About 50% of the new expat assignments in Europe may be influenced by important changes in the EU social security legislation starting in 2010.

These changes were actually ratified several years ago; however, the regulations to put this new legislation into practice were very recently approved, establishing thus the beginning of a six-month process leading to its introduction on May 1st 2010.  The last major change to EU social security legislation took place more than 35 years ago, when the processes for acquiring E101 certificates were established.

The intention behind the new changes is to simplify the regulations by making them shorter; nevertheless, this goal is still pending confirmation of success.  Many rules regarding certain employee types have been completely eliminated, for example, those for aircrew and transport workers, and rules that involve the new short-term and long-term expats, as well as cross border workers, have changed considerably.

Short-term expats will have to keep giving to their home countries after they are assigned to work outside for two years or less, and it will be very difficult for long-term expats to stay insured within their home country for as long as the five year limit.

The new regulations focus importantly on pan-European compliance.  Now, foreign social security authorities will be allowed to put responsibilities into effect through their UK counterparts, and vice versa.

There are new rules about electronic data exchange between authorities, which will help make cross-border compliance stricter, and the introduction of a EU social security database makes it more possible to implement the action being taken against companies which have not paid the social security contributions or have paid them in the incorrect location.

There will be less flexibility and much more control over UK employers sending expats to work abroad and for the ones taking expats in.  UK employers will have to adapt to the new regulation very fast so that they are not penalized with higher social security expenses.

The current expat assignments are not controlled by this new legislation; however, every case has to be presented to the pertinent authorities before May 1st 2010.  In any case, it is expected that within time, any flexibility in treating old cases will diminish.

Employers will certainly centre on the changes in social security contributions, and employees should worry about their personal benefits, like state pension and child benefit.  It is important that every communication regarding the changes is handled with care.

Probably, the most affected employees will be the long-term expats and commuters.  For the former, it will be difficult to remain a part of the UK National Insurance system starting 2010, and for the latter, their social security status will get even more complicated.  In order to avoid penalties, employers should have a great deal of clarity as to their obligations in regards to commuters.

It is important to talk to the pertinent authorities and to get the help of proficient UK immigration lawyers to ensure every expat gets a fair treatment and his or her rights and duties are clear and accounted for.

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