Reform of European rules on cross-border employment and posting of workers

What does the revision of the European social security regulations entail?

The revision of the European social security regulations is based on five pillars:

• Unemployment benefits;

• Long-term care benefits;

• Access to social benefits for economically inactive citizens;

• Family benefits;

• The applicable social security legislation for posted workers and those working in two or more Member States.

In this article, we focus on the fifth pillar: the rules for employees and self-employed individuals who work across borders on a temporary or permanent basis.

A1 certificate: two new exceptions to the application requirement

In principle, anyone performing cross-border work must apply for an A1 certificate from the competent authority. This certificate confirms which social security legislation applies to the person in question.

However, the revision provides for two exceptions under which an A1 certificate does not need to be applied for.

Business trips

The first exception applies to business trips. These are defined as temporary activities related to the business interests of the employer or self-employed person, without involving the provision of services or the delivery of goods.

The regulations include a non-exhaustive list of activities that may fall under this category, including business meetings, cultural and scientific events, conferences, and seminars.

Short-term work lasting up to three working days

A second exception applies to short-term cross-border work. Under the revised rules, an A1 certificate is not required if the work lasts no more than three consecutive workdays within a period of thirty consecutive days.

Please note: work in the construction sector is expressly excluded from this exception. For these activities, an A1 certificate is always required.

A1 certificate must be applied for before work begins

In addition to the new exceptions, the timing of the application is now regulated more strictly.

Until now, an A1 certificate had to be applied for in advance whenever possible. The revision replaces that wording with a clear requirement: the A1 certificate must be applied for before the start of cross-border work.

For situations in which work is performed in two or more Member States, an A1 certificate may now be issued for a period of up to 24 months, whereas in current practice it was typically issued for 12 months. At the end of this period, a reassessment must be made to determine which social security legislation applies.

Stricter conditions for posting abroad

The reform also adjusts various conditions for posting. In particular, prior enrollment in the social security system and the rules for successive postings deserve attention.

At least three months of prior enrollment in social security

To be eligible for posting, the person concerned must have been subject to the social security legislation of the home Member State prior to the posting. This period is extended from one month to at least three months. Furthermore, this must be an uninterrupted period of coverage. This condition applies to both employees and self-employed individuals.

Maximum posting period remains 24 months

The maximum posting period of 24 months remains unchanged. However, for consecutive postings, a mandatory two-month break (cooling-off period) is introduced.

Exceptions under Article 16 remain possible

Exceptions to the standard rules remain possible through an agreement between the competent authorities pursuant to Article 16 of Regulation 883/2004. However, such an exception does not constitute an automatic right. It remains subject to the approval of the competent authorities involved.

New procedures and deadlines for A1 certificates

• Acknowledgment of receipt for pending applications: If an A1 certificate cannot be issued immediately, the competent authority must now provide an acknowledgment of receipt for the application.

• Binding deadlines for data exchange: In addition, clear deadlines are being introduced for cooperation and the exchange of information between the competent authorities of the Member States.

  • Requests for information must be responded to within 35 business days.

  • If an authority has doubts about the validity of an A1 certificate, the competent institution must respond within 30 business days.

When do the new rules take effect?

Not all of the new provisions will take effect at the same time. A limited number of changes will take effect immediately, specifically on the first day of the month following the publication of the regulation in the Official Journal of the European Union.

However, the changes discussed above regarding A1 certificates, posting, and work in multiple Member States will not take effect until 24 months after the regulation enters into force. Until then, the current rules remain in effect.