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.

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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.

Tanel Feldman

Senior Partner , Immigration Law Associates

Immigration Law Associates provides in-depth advice on rights and obligations triggered by the cross-border element of a given legal situation. Our know-how is built on an extensive experience in EU law and is supported by a network of partners across the EU. Social security coordination : • Autonomous application of the social security coordination regulations and ECJ case-law, to any situation involves a cross-border element EU Company law : • Establishment -permanent activities • Establishment -self-employment activities International Private Law : • Law applicable to the employment relationship Labour and employment law : • Freedom of movement of workers-equal treatment, access to social benefits • Employment contracts and termination of employment • Working conditions • Employee benefits • Transfer of undertakings • Authorisations of work for third-country nationals Special regimes : • Posted workers • Frontier workers • Highly mobile workers • Employment of record • Intra-EU mobility of third-country nationals

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