Breakthrough on the 883 Regulation eases the burden on SMEs

"The agreement finally reached between the European Parliament and the Council of Ministers on the 883 Regulation is, in the ZDH’s view, very positive. Until now, inconsistent rules on social security contributions for cross-border activities have not only posed major challenges for businesses, but have also been a real barrier to the single market. The parties to the trilogue negotiations have now cleared this hurdle. Furthermore, legal certainty is increasing as a result of digitalisation. 

The obligation to give prior notice remains in place, but has been clarified: the employer must inform the competent authority in another Member State before work starts and apply for the A1 certificate. In emergencies, if prior notification was not possible, it must be provided as soon as possible, but no later than three days after work begins. 

This is a pragmatic approach that meets the needs of craft businesses. Another positive aspect is the very practical provision that there will be no reporting requirement and no A1 certificate requirement for business trips and short assignments lasting up to three consecutive working days. The only condition is that the three consecutive working days must fall within a period of 30 consecutive calendar days and may only be used once during that period. This is likely to benefit craft businesses in the border region in particular. However, the requirement for an A1 certificate will continue to apply to the construction sector from day one. In order to arrive at a suitable and workable solution here, the A1 certificate must be linked to the e-Declaration in the medium term."