(Council Regulation (EC) No 859/2003 of 14 May 2003)
From 1 June 2003 the EC Social Security Regulations 1408/71 and 574/72, which coordinate the social security schemes of the Members of the European Union were extended to include third country nationals. Before 1 June 2003, the Regulations no longer apply only to EU nationals, stateless persons and refugees.
Amongst other things, the regulations can impact National Insurance rules
for people moving between the UK and other Member states.
The UK has used it's opt out in the Treaty of Amsterdam so that although
other EU Member states will apply the new EC Regulations 883/2004 and
987/2009 that was introduced on 1 May 2010, the UK will continue to apply
EC Social Security Regulations 1408/71 and 574/72 to TCNs.
Persons regardless of nationality who are legally resident in a Member State will be covered by the Regulations if they move to another Member State. These arrangements do not apply to Denmark. In addition, as the arrangements only apply to TCN’s legally resident in a Member State they will not apply at present to Switzerland, Iceland, Liechtenstein and Norway.
The arrangements will not apply to a TCN in a single Member State. For example a US national working in the UK will not be covered by the EC Social Security Regulations unless they move to another Member State.
To be covered by the EC Social Security Regulations a person must be "legally resident" in the UK. Although this is for the Home Office to determine, customers will be asked to confirm that they are "legally resident" in the UK when applying for cover under the terms of the EC Social Security Regulations. This question has been included on all relevant application forms and the information provided will be confirmed from data held on the customer’s National Insurance account.
Member States have their own rules for deciding who is legally resident in their country.
A ‘posting’ occurs when a worker is sent by his UK employer to work in another Member State on their behalf for a limited period - usually up to 12 months.
TCN’s going to other EU countries with the exception of Denmark, Switzerland, Iceland, Liechtenstein and Norway will be entitled to form E101/E128 where all normal posting conditions are satisfied once they have been confirmed as "legally resident" in the UK.
Applications should be made to HMRC NIC&EO International Caseworker in the normal way.
For TCN’s going to Switzerland, Iceland and Norway as posted workers it will still be possible to apply for a Certificate of Continuing UK liability under the terms of the Reciprocal Agreements which the UK has with these countries. The UK does not have a Reciprocal Agreement with Liechtenstein and the Agreement with Denmark only applies to nationals of the UK and Denmark who are already covered by the EC Regulations.
Similar arrangements apply to self-employed workers for postings to other Member States.
