The European Parliament and the Council of the European Union have reached a provisional agreement to drastically reduce the administrative burden of cross-border business trips within the single market. The core of the agreement is the planned elimination of the so-called A1 certificate for short stays abroad.
Previously, for even the shortest work assignment in other EU countries, Iceland, Liechtenstein, Norway, Switzerland, or the United Kingdom, such a document had to be carried to prove existing social security coverage in the home country. The new regulation stipulates that for stays of up to three days within a 30-day period, no certificate will be required.
This breakthrough ends years of stagnation in the legislative process for coordinating social security systems. Business associations and organizations such as the business travel association BT4Europe had criticized the previous practice as a disproportionate bureaucratic obstacle, burdening millions of short trips with high administrative costs. The A1 certificate primarily serves to prevent double social security contributions and to make undeclared work more difficult. The planned de minimis threshold now aims for a pragmatic solution that will promote the mobility of skilled workers and consultants within the European Economic Area without jeopardizing social security.
Despite the agreement at the political level, the decision still needs to be formally confirmed by the EU institutions in the coming months. Only after publication in the Official Journal of the EU and the expiry of the corresponding implementation period can companies and employees benefit from the relief. Currently, work is still underway on the details for uniform application across member states to ensure that national control authorities interpret the new three-day rule consistently. Until the reform comes into force, the requirement to apply for the A1 certificate, which in Germany is usually processed electronically via health insurance funds or pension insurance institutions, remains in effect for all cross-border activities.
Experts point out that the new regulation only affects social security documentation. Other country-specific requirements, such as reporting obligations under the EU Posting of Workers Directive or special documentation requirements for certain sectors like the construction industry, remain unaffected by this specific simplification. Nevertheless, the business community views the agreement as an important signal for a more efficient internal market. Monitoring the practical impact on business travel will play a key role in the initial phase after implementation, in order to make further adjustments to the reporting systems if necessary.