Leverage potential to enforce labour and social security rights.

VS – 02/2024

The "The European Social Security Passport (ESSPASS)" study, commissioned by the European Parliament's Committee on Employment and Social Affairs (EMPL), examines the potential of the European Social Security Pass to enforce labour and social security rights in Europe. Its tenor: The added value of the ESSPASS lies primarily in the area of employee posting. The European social security pass can make a significant contribution to preventing fraudulent practices, raising awareness among posted workers of their labour and social protection rights and facilitating mobility. At the same time, it can help to significantly reduce the administrative burden on social security institutions, employers and audit authorities.

Start with A1 and EHIC

The central component of the ESSPASS initiative is the introduction of digital credentials that make use of the EU DI Wallet (European Digital Identity Wallet). This initiative resulting from the eIDAS 2.0 Regulation is intended to further facilitate mobility within the European Union (EU) in the coming years and, in the future, make two administrative procedures in the area of social insurance digitally accessible: The portable document "A1" for posted workers and the European Health Insurance Card (EHIC) for cross-border healthcare.

Pilot procedure

The DC4EU consortium is currently conducting a pilot project at European level. In the area of the social security system, the German Pension Insurance Fund, together with partner institutions from Austria and Denmark, is leading the development of the A1 digital certificate of posting. The Health Insurance Liaison Office - Overseas (DVKA) is involved in the development of the European Health Insurance Card. The pilot projects should be completed by April 2025.

Leveraging the potential of ESSPASS

The study calls for the potential of the ESSPASS to be fully harnessed and to go beyond the currently planned scope of application. It is therefore recommended that the documentation of the labour law entitlements of posted workers be included in the ESSPASS, if possible, during the pilot phase. This applies in particular to the posting notification required by the Member States under the Enforcement Directive. The study refers to the steps announced by the European Commission in its 2024 work programme to digitalise and standardise the posting of workers. This would facilitate inclusion.

In contrast, the inclusion of national labour cards or social ID cards is considered to be more difficult. Their areas of application diverge and contain a lot of diverse information. The willingness of the Member States to agree to standardise these national practices is also viewed with scepticism. Despite these difficulties, the study recommends investigating the extent to which this evidence can be included in the ESSPASS. This applies in particular to the construction sector, which is heavily affected by posting.