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The ins and outs of Brexit – employment and tax aspects

As the Brexit process approaches its extended 31 October 2019 deadline, UK and EU companies and their employees are focusing on the key employment law and tax questions that will shape business and the world of work in the post-Brexit landscape.

Do I need to reorganise my business? Should I relocate from the UK to an EU member state? What will be the arrangements for transferring employees to and from the UK? What are the tax implications of reorganisation and relocation?

In this CMS guide, we highlight the key considerations for companies and employees. We take a close look at developments in France, Germany and Luxembourg – three EU jurisdictions competing to attract new or expanded business from ‘Brexodus’ relocations and reorganisations.


Employment issues

  • Assess the need to relocate staff (especially for regulated activities).
  • Identify which of your staff could be affected by Brexit (posted employees, employees with cross-border roles, employees travelling for business purposes).
  • Review the situation of posted employees from the UK or to the UK in case of a no-deal Brexit:
    • for social security matters.
    • for immigration (work permits).
  • Review your EWC agreement and governing law
  • Check if the employee threshold for having an EWC will still be met if UK employees are no longer included in the total workforce.

Tax issues

  • Check the need for declaring a branch (permanent establishment) if the employees are not recruited by a local subsidiary.
  • Check the availability of a favourable inpatriate tax regime for the purpose of corporate income tax and/or personal income tax.

Immigration issues

  • Documents check: duration of the assignment contracts, A1 form, drafting of the new contracts.
  • Documents collection: birth certificate, marriage certificate, divorce certificate, pay slips and income taxes, school certificates for children, updating the carnet de santé for toddlers. Prepare one official document per semester.
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Key contact

Caroline Froger-Michon
T +33 1 47 38 43 03


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