The European Parliament has approved the proposal to amend Regulations (EC) No. 883/2004 and 987/2009 on the coordination of social security systems, and the ambassadors of the EU Member States have confirmed the provisional agreement.
The agreed text updates the existing EU legislation on the coordination of social security systems to make the rules clearer, fairer and easier to enforce.
In this article, we focus exclusively on the changes and rules concerning posted workers.
1. Continued social security coverage in the home country for a maximum of 24 months
The basic rule remains unchanged: an employee posted to another EU Member State may continue to be covered by the social security system of the home country. The expected duration of the posting may not exceed 24 months, and the employee may not be posted for the purpose of replacing another posted worker (see point 5 – replacement of an employee).
2. New requirement: at least three months of prior insurance coverage
This is one of the most significant changes. In the future, a person recruited for the purpose of being posted must have been subject to the social security system of the country where the employer is established for at least three months immediately before the start of employment.
3. Obligation to notify the posting in advance
Employers will be expressly required to notify the competent institution before the posting begins and to apply for a certificate concerning the applicable legislation (A1). If the A1 certificate is not issued in time, the institution will automatically issue an acknowledgement of receipt of the application.
There will be two exceptions to the advance notification requirement. Notification will not be required in the case of a business trip (e.g. business meetings, participation in conferences, seminars, training sessions, etc.). However, providing a service to a customer or delivering goods will not be considered a business trip.
The second exception concerns very short-term work. Very short-term work will be defined as a maximum of three consecutive working days within a period of 30 days. Neither of these exceptions will apply to the construction sector.
4. New rule against successive postings
Once the 24-month posting period has been exhausted, a new posting of the same person to the same country cannot begin immediately. A minimum interruption period of two months, known as a “cooling-off period”, will have to elapse. An exception will only be possible in justified cases.
5. Replacement of one employee by another
If an employer needs to replace an employee who has already been posted with another person, this will generally remain possible. However, the total duration of the postings of all employees concerned may not exceed 24 months.
Stricter checks of A1 certificates are expected, thanks to stronger control tools available to the institutions of the Member States.
If an institution has doubts, for example regarding the accuracy of the information provided, the actual posting or the validity of the A1 certificate, a formal review procedure will be initiated between the competent institutions. If an error or fraud is identified, the A1 certificate may be withdrawn or corrected, including retroactively.
The proposal also introduces a new Article 19a on digitalisation and electronic A1 certificates. The aim is to establish a fully electronic process, from online applications and electronic acknowledgement of receipt to a standardised A1 format and the possibility of immediate cross-border checks. The document refers to the EESSI system, the ESSPASS project and the European Digital Identity.
The agreement also addresses other areas, such as unemployment benefits, long-term care benefits, family benefits, economically inactive persons and persons working in two or more Member States.
The provisional agreement still needs to be confirmed by the European Parliament. It will then undergo legal and linguistic review before it can be formally adopted. We will keep you informed of further developments.
