Written by Alison Clynes
Published on May 27, 2010

Workers from any EU country can work in any other country in the Union. Many take up casual or short-term contracts with others in permanent posts. Payroll services administrators must be knowledgeable in the specific regulations for foreign workers, and constantly alert to changes.

After 1st May 2010 modified regulations for social security schemes apply across the EU. Generally, migrant workers must pay contribution to the member state where they work. Contributions to their native country cease until the worker returns to work there. After 1st May that remains the basic position, and most EU migrant workers will notice little change.

However, exemptions are possible. UK employers can apply for employees customarily working here in Britain and paying Class 1 National Insurance to continue these payments whilst working temporarily in another member state, and to be exempt from paying contributions to the host country. The new regulations extend this eligible period of foreign work from 12 months to 24 months. The HMRC forms to apply for this concession have also changed, which will change the way that payroll solutions are used.

Additionally, there are updated rules regarding certain types of employees, including people who work in more than one member state. Regulations for people employed in one EU country and working freelance in another are, naturally, complicated.

With financial penalties imposed for errors, it's good sense to ask a professional payroll company, such as Dataplan Payroll. If you employ any migrant workers, you will need highly skilled administrators and we canuse the ideal payroll solutions for you.