A better way for Labour Mobility: What is needed now is genuine relief, not minor adjustments
The European Commission intends to present its Fair Labour Mobility Package in September 2026. From the perspective of the German metal and electrical industry, one thing is clear: this package must achieve more than just sporadic improvements. For many companies in the EU single market, the posting of workers remains associated with considerable red tape – primarily due to differing national registration procedures, complex remuneration requirements and inconsistent provisions regarding social security legislation.
ESSPASS, Skills Portability and greater use of digital procedures can be useful building blocks. However, they do not solve the structural problems that have been hampering cross-border services for years. What is therefore needed is a major overhaul: fewer national exceptions, more uniform procedures and workable rules for businesses.
Posting of workers remains a key barrier to the single market
The problems associated with the posting of workers have been known for a long time. The Posting of Workers Directive, the Enforcement Directive and the revision in 2016 have, in practice, led to a multitude of differing national requirements. Depending on the destination country, businesses must adapt to different registration portals, different data requests and different documentation requirements. This results in administrative burdens, legal uncertainty and costs – particularly for small and medium-sized enterprises.
There is also a lack of uniform application in social security law. The A1 certificate is handled differently across Member States; in some cases, it is effectively mandatory even for very short business trips. The reform of the relevant EU regulations, which was initiated as early as 2016, will not take effect until summer 2028 at the earliest.
The European Commission itself acknowledges these problems. In its Single Market Strategy, it lists the cumbersome procedures for the temporary posting of workers among the ten biggest barriers to the Single Market. The European Court of Auditors also criticises the fact that the measures taken so far to remove barriers in the Single Market for services have been insufficiently ambitious. The diagnosis is therefore clear – now a political response must follow.
Promising approaches are not yet enough
The planned initiatives in the Fair Labour Mobility Package – in particular the European Social Security Pass (ESSPASS) and the Skills Portability Initiative – can make things easier. They are therefore to be welcomed in principle. However, the crucial question is whether they will actually lead to less bureaucracy in day-to-day posting practices.
The eDeclaration could also help if it is rolled out as widely as possible. If participation by Member States remains voluntary and limited, its benefits will be significantly reduced: instead of a genuine common procedure, it would merely create yet another portal alongside many national systems. Furthermore, the information to be requested must be clearly limited and definitively defined so as to avoid creating yet another patchwork of red tape.
By contrast, there is no pressing need to extend the mandate of the European Labour Authority (ELA). The ELA already has a mandate to facilitate labour mobility and support cooperation between national authorities. It would be far more important to finally fulfil this mandate effectively – for example, by providing reliable, practical information for businesses.
What is needed now
- More binding and uniform reporting procedures are needed. The Commission should fundamentally revise Article 9 of the Enforcement Directive and establish uniform and workable information requirements. Within the single market, businesses must be able to rely on comparable situations being treated in a comparable manner.
- The ELA must quickly provide a remuneration calculation tool. Businesses need legally certain guidance on what level of remuneration must be complied with in the host country. As long as a business relies on such a tool, this should, in principle, protect it from sanctions – at least until a higher comparative remuneration is subsequently established, if applicable.
- A clear risk-based approach is needed. Not every posting carries the same risks. Highly qualified workers or roles with high pay levels must be assessed differently from situations where workers are particularly vulnerable. A remuneration threshold modelled on the Blue Card Directive could help to reduce red tape where it offers no additional protection – whilst at the same time focusing attention on cases requiring a higher level of protection.
Conclusion: A major breakthrough rather than incremental steps
The Fair Labour Mobility Package must not be limited to cosmetic improvements. As the posting of workers continues to be one of the greatest obstacles in the single market, concrete and tangible relief is needed: more uniform reporting requirements, digital and binding procedures, clear remuneration guidelines, and a risk-based, workable reduction in red tape.
Only in this way can the posting of workers fulfil its function within the EU single market: European companies must be able to operate across borders almost as they do in their domestic labour market – without being held back by unnecessary red tape. It is now up to the Commission to turn this sound analysis into an ambitious reform.
