At a time when the furore and confusion around the Brexit deal is reaching new heights, international contractor management specialist 6CATS International has warned recruiters to check that their overseas compliance solutions are legal following our withdrawal from the EU.
Under current EU rules, A1 certificates exonerate contractors from contributing to the social insurance system in the country in which they are going to work. However, with France, Germany and the UK all ceasing the issuance of A1 certificates which exceed 29th March 2019, agencies placing contractors internationally will face further compliance challenges. For those within the scope of the regulations, our withdrawal from the EU and the consequent ceasing of A1 certificates post March 2019, will affect which social security scheme applies, in terms of where contributions are payable.
In this climate of ambiguity, recruitment agencies relying on A1 solutions will have to be extremely cautious about whether the solution they are using is compliant now and especially after 29th March, particularly in relation to those agencies allowing contractors to use their UK limited company overseas.
Michelle Reilly, CEO of 6CATS comments:
‘’With the UK’s exit from the European Union drawing closer every day, a huge amount of uncertainty still lingers around almost every aspect of our withdrawal. The lack of clarity around European social security legislation, along with the actions of France, Germany and the UK in limiting the issue of A1 certificates to dates before the 29th of March 2019 has further compounded a highly confusing, and potentially dangerous, situation for agencies looking to place contractors into the two biggest economies in Europe. With other European countries looking to follow suit, agencies must be vigilant that the compliance solutions their contractors use are still legal following our withdrawal from the Union, and should seek professional help to do so.’’