The reform modernizes the existing European legislation and clarifies which country is responsible for social security when cross-border workers are active in multiple countries. National organizations are required to exchange information more quickly to better detect errors, abuse, and benefit fraud. The approach to tackling arrangements involving so-called mailbox companies must also be strengthened.
Cross-border workers
One of the most important changes concerns the position of cross-border workers. Until now, unemployment benefits after complete job loss were typically paid by the country where the employee lived. Going forward, that responsibility will in many cases shift to the country where the employee actually worked. Those who have worked or been insured in the work country for at least 22 consecutive weeks will receive benefits from that country. This creates greater clarity about the division of responsibilities between member states.
No delay
Luxembourg managed to secure an exceptionally long transition period during the negotiations. This gives the Luxembourg government extra time to adjust administrative procedures, IT systems, and data exchange with neighboring countries.
Promotion
Trade unions welcome the reform as a step forward. They emphasize that unemployment is not solely a financial issue. Support for finding new work, access to education, social security, family support, and legal protection also deserve explicit attention. Therefore, the transition period must not be used to postpone necessary preparations.
Advance notification
Conditions for posted workers are being tightened. Employees must now be registered with their home country's social security system for at least three months before they can temporarily work in another EU country. In addition, a mandatory advance notification system is being introduced, with limited exceptions for very short assignments.