Social Security Affiliation of Cross-border Transport Workers in Limbo

Luxembourg's Ministry of Social Security has published details of the current issue concerning social security affiliation of cross-border workers who are employed in the road transport sector in Luxembourg and which were the subject of two recent parliamentary questions which were answered by Minister Romain Schneider.

Background

In order to clarify the current situation of the affiliation of cross-border workers engaged in the transport sector, European regulation (EC) 883/2004 and its implementing regulation 987/2009 coordinates the different systems of social security affiliations in the Member States. A fundamental principle of this coordination is that a person can only be affiliated to one social security system. However, an employee is normally affiliated in the Member State where he performs his work. If a person performs their work in two or more Member States, then the regulation provides that it is the state of residence of the employee that must decide which legislation applies, therefore in which Member State the person must be affiliated. 

European regulations provide that an employee who performs a substantial part of his activity in his state of residence (25% rule) is subject to the legislation of his country of residence. If this is not the case, the employee will be affiliated in the Member State where the head office or the place of business of the company or employer is located.

The situation in Luxembourg

In April 2020, the Joint Social Security Centre reminded employers in the transport sector that the transitional provisions, in force since 2010, would expire on 1 May 2020 and that the procedures should be started quickly in order to regularise the situation of their employees. 

On 17 October 2020, a reminder relating to the procedure to be followed was sent to all employers. In order to give insured persons and employers additional time to carry out these procedures, the Joint Social Security Centre extended the necessary memberships and certificates for persons exercising a salaried activity in the territory of several Member States (A1 certificates) until on 31 December 2020, thus granting seven additional months to those concerned to regularise their situation.

Due to the start of production of the European IT system "EESSI", making the electronic exchange of information on social security compulsory and the determination of the other Member States to henceforth strictly comply with the legal provisions of European regulations, the Joint Social Security Centre could no longer maintain, beyond the date of 31 December 2020, the affiliation of employees for whom the Member State of residence had not yet taken a decision on applicable legislation.

The high number of dossiers currently is due to the expiration of a large number of A1 certificates on 31 December 2020. The ministry has confirmed that this situation will normalise in the coming months and that a large part of the dossiers have already been processed by the different Member States of residence.
Affiliations, respectively re-affiliations, to social security were made upon receipt of the decision from the competent bodies.

Towards a solution in the interest of affiliates and the transport sector

While the Luxembourg authorities had already in 2010, the year of entry into force of the European regulations in this area, asked neighbouring Member States to have discussions with a view to a long-term solution to avoid a change of affiliation at the end of the transitional arrangements and also for the specific situations which arise, neighbouring countries had not given a favourable response. Since then, exchanges have taken place continuously. Nevertheless, preparatory work is underway with a view to having in-depth negotiations with neighbouring countries so that the growing economic and societal exchanges within the Greater Region are reflected at all levels.