Genesis
Since the UK's withdrawal from the EU on 1 January 2021, social security relations between Switzerland and the UK have no longer been governed by the AFMP. As the UK made the new arrangement with Switzerland dependent on the agreement with the EU, negotiations for a new social security agreement could not be started until the beginning of 2021. The Federal Council of Switzerland intends to keep the existing social security relations as similar as possible to those before Brexit (the so-called "mind-the-gap strategy"). The result of the negotiation process was the Social Security Convention, which has been applied provisionally since 1 November 2021. Given the positive experience, the signatory states have decided to bring this convention into force definitively. This will take place on 1 October 2023, following the completion of the national ratification procedures.
Implications
The Social Security Convention grants insured persons largely equal treatment and facilitated access to the social security benefits of both contracting states. It avoids double insurance and insurance gaps for persons who come into contact with the social security systems of both states. It also facilitates the temporary deployment of workers in the other state. Differences to EU law and to agreements that applied under the AFMP were decided primarily with regard to disability benefits, BVG credits, family benefits, unemployment insurance, certain means-tested benefits and access to voluntary AHV.
Outlook
The Social Security Convention's definitive entry into force symbolizes a return to the normalization of relations with the UK after Brexit. As the provisions of the Social Security Convention that have been provisionally applied so far have proved their worth, their future application should not pose any particular problems in practice.
* Yannick Zuber, who is a Trainee Lawyer at Baker McKenzie, also helped in the redaction of this alert.
