DG Employment, Social Affairs and

Equal Opportunities

Modernised EU Social Security Coordination and

Applicable Legislation

TRESS Seminar Bucharest, 27th April 2010Gillian More, Unit E3, DG Employment, European

Commission,

Overview

I Key Themes in the Modernised Rules

II Modernised Provisions on applicable legislation

III Information Sources on the modernised rules

Source: European Commission, DG Employment, Social Affairs and Equal Opportunities 33

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EC Reg 1408/71

Implementing Reg 574/72

Consolid Reg

Reg 883/04

Implementing Reg

Regulations 3 & 4

Over 50 years of Social Security Coordination

19591959 19721972 19971997 20102010

Key Themes of the Modernised Regulations

• Updating so rules correspond with current social practices (eg. Provision for child-raising periods)

• Simplification (eg. Personal scope – Article 2 BR)• Improved protection of rights (eg. – improved information

and assistance to citizens– Articles 2 & 3(1) IR )• Clarification – incorporation of ECJ case-law in a range of

areas (e.g. Article 5 BR – Assimilation of Facts)• Strengthened and Streamlined institutional procedures

(e.g. electronic data exchange; administrative cooperation)

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Applicable Legislation - overall approach

• Principle of one applicable legislation strengthened • Strengthening of “lex loci laboris” principle• “Lex loci domicilii” for non-active persons (Article

11(3)(e))• Direct link to personal scope of Regulation

Applicable Legislation: Overview of Main Changes

1. Posting Rules

2. Deletion of specific categories of persons or activities where special rules applied;

3. New approach to pursuit of activities in 2 or more States

4. Dialogue and Conciliation procedure plus extension of rules for provisional application of legislation

• Maximum of two years - no extension• Main conditions remain applicable:

– Definitions in Article 14 Implementing Regulation– New Decision A2 on posting adopted by Administrative

Commission on 12 June 2009– Revised posting guide (Part 1)

New Portable Document A1

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New provisions on posting of employed persons (Article 12(1) BR)

Source: European Commission, DG Employment, Social Affairs and Equal Opportunities 8

A document for individuals

Portable documents

Deletion of special rules for specific categories of persons

SPECIFIC PROVISIONS DELETED:• International transport workers;• Persons employed by diplomatic missions and consular posts

SPECIFIC PROVISIONS RETAINED:• Mariners (Art. 11(4) BR);• Civil servants (Art. 11(3)(b))

New approach to pursuit of activities for 1 employer in 2 or more MS (Art. 13(1) BR)

• Legislation of MS of residence is applicable:- If the proportion of activity in that MS is substantial

What is “substantial”? - look at working time and/or remuneration (Article 14(8) IR)

- Less than 25% indicates that not substantial

• Otherwise: legislation of MS in which registered office of employer is situated

[Guidance will be inserted into Part 2 Posting Guide]

Transitional provisions (Article 87(8) BR)

• Legislation determined under 1408/71 continues to apply– if as a result of application of 883 person would become

subject to different legislation– as long as relevant situation remains unchanged – For a maximum period of 10 years

• Person can request to become subject to the legislation applicable under 883.

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Dialogue and conciliation procedure (Arts. 5 and 6 IR)

DG Employment, Social Affairs and Equal Opportunities 12

Art. 6(1) IR:

Divergence of views about the legislation applicable: person provisionally subject to one legislation identified with an order of priority

Art. 6(2) IR:

Divergence of views about which institution should provide the benefits: institution identified with an order of priority

Provisional application of legislation and provisional granting of benefits

Information Sources on the new Regulations

• Explanatory Notes on DG EMPL website• New Small Guide – publication foreseen May 2010• Information campaign for citizens 2nd half 2010• Updated Website

Explanatory Notes (on the modernised rules)

2010 Small Guide

The new website: homepage

EESSI

Network

Electronic Exchange of Social Security Information

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II

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AP AP

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EESSI

Source: European Commission, DG Employment, Social Affairs and Equal Opportunities 20

EESSI

EESSI is a twofold activity

Creation of a Europeaninfrastructure to exchange SEDs

Identification of the Business (flows, SEDs and data, institution data)

EESSI – Overall planning 2009-2012

Development and Implementation phase of EESSI system currently in progress with Siemens IT Solutions and Services

May 2010: Directory Services operational

December 2010: EESSI data messaging system operational

Dec 2010-April 2012: National administrations in Member States connecting to EESSI

Public EESSI Directory Interface

EESSI – Overall planning 2009 - 2012

2010

1 2 312 1 2 3 4 5 6 7 8 9 10 11 12

2011

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Preparation of SEDs for upload in EESSI

Preparation for GO LIVE

End of SiemensContractual term

Directory Services

Flows SEDS

Messaging system

Development by Siemens and testing

Paper SED - example

DG Employment, Social Affairs and Equal Opportunities 24

Planning preparation of paper SEDs (I)

First batch of paper SEDs

• Accepted by the Administrative Commission on 14 April

- family benefits (all)- unemployment benefits (majority) - sickness benefits (50%)- pensions (SED on child raising periods)

• The first batch of SEDs are currently being translated and will be ready in all languages early June

Planning preparation of paper SEDs (II)

Second and third batch of paper SEDs

• To be accepted by the Administrative Commission in next two meetings

• Second batch will contain paper SEDs in the field of recovery (50%) and pensions (7 SEDs)

• Third batch will cover all remaining SEDs

Further steps in the process of identification of the business

After finalisation of the work on the paper version of the SEDs the expert groups will focus on:

- Technical definition of the data fields in SEDs for use in EESSI

- to be ready before upload in EESSI end of 2010 - Guidance on use of flows and SEDs

Transition from 1408/71 to 883/2004 - How will it work?

JULY JULY 20092009

MAYMAY20102010

DECEMBER DECEMBER 20102010

MAYMAY20122012

TRAINING, INFORMATION PERIOD

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TRANSITIONAL PERIOD

EESSI Starts to functionEESSI Starts to function

ImplementingImplementingRegulation adoptedRegulation adopted

Regulations Regulations become applicablebecome applicable

Decision E1 on practical arrangements for the transitional period for electronic data exchange

• Good cooperation, pragmatism and flexibility• E-forms, where electronically produced, may still be

used• Institutions shall accept relevant information on any

document issued by other institutions

EESSI newsletter

DG Employment, Social Affairs and Equal Opportunities 30