TN 16 (11-96)

RS 02001.365 General Coverage Rule for Employment - U.S. United Kingdom Agreement

The agreement establishes a general territoriality rule which stipulates that ordinarily a person's employment in a country is subject to the laws on coverage of only that country. Thus, a person working in employment which would otherwise be covered under the laws of both countries remains covered only under the system of the country where the work is performed and is exempt from coverage under the system of the other country. However, as noted in RS 02001.350, the intent of the agreement is to provide coverage under the system of the country to which the worker has the more direct connection. Since the territoriality rule would not provide such coverage in all cases, there are several exceptions to this general rule. These exceptions are explained in RS 02001.370.