Streamlining the Posting of Workers: EU’s New Digital Declaration Portal Proposal

The Challenge: Managing Diverse Reporting Requirements 

The EU's Single Market is home to approximately 5 million "posted workers," individuals sent temporarily to another Member State to perform services. Currently, businesses are required to adhere to a diverse array of declaration and documentation requirements across the EU's 27 Member States. This complexity has long been a barrier for businesses, often leading to increased costs and operational inefficiencies. 

The Proposal: A Single Digital Solution for Cross-Border Compliance 

The European Commission's proposal for a single digital declaration portal addresses this challenge directly. By creating a unified platform, companies will soon be able to submit a single, multilingual form rather than navigating 27 unique national systems. Expected to reduce the time spent on declarations by an impressive 73%, this streamlined system will feature around 30 core data points and be accessible in all official EU languages. By cutting down on reporting redundancies, the Commission anticipates a 25% reduction in reporting burdens for businesses, contributing to its broader vision for enhancing EU competitiveness. 

This digital portal will connect with the Internal Market Information System (IMI), already used for monitoring compliance in the posting of workers, especially in road transport. This integration offers an efficient pathway for Member States to adopt the portal with minimal adjustments, leveraging familiar digital infrastructures to foster greater cooperation and compliance monitoring. 

Benefits for Businesses and Workers Alike 

Beyond operational efficiency, the portal promises greater transparency and compliance with existing labor standards. For posted workers, who often face challenges regarding rights and protections in a foreign Member State, the new portal could foster better transparency. Companies will be able to send copies of declarations directly to posted employees, enhancing awareness and security. Furthermore, the portal's uniform data submission process should aid labor inspectorates in conducting targeted and effective inspections, ultimately bolstering worker protection standards across the EU. 

Toward a Unified European Labor Market 

With the adoption of this portal, the Commission is taking steps to ensure that labor markets within the EU are not only more accessible but also fairer. As Margrethe Vestager, Executive Vice-President for a Europe Fit for the Digital Age, highlighted, “the proposal will reduce one of the main administrative barriers in the Single Market for services.” In turn, Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, stressed that this initiative showcases how digital technology can simplify processes while enhancing market competitiveness and protecting social rights. 

An Invitation to Member States 

While participation in the portal is voluntary for Member States, there is strong encouragement for all to adopt it to unlock its full potential. Nicolas Schmit, Commissioner for Jobs and Social Rights, called upon Member States to embrace this digital solution, noting that it would help “uphold the social and labor rights of posted workers while alleviating the administrative burden on businesses.”

Looking Ahead: The Future of Digital Compliance in the EU 

Announced as part of the EU’s broader agenda to tackle labor and skills shortages, this proposal aligns with the Commission's 2024 Communication and previous 2020 New Industrial Strategy updates. Should Member States adopt this system, the EU will likely see a more cohesive labor market, streamlined business operations, and an enhanced capacity to uphold workers’ rights. 

The Commission’s digital declaration portal exemplifies a forward-thinking approach to workforce mobility and cross-border compliance, heralding a significant step toward a more integrated and worker-friendly EU labor market. For more information, visit the European Commission's official release and related materials. 

For employers, the proposed digital declaration portal represents a practical and transformative tool in managing cross-border compliance efficiently. Instead of navigating multiple national systems with differing requirements, employers will complete a single, streamlined form accessible in multiple languages, significantly reducing the time and resources spent on administrative processes. With the data requirements reduced to approximately 30 key points, companies can cut down on repetitive data entry and avoid the costly delays often associated with complex, multi-country submissions. The portal’s integration with the IMI system will further ensure that businesses remain compliant without needing to understand each Member State's unique regulations individually. In practice, this means fewer bureaucratic hurdles, lower operational costs, and more time to focus on core business objectives, making cross-border service provision more viable and competitive.