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September 25, 2025

EU Posted Workers E-Declaration Portal: A Big Step in Single Market Digitalization

On 13 November 2024, the European Commission proposed a regulation (COM/2024/531) to create a digital portal for declaring posted workers across the EU. On 22 May 2025, the Council adopted its negotiating position, paving the way for talks with the European Parliament. This initiative is part of the EU’s broader push to cut red tape and modernize the Single Market.

Why it matters

A “posted worker” is someone sent by their employer to work temporarily in another Member State — whether through a services contract, intra-group transfer, or agency posting. According to the European Labour Authority, there are about 3.6 million postings each year, involving 2.6 million workers, and roughly 1.2million of those work in two or more countries.

Right now, all 27 Member States require declarations before postings, but each country’s system looks different. They’re not connected to each other, so companies face duplicated forms, unfamiliar portals, and time-consuming admin.

What the new portal will do

The regulation would build a multilingual electronic interface, connected to the Internal Market Information System (IMI) — the EU’s existing tool for administrative cooperation. The idea is to reuse the infrastructure already working for posted road transport workers, where a similar IMI link has been live since 2022.

Core functions will include:

  • Secure accounts for employers to access the system
  • Creation, submission, and management of posting declarations
  • A standard form covering details of the employer, workers, assignment, service recipient, and liaison contact
  • Direct transmission of declarations into the IMI for authorities

The Council’s position strengthens this with extra features:

  • Employers can upload supporting documents directly
  • Built-in data validation and communication tools between authorities and companies
  • Workers can access electronic extracts of their postings

Expected benefits

  • Lower costs and less admin: The Commission estimates completing a declaration will be 73% faster than the current EU average. Cost savings could reach 58% even if only some Member States join. If all 27 participate, administrative costs could fall by as much as 81%.
  • Fairer competition and better worker protection: A harmonized, standard form should make checks easier, helping ensure posted workers enjoy the rights they’re entitled to.

For context, a 2024 business survey found that 46.1% of over 1,000 companies saw significant problems or uncertainties with posting. Time to file a declaration today ranges from 21 minutes (Estonia/Slovakia) to 87 minutes (Greece).

The initiative fits into the EU’s promise to cut reporting burdens by 25% while keeping worker protections intact. It also supports the Commission’s digital transformation agenda. As the Council put it: “Digitalising the administrative work for posted workers is a game changer in the internal market for services. Sending employees to another member state will be faster, cheaper and easier; workers will continue to enjoy their rights, and the single market for services will be closer to completion.”

Looking ahead

With the Council position now agreed, attention turns to the European Parliament. The file is already marked as “close to adoption” on the EU’s Legislative Train Schedule, so final approval could come soon. Once in place, the e-declaration portal will make posting workers simpler for companies, lighter for authorities, and fairer for workers — a practical win for a more digital, integrated Europe.

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The European Union is taking a significant step toward reducing administrative complexity for businesses operating across borders. In November 2024, the European Commission proposed new legislation to establish a digital portal that promises to transform how companies declare posted workers—a process that currently involves navigating 27 different national systems with varying requirements. Understanding Posted Workers A posted worker is an employee temporarily sent by their employer to provide services in another EU member state. This practice is fundamental to the EU's freedom to provide services, enabling businesses to fulfill contracts across borders while temporarily deploying their workforce. In 2022, approximately 5 million workers were posted across the EU, a figure that has shown consistent growth in recent years. Currently, employers face a patchwork of national regulations and declaration requirements when posting workers. 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The proposal represents the culmination of extensive consultations with member states and stakeholders, including work by a dedicated expert group that concluded in December 2023. How the System Works The e-Declaration portal provides a secure web environment where companies can create accounts, manage declarations, and submit information electronically. The standard declaration form captures essential data across approximately 30 data points, including: Information about the service provider (employer) Details of the posted worker or workers Specifics about the posting activity and duration Contact information for the liaison person in the host country Information about the recipient of services Once submitted, declarations are automatically transferred to the IMI system, making the information accessible to competent national authorities for monitoring and enforcement purposes. Member states can also configure the system to send declarations directly to their national back-end systems, ensuring seamless integration with existing infrastructure. Voluntary Participation Framework A critical feature of the proposed regulation is its voluntary nature. EU member states are not obligated to participate in the e-Declaration system. Countries wishing to use the platform must notify the European Commission six months before their intended start date, allowing adequate preparation time. Member states that choose to participate commit to not imposing additional declaration or information requirements beyond those specified in the standard form. This provision aims to prevent the system from becoming another layer of bureaucracy rather than a genuine simplification tool. Countries retain flexibility to discontinue use of the system if it proves unsuitable for their needs. They can also propose modifications to the standard form to accommodate specific national requirements, subject to Commission approval. Legislative Progress and Timeline The proposal has moved through the EU legislative process with notable momentum. The Council adopted its general approach on May 22, 2025, introducing several enhancements to the original proposal. These include functionality for service providers to upload relevant supporting documents and clarifications regarding personal data processing and retention. The European Parliament's Employment and Social Affairs Committee and Internal Market Committee jointly reviewed the proposal, with rapporteurs presenting their draft report in April 2025. The committees voted on amendments in September 2025, adopting the report with strong support—84 votes in favor against 11 opposed. Parliament's position strengthens several aspects of the system. It requires that the public interface be free of charge and available in all official EU languages, with translation capabilities to help national authorities understand uploaded documents. The interface should also allow companies to save relevant data for future declarations, reducing repetitive data entry. Additionally, Parliament specified that information from the e-Declaration portal should be accessible to the European Labour Authority (ELA) and that the system must be compatible with existing national back-end infrastructure. Data retention limits for posting declarations and uploaded documents are also defined more precisely. With both Council and Parliament having adopted their positions, interinstitutional negotiations can proceed to finalize the regulation. Expected Benefits The European Commission estimates significant administrative savings from widespread adoption of the e-Declaration system. Time spent on posting declarations could decrease by approximately 73 percent when companies use the standardized digital form instead of navigating 27 different national systems. If all member states participate, overall administrative costs for businesses could be reduced by up to 81 percent. These savings contribute directly to the Commission's objective of reducing companies' reporting burden by 25 percent, as outlined in its Communication on long-term competitiveness. Beyond cost savings, the system promises improved enforcement capabilities. By centralizing declaration data within the IMI framework, national authorities can more effectively monitor compliance with posting rules and coordinate cross-border inspections. This enhanced oversight helps protect posted workers' rights while maintaining fair competition among service providers. The system also increases transparency. Member states have the option to automatically send copies of declarations to posted workers themselves, ensuring they are informed about the terms and conditions registered for their posting. Data Protection and Privacy The proposal establishes appropriate legal grounds for processing personal data in accordance with the General Data Protection Regulation (GDPR) and related EU privacy frameworks. Personal information collected through the e-Declaration portal is used exclusively for authorized purposes related to posting of workers enforcement. The Council's general approach clarified that personal data of relevant representatives can be processed and retained within the service provider category for longer than the standard 36-month period when permitted by certain national laws. This accommodation addresses practical enforcement needs while maintaining strong data protection principles. Posted workers have rights to access information about how their data is processed, flag inaccuracies, and request corrections. The system is designed to balance enforcement requirements with fundamental rights to privacy and data protection. Integration with Broader Initiatives The e-Declaration portal represents one component of the EU's broader efforts to modernize labor mobility and social security coordination. The Commission has also been developing the European Electronic Social Security Pass (ESSPASS), envisioned as a mobile application providing electronic access to social insurance information. ESSPASS would digitize the A1 certificate—a crucial document establishing which country's social security system applies to a worker operating in multiple member states. Combined with e-Declaration, these initiatives could substantially streamline the entire posting process, from initial declaration through ongoing compliance verification. The Council's general approach explicitly calls for the Commission to evaluate the implementation after five years and explore integration possibilities between the posting declaration process and the portable document A1 system. Industry Perspectives Business organizations have generally welcomed the proposal as a meaningful step toward reducing administrative complexity. Industry groups like the VDMA (German Engineering Federation) have long advocated for simplified posting procedures, noting the paradox that posting workers to the United States can sometimes be administratively easier than posting within the EU. However, some stakeholders have raised concerns about the voluntary nature of the system. If only some member states participate, companies may still need to navigate a mix of the e-Declaration portal and traditional national systems, limiting the efficiency gains. Labor organizations, represented by groups like the European Trade Union Confederation (ETUC), emphasize that simplification must not come at the expense of worker protection. They advocate for robust data collection requirements, adequate retention periods to support criminal investigations, and strong enforcement mechanisms to combat fraud and abuse affecting posted workers. Challenges and Considerations The success of the e-Declaration initiative depends heavily on achieving broad participation among member states. With voluntary adoption, there is risk of fragmented implementation where only certain countries use the system, limiting its effectiveness and cost-saving potential. Technical integration poses another challenge. Member states have invested significantly in their existing national posting declaration systems. Ensuring the e-Declaration portal can interface smoothly with diverse legacy systems requires substantial technical coordination and potentially costly adaptations. Different member states have varying information requirements based on their specific enforcement needs and legal frameworks. While the standard form includes approximately 30 data points considered essential, some countries may view this as insufficient for effective monitoring. Balancing standardization with legitimate national variations requires careful negotiation. There are also questions about the system's ability to detect and prevent abuses such as fraudulent postings or schemes designed to circumvent labor protections. The effectiveness of enforcement depends not just on having a digital system, but on adequate resources for inspections and cross-border cooperation among national authorities. Looking Forward The e-Declaration portal represents a pragmatic approach to a longstanding administrative challenge in the EU single market. By providing a voluntary common platform while respecting member state sovereignty over enforcement, the proposal seeks to achieve meaningful simplification without forcing a one-size-fits-all solution. The estimated €3 million cost over the first five years is relatively modest compared to the potential administrative savings for businesses and the enhanced enforcement capabilities for member states. If the system proves successful, it could serve as a model for similar initiatives in other areas requiring cross-border administrative cooperation. For businesses regularly posting workers across the EU, the e-Declaration portal offers the promise of a more streamlined, predictable process. Rather than maintaining expertise on 27 different national systems, companies could manage their posting obligations through a single, multilingual interface. For posted workers themselves, the system should contribute to better protection of their rights through improved transparency and more effective enforcement. Clear, standardized declarations make it easier for workers to understand the terms of their posting and for authorities to verify compliance with applicable rules. As the legislation moves toward final adoption, attention will focus on which member states choose to participate and how quickly the system can be implemented. The Commission's commitment to providing technical support and training will be crucial for ensuring smooth rollout and encouraging broad adoption. The e-Declaration portal may not solve all challenges related to posting of workers, but it represents meaningful progress toward making cross-border service provision more efficient while maintaining high standards for worker protection. In an increasingly integrated European economy, such pragmatic innovations are essential for balancing competitiveness with social protections. Practical Implications for Businesses Companies that regularly post workers should begin preparing for this transition now. This includes: Reviewing current posting procedures and identifying opportunities for standardization Ensuring HR and compliance teams understand the upcoming changes Evaluating whether the e-Declaration system, once implemented, would be beneficial for their specific posting patterns Maintaining awareness of which member states join the system and when Preparing to update internal policies and training materials as the regulation enters into force While the voluntary nature of the system means companies may still need to manage some national variations, the e-Declaration portal represents a significant step toward simplifying one of the more administratively complex aspects of operating in the EU single market.

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