Recruiters have been issued with a warning that they may risk facing penalties if they fail to properly attain required tax and social security documents.

Highlighted by the tax and finance consultants, ItsInternational, recruiters face heavy statutory penalties if necessary checks are not made with regards to important tax and social security documents. Recruiters failing to deal with EU expat placements need to ensure that their social security liabilities are in accordance with EU regulations.

Mike Phillips, Marketing Director of ItsInternational, told Recruitment Grapevine: “Recruitment agencies often prefer to use an intermediary, which they do in the belief that that intermediary will take care of all compliance issues. In theory that may well be the case, but not always in practice – often it is presumed  that the individual is employed by the agent, as the agency signs the client contract which makes clear that the agent is 100% responsible for ensuring the placement is operating within the law of the country.”

Furthermore, recruiters relying on the defence that their contract is with an incorporated intermediary chosen by the placement should not rely on this,  as recruitment agencies should be certain that their placements are dealing with their affairs in the correct manner. This means seeking reassurances and asking an intermediary to provide evidence of proper registration in the country of work.

An EU expatriate is liable for social security from their first day of work in their host country, therefore it is important to mention that one of the following documents is a necessary requirement:

–  a copy of the placement’s registration for local social security –  a copy of the A1 Certificate from the placement’s home country

It’s important that recruiters meet the requirements and source the necessary documents when placing expats in the EU to avoid risking sanctions.


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