IR Notes

Ahead of the future “Quality Jobs Act” announced by the European Commission for the year end, tension is rising around one of the themes due to be covered by this proposal: subcontracting. At the time it launched the first-stage consultation of European social partners, in December last year, the Commission explicitly emphasised that “the longer and more complex the subcontracting chain, the greater the risk of fraud and abuse”, especially in labour‑intensive sectors such as construction, agriculture, food processing, logistics, transport and personal services. Admittedly, the EU already has an arsenal of legislation at its disposal when it comes to strengthening protection of workers in subcontracting chains, including via directives regulating posted workers. Nevertheless, the Commission considers that these instruments are not enough to eradicate a number of persistent fraudulent practices. It therefore plans to take targeted action in sectors identified as high-risk: a combination of tighter controls, intensified social dialogue and a possible re-evaluation of the joint and several liability regime applicable to the principals operating in these chains. The consultation process has highlighted a deep division between trade unions and employers’ organisations. In its reply, the European Trade Union Confederation (ETUC) argues that the Commission’s approach is still too cautious. It calls for subcontracting chains to be explicitly restricted to two levels at most, and for the adoption of specific legislation to combat fraudulent practices linked to unregulated intermediaries. BusinessEurope, on the other hand, believes that the appropriate response lies primarily in strengthening the powers of labour inspectorates and the application of existing rules (see response). The employers’ organisation rejects the idea of any new legal restrictions on subcontracting, arguing that this would risk harming business competitiveness. Moreover, a study commissioned by the European Employers’ Institute concluded that imposing restrictions on levels of subcontracting might constitute a breach of EU law.
Two European institutions have recently contributed to the debate. In an exploratory opinion on a review of the European public procurement legal framework, the European Economic and Social Committee (EESC) adopts a position close to that of the trade unions. It recommends that adherence to collective labour agreements should be systematically included as an obligatory criterion for awarding a tender, and with a view to combatting abuse in subcontracting chains, it also proposes the introduction of a joint and several liability regime, accompanied by sanctions to deter wrongdoing, and restricting the length of these chains to one or two levels.
In a resolution passed on 12 February, the European Parliament adopts a more qualified approach. Without explicitly calling either for restrictions on subcontracting chains or for a joint and several liability regime to be introduced across the board, it calls for the creation of a European strategy to tackle labour exploitation, including illegal work and organised crime linked to it, and abusive business practices in the areas of subcontracting and labour intermediation.
National initiatives are also emerging, in parallel. For example, in Sweden, 18 major construction companies have set up a “Network of Responsible Constructors” (Nätverk för Seriösa Byggare), which is calling for greater efforts to tackle dumping social and labour-related crime, and for subcontracting to be restricted to two levels. Subcontracting is therefore emerging as a key battleground. Defending the status quo is looking like an ever more challenging position, in light of well-documented cases of labour exploitation, as such abuse undermines citizens’ trust in the EU. It remains to be seen whether the Union will opt for tighter regulation of subcontracting chains or for a pragmatic strengthening of the application of existing rules.

Social Omnibus : EU employers are now openly calling for a “Social Omnibus” directive, given that the search for competitiveness also involves a revision of European social legislation. In a statement issued by BusinessEurope, five texts are prioritised: the pay transparency directive; the directive on improving working conditions in platform work; the directive on transparent and predictable working conditions; the older directive on working time; and the REACH regulation (registration, evaluation and authorisation of chemical substances). In the case of the pay transparency directive, BusinessEurope is seeking a two-year postponement of the transposition deadline, currently set at 7 July 2026. The stated objective appears to be to give Member States and companies more time to adapt, while at the same time identifying possible avenues for simplification. This position means that the employers are now directly at odds with the President of the European Commission, Ursula von der Leyen, who had previously indicated that the text and its timetable for implementation could not be renegotiated. The document sets out the amendments deemed necessary for each directive. The statement was unveiled at a panel discussion on the theme of “Stepping up EU simplification efforts in the field of social affairs”, in the presence of Roxana Mînzatu, Executive Vice-President of the European Commission for Social Rights. European employers in the chemical industry (ECEG) had already published, in November 2025, a table listing several social directives that they believe need revising, including the recently adopted European Works Council directive (see IR Notes 263). Ceemet, which represents European metal, engineering and technology-based industries, and has been “on manoeuvres” for several months, set out its position in a statement in early December, alongside other sectoral organisations, calling for “a simplification of the social acquis”, a step deemed crucial for maintaining industrial competitiveness (see press release). Ceemet stresses that this effort is not about “deregulation”, but rather “about making rules consistent, removing outdated provisions and ensuring that reporting and compliance obligations are aligned so businesses can focus on productivity and growth rather than navigating administrative burdens”. Leaving aside the technical aspects, the message to the Commission is clear: prioritise effective implementation of the existing standards by tightening up controls rather than adopt new binding obligations. This position comes at a time when the EU executive is preparing a future Quality Jobs Act, which is expected by the year end. The call for a “Social Omnibus” package might therefore constitute a structured approach to modifying the legislative agenda and containing any further expansion of the European legal framework.

Construction : Last December, European social partners in the construction sector (FIEC and EFBWW) unveiled the results of their joint SIDE-CIC project, supported by the EU, which examines the feasibility of creating an interoperable framework for social ID cards in the construction sector. These cards make it possible to combat fraud, to enhance workplace health and safety, and to recognise vocational qualifications and training courses followed by employees. The project undertook three studies: a mapping report on the existing systems, a legal feasibility study and a technical feasibility study. Based on the findings reached, the social partners have agreed on a set of recommendations to guide future initiatives, promote interoperability and prepare a potential pilot project (see FIEC and EFBWW press releases).

Digital nomads : The Council of Ministers has adopted Regulation no. 286 dated 12 December 2025, pursuant to an amended law of 18 June 2025 on foreigners’ rights of residence, which introduces a digital nomad permit, among other things. The new procedure allows people to reside in the country without having a link of subordination with a local employer. As well as boosting the economy and tourism, the aim is to attract people who are qualified in the fields of innovation, and in the creative and hi-tech industries.

Occupational health and safety : The Ministry of Labour and the two trade-union confederations CC.OO and UGT have reached an agreement aimed at improving and modernising the law on prevention of occupational risks (see CC.OO and UGT press releases). However, this step forward has not received unanimous approval. The employers’ organisations CEPYME and CEOE have said they are not happy with the plan, and that they were shut out of the decision-making process. This feeling of exclusion is not new. The two organisations had already published, in November 2025, a joint statement condemning the fact that they had been sidelined from decisions made in the field of Spanish social relations. The absence of a broader and more inclusive dialogue, they say, is partly responsible for creating a hostile climate for businesses, especially very small businesses and SMEs. As the government lacks a guaranteed majority in Parliament, the measures provided for by the agreement will be enacted by royal decree. Decrees are expected on a number of issues, including psychosocial risks (to force companies to assess these), closer monitoring where several companies are operating in the same workplace, and on workers’ exposure to adverse weather conditions.

Harassment at work : On 17 February, the Council of Ministers adopted a draft law on harassment at work, requiring employers with a workforce of nine or more to inform their employees of the rules and procedures in place (see press release). The law also includes increased compensation for victims and the introduction of measures to tackle false accusations. This initiative seeks to clarify the law, which at the present time remains vague in terms of actions, effects and impacts of harassment at work, but will now seemingly require harassment to manifest itself in the form of recurrent and repeated acts committed over the long term.

Artificial intelligence : On 4 February, the management of the Italian insurance group Generali and its European Works Council signed a Joint declaration on technological transformation, digitalisation and artificial intelligence (AI). This is the fifth declaration of its kind concluded within the group. The stated aim is to oversee the deployment of AI tools, while also anticipating their organisational and social impacts. The text stipulates that “in adopting innovative technological solutions, particular attention will be paid to workers’ health and safety, to avoid the risk that an intensive use of AI may generate cognitive overload or reduce social interactions, with negative effects on mental health and potential repercussions on physical integrity”. Training constitutes another pillar of the agreement. The declaration states that “workers will also be duly informed about the use of AI systems and Generative AI and provided with adequate training to understand their functioning, benefits and possible risks”. These training initiatives, the content of which is set out in the text, will be carried out during working hours. The principle of human oversight is explicitly reaffirmed for high-risk AI systems, including in the field of human resources management. The document stipulates that “the EWC select committee shall be duly informed in the event that the introduction and/or updating of the above-mentioned systems has a significant impact on workers at transnational level”. However, the text does not use the term “consultation” and does not specify the committee’s role upstream from the deployment or updating of AI systems. Moreover, at various levels — European, national or local — consideration will be given to the possibility “of carrying out preliminary risk assessments concerning occupational health and safety” in the event of a planned introduction or updating of the tools concerned. The task of monitoring application of the declaration is entrusted to the EWC’s IT New Technologies and AI working group. This body will meet twice a year for the duration of the text’s validity period.

Database : On 19 January, the ILO published an update of newly concluded or renewed transnational company agreements in its Repository of knowledge on cross-border social dialogue. While traditional topics such as fundamental rights at work and occupational health and safety are covered by the latest agreements, the ILO notes that the latter pay closer attention to the issues of due diligence in supply chains, environmental sustainability, just transitions, digital transformation and artificial intelligence.

Artificial intelligence : On 4 February, the management of Albéa Tubes France signed a method agreement on the role of employee representation during the introduction of AI with four trade unions (CFDT, CFE-CGC, CGT, Unsa). This text applies both to new AI systems and their updates, and provides for differentiated methods of employee representatives’ involvement: consultation on major projects that, among other things, lead to job cuts or the implementation of more than 35 hours of training per person; or have consequences for the qualifications or classification of employees. Consultation is also provided for at the time of any implementation of a coordinated algorithmic management system. Employee representation bodies can call in an expert opinion if required.  Such consultation is supplemented by “ongoing  social dialogue, which is the only appropriate response to the ‘life cycle’ and ‘open-ended’ nature of AI systems.” Odile Chagny, an economist at the Institut de recherches économiques et sociales (IRES), comments that this agreement “will probably mark a milestone in the operational rollout of an iterative social dialogue on AI, as reflected within the framework of the Dial-IA project.”

Occupational health and safety : The European Agency for Safety and Health at Work (EU-OSHA) has published the first findings of its fourth European Survey of Enterprises on New and Emerging Risks (ESENER), accompanied by a data visualisation tool, which is particularly useful for analysing findings and making comparisons between European countries. These first findings reveal the rise in working from home: the share of workplaces in the EU-27 reporting that they have employees working from home on a regular basis has almost doubled since 2019, reaching 23% in 2024, compared to 13% in 2019 — and exceeding 40% in Finland and the Netherlands. Another consequence of this rise is that prolonged sitting is the most frequently identified physical risk factor in the EU-27 (64% of establishments). When it comes to psychosocial risks, several factors continue to feature strongly within organisations, including having to deal with difficult patients, customers and pupils (56% of establishments) and time pressure (43%). Companies also seem to be strengthening their preventive actions. Among establishments that have to deal with situations involving difficult customers, patients or pupils, 54% of those employing 20 or more people report having a procedure in place to deal with possible cases of threats, abuse or assaults by external persons (up from 51% in 2019). In addition, 39% of establishments have introduced action plans to combat stress (up from 33% in 2019) and 55% now have procedures in place to deal with bullying or harassment (compared to 45% in 2019).