EU Court Rules on Coordination of Social Security and Mobile Expatriate Workers

EU Court Rules on Coordination of Social Security

A worker who lives in a European Union (EU) member state, is employed by a company registered in another member state, and who works outside of the EU’s territory is subject to the social security law of the worker’s country of residence, the EU Court of Justice has ruled. Prior to this ruling, employees working outside of the EU were registered for social security purposes in the member state where the employer was established. Now, employers must register these workers in the member state where they live.

The ruling concerned a Latvian national living in Latvia who worked as a mariner for a Dutch employer on a vessel flagged out to the Bahamas and which sailed outside of the territory of the EU. The court’s ruling could have implications for certain expatriate assignments in any economic sector.

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Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

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