European Commission Proposes Initiative to Streamline Posting of Workers
The European Commission has recently unveiled a significant initiative aimed at reducing bureaucratic hurdles, expediting administrative processes, and harmonizing various national regulations for companies that temporarily post workers to other EU member states to provide services. This initiative is set to introduce a unified digital portal and a standardized electronic posting declaration, which will greatly facilitate the cross-border provision of services by approximately five million posted workers operating within the EU single market.
Margrethe Vestager, the Executive Vice-President of the European Commission, emphasized the importance of this proposal, stating, “This initiative will diminish one of the primary administrative obstacles within the Single Market for services and represents a tangible effort to lower companies’ reporting obligations by 25%.” According to the Commission, the new single digital declaration portal will enable service providers to utilize one standardized form rather than navigating through 27 distinct national forms.
While this initiative has garnered attention, reactions from stakeholders have been mixed. Esther Lynch, the General Secretary of the European Trade Union Confederation (ETUC), expressed disappointment, stating, “The European Commission has overlooked a crucial opportunity to establish a streamlined system for the declaration of posted workers that would simplify the registration process for employers while empowering labor inspectors to uphold workers’ rights.”
Workers’ representatives believe that, with proper design, the electronic declaration could enhance cross-border enforcement. However, they caution that the social costs associated with the current proposal may outweigh the economic advantages for businesses.
Conversely, business representatives have welcomed the EU-wide digital tool as a means to simplify and optimize the process, thereby alleviating the excessive administrative burdens faced by companies within the single market. The Confederation of German Employers’ Associations (BDA), which represents Germany as the largest destination for posted workers, stated, “German employers have long advocated for a harmonized, single notification system for posted workers, rather than relying on 27 separate national systems with varying information and documentation requirements.”
The ETUC opposes a “one size fits all” approach and instead supports a voluntary, standardized e-form that allows for the addition or adjustment of information requirements tailored to national contexts, promoting broader adoption by member states. Markus J. Beyrer, the Director General of BusinessEurope, noted, “Now, we also need to witness progress in establishing a new EU helpdesk under the European Labour Authority (ELA) to provide on-demand, practical, and individualized assistance and guidance to employers, particularly concerning the posting of workers.”
Attractive Destinations for Posted Workers
According to a 2024 study conducted by the European Commission, posted workers constitute nearly half of the 9.9 million EU citizens working abroad. Germany leads as the most attractive destination for posted workers, with over 1.5 million posted workers recorded in 2022. This is followed by Poland, hosting approximately 723,000 posted workers, and Italy, with around 315,000.
Recent data indicates that from 2021 to 2022, France, Germany, and Ireland experienced the most significant increases in posted worker numbers, with respective surges of 63%, 61%, and an astounding 217%. The overall rise in posted workers across the EU can be attributed to the recovery following the Covid-19 pandemic, although some countries, such as Estonia (-19%), Lithuania (-1%), and Romania (-2%), experienced a slight decline.
Understanding the Demographics of Posted Workers
The total number of workers in the EFTA (Iceland, Liechtenstein, Norway, and Switzerland) and EU nations reached approximately 4.6 million in 2022. While there is a lack of recent studies specifically focusing on their profiles, a 2024 EU report on general labor mobility revealed that 58% of those relocating abroad are male, with a significant portion originating from Romania, Poland, or Italy.
Furthermore, a European Commission study highlighted that the most prevalent sectors employing posted workers are construction and road freight transport, with an average posting duration of 159 days. Notably, there is a high demand for skilled workers within the single market, particularly in the Information and Communication Technology (ICT) sector, which has seen a remarkable increase in job opportunities in recent years, as identified by the Commission.
