The EU wants to set up a standardised digital portal for posting of employees.

On 13 November, the European Commission published the proposed regulation for a standardised digital reporting portal. In order to be able to use this, a common electronic format and a "standard form" for posting declarations will be developed. This should be available in all official European languages and be used by all companies that temporarily post staff to another Member State. The initiative is a contribution to the EU's goal of reducing companies' reporting obligations by 25 per cent and ensuring the EU's long-term competitiveness. Moreover, it is an important step towards better enforcement of labour protection rights in the EU. 

Simplify posting, reduce reporting requirements

The new reporting portal is intended to reduce the workload for companies and simplify administrative processes. This is because the requirements in the 27 Member States differ considerably with regard to the applicable posting regulations and the documents to be submitted. The complexity of the regulations is one of the main deterrents to companies from posting employees across borders. The proposal is to set up an electronic public interface, i.e. a secure web portal. This will become part of the Internal Market Information (IMI) system, which the national authorities now use for requests for information and administrative assistance. As the interface will be multilingual, posting declarations can be submitted in one’s own language. The language barrier is overcome.

Ensuring fair mobility

Compliance with EU posting regulations is also to be improved. Firstly, the competent national authorities will send a copy of the notification to the posted employees. This option does not exist in the current reporting system and is intended to help posted employees to exercise their rights. Secondly, host Member States may require posting service providers to use the new interface to transmit posting notifications to the competent national authorities. This should enable targeted checks at the workplace. The European Commission assumes that the simplification of the procedure will reduce the number of violations of the posting regulations and improve the fight against undeclared work. This should also be seen as a contribution to protecting the rights of posted employees.

Need for action is given

The number of posted employees in the EU single market is around five million. And the trend is rising. Reality shows: Many people work across borders without the employee protection to which they are entitled. Be it in freight transport, the food industry or agriculture. The list is not exhaustive. At a panel discussion organised by the German Trade Union Confederation of Hesse/Thuringia and the Representation of the State of Hesse to the European Union entitled "Free Ride for Exploitation? Protecting Workers' Rights in European Freight Transport" in September this year, it became very clear: There is not so much a lack of regulations as a lack of enforcement. Against this background, the European Commission's current proposal appears to be a step in the right direction.

Trade unions criticise

However, criticism has come from European trade union organisations. In a press release dated 13 November, they complained that the proposed legislation would focus one-sidedly on reducing administrative burdens. The opportunity to introduce a system that would make it easier both for employers to properly register posted employees and for labour inspectors to protect employees' rights has been missed. On the contrary: In its current form, the proposal would undermine existing best practices for pre-notification systems that exist in several Member States.

The legislative process

As part of the legislative initiative, Regulation (EU) Nr. 1024/2012 on administrative cooperation, with which IMI was created in 2012, will be amended accordingly. The specific contents of the standard form relating to the service provider, posted employee, posting order, service recipient and contact person for the competent authorities are to be set out in an implementing act by the European Commission. The existing EU legal framework for the posting of employees will not be affected. The measure was announced by the European Commission in its communication of March 2024 "Labour and skills shortages in the EU: an action plan".