EU institutions have been working on the revision since 2016. In a vote held on 7 July, the European Parliament approved the text by 511 votes in favour, with 87 against and 61 abstentions. The package still needs formal approval by the Council of the European Union and publication in the Official Journal of the European Union.
Under the current timeline, the new rules would apply after a 24-month transition period, meaning they are expected to take effect around September 2028.
Why the establishment test matters for international haulage
The reform is designed to make social security rights easier to carry between member states and to strengthen enforcement against abuses, including so-called letterbox companies.
For international hauliers, however, one issue stands out: how a company’s actual place of establishment will be assessed for social security purposes. One of the new factors is expected to be where a company generates its turnover.
That could prove sensitive in road transport, where operators often provide services across several member states while keeping their registered seat, vehicles, payroll, administration and management in another country.
In practice, an international transport company may be legally and operationally established in one member state, while a large share of its revenue is generated abroad through bilateral transport, cabotage or cross-trade operations. If turnover becomes an important factor in determining establishment, the sector fears this could trigger disputes over which country’s social security system should apply.
Transport i Logistyka Polska, an employers’ association, has warned that the change could have significant consequences for international road carriers.
“Around 40 percent of the revenue of Polish international road carriers comes from the export of services, cabotage and cross-trade. That means the place where turnover is generated for companies providing these services is the territory of the countries where the work is performed. This could result in the need to pay drivers’ social and health insurance contributions under the rules of those countries, to local insurance institutions,” says Maciej Wroński, president of Transport i Logistyka Polska.
While the Polish market is particularly exposed because of the scale of its international haulage activity, the underlying issue is not limited to one country. Any operator whose business model relies heavily on cross-border transport could face similar questions if turnover generated abroad becomes a key part of the assessment.
Wroński also argues that drivers themselves could be affected if their social security position becomes harder to determine.
“Determining the level of social benefits for drivers, such as disability or pension entitlements, could in practice prove very difficult and take even several years,” he warns.
Advance notification for posted workers
The adopted rules also introduce an obligation to notify authorities in advance when an employee is posted to another member state. Employers would have to submit the notification before work abroad begins.
Short business trips and assignments lasting up to three days within a 30-day period are set to be exempt. However, the exemption will not apply to the construction sector.
The notification requirement is intended to improve enforcement and make cross-border posting more transparent. For companies active in international services, however, it could add another layer of administration, especially where work patterns change quickly or assignments are organised at short notice.
Similar concerns were raised during the European Parliament debate. MEP Jagna Marczułajtis warned that the turnover criterion and advance notification requirements could increase legal and administrative uncertainty for companies operating across borders, including those in transport, construction and care services.
Commission signals another labour mobility package
Commissioner for Economy Valdis Dombrovskis has said that in September the European Commission will present a package for fair labour mobility. It is expected to address issues left unresolved in the current revision.
Earlier Commission announcements suggest the package will focus on removing barriers to cross-border hiring, recognising professional qualifications, and digitalising the management of employment and social security information.
For transport companies, attention now turns to the final implementing rules and to the Council of the European Union formally closing the legislative process. The sector will be watching closely to see whether the practical realities of international road haulage are reflected when the detailed rules are drawn up.
Operators active across several member states will also be monitoring how enforcement develops in practice, particularly around business structures, posting procedures and social security contributions in cross-border operations.
