Social security coordination- what will certainly change in 2020

The transitional period under Article 87(8) Regulation 883/2004 will end on 30 April 2020.
Social security coordination- what will certainly change in 2020
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The transitional period under Article 87(8) Regulation 883/2004 will end on 30 April 2020.

Pursuant to the said article, where the legislation applicable pursuant to Regulation 883/2004, is other than that determined in accordance with Title II of Regulation 1408/71, the latter regulation continues to apply if:

  • the situation remains unchanged
  • the person concerned has not requested to be submitted to Regulation 883/2004 (request should have been submitted within a delay of three months, after the date of application of the latter regulation)

The transitional period lasts 10 years (as of 1 May 2010).

Persons who normally pursue an activity as an employed person in the territory of one Member State, and an activity as a self-employed person in the territory of another Member State, are prima facie concerned. In the situations mentioned in Annex VII Regulation 1408/71, such a person was subject to the legislation of both Member States, and unless the person concerned has requested, within a delay of three months after the date of application of Regulation 883/2004, to be submitted to the latter regulation, he/she should have remained subject to both legislations, to 30 April 2020.

However, in V [C-33/18 (2019)],the ECJ has underlined that such situations do not fail under Article 87(8) Regulation 883/2004, and as a consequence, such persons, were not required in order to be subject to the legislation of the Member State of employment, to submit an express request to that effect.

As regards third-country nationals, Regulation 883/2004 applies to them since 1 January 2011, and as a consequence, the transitional period will end on 31 December 2020.

As regards multi-state activities in the capacity of employed person, the concept of “substantial activity” was introduced by Regulation 465/2012, into force as of 28 June 2012. Pursuant to Article 87a Regulation 883/2004 as amended, the transitional period will end on 27 June 2022 (unless the person has requested that the transitional period no longer applies to him/her, in the conditions laid down by the said article). Before the entry into force of Regulation 465/2012, the determination of the applicable legislation was grounded on the principle of lex loci domicilii, regardless if the person concerned pursues a substantial part of his/her activity in the country of residence.

Provided that an amendment of the social security coordination regulations will be adopted soon, during a certain period, multi-state activities still bound by the “old” principle of country of residence, might give rise to the possibility to chose between the application of three different legislations.

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