EU proposes digital portal to simplify posting of workers across borders

The European Commission has proposed a new digital portal that will make it easier for companies to temporarily send workers to other EU countries. This proposal aims to simplify the administrative formalities related to moving employees – known as “posted workers” – to different Member States, thereby reducing the burden on businesses while maintaining strong worker protection.

Why is this important?

The EU single market has around 5 million posted workers. These are employees sent by their company to work in another EU country for a short period. Currently, businesses face a lot of red tape, as each EU country has its own rules and forms to fill out. This can be complicated and expensive, especially for small businesses that don’t have the resources to deal with complex bureaucracy.

The new portal aims to create a single digital form that can be used in all EU countries. This means that companies will no longer need to fill in 27 different national forms when posting workers, but will be able to use one standardized form available in all EU languages. The Commission estimates that this will reduce the time required for these declarations by 73%, thereby reducing administrative costs for businesses.

How will this benefit businesses and workers?

The new digital portal will be part of the Internal Market Information System (IMI), which EU countries already use to share information on work and services. This proposal is voluntary for Member States, meaning that each country can decide whether or not to use the new system. However, for those who sign up, it will significantly reduce the red tape required when companies post workers across borders.

For businesses, this means a more streamlined process, saving time and money. It contributes to the EU’s wider objective of reducing administrative burdens on businesses by 25%, as set out in its EU Long-Term Competitiveness strategy.

For workers, the new system will ensure that companies comply with existing worker protection laws. The streamlined process will also make it easier for labor authorities in each country to conduct inspections and enforce workers’ rights, improving compliance and transparency.

Protecting workers’ rights

The EU is determined to ensure that workers’ rights are protected, even when working temporarily in another country. By simplifying the process of declaring posted workers, the new system aims to ensure that companies comply with all the rules set out in the Posting of Workers Directive. This directive ensures that posted workers benefit from fair treatment, such as appropriate pay and working conditions, similar to those of local workers.

Thanks to the digital portal, Member States can also share information more effectively. Authorities will be better equipped to track postings and conduct targeted inspections, ensuring that companies do not circumvent important worker protections.

A step towards equitable mobility

This proposal is part of a wider EU plan to support labor mobility and tackle labor shortages. This was initially announced in the new 2020 industrial strategy and was further highlighted in a 2024 action plan to address labor and skills shortages. By making it easier for companies to post workers, the EU hopes to promote fair mobility, meaning workers can cross borders to find work without losing their rights or facing complicated administrative formalities.

Résumé

The proposed digital portal is designed to simplify the process for companies to send workers to other EU countries, thereby reducing administrative burdens and improving transparency. This should benefit both businesses, by reducing costs, and workers, by ensuring strong protection of their rights. By making it easier to comply with EU rules, the new system aims to make labor mobility fairer and more efficient, while supporting businesses in a competitive global market.