NIM33011 - Special Cases: Class 1: Workers Going to and Coming from Abroad – EEA – longer extension

Article 17of Council Regulation (EEC) No 1408/71

Where it is in the interest of the employee, Article 17 allows for two or more EEA countries to agree to an employee remaining insured in the home country for a longer period or to except any of the provisions in any of the insurability Articles in Regulation (EEC) 1408/71.

It is possible for the employer to seek an extension to the normal time limits NIM33008NIM33009 or where a posting may exceed the maximum period of cover from the outset. Usually a maximum period of 5 years can be agreed.

NICO International Services deal exclusively with such requests. Form E101 will be held in Article 17 cases and issued by NICO International Services

Posting more than 12 months from outset

A person is normally insurable under the Social Security scheme of the country of employment NIM33006 . However an employee sent to work in another EEA country on a long term posting (more than 12 months from the outset) can continue paying UK NICs if :

• the employee has specialist knowledge or skills in that job ; or
• the employee has specific objectives in the other EEA country for which the employee’s services are required ; or
• it is in the employee’s interest to remain UK insured

In such cases agreement must be obtained from the foreign authorities and the employee must provide a signed statement confirming they wish to continue contributing to the UK National Insurance scheme. Form E101 will be issued by International Services where UK NIC continues.

Article 17 not agreed

If the foreign authority does not agree the Article 17 request, the employee is subject to the legislation of the host State. No contributions are payable in the home State