The package primarily aims to complete the single market and enhance the free movement of workers. Around 14 million EU citizens live or work in another Member State on a long-term basis, including 10 million people of working age. In addition, there are 1.9 million cross-border workers and 3.64 million short-term posted workers. A recent Eurobarometer survey found that as many as 18 per cent of respondents would like to work abroad. At present, only 3.9 per cent of EU citizens are mobile workers. In AK’s view, stronger protection of mobile workers’ rights is an essential precondition for achieving fair labour mobility.

Strengthening the European Labour Authority

The package’s first part seeks to strengthen the European Labour Authority (ELA), established in 2019. The plan here is that the ELA should be able to access and process more information, including personal data, to conduct risk analyses and prepare joint inspections. In future, the ELA should be able to initiate joint cross-border checks independently and play a greater role in their coordination. Henceforth, Member States will be required to explain any decision not to participate in joint inspections. Furthermore, each Member State is also to second a liaison officer to the ELA to assist with the preparation and conduct of joint cross-border checks. The ELA’s mediation capabilities in disputes between Member State authorities are also to be improved. In future, workers from third countries are also to be included within the scope of ELA’s remit. Furthermore, the ELA should provide more information and personalised advice to provide greater support for employees and employers on cross-border mobility.

European social security pass planned

The package’s second part is set to be the introduction of the European Social Security Pass (ESSPASS). In future, social security documents, including the European Health Insurance Card, will be available in a standardised format through the EU Digital Identity (eID) Wallet. This will enable social security institutions, labour inspectorates and healthcare providers to verify the authenticity and validity of the documents electronically and in real time. The aim is to facilitate cross-border checks and procedures and to make fraud more difficult. ESSPASS is set to be rolled out in stages over the next few years: First – one year after the ESSPASS Regulation takes effect – the Portable A1 document for posted workers is to be integrated into the eID; three years after the European Health Insurance Card shall be added.

Skills Portability Initiative: Simplified verification of qualifications

The package’s third part, the Skills Portability Initiative, seeks to simplify and accelerate the recognition of qualifications held by EU citizens and third-country nationals. It comprises four proposals: (1) the Skills Portability Act, (2) a revision of the Directive on the recognition of professional qualifications, (3) a Directive on the recognition of professional qualifications of third-country nationals; and (4) a Delegated Directive establishing a common training framework for physiotherapists. 

The initiative responds to the recurring barriers EU citizens face when seeking to practise their profession in another Member State. The official recognition of qualifications can be a lengthy and costly process. Because qualifications are often not recognised, people are pushed into jobs below their skill level – losing skilled labour potential and reinforcing labour-market discrimination. The Commission is therefore initially proposing two digital solutions: First, EU citizens will have free, direct access to proof of their qualifications through the EU Digital Identity Wallet (eID). Second, an online tool will connect national databases, making it easier to compare qualifications across the EU.

Faster recognition and a stronger position for third-country nationals

The Commission also proposes revising the rules for recognising qualifications in regulated professions. The goal is to cut administrative burdens and fees, strengthen cooperation between authorities, and expedite procedures. At the same time, the intention is to extend automatic recognition in sectors facing skills shortages. As an initial step, a common training framework was developed for physiotherapists, defining minimum knowledge and skills requirements.

Finally, the Skills Portability Initiative’s seeks to simplify recognition procedures for third-country nationals by introducing standardised requirements, fixed deadlines and clear appeal routes. Qualifications for seven professions will be automatically recognised if awarded by accredited non-EU institutions and assessed by European quality assurance bodies. The seven professions include doctors, nurses and architects. For all other professions, a centralised support mechanism will assist with document verification.

AK’s assessment from the employees’ perspective

The package presented by the Commission could provide a significant impetus towards fairer and more effectively regulated labour mobility. For AK, it is of fundamental importance to effectively combat wage and social dumping. The explicit inclusion of workers from third countries within the ELA’s scope of responsibility, financial support for organizations that offer low-threshold counseling services to individual workers (such as through the Netzwerk Faire Arbeit), and the increased emphasis on joint cross-border inspections – along with the ELA’s more proactive role in this regard – are therefore to be welcomed. However, in future, the ELA should not only encourage these initiatives but should also be able to launch them independently. Among other things, the scope of the ELA and the mandatory general involvement of the social partners should be clarified.

From AK’s perspective, ESSPASS should generally be viewed positively, as it can facilitate the cross-border verification of social security entitlements, streamline procedures for authorities and businesses, and reduce fraud and errors in social security documents. However, it is important that non-digital alternatives remain available so that people without digital access can fully exercise their rights. The Commission's current proposal includes the option to apply for a physical insurance card. Apart from that, robust data protection standards must be upheld.

Because failure to recognise qualifications can contribute to social dumping and exploitation, AK and the ETUC support swift, accessible and affordable skills-recognition procedures. This also requires better staffing levels at the relevant authorities. In addition, a sufficient range of language courses is crucial to facilitating access to the labour market. Cross-border labour mobility must be voluntary and should not create a source of cheap labour or fuel brain drain. Furthermore, the EU should better promote its existing qualifications frameworks (EQR und NQF) and make more effective use of tools such as Europass and EURES.

Further information

EU Commission: Commission proposes ambitious measures to strengthen fair labour mobility
AK EUROPA: Position Paper Quality Jobs Roadmap
AK EUROPA: Young skilled workers for the energy transition. Vienna's Öko-Booster project presented in Brussels
AK EUROPA: Union of Skills. EU initiative for skills development needs a right to training
ETUC: ETUC views on Skills Portability Initiative