Important Updates
Important Updates
September 29, 2025 | United StatesUnited States: White House Seeks Supreme Court Review of Birthright Citizenship EO Constitutionality
September 29, 2025 | United States, United KingdomGlobal Mobility Lawyer: Lawyers Try to Make Sense of Trump’s Confusing H-1B Fee Hike
September 29, 2025 | IndiaIndia: Electronic Arrival Card to Replace Paper Disembarkation Card
September 29, 2025 | IrelandIreland: Prompt Residence Permit Renewal Necessary to Ensure Christmas Travel
September 29, 2025 | United StatesUnited States: Preparing for a Potential Federal Government Shutdown on October 1
September 29, 2025 | United StatesUnited States: White House Seeks Supreme Court Review of Birthright Citizenship EO Constitutionality
September 29, 2025 | United States, United KingdomGlobal Mobility Lawyer: Lawyers Try to Make Sense of Trump’s Confusing H-1B Fee Hike
September 29, 2025 | IndiaIndia: Electronic Arrival Card to Replace Paper Disembarkation Card
September 29, 2025 | IrelandIreland: Prompt Residence Permit Renewal Necessary to Ensure Christmas Travel
September 29, 2025 | United StatesUnited States: Preparing for a Potential Federal Government Shutdown on October 1
September 29, 2025 | United StatesUnited States: White House Seeks Supreme Court Review of Birthright Citizenship EO Constitutionality
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Navigating Immigration Under the Second Trump AdministrationTravel & Mobility Considerations: Situation in the Middle EastImmigration Matters: Your U.S. Compliance RoadmapHumanitarian and Evolving Legal Pathways (HELP)Vietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Navigating Immigration Under the Second Trump Administration
  • Travel & Mobility Considerations: Situation in the Middle East
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Humanitarian and Evolving Legal Pathways (HELP)
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
  • Insights

No Deal Brexit: Social Security Cost Implications

June 6, 2019

Countries / Territories

  • 🌐

Related contacts

siobhan_owers

Siobhan Owers

Partner

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9132

George-Koureas

George Koureas

Managing Partner, Europe

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9227

Related offices

  • Brussels (Benelux)
  • Frankfurt
  • London
  • Paris
  • Sheffield

Related content

  • Fragomen Consulting Europe

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

siobhan_owers

Siobhan Owers

Partner

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9132

George-Koureas

George Koureas

Managing Partner, Europe

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9227

Related offices

  • Brussels (Benelux)
  • Frankfurt
  • London
  • Paris
  • Sheffield

Related content

  • Fragomen Consulting Europe

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

siobhan_owers

Siobhan Owers

Partner

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9132

George-Koureas

George Koureas

Managing Partner, Europe

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9227

Related offices

  • Brussels (Benelux)
  • Frankfurt
  • London
  • Paris
  • Sheffield

Related content

  • Fragomen Consulting Europe

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

By: Siobhan Owers, George Koureas

As a ‘No Deal’ Brexit remains a distinct possibility, companies need to understand the potential implications, especially with regard to short and long term mobility of their employees. An area of major significance which is often not sufficiently headlined is the significant impact a hard Brexit may have on the salary cost and the social security cost of the employees travelling to and from the UK, for both employer and the individual.

In principle, a worker is subject to social security contributions in the country in which they work. An important exception to this is in the case of a ‘posting’, i.e. when a worker carries out duties on a temporary basis in another country, in the interest of his/her employer, and when the worker is not replacing another ‘posted’ worker to the same entity. In such a case, a worker could maintain social security coverage in their Home country for a limited period of time, without becoming liable for additional social security costs in their Host country.

These exceptions are laid down in international social security agreements, such as the EU Regulations on the coordination of social security systems, which currently apply to all EU and EEA member states (including the UK) and Switzerland. As of Brexit day, in case of ‘No Deal’, the EU Regulations, allowing the ‘posting’ exception, would cease to apply to the UK. Therefore, the risk of an employee going between the UK and the EU becoming liable to social security in both the EU and the UK is very real.

 ‘Old’ Bilateral Social Security Agreements

In principle, one solution to the social security challenges post ‘No Deal’ Brexit could be reviving the existing ‘old’ social security agreements that the UK concluded with a number of  EU  member states in the past. The legal validity of their revival is a legal question, which is still being debated in many countries. However, even if such agreements were deemed still valid, consideration must be given as to whether they can be easily adapted to reflect the dynamics and characteristics of the modern day mobile workforce.

Domestic Social Security Legislation

In the absence of any ‘old’ bilateral social security agreements, and unless new ones are made, the UK will be treated as a non-EU country from a social security perspective by the EU member states. This means that the social security implications in a cross border work situation would need to be addressed by looking at both the domestic legislation of the sending country as well as the domestic legislation of the receiving country.

For example, a UK worker ‘posted’ to  France for a temporary period of time could become liable to French high-cost social security contributions, in addition to having continuing liability in the UK. Moreover, depending on the individual circumstances of the actual cross-border employment set-up, the posted worker may also not reach minimum social contributions to qualify for future pension benefits in the UK or France. In most jurisdictions, the social security contributions paid into the system during a period of work cannot be refunded at the moment of departure from the country at the end of the posting period.

Next Steps

With informed advance planning, companies can put strategies in place to avoid a ‘No Deal’ or hard Brexit becoming an overwhelming experience. A solid strategy can also help to manage the impact and expectations of their workers in relation to social security and protect salaries (and salary costs) from being impacted by a change in social security costs.

To minimize the significant cost impact of a ‘No Deal’ or hard Brexit on the social security cost of a mobile workforce, and the potential need to compensate for the loss of social security entitlements (e.g. pension rights, protection of access to medical care), companies need to assess the implications, plan in advance and inform internal stakeholders appropriately:

  • Assess: Conduct an in-depth internal analysis of the posting status quo to understand potential negative social security implications such as double liability costs could be mitigated by adjusting the contractual arrangements and assignment structures.
  • Plan: Prepare hypothetical cost projections reflecting the most frequently occurring cross-border traveller profiles and patterns.
  • Inform: Continuous communication with internal stakeholders, line managers, HR, global mobility, finance, and frequent business travellers is critical in creating awareness around the impact of Brexit on social security and to budget for increased costs, stricter compliance and increased reporting.
Fragomen can help your company through the integration of our contingency ‘No Deal’ Brexit planning initiatives in the area of both Immigration and Social Security. 
 
For more information, please reach out to us at [email protected].
 

 

 

Countries / Territories

  • 🌐

Related contacts

siobhan_owers

Siobhan Owers

Partner

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9132

George-Koureas

George Koureas

Managing Partner, Europe

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9227

Related offices

  • Brussels (Benelux)
  • Frankfurt
  • London
  • Paris
  • Sheffield

Related content

  • Fragomen Consulting Europe

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

siobhan_owers

Siobhan Owers

Partner

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9132

George-Koureas

George Koureas

Managing Partner, Europe

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9227

Related offices

  • Brussels (Benelux)
  • Frankfurt
  • London
  • Paris
  • Sheffield

Related content

  • Fragomen Consulting Europe

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

siobhan_owers

Siobhan Owers

Partner

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9132

George-Koureas

George Koureas

Managing Partner, Europe

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9227

Related offices

  • Brussels (Benelux)
  • Frankfurt
  • London
  • Paris
  • Sheffield

Related content

  • Fragomen Consulting Europe

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Global Mobility Lawyer: Lawyers Try to Make Sense of Trump’s Confusing H-1B Fee Hike

Partner Bo Cooper explains that while new H-1B fees affect future petitions, US opportunities for international talent remain highly valued.

Learn more

Blog post

UAE Golden Visa: Work Permit Requirements for Employers and Professionals

Assistant Manager Charo Medida explains the work permit requirements for employers and professionals under the UAE Golden Visa programme.

Learn more

Media mentions

Business Insider: Trump's $100,000 Visa Fee Threatens Wall Street's Pipeline of Junior Bankers and Tech Talent

Partner Bo Cooper explains how proposed H-1B fee and lottery changes impact hiring of skilled international talent across sectors.

Learn more

Media mentions

Asharq Al Awsat: السعودية تمضي مع «رؤية 2030» بدعم التصنيع والتوطين وتوسع الاقتصاد

Partner Haider Hussain underlines the role of talent mobility in shaping future growth sectors in the Kingdom.

Learn more

Fragomen news

Fragomen Spotlighted in Financial Times for 2025 Innovative Lawyers Europe Awards

Fragomen is recognised by the Financial Times for its innovative work in workforce mobility and cross-sector collaboration.

Learn more

Media mentions

Investopedia: ICE Crackdowns Are Changing Workplaces: 37% of Americans Report Feeling Less Safe at Work

Partner Daniel Brown outlines steps companies can take to support employees and maintain smooth operations during compliance-related situations.

Learn more

Awards

The Best Law Firms™ in Germany 2026 Recognizes Fragomen

Fragomen has been recognized in the 2026 edition of The Best Law Firms™ in Germany, earning a Regional Tier 1 ranking in Hessen for Labor and Employment Law.

Learn more

Media mentions

Khaleej Times: $100,000 H-1B Visa Fee to Boost Demand for UAE's Golden, Freelance, Remote Work Visas

Partner Shayan Sultan discusses a rise in inquiries about UAE residency and remote work programmes amid global talent mobility trends.

Learn more

Media mentions

Personnel Today: Sponsor Licence Revocation: What HR and Mobility Leaders Need to Know

Partner Rajiv Naik, Senior Manager Thomas Kingsmill and Manager Ko Ito highlight rising UK sponsor licence revocations and how HR and mobility leaders can manage the impact.

Learn more

Media mentions

Reuters: Financial Firms to Feel Outsized Impact From Trump's H-1B Overhaul

Partner Bo Cooper discusses the $100,000 H-1B fee and its impact on financial, banking and technology firms relying on international talent.

Learn more

Media mentions

CNBC: Europe’s Work-Life Balance a Key Talent Draw as Trump Revamps H-1B Visa

Partner Louise Haycock highlights how the UK's immigration system and Skilled Worker visa changes support employers in planning talent pipelines.

Learn more

Media mentions

The Wall Street Journal: Tech’s H-1B Debate: Is Trump’s New Fee a Solution or Setback?

Partner Audrea Golding explains how the $100,000 H-1B fee could affect hiring across the tech industry.

Learn more

Media mentions

Global Mobility Lawyer: Lawyers Try to Make Sense of Trump’s Confusing H-1B Fee Hike

Partner Bo Cooper explains that while new H-1B fees affect future petitions, US opportunities for international talent remain highly valued.

Learn more

Blog post

UAE Golden Visa: Work Permit Requirements for Employers and Professionals

Assistant Manager Charo Medida explains the work permit requirements for employers and professionals under the UAE Golden Visa programme.

Learn more

Media mentions

Business Insider: Trump's $100,000 Visa Fee Threatens Wall Street's Pipeline of Junior Bankers and Tech Talent

Partner Bo Cooper explains how proposed H-1B fee and lottery changes impact hiring of skilled international talent across sectors.

Learn more

Media mentions

Asharq Al Awsat: السعودية تمضي مع «رؤية 2030» بدعم التصنيع والتوطين وتوسع الاقتصاد

Partner Haider Hussain underlines the role of talent mobility in shaping future growth sectors in the Kingdom.

Learn more

Fragomen news

Fragomen Spotlighted in Financial Times for 2025 Innovative Lawyers Europe Awards

Fragomen is recognised by the Financial Times for its innovative work in workforce mobility and cross-sector collaboration.

Learn more

Media mentions

Investopedia: ICE Crackdowns Are Changing Workplaces: 37% of Americans Report Feeling Less Safe at Work

Partner Daniel Brown outlines steps companies can take to support employees and maintain smooth operations during compliance-related situations.

Learn more

Awards

The Best Law Firms™ in Germany 2026 Recognizes Fragomen

Fragomen has been recognized in the 2026 edition of The Best Law Firms™ in Germany, earning a Regional Tier 1 ranking in Hessen for Labor and Employment Law.

Learn more

Media mentions

Khaleej Times: $100,000 H-1B Visa Fee to Boost Demand for UAE's Golden, Freelance, Remote Work Visas

Partner Shayan Sultan discusses a rise in inquiries about UAE residency and remote work programmes amid global talent mobility trends.

Learn more

Media mentions

Personnel Today: Sponsor Licence Revocation: What HR and Mobility Leaders Need to Know

Partner Rajiv Naik, Senior Manager Thomas Kingsmill and Manager Ko Ito highlight rising UK sponsor licence revocations and how HR and mobility leaders can manage the impact.

Learn more

Media mentions

Reuters: Financial Firms to Feel Outsized Impact From Trump's H-1B Overhaul

Partner Bo Cooper discusses the $100,000 H-1B fee and its impact on financial, banking and technology firms relying on international talent.

Learn more

Media mentions

CNBC: Europe’s Work-Life Balance a Key Talent Draw as Trump Revamps H-1B Visa

Partner Louise Haycock highlights how the UK's immigration system and Skilled Worker visa changes support employers in planning talent pipelines.

Learn more

Media mentions

The Wall Street Journal: Tech’s H-1B Debate: Is Trump’s New Fee a Solution or Setback?

Partner Audrea Golding explains how the $100,000 H-1B fee could affect hiring across the tech industry.

Learn more

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • Twitter

© 2025 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.