If the bilateral agreement between Switzerland and the relevant EU countries does not apply to third-country nationals, the allocation and distribution of social security contributions may still be unavoidable, independently of this new agreement. The new social security agreement between Switzerland and the United Kingdom is not yet in force, as the parliaments of both countries are still awaiting approval7. The agreement should not be retroactive. In order to safeguard the rights granted under Article 883/2004, Switzerland has concluded an agreement with the United Kingdom on citizens` rights8. This Agreement shall apply from 1 January 2021 and shall maintain the rights established for Swiss and British nationals under Ordinance 883/2004 before 1 January 2021. (For reports, see GMS Flash Alert 2020-494, December 14, 2020 and GMS Flash Alert 2021-038, January 25, 2021). The existing direct insurance agreement between the EU and Switzerland of 10 October 1989 allows non-life insurance undertakings (para. B example, home, automobile, travel and civil liability insurance) to establish and operate branches in a country of the other contracting party. The Agreement shall lay down, on the basis of reciprocity, the conditions necessary and sufficient to enable branches of non-life insurance undertakings having their head office in the territory of one of the Contracting Parties wishing to establish themselves in the territory of the other Contracting Party to carry on the business of direct insurance. Impact on social security: The provisions for the multi-state worker would state that UK social security would be due in respect of working arrangements in the UK and Switzerland and that the certificate of coverage would have to be obtained from the relevant UK authorities. As regards working days in France, a more in-depth review should be considered as EU Member States do not fall within the territorial scope of the new social security agreement.
The provisions contained apply to persons legally resident in Switzerland or the United Kingdom, largely grant equal treatment to insured persons and facilitate access to social security benefits. The agreement avoids gaps in overinsurance and insurance for people who meet the social security systems of both states and also facilitates the temporary deployment of workers to the other state. The agreement does not apply to life insurance, reinsurance or social insurance. It also does not apply to cross-border services that are not provided through an agency or branch. In order to regulate social security relations comprehensively and systematically, the two countries have negotiated a new bilateral agreement, which was recently approved by the Swiss and British governments. This agreement is important to ensure the coordination of social security legislation in both countries in a very effective manner. The governments of the United Kingdom and Switzerland have just signed a new bilateral social security agreement. It is expected to enter into force at the end of 2021.
The new British-Swiss direct insurance agreement incorporates the terms of the existing agreement between Switzerland and the European Union (EU-Switzerland agreement on direct insurance). The existing direct insurance agreement between the EU and Switzerland makes it easier for non-life insurance companies to travel from the other jurisdiction, for example. B through mutual recognition of each other`s solvency requirements. A central element of the existing direct insurance agreement between the EU and Switzerland is the mutual recognition of solvency requirements. Switzerland and the EU have recently adapted their direct insurance agreement, with both parties having modernised their solvency systems in recent years (Switzerland introduced the Swiss Solvency Test in 2011 and the EU has been applying Solvency II since 1 January 2016). The agreement was adapted to the new requirements on July 3, 2018 and the amendments came into effect immediately. As a result, Swiss insurance companies that previously had to calculate and declare Solvency I in addition to OSH were exempted from this requirement. The new social security agreement between Switzerland and the United Kingdom has been signed and published1 and it is planned to apply it provisionally from 1 November 2021, subject to the approval of the competent authorities of the United Kingdom. The agreement itself is broadly in line with the coordination of social security systems under the new EU-UK Trade and Cooperation Agreement2 and is based on the principles of EU coordination law that Switzerland applies under the AFMP. More information on the Citizens` Rights Pact An important aspect of the new agreement is the avoidance of shared contributions for workers working in both the UK and Switzerland. Nevertheless, scenarios and constellations for workers from several Länder in which an EU country is involved in addition to Switzerland and the United Kingdom should be examined closely, as in such cases a division of social security contributions may still be necessary.
The new agreement largely guarantees equal treatment of insured persons and facilitates access to social security benefits. It avoids overinsurance as well as insurance gaps for people who have points of contact with the social security systems of both countries. In addition, the temporary deployment of persons from one State to another is facilitated. This agreement guarantees Swiss insurance undertakings the freedom of establishment in the Principality of Liechtenstein and the freedom to provide direct insurance services in these countries; Liechtenstein insurance companies enjoy reciprocal rights in Switzerland. Companies need a license issued in their home country, which is valid in both countries. Licensees are supervised by the supervisory authority of their home country. The agreement provides for the mutual recognition of the supervisory rules of the federal states. It does not apply to reinsurers or social security systems.
Since 1 January 2021, EU Regulations No. 883/2004 and gold. 987/2009 no more. Instead, the bilateral social security agreement between Switzerland and the United Kingdom of 1968 will apply from 1 January 2021. Under the bilateral social security agreement between Switzerland and the United Kingdom, posted workers can remain in their national social security system for a period of 24 months, but this does not cover the case of multi-state workers. For multi-state scenarios, the workplace principle applies. However, it is likely that the former bilateral agreement between Switzerland and the United Kingdom of 1968 will be applied for a short period of time on 1 January 2021 until the future coordination regime can enter into force. In order to regulate the withdrawal of the United Kingdom from the FMPA and to guarantee the rights that policyholders have acquired under the FMPA, an agreement on citizens` rights has been concluded between Switzerland and the United Kingdom. This agreement enters into force on 01.01.2021.
It retains the rights provided for in Annex II (Coordination of Social Security Systems) of the FMPA for persons who were subject to the FMPA before 01.01.2021. The 11-month brexit transition period agreed between London and Brussels expires on 31 December, after which the UK will also leave the single market and the EU`s customs union and international agreements relating to the UK will no longer apply. As a result, Switzerland and the United Kingdom will also enter a new phase in their relations. Although the Swiss-EU agreements continued to apply to the UK throughout the transition period, they will no longer apply from 2021. From 2021, the monitoring agreements will apply, including several new agreements between Switzerland and the United Kingdom. These new Swiss solutions emerged from the Mind the Gap strategy adopted by the Federal Council in October 2016, a few months after the Brexit vote on 23 October 2016. June of this year….