Cross-Border Employment Issues
Expert-defined terms from the Specialist Certification in Employment Law in the European Union course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
**A1 Certificate** #
**A1 Certificate**
: A document issued by the home country of a posted worker, certifying the app… #
It allows the worker to remain covered by the social security system of their home country while working temporarily in another EU country.
**Applicable Law** #
**Applicable Law**
: The law that governs a cross-border employment situation, determined by the… #
Generally, the employee's place of work (habitual place of work) will determine the applicable law.
**Business Visitor** #
**Business Visitor**
: A person who enters a country for a short period for business purposes, such… #
: A person who enters a country for a short period for business purposes, such as attending meetings or negotiating contracts, but does not provide services or receive remuneration from the host country.
**Charter of Fundamental Rights of the European Union** #
**Charter of Fundamental Rights of the European Union**
: A legally binding document that sets out the fundamental rights of individua… #
: A legally binding document that sets out the fundamental rights of individuals within the EU, including the right to work and the right to social security and social assistance.
**Collective Bargaining Agreement (CBA)** #
**Collective Bargaining Agreement (CBA)**
: An agreement between an employer and a trade union or employees' representat… #
CBAs may have cross-border effects when they apply to workers posted to other EU countries.
**Conflict of Laws** #
**Conflict of Laws**
: The set of rules determining which legal system applies to a cross-border si… #
In the context of employment law, the conflict of laws rules are used to determine the applicable law in a cross-border employment situation.
**Detached Worker** #
**Detached Worker**
: A worker who is temporarily sent by their employer to work in another EU cou… #
: A worker who is temporarily sent by their employer to work in another EU country while remaining employed and paid by the home employer.
**Directive 96/71/EC** #
**Directive 96/71/EC**
: A European Union directive that regulates the posting of workers to other EU… #
It establishes the principle of equal treatment and sets out minimum rights for posted workers, such as minimum wage, working time, and health and safety.
**Directive 2014/67/EU** #
**Directive 2014/67/EU**
: A European Union directive that aims to ensure the correct application of Di… #
It introduces measures to prevent fraudulent practices and to improve the transparency of posting.
**Equal Treatment** #
**Equal Treatment**
: The principle that workers in a cross-border situation should be treated equ… #
This principle is enshrined in Directive 96/71/EC and applies to posted workers.
**European Company (SE)** #
**European Company (SE)**
: A type of company that can be established under EU law, allowing companies f… #
: A type of company that can be established under EU law, allowing companies from different EU countries to merge or form a new company with a single European-wide structure.
**European Employment Law** #
**European Employment Law**
: The body of law that governs employment relationships in the European Union,… #
It is based on a combination of EU directives, regulations, and case law.
**European Works Council** #
**European Works Council**
: A representative body that allows employees of companies operating in multip… #
: A representative body that allows employees of companies operating in multiple EU countries to be informed and consulted about transnational issues affecting their employment.
**Freedom of Movement** #
**Freedom of Movement**
: The right of EU citizens to move freely within the EU for work, study, or le… #
This right is enshrined in the Treaty on the Functioning of the European Union and is subject to certain conditions and limitations.
**Home Country** #
**Home Country**
: The country where a posted worker is normally employed and where their emplo… #
: The country where a posted worker is normally employed and where their employer is based.
**Host Country** #
**Host Country**
: The country where a posted worker is temporarily working #
: The country where a posted worker is temporarily working.
**Posted Worker** #
**Posted Worker**
: A worker who is sent by their employer to work in another EU country on a te… #
: A worker who is sent by their employer to work in another EU country on a temporary basis.
**Rome I Regulation** #
**Rome I Regulation**
: A European Union regulation that governs the law applicable to contractual o… #
It sets out rules for determining the applicable law in employment contracts, including posted worker situations.
**TUPE Regulations** #
**TUPE Regulations**
: The Transfer of Undertakings (Protection of Employment) Regulations, which i… #
They protect the rights of employees in the event of a transfer of a business or undertaking.
**Vienna Convention on the Law of Treaties** #
**Vienna Convention on the Law of Treaties**
: An international treaty that governs the interpretation and application of t… #
It is relevant in the context of employment law as it sets out rules for determining the meaning of treaty provisions and for resolving disputes.
**Working Time Directive** #
**Working Time Directive**
: A European Union directive that sets out minimum standards for working time,… #
It applies to cross-border employment situations, such as posted worker situations.
**Yellow Card Procedure** #
**Yellow Card Procedure**
: A procedure under which the European Commission can request an opinion from… #
The FRA's opinion can then be taken into account by the Commission when deciding whether to proceed with the proposal.
A1 certificate #
a document that demonstrates the social security coverage of a worker in the European Union. It is issued by the competent institution of the member state where the worker is employed.
A1 procedure #
the process of obtaining an A1 certificate, which involves submitting an application to the competent institution in the member state where the worker is employed.
Coordination of social security systems #
the set of rules and procedures that ensure the portability of social security benefits for workers moving within the European Union.
Cross #
border employment: employment in which a worker is employed in one member state of the European Union and works in another member state.
Detached worker #
a worker who is temporarily sent by their employer to work in another member state of the European Union.
European Commission #
the executive body of the European Union, responsible for proposing and implementing legislation and policies.
European Court of Justice #
the highest court in the European Union, responsible for interpreting and enforcing Union law.
European Parliament #
the legislative body of the European Union, elected by the citizens of the member states.
European Union #
a political and economic union of 27 member states, located primarily in Europe.
Posted worker #
a worker who is sent by their employer to work in another member state of the European Union on a temporary basis.
Posting of workers directive #
a European Union directive that regulates the employment of posted workers, ensuring that they have access to the same terms and conditions as local workers.
Social security coordination regulation #
a European Union regulation that coordinates the social security systems of the member states, ensuring the portability of social security benefits for workers moving within the Union.
Temporary agency worker #
a worker who is employed by a temporary work agency and assigned to work for a client company on a temporary basis.
Working time directive #
a European Union directive that regulates the working time of employees, including maximum weekly working hours, rest periods, and annual leave.
Example #
A French company sends an employee to work in Germany for three months. The employee is considered a posted worker and is entitled to the same terms and conditions as German workers, including minimum wage and social security contributions. The French company must obtain an A1 certificate to demonstrate the employee's social security coverage in France.
Practical application #
Employers who post workers to another member state of the European Union must comply with the posting of workers directive and ensure that the workers have access to the same terms and conditions as local workers. Employers must also obtain an A1 certificate to demonstrate the workers' social security coverage in the home member state.
Challenge #
Ensuring compliance with the posting of workers directive and social security coordination regulation can be challenging for employers, as it requires understanding and applying complex rules and procedures. Employers may also face administrative burdens and costs in obtaining A1 certificates and complying with local labor laws.