On 15 October 2026, the European Commission published a proposal that could allow employees on secondment between the EU and the UK to remain covered by their home country’s social security system for up to an additional 12 months in specified circumstances. It would also allow exceptions to the rules determining which country’s social security legislation applies in certain other cases.
The EU–UK Trade and Cooperation Agreement (TCA), signed in 2020 following the UK’s withdrawal from the EU and applicable since 2021, includes provisions on social security, notably a Protocol on Social Security Coordination. The protocol sets out rules determining which country’s social security legislation applies to individuals moving between the EU and the UK. These rules are largely based on Regulation (EC) No 883/2004, an EU law that coordinates national social security systems across EU member states, the EEA (Iceland, Norway, and Liechtenstein), Switzerland, and the UK (under the Withdrawal Agreement) to ensure that moving or working across borders does not cause individuals to lose their social security. Under the TCA’s secondment rules, continued home-country coverage is limited to 24 months, whereas secondments of up to five years may be permitted under the EU regulation. However, unlike the regulation, the protocol does not contain a general provision allowing exceptions to the rules determining the applicable legislation. The proposed amendment to the TCA would address this gap.
The EU and the UK have been exploring greater flexibility under the TCA since 2024. The recent proposal would add a new article to the protocol that would allow the authorities concerned to agree on exceptions in defined situations and in the interests of the individuals concerned. These exceptions would require agreement between the relevant authorities — they would not apply automatically.
A derogation from the rules on the applicable legislation could apply in the following situations:
The proposal must still be adopted by the Council, after which the amendment must be adopted by the EU–UK Specialised Committee on Social Security Coordination. Employers should not assume the proposed exceptions are available until the amendment has been adopted and taken effect.
Employers should review EU–UK secondments approaching the 24-month limit and identify cases that may meet the proposed criteria. Any planning should remain based on the existing rules while the approval process progresses.
If adopted as drafted, the mechanism would allow an employer or the individual concerned to submit a request for an exception to the authority of the country whose legislation they wish to apply. Approval would still depend on agreement between the relevant authorities.
Michael Smith
BDO in the UK
The EU–UK Trade and Cooperation Agreement (TCA), signed in 2020 following the UK’s withdrawal from the EU and applicable since 2021, includes provisions on social security, notably a Protocol on Social Security Coordination. The protocol sets out rules determining which country’s social security legislation applies to individuals moving between the EU and the UK. These rules are largely based on Regulation (EC) No 883/2004, an EU law that coordinates national social security systems across EU member states, the EEA (Iceland, Norway, and Liechtenstein), Switzerland, and the UK (under the Withdrawal Agreement) to ensure that moving or working across borders does not cause individuals to lose their social security. Under the TCA’s secondment rules, continued home-country coverage is limited to 24 months, whereas secondments of up to five years may be permitted under the EU regulation. However, unlike the regulation, the protocol does not contain a general provision allowing exceptions to the rules determining the applicable legislation. The proposed amendment to the TCA would address this gap.
The EU and the UK have been exploring greater flexibility under the TCA since 2024. The recent proposal would add a new article to the protocol that would allow the authorities concerned to agree on exceptions in defined situations and in the interests of the individuals concerned. These exceptions would require agreement between the relevant authorities — they would not apply automatically.
When Could Exceptions Apply?
A derogation from the rules on the applicable legislation could apply in the following situations:
- Longer secondments: The existing 24-month period of home-country coverage could be extended by up to 12 months where:
- Exceptional circumstances arise that could not have been anticipated at the start of the secondment;
- A change in the applicable legislation could adversely affect the individual’s pension rights; or
- The secondment involves an intra-corporate transfer of certain managers or specialists.
- Health-related circumstances: An exception could avoid a change in applicable legislation that would have detrimental effects related to the health of the individual or a family member.
- Unfair or anomalous outcomes: An exception could apply where the rules in Articles SSC.10 to SSC.12 would produce an anomalous, unfair or unjust outcome in light of the individual’s circumstances. These articles determine which country’s legislation applies, including for secondments and work in multiple countries.
- Incorrect coverage determinations: An exception could regularise an incorrect determination of applicable legislation where a retroactive correction would be detrimental to the individual or group concerned.
What Should Employers Do?
The proposal must still be adopted by the Council, after which the amendment must be adopted by the EU–UK Specialised Committee on Social Security Coordination. Employers should not assume the proposed exceptions are available until the amendment has been adopted and taken effect.Employers should review EU–UK secondments approaching the 24-month limit and identify cases that may meet the proposed criteria. Any planning should remain based on the existing rules while the approval process progresses.
If adopted as drafted, the mechanism would allow an employer or the individual concerned to submit a request for an exception to the authority of the country whose legislation they wish to apply. Approval would still depend on agreement between the relevant authorities.
Michael Smith
BDO in the UK