Posting of workers in the EU – what facilities will the EU e-Declaration portal provide?

The European Commission is working on creating a new e-Declaration system. It is to facilitate the sending of posted workers abroad within the European Union. An element of the system is also to be an electronic social security card, which will allow to avoid the previous irregularities related to A1 certificates and will streamline inspections.

E-Declaration – a uniform portal for reporting employee postings

The European Commission is responding to the needs of companies posting workers by proposing the creation of a single, digital portal for notifications. Thanks to it, sending workers to perform services in other EU Member States (under the freedom to provide services) will become simpler and more centralized. For this purpose, the EC has initiated work on a new EU regulation on the public interface, which is to be connected to the Internal Market Information System (IMI).

The new digital platform, the e-Declaration, is to significantly reduce the formalities related to the posting of employees. Currently, each posting company must report the employee to the appropriate institutions in the host country, which is necessary for any inspections. It is worth emphasizing that such a report is a notification – the host country cannot refuse to accept it or suspend the posting itself. The introduction of the e-Declaration is to streamline this process and reduce the administrative burden for companies.

One form instead of many, but the voluntary nature is questionable

The main assumption of the EU e-Declaration initiative is to significantly simplify the formalities related to posting workers. Instead of the current 27 different national forms, posting companies would gain access to one, unified form available in all EU languages.

This new electronic tool is not only intended to reduce bureaucracy, but also to limit violations of the law, increase the transparency of entrepreneurs’ activities and facilitate inspections. The introduction of e-Declaration will potentially simplify the current procedures, but the introduction of a new platform alone may not solve the problem of timely reporting of postings.

In addition, the use of the portal will be voluntary for the Member States. Some experts point out that it is this voluntary nature that may pose the greatest challenge to the effectiveness of the new initiative. Some countries may not opt out of their systems, and then it is possible that entrepreneurs will have to use both systems – the EU one for basic data and the national one for additional requirements.

ESSPASS – will there be a digital revolution in delegation documents?

The e-declaration is not the only new EU initiative in the field of posting. At the same time, the European Commission is working on the European Social Security Card – ESSPASS, which is to revolutionize the circulation of documents related to posting.

Although this project has not yet received a formal legislative proposal, its assumptions are promising. ESSPASS is to function as an electronic data wallet, available as a mobile application. Thanks to it, control services will be able to obtain immediate information about the posted employee’s social insurance in a simple way, e.g. using a QR code. In other words, the electronic A1 certificate will be included in digital form, and in the future, perhaps also the European Health Insurance Card (EHIC). The ESSPASS project assumes not only the digitization of documents entitling to benefits, but also the digitization of the entire process of applying for them.

Implementing ESSPASS can therefore bring significant benefits to both employees and employers. Quick access to social insurance information will eliminate time-consuming waiting for paper documents such as the A1 form, which in turn will speed up the posting process. Increased transparency of the posting process will make it easier for control bodies to efficiently verify the insurance status of employees. The possibility of automating controls will significantly affect their effectiveness, shorten their duration and potentially increase the risk of detecting irregularities.

Inspections of posting from Poland in 2024 – over 200 PIP interventions

In 2024, the National Labor Inspectorate conducted over 200 inspections of the posting of workers from Poland to other EU countries, covering a total of 1,451 people. Complaints from delegates mainly concerned wages, working time and breaks, i.e. employment conditions in the host countries.

The largest number of inspections concerned postings to Belgium (644 people), Germany (287) and the Netherlands (96). Inspectors focused on the construction sector (52% of inspections), administrative services (20%), industrial processing (11%) and transport and storage (5%).

Foreigners constituted 67% of the audited persons, with 95% of this group being citizens of third countries (mainly Ukraine, Belarus and Georgia). The audits confirmed the trend of apparent delegation, especially in the case of citizens of third countries, where Polish companies often do not conduct real business in Poland, and delegation serves to legalize work abroad. The irregularities revealed included circumventing wage regulations by using business trips, underestimating wages and the lack of written changes to employment conditions.

Upcoming and current posting challenges – how can we help?

In the context of the upcoming changes, including the planned implementation of ESSPASS, which is to revolutionize the documentation of postings, it is worth taking preparatory steps now. They should include not only updating internal posting policies to take into account the new requirements of digital verification but also developing comprehensive information materials for employees. Explaining to employees how they will be able to use the ESSPASS application and check their data may prove to be crucial for a smooth transition to the new system. Equally important may be training HR departments, which will be responsible for ongoing verification of the active ESSPASS status before each employee’s departure and for ensuring that employment, remuneration and insurance data in the system are constantly up to date. Any change in the current conditions of employment, place of work or period of posting will require a quick update of the information stored in ESSPASS.

In the face of changes and challenges related to employee posting, it is worth considering professional support. TGC offers comprehensive advisory services in the field of labour law and employee posting, helping companies not only to navigate the current, often complicated regulations, but also to prepare for the upcoming changes. With our support, your company will minimize the risk of errors, ensure compliance with current and future regulations and streamline the entire posting process, saving time and resources. Taking advantage of the expertise of TGC’s specialists is an investment in the security and efficiency of your cross-border operations.

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