After 10 years of the legislative process, the EU institutions have finally agreed on new rules on the coordination of social security systems. The revised Regulations 883/2004 and 987/2009 entered into force on 1 November 2026, with the most relevant provisions from the perspective of road transport operators and highly mobile workers starting to apply 24 months later.
Why is coordination of social security systems needed?
Social security systems in the EU are a Member State competence and, as such, are not harmonised. It is up to each Member State individually to regulate who is insured, what benefits their citizens or residents are entitled to and what the conditions of access are. However, to ensure that the free movement of people across borders is possible in practice, national social security systems need to be coordinated, as people should not lose their protection when moving within the EU. The rules defining this coordination are adopted and updated at EU level.
The revision in question focused on five key areas: unemployment benefits, long-term care benefits, access to welfare benefits for economically inactive persons, family benefits, and applicable legislation for posted workers and persons working in two or more Member States.
The last issue, of particular importance to highly mobile workers such as drivers and companies posting their employees abroad, was subject to years-long disagreements between Member States and EU institutions.
What is at stake for transport companies and drivers?
The revision of social security coordination rules will introduce a more detailed definition of the registered office or place of business for the purpose of determining applicable social security legislation and will change the rules applicable to the issuance of A1 certificates.
Place of business
The revision introduces a detailed definition of the “registered office or place of business” for the purpose of identifying applicable legislation.
Under the existing rules on social security coordination, highly mobile workers working in two or more Member States fall under the social security legislation of their Member State of residence if they perform a substantial part of their work there, generally understood as at least 25%. If this is not the case, the legislation of the Member State where their employer has its registered office or place of business applies. Until now, the place of business was not explicitly defined in such detail in the legislation.
In the future, for the purpose of identifying the registered office or place of business of an undertaking, “a series of factors should be taken into account to determine where the essential decisions of the undertaking are adopted and where the functions of the central administration are carried out.” Examples of such factors include turnover, the places where general meetings are held and the habitual nature of the activity pursued.
What is more, this list remains open, allowing additional factors to be taken into account by MSs. According to the new rules, all relevant factors should be considered as part of an “overall assessment”, giving due weight to each factor according to the circumstances of the case.
What is especially worrying is the inclusion of turnover as one of the factors determining the place of business of companies employing highly mobile workers. This may be particularly concerning for companies posting workers to provide the majority of their services in one or two Member States. The percentage of turnover that may determine the place of business is still not clear and should be further clarified by the Administrative Commission, which shall issue a practical guide.
In a hypothetical situation where a company is registered in Romania but generates a significant majority of its turnover in France, while its Board of Directors meets online, there could be a risk that the company’s Romanian workers would be considered subject to French social security legislation, even if their centre of interests remains in Romania. Such an interpretation could create negative consequences not only for operators but also for workers.
Another worrying element is that the catalogue of factors to be taken into account when determining the place of business is open. This means that additional elements, potentially including the working time of employees, could be considered in the overall assessment. This may lead to legal uncertainty and potential disputes between Member States.
Prior notification
Under the current rules, employers posting workers to another Member State are required to inform the competent institution and request an A1 certificate “whenever possible in advance” of the activity abroad. Under the revised rules, the competent authority should be always notified in advance.
Business trips, as well as short-term activities lasting no more than three consecutive working days within a period of 30 consecutive days, will be exempted from this requirement. The exemption for short-term activities will not apply to the construction sector.
It is important to note that there will be no obligation to be in possession of an issued A1 certificate before the start of the service provision. If the certificate has not yet been issued, an acknowledgement of receipt of the application will constitute evidence that the competent institution has been informed.
In addition, under the revised posting rules, third country workers recruited with a view to being posted to another Member State must have already been subject to the social security legislation of the sending Member State for at least three months before the start of their posting.
What's next?
The new provisions will become applicable after a transitional period of 24 months. During this period, Member States and the Administrative Commission will have time to prepare for the application of the new rules, including the development of detailed arrangements for determining the registered office or place of business.
It is therefore important to monitor these processes closely, particularly from the perspective of international road transport operators.
The European Commission has also announced another revision of the social security coordination rules in 2027. This is expected to address the exchange of information between EU Member States, digital nomads and self-employed persons.
Check about other recently announced legislative proposals by clicking here.
