At last, a step forward for freedom of movement for workers in the EU
On 22 April, representatives of the Council and Parliament reached a provisional agreement on revising the rules on coordination of national social security systems, as provided for by regulation nos. 883/2004 and 987/2009 (see Council press release). In so doing, they resolved a matter that has been under discussion since 13 December 2016, when the European Commission first put forward its proposal. This agreement was confirmed by the Council on 29 April, by a majority vote (21 Member States) but it has yet to be formally adopted by Parliament (see Council press release). The somewhat abstruse terms in which the agreement is couched conceal a key element of free movement for people within the EU, and especially workers.
The EU does not have powers to harmonise national social security systems: its mission is to coordinate them in such a way that they do not disadvantage EU citizens who wish to exercise their right to free movement. This coordination is based on four principles:
1. Citizens are covered by the legislation of just one country at a time, so they only pay contributions in one country;
2. Citizens have the same rights and obligations as the nationals of the country where they are covered;
3. When citizens claim a benefit, their previous periods of insurance, work or residence in other countries are taken into account if necessary (the ‘totalisation principle’);
4. Citizens entitled to a cash benefit from one country, may generally receive it even if they are living in a different country (‘exportability principle’).
Among other things, the revision will amend the rules concerning payment of unemployment benefits in cross-border situations; the conflict-of-laws rules that determine which legislation is applicable to workers; and the rule concerning workers posted in the context of performing services. It means that jobseekers who were “active” in a Member State other than their country of residence for an uninterrupted period of 22 weeks, will be entitled to receive unemployment benefits from the country where they were last employed (and no longer those of their country of residence), if they satisfy the conditions stipulated by the country’s national legislation to be entitled to such benefits.
As regards posted workers, submitting prior notification to the competent authorities is the rule. Exceptions apply to business trips and short-term activities (i.e. those with a maximum duration of three consecutive days of work within a period of 30 consecutive days). However, these exceptions do not apply to the construction sector. When it comes to determining which legislation is applicable to persons carrying out professional activities in two or more Member States, the press release says that the revised text “provides additional guidance on identifying the registered office or place of business of the undertaking or employer in order to determine which country’s legislation should apply to them”.
This complex text will have to be analysed, to identify all of its practical consequences. Nevertheless, it is already being welcomed by European social partners, who, on 23 March this year, issued a joint declaration calling on lawmakers to finally agree on a text. After the provisional agreement was announced, BusinessEurope (see press release) and the European Trade Union Confederation (see press release) applauded the outcome, as did social partners in the construction sector (see FIEC, EBC and EFBWW joint press release).
(Article published in IR Notes 273 – 06 May 2026)
