The European Parliament has recently approved the proposed revision of Regulation (EC) No 883/2004 on the coordination of social security systems at the first-reading stage of the EU legislative procedure. The proposal introduces several significant changes for companies employing workers within the European Union. The main changes are summarized below.
The rule enabling employees and self-employed workers seconded to another member state for up to 24 months to remain subject to the social security legislation of their country of origin is maintained, provided that they do not replace another posted worker. However, the revised framework introduces an additional requirement: Before the secondment begins, the worker must have been subject to the social security legislation of the country of origin for at least three months prior to commencement secondment.
The revision also introduces an obligation to notify in advance the competent institution of the member state whose legislation applies and to also request a certificate of applicable legislation (known as a Portable Document A1 or PDA1). This obligation will not apply to activities having a duration of less than three consecutive working days within a 30-day period, nor to business trips, except in the construction sector, where stricter rules will continue to apply.
Furthermore, the criteria for identifying the social security legislation applicable to workers who carry out activities in two or more member states have...
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