Council definitively adopts new rules for the social benefits of Europeans working in another EU country

The Council of the European Union has definitively adopted the reform of the rules coordinating national social security systems for people who work or live in several European countries, concluding the legislative stage following the European Parliament’s vote in the summer.

In brief

The Council gave final approval to the regulation updating the coordination of EU social security systems.

People who leave to look for a job in another country may continue to receive unemployment benefits from the previous country for six months, with the possibility of an extension under certain conditions.

A worker who has been active for at least 22 consecutive weeks in another Member State may receive unemployment benefits from the country of their last activity, provided they meet the national conditions.

The rules clarify the obligations for posted workers and for people working in two or more countries and distinguish more precisely between certain family and long-term care benefits.

The reform does not create a single European social security system. Member States continue to decide which benefits they provide and under what conditions, while EU rules establish how these systems are coordinated in cross-border situations.

One of the most visible changes concerns unemployment benefits. A person receiving this benefit who goes to another European country to look for a job will be able to continue receiving it for six months from the country they left. The competent authority may allow the period to be extended until the entitlement to benefits expires.

The rules also establish more clearly which country must pay the benefit when a person has worked in another country. Workers who have carried out uninterrupted activity for at least 22 weeks in another Member State will be able to apply for unemployment benefits from the country of their last activity, provided they meet the conditions laid down in national legislation. The change aims to reduce situations in which financial responsibility is quickly transferred to the country of origin after a significant period of work in another country.

For posted workers, the reform seeks to clarify which country’s social security system remains applicable. In principle, the authorities in the country of origin must be informed before the worker begins working in another Member State. However, the regulation introduces exceptions for certain professional trips and very short-term activities, defined as a maximum of three consecutive working days within a 30-day period. The exception does not apply to the construction sector.

For people working in two or more countries, the new rules seek to make the determination of the applicable legislation more predictable. In particular, they clarify the criteria for identifying the employer’s registered office or place of business activity, an important element when authorities must decide in which system social contributions are paid.

The reform also clarifies the distinction between certain categories of family benefits. The rules distinguish more explicitly between cash payments intended to replace lost income when a parent reduces or interrupts work to raise a child and other family benefits. The aim is to prevent situations in which coordination between systems creates financial disadvantages for parents who reduce their working hours to care for their children.

Another chapter concerns mobile citizens who are not economically active. The regulation reflects relevant case law and clarifies the situations in which they may have access to certain social benefits in another Member State. At the same time, it confirms that mobile citizens should not be prevented from contributing to sickness insurance systems under the conditions established by national legislation and practices.

For long-term care, the reform introduces a clearer definition and a system for identifying the benefits covered by the European coordination rules. These services and payments had become increasingly important as the population aged, but differences between national systems could create uncertainty regarding the country responsible for the costs. The Commission is to assess the application of these rules after three years.

The Council’s adoption is the final stage of a file that had remained blocked for years in European negotiations. The European Parliament had already approved the reform in July, with 511 votes in favour, 87 against and 61 abstentions. The Council’s approval means that the legislative text can now proceed to publication in the Official Journal.

However, entry into force should not be confused with the harmonisation of social benefits in Europe. Member States continue to decide who is insured, what contributions are due, the value of benefits and the national conditions for granting them. The role of the European regulation is to establish which system applies when a person’s professional or personal life crosses borders and to prevent situations in which they are left without protection or insured simultaneously under two systems.

The new rules also apply within a framework broader than the borders of the 27 Member States. The European coordination system also covers Iceland, Liechtenstein, Norway and Switzerland, under the applicable agreements. Relations with the United Kingdom are governed separately by the Withdrawal Agreement and by the protocol on social security coordination in the Trade and Cooperation Agreement.

The final adoption thus changes the status of the file previously reported by 2EU. In April, there was a compromise between Parliament and the Council; in May, it had been approved by the parliamentary committee; and in July, Parliament had cast its vote. The Council’s decision concludes the legislative process at the level of the co-legislators, with publication of the regulation being the next legal milestone.

https://2eu.brussels/ro/news/consiliul-adopta-definitiv-noile-reguli-pentru-prestatiile-sociale-ale-europenilor-care-lucreaza-in-alt-stat-ue