Cross-border EU Employment and its Enforcement: An Analysis of the Labour and Social Security Law Aspects and a Quest for Solutions

611 Pages·2022·5.294 MB·English

by  Yves Jorens

Yves Jorens
Cross-border EU
Employment
and its
Enforcement
An Analysis of the Labour and Social
Security Law Aspects and a Quest
for Solutions
Cross-border EU Employment and its Enforcement
Yves Jorens
Cross-border EU
Employment and its
Enforcement
An Analysis of the Labour and Social Security
Law Aspects and a Quest for Solutions
YvesJorens
DepartmentofCriminology,CriminalLawandSocialLaw
GhentUniversity
Ghent,Belgium
ISBN978-3-031-18853-4 ISBN978-3-031-18854-1 (eBook)
https://doi.org/10.1007/978-3-031-18854-1
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Preface
This book is the fruit of a research interest that has been growing for years. Born
fromtheinterestinEuropeansocialsecurityandlabourlaw,thefocushasrecently
beenbroadenedandheavilyshiftedtotheenforcementofthisEuropeanframework,
not in the least because of the issue which came to be known as social fraud and
socialdumping.Consequently,theideagraduallygrewtowriteabookwhichwould
payattentiontobothlabourandsocialsecuritylawinacross-bordercontextaswell
astheenforcementofthislegislation.
Idecidedtopartiallydevotemyresearchsabbaticaltothisproject.TheCOVID-
19crisisthrewaspannerintheworksandmyinitialplanstospendthelion’sshareof
thissabbaticalinresearchinstitutesabroadweremostlyabandoned.Myhomeoffice
thusturnedintotheepicentreofmyactivities.Nevertheless,thebookinyourhands
is also the culmination of countless years of cooperation with colleagues from all
over Europe through many projects in the area of European social security and
labour law. Therefore, I wish to thank the colleagues I have had the pleasure of
meetingalongthewayduringtheseyears.Aspecialthanksalsogoestomystaffin
the research group for assisting me throughout the various stages of this project:
JozefienMaricouforhertranslationsandeditingworkaswellasFrouwkeDeweer
forthelay-out.Lastly,IwouldliketothanktheSpringerPublishinghouseand,of
course,thehomefrontwhowitnessedmorethaneverhowexceptionaltimescanturn
adeskintotheepicentre.
Ghent,Belgium YvesJorens
May2022
v
Contents
1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 TheEUandSocialRightsandMarketCompetition:
65YearsofHistory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1 TheStartingPointOverthrown. . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1.1 TheAutonomyoftheNationalWelfareState. . . . . . . . . . 5
2.1.2 TheNationalWelfareStateasPartoftheEconomic
Integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.1.2.1 RegulatoryDiversityasTrumpCard. . . . . . . . . 10
2.1.2.2 MobilityandtheChoiceofLegislation. . . . . . . . 14
2.2 MigrationandMobilityintheEuropeanUnion:65Years
ofIntra-EuropeanMigration. . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
2.2.1 TheEarlyTwentiethCentury:FromWWIItoLabour
MigrationandLabourMobility. . . . . . . . . . . . . . . . . . . . 56
2.2.2 MigrationMotives‘ontheMove’. . . . . . . . . . . . . . . . . . 62
2.2.3 TheShareandCompositionofIntra-European
Migrants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
2.3 Intra-EU-MobilityandtheLegalFramework. . . . . . . . . . . . . . . . 74
References. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . .. . 74
3 Cross-BorderEmploymentandLabourLaw:TheLegal
Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
3.1 APreliminaryQuestion:TheCompetentJurisdiction. . . . . . . . . . 81
3.2 ApplicableLabourLaw. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
3.2.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
3.2.2 RomeIRegulation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
3.2.2.1 FieldofApplication. . . . . . . . . . . . . . . . . . . . . 89
3.2.2.2 TheRulesonConflictofLawsinLabour
Law:A‘Graduated’Approach. . . . . . . . . . . . . . 94
3.2.3 ThePostedWorkerandLabourLaw. . . . . . . . . . . . . . . . 143
3.2.3.1 WhatIsPosting?. . . . . . . . . . . . . . . . . . . . . . . . 143
vii
viii Contents
3.2.3.2 ThePWD:ItsGenesis. . . . . . . . . . . . . . . . . . . . 146
3.2.3.3 PWDVersusRomeIRegulation. . . . . . . . . . . . 151
3.2.3.4 NotEveryPostingIsPosting...TheConcept
ofPostingUnderthePWD. . . . . . . . . . . . . . . . 165
3.2.3.5 TheNucleusoftheApplicableLabourLaw. . . . 190
3.2.3.6 ApplicabletoAllSectors?TheDifficult
IssueoftheTransportSector.TheTransport
WorkersDirective. . . . . . . . . . . . . . . . . . . . . . . 205
References. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . .. . 219
4 Cross-BorderEmploymentandSocialSecurity:TheLegal
Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
4.1 TheConflictRules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
4.1.1 TheSetupUndertheCoordinationRegulations. . . . . . . . . 227
4.1.2 TheGo-ToOption:ChoosingthePrincipleofthe
CountryofEmployment. . . . . . . . . . . . . . . . . . . . . . . . . 230
4.1.2.1 TheLackofSynchronisationBetween
TaxLawandSocialSecurityLaw. . . . . . . . . . . 238
4.1.3 TheFundamentalPrinciplesBehindtheConflict
Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
4.1.3.1 TheNeutralCharacter. . . . . . . . . . . . . . . . . . . . 242
4.1.3.2 TheCompulsoryCharacterofthe
ConflictRules. . . . . . . . . . . . . . . . . . . . . . . . . . 246
4.1.3.3 ThePrincipleofExclusivityandthe
OverridingEffectoftheConflictRules. . . . . . . . 249
4.1.4 TheGeneralConflictRule. . . . . . . . . . . . . . . . . . . . . . . . 260
4.1.4.1 ActiveVersusNon-activePersons:
TheRoleoftheLexLociLaboris. . . . . . . . . . . . 260
4.1.4.2 InactivePersons:TheRoleoftheLexLoci
Domicilii. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
4.1.5 SpecialConflictRules. . . . . . . . . . . . . . . . . . . . . . . . . . . 286
4.1.5.1 ThePostingProvisions. . . . . . . . . . . . . . . . . . . 286
4.1.5.2 WorkinginDifferentCountries. . . . . . . . . . . . . 325
4.1.5.3 HighlyMobilePersons:TheQuestforaMore
AppropriateFramework. . . . . . . . . . . . . . . . . . . 354
4.1.6 ComplementaryRules. . . . . . . . . . . . . . . . . . . . . . . . . . . 361
4.1.6.1 VoluntaryInsurance. . . . . . . . . . . . . . . . . . . . . 361
4.1.6.2 ParticularRuleonEmploymentContracts
oftheEuropeanCommunity. . . . . . . . . . . . . . . 362
4.1.6.3 TheArticle16Agreement(Regulation
883/2004):APossibilitytoDerogatefromthe
ConflictRules. . . . . . . . . . . . . . . . . . . . . . . . . . 363
4.2 SchematicOverviewoftheConflictRules. . . . . . . . . . . . . . . . . . 369
References. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . .. . 369
Contents ix
5 TheOtherSideoftheCoin:TheNegativeConsequences
oftheInternalMarket. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375
5.1 SocialDumping:What’sinaName?. . . . . . . . . . . . . . . . . . . . . . 375
5.2 RegimeShopping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382
5.2.1 DifferencesinSocialSecurityContributions:
SocialDumpingandStateAid. . . . . . . . . . . . . . . . . . . . . 382
5.3 Bogus-Self-Employment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389
5.4 AbuseofLaw. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402
5.4.1 LetterboxCompanies. . . . . . . . . . . . . . . . . . . . . . . . . . . 408
5.5 SubcontractingandJointandSeveralLiability. . . . . . . . . . . . . . . 420
5.6 Procurement:ARemedyAgainstSocialDumping?. . . . . . . . . . . 427
References. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . .. . 433
6 SocialLawEnforcementAcrossBorders:AFewSticking
PointsandReflections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437
6.1 NationalAutonomyandItsLimits. . . . . . . . . . . . . . . . . . . . . . . 437
6.1.1 EUObligation:MinimumFloorandMaximum
Ceiling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437
6.1.2 NoFreeMovementofInspectorsLeadstoGrowing
Cooperation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444
6.1.2.1 HorizontalCooperation:MemberStates
StillattheControls. . . . . . . . . . . . . . . . . . . . . . 444
6.1.2.2 TheEstablishmentoftheEuropeanLabour
Authority:AJointFight?. . . . . . . . . . . . . . . . . . 452
6.2 NationalControlMeasuresintheFightAgainstSocialFraud. . . . 457
6.2.1 WhoSupervises?TheHostorHomeState?. . . . . . . . . . . 457
6.2.2 IdentificationofPersons. . . . . . . . . . . . . . . . . . . . . . . . . 459
6.2.3 EuropePondersOverNationalSocialDocuments,
SupervisionMeasures,andtheRegistration
Obligation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462
6.3 TheEuropeanFrameworkforCooperation. . . . . . . . . . . . . . . . . 466
6.3.1 ExchangeofData. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467
6.3.1.1 Catch22:TheFightAgainstSocialFraud
ortheProtectionofPersonalData?. . . . . . . . . . . 467
6.3.1.2 DatabasesasanInstrumentintheFight
AgainstSocialFraud:TheUltimateTool?. . . . .. 487
6.3.2 ThePrinciplesofCooperation. . . . . . . . . . . . . . . . . . . . . 494
6.3.2.1 TheGuidingPrinciples. . . . . . . . . . . . . . . . . . . 494
6.3.2.2 ComparativeOverviewoftheCooperation
Principles(Table6.1). . . . . . . . . . . . . . . . . . . . 503
6.4 LackofCooperation:QuidErgo?. . . . . . . . . . . . . . . . . . . . . . . . 509
6.4.1 TheEuropeanExampleParExcellence:TheA1Form. . . . 509
6.4.1.1 NoCooperationNeededinCaseofFraud?. . . . . 515
6.4.1.2 WithdrawingtheA1Form:AProcess
FraughtwithHurdles. . . . . . . . . . . . . . . . . . . . . 519
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6.4.1.3 TheConsequencesofPoorCooperation. . . . . . . 523
6.5 CooperationintheFightAgainstCross-BorderSocialFraud:
SomeRecommendationsforFurtherAction. . . . . . . . . . . . . . . . . 528
6.5.1 InformationasBasisforPrevention. . . . . . . . . . . . . . . . . 528
6.5.2 SingleEuropeanDeclarationTool:Combining
InformationandMonitoring. . .. . . . . .. . . . . .. . . . . .. . 531
6.5.3 PushFactorinCombatingFraud. . . . . . . . . . . . . . . . . . . 535
6.5.4 ActiveParticipationofInspectors. . . . . . . . . . . . . . . . . . . 537
6.5.5 TheInstitutionalFramework. . . . . . . . . . . . . . . . . . . . . . 541
6.5.6 MultidisciplinaryCooperation. . . . . . . . . . . . . . . . . . . . . 545
References. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . .. . 548
7 Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553
Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 563
About the Author
YvesJorens isaseniorfullprofessorof(European)sociallawandsocialcriminal
law at Ghent University, Belgium. He has an extensive track record in managing
large-scale European projects dealing with European social security and labour
issues of migrant persons and issues related to social dumping and social fraud.
His main domains of research are: the coordination of social security for migrant
workers, posting, cross-border employment, social dumping, combatting social
fraud and social dumping and the employment situation in the aviation sector.
ProfessorJorensiscurrentlyalsoadirectorofIRIS|InternationalResearchInstitute
on Social Fraud, a knowledge centre that gathers relevant information of regional,
national,andinternationalinterestregardingsocialfraudinthebroadestsenseofthe
word.IRISconstitutesaunique corporationplatform between theacademic world,
ontheonehand,andthedifferentactorsinvolvedinthefightagainstsocialfraud,on
the other hand. He is a co-founder and director of LIISA (Lab for International &
Interdisciplinary Social Affairs), Ghent University, and a Honorary Professor,
SchoolofSociologyandSocialPolicy,UniversityofNottingham.
xi