apply for those holding certificates issued before December 31, 2020 (and any request re. their extension).

>Cross-border workers

The Urssaf identifies several cross-border situations regarding social security issues.

People who are in a cross-border situation on December 31, 2020:

These persons continue to benefit from effects of coordination without a time limitation, as long as they fulfil the criteria of a cross-border situation.

For example, someone working in the United Kingdom and living in France remains subject to the British social security system.

People who were in a cross-border situation before December 31, 2020 and whose exercise of mobility was completed on that date:

These persons retain the rights acquired before December 31, 2020, which mainly concern retirement rights.

The URSSAF provides the example of an employee currently residing in France and who worked for 20 years in the United Kingdom: the period accomplished in the United Kingdom before December 31, 2020 will be taken in account for the retirement in France.

People who are in a temporary cross-border situation (secondment, pluri-activity) on December 31, 2020:

These persons continue to benefit from the effects of coordination until the end of their secondment or pluri-activity.

It being said, the validity of social security certificates issued before December 31, 2020 (and any request re. their extension) does not have to be reduced.

Flight crews

For flight crews of airline companies, the social security legislation of the State of location of their base of assignment (i.e. the place where they normally start and end their service) shall apply.

For any further information regarding the Brexit’s consequences, the dedicated French Government’s website can be consulted :  https://brexit.gouv.fr/sites/brexit/accueil.html and  For any further information regarding the Brexit’s consequences, the dedicated French Government’s website can be consulted :  https://brexit.gouv.fr/sites/brexit/accueil.html and  https://solidarites-sante.gouv.fr/ministere/europe-et-international/brexit-vos-questions-nos-reponses/article/brexit-vous-etes-un-particulier