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Commission Suggests EU-Wide Digital Solution to Streamline Cross-Border Services and Reduce Red Tape

European Commission Proposes Voluntary Digital Portal for Posted Workers amid Mixed Stakeholder Reactions

The European Commission has unveiled a new initiative aimed at simplifying the posting of workers across member states. On Wednesday, the proposal introduced a voluntary single digital portal and a standard electronic posting declaration, intended to streamline processes and alleviate administrative burdens for the approximately five million workers temporarily stationed abroad within the EU.

Margrethe Vestager, the Commission’s Executive Vice-President, emphasized that the initiative will eliminate significant administrative obstacles, claiming it could reduce reporting requirements by 25%. Instead of navigating 27 different national forms, service providers will be able to utilize a single form, thus fostering easier cross-border service provision.

The reception to the proposal is mixed among stakeholders. While business representatives hail the plan as a much-needed overhaul of cumbersome rules—pointing out that German employers have long advocated for unified notification systems—labor groups express concerns regarding its potential effectiveness. Esther Lynch, General Secretary of the European Trade Union Confederation (ETUC), criticized the Commission for missing an opportunity to implement a more robust system that would facilitate proper worker registration and enforcement of workers’ rights.

Workers’ advocates suggest that while an electronic declaration could enhance cross-border regulation if designed thoughtfully, the economic benefits for businesses might overshadow social costs. The ETUC favors a flexible approach that accommodates national requirements to encourage broader adoption of the initiative.

As companies continue to navigate the complexities of posting employees, further developments are awaited, particularly regarding the establishment of an EU helpdesk aimed at assisting employers with the labor posting process. With the number of posted workers continuing to rise—Germany leading with over 1.5 million in 2022—the need for efficient regulatory frameworks becomes increasingly vital.

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Photo credit www.euronews.com

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