EUROPEAN COMMISSION Strasbourg,13.3.2018 SWD(2018) 67 final COMMISSION STAFF WORKING DOCUMENT Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE Monitoring the implementation of the European Pillar of Social Rights {COM(2018) 130 final}



Contents Introduction Chapter I – Equal opportunities and access to the labour market Principle 1 - Education, training and life-long learning Principle 2 - Gender equality 12 a. Equality of treatment and opportunities between women and men must be ensured and fostered in all areas, including regarding participation in the labour market, terms and conditions of employment and career progression. 12 Principle 3 - Equal opportunities 17 Principle 4 - Active support to employment 21 Principle 5 - Secure and adaptable employment 26 Principle 6 - Wages 32 Principle 7 - Information about employment conditions and protection in case of dismissals 35 Principle 8 - Social dialogue and involvement of workers 39 Principle 9 - Work-life balance 44 Principle 10 - Healthy, safe and well-adapted work environment and data protection 48 Chapter III – Social protection and inclusion 53 Principle 11 - Childcare and support to children 53 Principle 12 - Social protection 58 Principle 13 - Unemployment Benefits 62 Principle 14 - Minimum income 65

Principle 15 - Old-age income and pensions 68 Principle 16 - Health care 72 Principle 17 - Inclusion of people with disabilities 75 Principle 18 - Long-term care 78 Principle 19 - Housing and assistance for the homeless 81 Principle 20 - Access to essential services 85



Introduction The European Pillar of Social Rights was proclaimed on 17 November 2017 by the European Parliament, the Council and the Commission at the Social Summit for Fair Jobs and Growth in Gothenburg, Sweden. It expresses the shared responsibility of EU institutions, all levels of government, social partners and civil society to deliver a strong social Europe. Ahead of the Summit, EU-level social partners agreed on a joint statement detailing how they can contribute to fair jobs and growth in the future. At the European Council of December 2017, European Heads of State or Government called for the Pillar to be implemented at EU and Member State level, in line with their respective competences, and for swift progress on pending social files, including new initiatives in the Commission's Work Programme 2018. They also asked the European Commission to propose appropriate monitoring arrangements for the Pillar. This staff working document provides an update of a similar document issued by the Commission as part of the European Pillar of Social Rights Pillar in April 2017. It details progress made at EU level between April 2017 and March 2018. The European Pillar of Social Rights sets out a number of key principles and rights to support fair and well-functioning labour markets and welfare systems. Together, these principles and rights set an ambitious agenda for better-performing economies and more equitable and resilient societies. The goal is to support a renewed process of convergence towards better working and living conditions across Europe. It is about delivering new and more effective rights for citizens, addressing emerging social challenges and the changing world of work in light of, in particular, emerging types of employment deriving from new technologies and the digital revolution. These principles and rights cover the areas of employment, social protection, social inclusion, education and equal opportunities. The Pillar builds both on existing EU law (the EU 'acquis)' and international law. In particular, it draws on: ·the 1989 Community Charter of the Fundamental Social Rights of Workers, ·the European Social Charter of 1961, ·the Revised European Social Charter of 1996 and ·the European Code of Social Security of the Council of Europe.

Its principles also take account of the relevant International Labour Organization (ILO) conventions, recommendations and related protocols, and the United Nations Convention on the Rights of Persons with Disabilities. Over the last 30 years, the EU acquis on social matters has also developed, through new provisions in the EU Treaties, the adoption of the Charter of Fundamental Rights of the European Union, new legislation and the case law of the Court of Justice of the European Union. More recently, the adoption of the UN Sustainable Development Goals for 2030 has provided a new agenda for addressing poverty eradication and the economic, social, solidarity and environmental aspects of sustainable development in a balanced and integrated manner. This document, like the European Pillar of Social Rights, has three chapters, divided into sections on each principle or right. Each section is in three parts, covering the existing law, the scope of and changes introduced by the Pillar, and how it can be implemented. Existing EU law in this field For each principle or right, the first part outlines the social acquis, starting with the relevant provisions of the Charter of Fundamental Rights of the European Union, and lists the legislative powers and their limits set out in the Treaty on the Functioning of the European Union (TFEU). It then lists the key legislative and non-legislative measures already in place that support the principle or right in question. Only the most relevant instruments are listed - both legally binding measures and Council or Commission recommendations providing guidance. Where reference is made to the Charter of Fundamental Rights of the European Union, it should be noted that this Charter's provisions apply to the EU institutions, bodies, offices and agencies, with due regard for the principle of subsidiarity, and to Member States only where they are implementing EU law. Scope and changed introduced by the European Pillar of Social Rights The Pillar highlights principles and rights contained in binding provisions of EU law, and makes them more understandable and explicit for citizens and everyone involved. Moreover, in some specific areas, the Pillar adds new elements to the existing acquis. This is explained in detail in the second part of the section. The principles and rights set out are addressed to EU citizens and legally resident third country nationals in Member States, regardless of their employment status, and to public authorities and social partners. Implementation Given the legal nature of the Pillar, for these principles and rights to be legally enforceable, they first require dedicated measures or legislation to be adopted at the appropriate level. This is explained in the third part of each section, which sets out what can be done to implement each principle or right by Member States and the social partners, which have the primary responsibility for putting social principles and rights into practice. Additionally, this section outlines how EU actions would contribute. Developments at EU and Member State level that fall under the Pillar’s scope are closely monitored as part of the European Semester, the EU’s annual cycle of economic policy coordination. The Semester also promotes targeted reforms, depending on national specificities, covering the wide span of the Pillar, from education, training and life-long learning to active support for the unemployed, wages, childcare, social protection and minimum income and pension and healthcare systems. The euro area and country analysis and recommendations made as part of the Semester will therefore reflect and promote the development of social rights, by assessing, monitoring and comparing progress on their implementation. Benchmarking aiming to support structural reforms and upwards convergence among Member States towards best performers will be progressively conducted for a limited set of areas such as unemployment benefits, minimum wages, minimum income, early childhood education and care, employment protection legislation and access to social protection. The European Structural and Investment Funds will support the implementation of the European Pillar of Social Rights. In particular, the European Social Fund, the European Regional Development Fund and social cohesion initiatives such as the Youth Employment Initiative, the European Globalisation Fund and the Fund for European Aid to the Most Deprived, will play a key follow-up role. The Pillar will also play a role in the design of the post-2020 programmes for these funds and initiatives. Turning the principles and rights enshrined in the Pillar into reality is a shared commitment and responsibility for the EU, its Member States and the social partners, acting in line with the distribution of competences set by the Treaties and taking into account the principles of subsidiarity and proportionality, sound public finances and the respect of the autonomy of the social partners. Nothing in the European Pillar of Social Rights shall be interpreted as restricting or adversely affecting principles and rights recognised in relevant fields of application, by EU law or international law and by international agreements to which the EU or all the Member States are party, including the European Social Charter of 1961 and the relevant ILO Conventions and Recommendations. Implementation of the Pillar could be reinforced by ratifying relevant ILO conventions, the Revised European Social Charter of 1996 and its Additional Protocol Providing for a System of Collective Complaints. The involvement of social partners is central to the delivery of social rights. Promoting dialogue between management and labour is enshrined as a common objective of the EU and its Member States, in Article 151 TFEU. At EU level, in the policy domains covered by Article 153 TFEU, social partners are to be consulted in accordance with Article 154 TFEU and may request implementation of their agreements at EU level under Article 155 TFEU. Social partners may support the implementation of the Pillar via collective bargaining at national level and/or by collecting and exchanging good practices across Europe. In addition, civil dialogue at both national and EU level is vital for broadening participation in policymaking and further mobilising social actors to help deliver the principles and rights of the Pillar. Civil dialogue involving civil society organisations allows for a range of civic stakeholder interests to be represented and reinforces the transparency, accountability and legitimacy of public decisions. The Pillar should be implemented according to available resources and within the limits of sound budgetary management and Treaty obligations governing public finances. In particular, the establishment of the Pillar does not affect the right of Member States to define the fundamental principles of their social security systems and should not affect the financial equilibrium of those systems.





Chapter I – Equal opportunities and access to the labour market Principle 1 - Education, training and life-long learning Everyone has the right to quality and inclusive education, training and life-long learning in order to maintain and acquire skills that enable them to participate fully in society and manage successfully transitions in the labour market. 1. Existing EU law a) The Charter of Fundamental Rights of the European Union Article 14 of the Charter gives everyone the right to education and to have access to vocational and continuing training. This right includes the possibility of receiving compulsory education free of charge. b) EU legislative powers and their limits Under the Treaty on the Functioning of the European Union (TFEU): ·Article 165 empowers the EU to help develop high-quality education by encouraging policy cooperation between Member States and, if necessary, by supporting and implementing action on this. In doing so, the EU must fully respect Member States ' responsibility for the content of teaching and their cultural and linguistic diversity. ·Article 166 empowers the EU to implement a vocational training policy which supports and supplements the actions of Member States, while fully respecting their responsibility for the content and organisation of vocational training. c) Existing measures in this field Council Recommendation of 22 April 2013 on establishing a Youth Guarantee calls on Member States to ensure that, within a period of four months of becoming unemployed or leaving formal education, all young people under the age of 25 years receive a good-quality offer of employment, continued education, an apprenticeship or a traineeship. Recommendation 2006/962/EC of the European Parliament and of the Council of 18 December 2006 on key competences for lifelong learning identifies the knowledge, skills and attitudes for personal fulfilment, active citizenship, social cohesion and employability. Council Recommendation of 28 June 2011 on policies to reduce early school leaving invites EU Member States to develop comprehensive strategies to support young people in completing upper secondary education and achieve the Europe 2020 headline target on reducing the rate of early school leaving to less than 10% by 2020. Recommendation 2006/143/EC of the European Parliament and of the Council of 15 February 2006 on further European cooperation in quality assurance in higher education identifies actions that could be taken at national and EU level to support the development and accreditation of high-quality higher education. Recommendation 2009/C 155/01 of the European Parliament and of the Council of 18 June 2009 on the establishment of a European Quality Assurance Reference Framework for Vocational Education and Training provides common tools for the management of quality to promote better vocational education and training. Recommendation of the European Parliament and of the Council of 23 April 2008 on the establishment of the European Qualifications Framework for lifelong learning sets out a method for measuring educational achievement based on learning outcomes. Council Recommendation of 20 December 2012 on the validation of non-formal and informal learning calls on EU Member States to make appropriate arrangements to identify, document, assess and certify learning outcomes leading to a qualification. The New Skills Agenda for Europe, adopted in June 2016, launched a number of actions to improve the quality and relevance of skills formation, make skills more visible and comparable, and improve skills intelligence. One of these actions is Council Recommendation of 19 December 2016 on Upskilling Pathways: New Opportunities for Adults which calls on EU Member States to offer adults support to acquire a minimum level of literacy, numeracy and digital competence and make progress towards a secondary qualification, and sets out the blueprint for sectoral cooperation on skills.

Regulation 1303/2013 and Regulation 1304/2013 provide support to the thematic objective 'investing in education, training and vocational training for skills and lifelong learning'. The budget for this objective for 2014-2020 is 34.6 billion EUR, including 27.1 billion EUR under the European Social Fund (ESF). The European Council Conclusions of December 2017 highlight the importance of the social, educational and cultural dimensions of EU policies in bringing Europeans together and building our common future. 2. Scope and changes introduced by the European Pillar of Social Rights The European Pillar of Social Rights sets out a general right to education and training throughout life. It goes further than Article 14 of the Charter of Fundamental Rights of the European Union, by focusing on quality and inclusiveness. The Pillar: ·aims to ensure the provision of high-quality formal and informal education and training; ·emphasises the relevance of education and skills for successful participation in the labour market and for social cohesion; ·emphasises the need for opportunities to maintain and acquire skills. This requires flexible opportunities for learning and re-training, which should be available at all times throughout a person's life and career, regardless of the employment status. These include early childhood, initial, further, higher and adult education and training systems. Inclusive education, training and lifelong-learning require the provisions of accessible means to acquire, maintain or develop skills and competences to a level that equips everyone for active life. For example, any particular needs of people with disabilities or those from disadvantaged backgrounds should be catered for, so that they receive access on an equal basis. The Pillar puts further emphasis on the skills required during labour market transitions, such as changes in employment status, changing employer, entering or returning from career breaks or moving between employment and self-employment. This includes acquiring and maintaining basic digital skills. 3. Implementation a) What Member States and social partners can do Member States are responsible for determining the content of teaching and vocational training and for the organisation of their national education systems and vocational training. They are invited to implement the Pillar's provisions in light of this, in addition to applying it when implementing EU measures adopted in these fields. At EU level, social partners can also collect and exchange good practices across the EU. Nationally, they can support the implementation of this Principle via collective bargaining and through involvement in the design and implementation of relevant policies. They can promote, develop and contribute to policies at company, local, national or EU level to improve training, re-training and lifelong learning opportunities and to provide more traineeships and apprenticeships. At cross-industry level, EU social partners have worked on identifying skills needs in digital economies and encouraging the use of apprenticeships to increase youth employment. They have organised discussions between national social partners on these issues. Good practice in the spirit of the Pillar In 2017, in order to reduce early school leaving rates, Bulgaria put together local multidisciplinary teams as part of interinstitutional cooperation measures to improve school enrolment and retention. The aim is to identify out-of-school children or students at risk of dropout, improve the information exchange between relevant institutions and improve the data collection. In Slovenia a reform of the vocational education and training system came into effect in December 2017. It provided that an apprentice has the same status as a secondary school student and not that of a worker. The educational programme followed by an apprentice must consist of at least 50 % practical education (work) with the employer, while at least 40 % of the apprentice’s educational programme must be provided by the school. In Finland a reform of the qualification structure, funding and governance framework of the vocational education and training systems was adopted in June 2017. This will increase and diversify learning in the workplace by developing apprenticeship training and by introducing a new training agreement model that facilitates flexible learning and a practical approach to obtaining a qualification. Social partners were involved in the working groups that drew up the reform.

b) Recent and ongoing initiatives at EU level In 2017, the Commission adopted a proposal for a Council Recommendation on a European Framework for Quality and Effective Apprenticeships, which sets out criteria for learning and working conditions, and identifies framework conditions that should enable learners to acquire relevant skills and qualifications through high-quality and effective apprenticeships schemes. The revised European Qualifications Framework adopted in May 2017 is currently being implemented. It will support better understanding of qualifications and make better use of all available skills in the European labour market. In 2017 the Commission adopted a Communication on Strengthening European Identity through Education and Culture, which sets out the Commission's vision of a European Education Area, building on the New Skills Agenda for Europe and the investing in Europe's youth initiatives. The Commission adopted a proposal for a Council Recommendation on Key Competences for Lifelong Learning in January 2018, updating the definition of key competences necessary for personal fulfilment, employability, active citizenship and social inclusion in a lifelong learning perspective. Political agreement was reached between Council and Parliament on a revised Europass Decision in December 2017. It will offer a basis for updating the Europass Framework, providing improved tools for people to present their skills and obtain information on skills needs and trends. The Commission is implementing the Digital Skills and Jobs Coalition to accompany the digital transformation. It is doing so by promoting the exchange of best practice and encouraging partnerships between industry, education providers and social partners. The Commission published a proposal for a Council Recommendation on promoting common values, inclusive education, and the European dimension of teaching on 17 January 2018. The Commission presented a Communication on a renewed EU agenda for higher education in May 2017, focused on: tackling future skills mismatches and promoting excellence in skills development; building inclusive and connected higher education systems; ensuring that higher education institutions contribute to innovation; and supporting effective and efficient higher education systems. The Commission presented in May 2017 a Communication on school development and excellent teaching for a great start in life. It focused on developing better and more inclusive schools, supporting teachers and school leaders, and developing and re-focusing the governance of school education systems. The Commission proposal for a Council Recommendation for tracking graduates was adopted in November 2017. The initiative set out in the proposal aims to improve the availability of qualitative and quantitative information about what graduates from tertiary education and vocational education and training in the EU go on to do after they complete their education and training. In its December 2016 Communication "Investing in Europe's Youth", the Commission proposed renewed actions to support youth employment and create more opportunities for young people. To ensure the full and sustainable implementation of the Youth Guarantee, the budget for the Youth Employment Initiative was extended by EUR 1.2 billion, spread over four years (2017-2020), matched by EUR 1.2 billion from existing ESF allocations. In June 2016, the European Commission proposed specific actions to support Member States in integrating third-country nationals in their education systems under the Action Plan on the Integration of Third-country nationals. In December 2017, the European Commission and the European social and economic partners signed a European Partnership on integration laying down key principles and commitments to support and strengthen opportunities for refugees and migrants legally residing in the EU to integrate into the European labour market. The European Centre for the Development of Vocational Training (Cedefop), one of the EU's decentralised agencies, is supporting work by the Commission, Member States and social partners to modernise vocational education and training systems, improve access to and the attractiveness and efficiency of vocational education and training, and provide information on current and future skill supply and demand in the European labour market.

Principle 2 - Gender equality a. Equality of treatment and opportunities between women and men must be ensured and fostered in all areas, including regarding participation in the labour market, terms and conditions of employment and career progression. b. Women and men have the right to equal pay for work of equal value.

1. Existing EU law in this field a) The Charter of Fundamental Rights of the European Union Article 23 of the Charter provides that equality between women and men must be ensured in all areas, including employment, work and pay. It also stipulates that the principle of equality shall not prevent the maintenance or adoption of measures which provide specific advantages in favour of the under-represented sex. Article 33 of the Charter provides that, in order to reconcile family and professional life, everyone shall have the right to protection from dismissal for a reason connected with maternity and the right to paid maternity leave and to parental leave following the birth or adoption of a child. b) EU legislative powers and their limits Article 19 of the Treaty on the Functioning of the European Union (TFEU) empowers the EU to take appropriate action to combat discrimination, including discrimination based on gender. Article 153 TFEU empowers the EU to adopt measures, including directives setting minimum requirements, to support and complement Member State activities, including to ensure equality between men and women with regard to labour market opportunities and treatment at work. Article 157(3) TFEU empowers the EU to adopt measures to ensure that the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation is applied, including the principle of equal pay for equal work or work of equal value. Article 157(4) TFEU specifies that the principle of equal treatment shall not prevent any Member State from maintaining or adopting measures providing for specific advantages in order to make it easier for the under-represented sex to pursue a vocational activity or to prevent or compensate for disadvantages in professional careers. c) Existing measures in this field EU Directives prohibit discrimination and promote gender equality in employment and occupation, self-employment, access to and supply of goods and services, and social security. They also set out rights related to maternity and parental leave. Directive 2006/54/EC of the European Parliament and of the Council guarantees equal treatment of men and women in: access to vocational training and employment, including promotion; working conditions, including pay; and occupational social security schemes. Commission Recommendation 2014/124/EU aims to improve the application of the principle of equal pay between men and women through increased transparency. Council Directive 79/7/EEC provides for equal treatment of men and women in social security matters, such as: statutory social security schemes which provide protection against sickness, invalidity, accidents at work and occupational diseases, unemployment and risks related to old age; and social assistance which supplements or replaces such social security schemes. Council Directive 2004/113/EC guarantees equal treatment of men and women in access to and supply of goods and services. Directive 2010/41/EU of the European Parliament and of the Council clarifies that the principle of equal treatment of men and women applies to self-employed workers and in situations where spouses or life partners of a self-employed worker participate in his or her activities. Council Directive 92/85/EEC contains measures to encourage improvements in the health and safety at work of pregnant workers and workers who have recently given birth or who are breastfeeding, and establishes the right to a minimum of 14 weeks of maternity leave. It guarantees protection against dismissal from the beginning of the pregnancy to the end of this maternity leave. Council Directive 2010/18/EU establishes the right to parental leave and sets out minimum requirements for that leave (four months for each parent, at least one month of which cannot be transferred to the other parent) and the requirement to protect employment rights. It sets out the circumstances that must be put in place when and employee returns to work after such parental leave and established the right to special leave from work on grounds of force majeure. Regulation 1303/2013 and Regulation 1304/2013 include provisions to ensure that 'equality between men and women and the integration of gender perspective are taken into account and promoted throughout the preparation and implementation of programmes, including in relation to monitoring, reporting and evaluation' . In addition, under the European Social Fund all Member States are expected to support specific targeted actions in this area. 2. Scope and changes introduced by the European Pillar of Social Rights The Pillar emphasises the need to foster proactively equality between women and men through positive action in all areas. By extending equality to all areas, the Pillar goes beyond the existing EU provisions in this area. The provisions on gender equality focus in particular on: participation in the labour market (as reflected by the gap in employment between women and men); terms and conditions of employment (e.g. the difference in the use of part-time employment between women and men); and career progression (e.g. the proportion of women in management positions and the low numbers of female entrepreneurs). These are all areas where further progress needs to be made. Principle 2b addresses the specific challenge of the gender pay gap, which persists despite the measures in current EU legislation. 3. Implementation

a) What Member States and Social Partners can do Member States are in charge of transposing and enforcing rules adopted at EU level. As the EU measures merely set minimum standards, Member States are invited to go beyond these in order to give effect to this principle. At EU level, social partners are to be consulted in accordance with Article 154 of the TFEU on possible initiatives based on Article 153 of the TFEU. They can sign agreements that can be implemented at EU level at their request, in accordance with Article 155 of the TFEU. They can also collect and exchange good practices across the EU. Nationally, social partners can support the implementation of this principle via collective bargaining and through involvement in the design and implementation of relevant policies. At cross-industry level, EU social partners selected gender equality as a priority for their 2015-2017 work programme, organising exchanges of good practice from national and sectoral social partners on ways to reduce the gender pay gap. Good practice in the spirit of the Pillar In December 2017, the Estonian Parliament approved changes to the parental leave and benefits system. These include developing flexible possibilities for families to combine leave and work. One aim of these changes is to encourage the more balanced distribution of parental leave and benefits between mothers and fathers. A month-long period of father-specific leave was introduced (which specifies that if the father does not use the month, the family will lose that period of the leave). This month will be added to the current 18 months of parental leave allowed in the Estonian system. In the long term, this new parental leave system is expected to encourage fathers to take up more leave. The father’s month is meant for all fathers despite of their status in the labour market or the type of contract they have (whether they work as self-employed or with a permanent contract). The changes will be established gradually in the years 2018-2020. b) Recent and ongoing initiatives at EU level The Commission is implementing the Strategic Engagement for Gender Equality 2016-2019, which sets out the main priorities in this area, and outlines the existing tools to tackle issues, such as the European Semester, EU Funds and enforcing current legislation. In this context, on 20 November 2017, the Commission adopted an Action Plan 2017 – 2019 to tackle the gender pay gap. The Commission presented, together with the European Pillar of Social Rights, an initiative "A new start to support work-life balance for parents and carers". Its objective is to address women's under-representation in the labour market by facilitating balancing professional and family responsibilities for both women and men. It includes a proposal for a Directive on work-life balance for parents and carers, currently being discussed in the European Parliament and in Council, and a Communication with a number of complementary measures, such as providing EU funding to support more and better childcare and long-term care facilities, identifying country-specific obstacles resulting from tax-benefit systems, which discourage second-earners (predominantly women) from work, better monitoring of the reconciliation policies as part of the annual European Semester exercise. Furthermore, it has proposed a Directive aimed at improving gender balance in corporate boards of the largest listed companies. The Directive is supported by the European Parliament and a majority of Member States and is being discussed by the Council. The Commission is stepping up its efforts to combat violence against women and is working towards the EU's accession to the Council of Europe Convention on preventing and combating violence against women (the Istanbul Convention) on the basis of its proposal made in March 2016. The EU signed the Convention in June 2017 and discussions are ongoing on internal arrangements between the EU and its Member States to allow the EU to conclude the accession and ratify the Convention. The European Institute for Gender Equality, one of the EU's decentralised agencies, is supporting the work of the Commission, Member States and social partners in the area of work-life balance.



Principle 3 - Equal opportunities Regardless of gender, racial or ethnic origin, religion or belief, disability, age or sexual orientation, everyone has the right to equal treatment and opportunities regarding employment, social protection, education, and access to goods and services available to the public. Equal opportunities of under-represented groups shall be fostered. 1. Existing EU law in this field a) The Charter of Fundamental Rights of the European Union Article 21 of the Charter prohibits any discrimination based on any grounds, including sex, race, colour, ethnic or social origin, genetic features, language, religion or belief, political or any other opinion, membership of a national minority, property, birth, disability, age or sexual orientation. Subject to certain exceptions, Article 21 of the Charter also prohibits any discrimination on grounds of nationality.

b) EU legislative powers and their limits Article 19 of the Treaty on the Functioning of the European Union (TFEU) empowers the EU to take appropriate action to combat discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation. Article 18 also refers to the prohibition of discrimination on grounds of nationality. c) Existing measures in this field Council Directive 2000/43/EC (the Racial Equality Directive) prohibits discrimination based on racial or ethnic origin in access to employment, self-employment and occupation, employment and working conditions, education, vocational training, social protection, social advantages, and access to goods and services which are available to the public, including housing. Council Directive 2000/78/EC (the Employment Equality Directive) prohibits discrimination on the grounds of religion or belief, disability, age or sexual orientation with regard to access to employment, self-employment, occupation and vocational training. Both of these Directives prohibit various forms of discrimination: direct and indirect discrimination, harassment, instruction to discriminate and victimisation. The EU is a party to the United Nations Convention on the Rights of Persons with Disabilities. Legally residing third-country nationals that are long-term residents or covered by other EU Directives are entitled to enjoy equal treatment with nationals of their host countries in a number of areas, including in particular: working conditions, including pay and dismissal; access to education and vocational training; and social security. In 2004, Member States adopted common basic principles of integration of third-country nationals. These constitute a framework for policy cooperation on improving integration in the EU and a framework against which Member States can judge and assess their own efforts. Council Recommendation 2013/C 378/01 provides guidance on effective Roma integration measures in Members States, in particular as regards access to education, employment, healthcare and housing. The European Structural and Investment Funds have allocated 43.5 billion EUR in the 2014-2020 period towards the thematic objective, which foresees to promote social inclusion and combat poverty and any discrimination. For the 2014-2020 programming period, 1.6 billion EUR have been allocated under the European Social Fund for the priority ‘Equality between men and women in all areas, including in access to employment, career progression, reconciliation of work and private life and promotion of equal pay for equal work’. The European Agricultural Fund for Rural Development deals with the specific challenges of rural areas and promotes the social inclusion and poverty reduction in those territories. 2. Scope and changes introduced by the European Pillar of Social Rights The Pillar partially goes beyond the current EU legislation by extending protection from discrimination on the grounds of religion or belief, disability, age and sexual orientation to the areas of: social protection, including social security and healthcare; education; and access to goods and services available to the public. The Pillar also extends the prohibition of discrimination based on gender to the area of education, which is not covered by the current legislation. Equal opportunities measures aim to promote the inclusion of and participation by under-represented groups in the labour market and in wider society. The Pillar's provisions emphasise that specific measures may be necessary to prevent, correct and compensate for disadvantages linked to certain protected grounds. This principle encourages Member States to address the challenge faced by groups at particular risk of discrimination through positive action and incentives, for instance by supporting workforce diversity practices among employers. 3. Implementation a) What Member States and Social Partners can do Member States are responsible for transposing and enforcing rules adopted at EU level. Given that EU measures set out above contain minimum standards, Member States are invited to go beyond these rules in order to give effect to this principle. In addition, Member States are invited to continue making progress on negotiations relating to the proposed new Equal Treatment Directive to achieve its swift adoption. Through their National Equality Bodies, Member States can promote equal opportunities for under-represented groups and assist victims of discrimination on the ground. At EU level, social partners can collect and exchange good practices across the EU e.g. on management practices developed on the basis of social dialogue. Nationally, social partners can support the implementation of this principle via collective bargaining and through involvement in the design and implementation of relevant policies. Good practice in the spirit of the Pillar In the Netherlands, a Ministerial Decree regarding the general duty to realize accessibility for persons with disabilities as provided for in the Disability Discrimination Act (DDA) came into force in June 2017. These provisions constitute an important step towards realising more general accessibility for persons with disabilities in addition to the duty to provide reasonable accommodation in individual cases. In Greece, a law was introduced in the Greek legal order in September 2017. The new legislation includes a series of reforms designed to promote the equal treatment of persons with disabilities, the full enjoyment of their fundamental rights, and to facilitate their lives and daily routine. In Portugal, in July 2017, the Portuguese Parliament passed a law, which sets up the legal regime of prevention, prohibition and fight against discrimination on the ground of race/ethnic origin, nationality, ancestry and territory of origin. The law repealed and updated the former legal regime of non-discrimination on the ground of race and ethnic origin. b) Recent and ongoing initiatives at EU level The Commission will continue its work to ensure that the proposed new Equal Treatment Directive is adopted. This will expand protection against discrimination based on religion or belief, disability, age or sexual orientation to cover social protection, including: social security and healthcare; education; social advantages; and access to goods and services which are available to the public, including housing.

The EU is providing support to intermediaries such as NGOs , social partners and equality bodies to: improve their capacity to combat discrimination; support the development of equality policies at national level; encourage the exchange of good practices between EU countries; and push for business-oriented diversity management as part of a strategic response to a more diversified society, customer base, market structure and workforce. In August 2017, the Commission published the midterm review of the EU Framework for National Roma Integration Strategies taking stock of progress since its launch in 2011. The European Union Agency for Fundamental Rights, one of the EU's decentralised agencies, supports the work of the Commission, Member States and social partners in the area of equal opportunities and non-discrimination. The European Network for Rural development has a thematic working group on social inclusion which collects good practices on social inclusion in rural areas with a particular focus on women, young people, people of Roma ethnic origin and third country nationals.

Principle 4 - Active support to employment a. Everyone has the right to timely and tailor-made assistance to improve employment or self-employment prospects. This includes the right to receive support for job search, training and re-qualification. Everyone has the right to transfer social protection and training entitlements during professional transitions. b. Young people have the right to continued education, apprenticeship, traineeship or a job offer of good standing within 4 months of becoming unemployed or leaving education. c. People unemployed have the right to personalised, continuous and consistent support. The long-term unemployed have the right to an in-depth individual assessment at the latest at 18 months of unemployment. 1. Existing EU law in this field a) The Charter of Fundamental Rights of the European Union Article 14 of the Charter gives everyone the right to education and to access vocational and continuing training. Article 29 of the Charter guarantees everyone the right to access job placement service free of charge. Article 34 of the Charter states that the EU recognises and respects the entitlements to social security and social services that provide protection in cases such as loss of employment. b) EU legislative powers and their limits Article 147 TFEU requires the EU to support a high level of employment by encouraging cooperation between Member States and by supporting and, if necessary, complementing their actions. In doing so, the competences of Member States must be respected. Article 153(2) TFEU empowers the EU to adopt legislative measures to support and complement Member State activity to integrate people who have been excluded from the labour market. Article 166 TFEU empowers the EU to implement a vocational training policy which supports and supplement actions by Member States, while fully respecting their responsibility for the content and organisation of vocational training. c) Existing measures in this field The EU and its Member States together pursue the European Employment Strategy, which sets common objectives and targets for employment policy and aims to create more jobs and better jobs throughout the EU. The core of the strategy includes the need to coordinate Member States' actions to assist unemployed people in finding work. Council Recommendation of 22 April 2013 on establishing a Youth Guarantee (the Youth Guarantee Recommendation) calls on Member States to ensure that, within a period of four months of becoming unemployed or leaving formal education, all young people under the age of 25 receive a good-quality offer of employment, continued education, an apprenticeship or a traineeship. Council Recommendation of 15 February 2016 on the integration of the long-term unemployed into the labour market recommends that long-term unemployed people are offered in-depth individual assessments and guidance and a job-integration agreement comprising an individual offer and the identification of a single point of contact. These should be offered, at the very latest, when a person has been unemployed for 18 months. Commission Recommendation 2008/867/EC of 3 October 2008 on the active inclusion of people excluded from the labour market sets out an integrated, comprehensive strategy to actively include those excluded from the labour market, combining adequate income support, encouraging inclusive labour markets and supporting access to quality services. The Entrepreneurship 2020 action plan sets out a vision and concrete measures to support entrepreneurial spirit in Europe. Measures to support self-employment at EU level also aim to reach those segments of the population whose entrepreneurial potential is not yet fully exploited, in particular among women (who represent only 29% of entrepreneurs in Europe). Dedicated actions to develop social entrepreneurship were proposed by the Expert Group on Social Entrepreneurship (GECES) report , which was adopted in 2016. The European Network of Public Employment Services (PES), established through the Decision No 573/2014/EU of the European Parliament and Council, provides a platform to compare PES performance at European level, identify good practice and encourage mutual learning to strengthen active support services.

The European Network of Employment Services (EURES), re-established under Regulation (EU) 2016/589, aims to improve the functioning, cohesion and integration of labour markers in the EU, including at cross-border level. With its EUR 86 billion budget for the 2014-2020 period, the European Social Fund (ESF) is the main financial instrument for investing in employment and improving job prospects for Europe’s people, including the most vulnerable, such as job seekers, inactive people, long-term unemployed. The ESF thematic objectives supporting sustainable and quality employment and labour mobility has allocated 28.2 billion EUR, together with the 8.8 billion EUR under the Youth Employment Initiative. Self-employment, entrepreneurship and business creation are among the actions eligible for ESF support. 2. Scope and changes introduced by the European Pillar of Social Rights The Pillar establishes a set of rights for all jobseekers, regardless of their employment status. Its focus in these areas is on providing assistance to find work. This can include employment services, such as job-search counselling and guidance, or participation in 'active measures', such as training, hiring subsidies or re-insertion support. These rights go beyond Article 29 of the Charter of Fundamental Rights, which refers only to the right to a free placement service. Assistance in becoming self-employed is also a significant extension of the existing legislation in this area. Three elements are central to these rights: early intervention, individualised assistance and support in improving employability. This last element – based on a right to receive support for training or for obtaining new qualifications – is crucial to help people adapt to a rapidly changing labour market. Today’s workers change jobs more frequently than in the past, and training or social protection entitlements already in place should not discourage such mobility. The Pillar affirms the transferability of workers’ accrued training or social protection entitlements when they change employment status or employer, including entering or returning from career breaks or moving between employment and self-employment. The Pillar reiterates the main lines of the Youth Guarantee Recommendation, extending these so they apply to all young people. The Pillar also provides for a right to personalised support for unemployed people, which includes the ideas of individualised in-depth assessment, counselling and guidance. There must be continuity in support e.g. when eligibility for unemployment benefits ends, other support such as social services should be engaged to address barriers to people finding work. For those in long-term unemployment (unemployment lasting more than 12 months), the Pillar provides for a right to personalised support, which includes individualised in-depth assessment and the job integration agreement referred to in Council Recommendation of 15 February 2016 on the integration of the long-term unemployed into the labour market. 3. Implementation a) What Member States and Social Partners can do Member States are responsible for implementing the guidelines and recommendations on employment strategy which have been agreed at EU level. To give effect to the Principle, Member States are invited to update and extend their practices in providing assistance to find employment and self-employment and, in addition, to encourage measures to protect workers’ training and social protection entitlements when they change work. At EU level, social partners are consulted in accordance with Article 154 TFEU on possible initiatives based on Article 153 TFEU, and can sign agreements which may be implemented at EU level at their request in accordance with Article 155 TFEU. Social partners can also collect and exchange good practices across the EU. Nationally, social partners can support the implementation of this principle via collective bargaining and through their involvement in the design and implementation of relevant policies. Good practice in the spirit of the Pillar In Malta in April 2017, the Public Employment Service launched an 'Investing in Skills' scheme. The scheme, financed by European Social Fund assists employers in training staff and includes training abroad. Its objective is to increase the productivity and adaptability of workers in Malta. To this end, a comprehensive set of training in digital skills, personnel development and skills for specific sectors are offered. In Spain the Employment Activation Strategy 2017-2020 approved in December 2017 reinforces previous measures with a stronger focus on results. Notably, it includes measures to reinforce training and support for long-term unemployed (LTU), people over 50 years and low-skilled young people without training. In addition, it will promote the modernisation and coordination of the public employment service, including a results-based evaluation, and an improvement of the Vocational Education and Training System, especially the Dual Training. The resources will be allocated to the regions on the basis of performance measured in terms of sustainable labour market integration. In Portugal, the implementation of one-stop shops for Public Employment Services and Social Services is planned in the first quarter of 2018. The planned Contrato-Geracao addresses long-term unemployed in the form of cumulative incentives for the simultaneous recruitment of young unemployed people (or the ones searching for their first job) and the long-term unemployed, aiming to focus support on the ones with greatest difficulty in entering or returning to the labour market. b) Recent and ongoing initiatives at EU level The implementation of the Youth Guarantee has been assessed in the October 2016 Communication “The Youth Guarantee and Youth Employment Initiative three years on” . In its December 2016 Communication "Investing in Europe's Youth", the Commission proposed new actions to support youth employment and create more opportunities for young people. To ensure the full and sustainable implementation of the Youth Guarantee, the budget for the Youth Employment Initiative was increased by EUR 1.2 billion, spread over four years (2017-2020), matched by EUR 1.2 billion from existing European Social Fund allocations.

The Commission is presenting a proposal on "Access to Social Protection for workers and the self-employed", as part of the "Social Fairness Package". The initiative aims to support all self-employed and non-standard workers who, due to their contract type or employment status, are not sufficiently protected by social security schemes regarding unemployment, sickness and healthcare, maternity or paternity, accidents at work and occupational diseases, disability and old-age. The initiative, addresses gaps in access to social protection faced by people employed on non-standard contracts and in various forms of self-employment as well as the means to make rights transferable and transparent when changing employer, contract type or transitioning from or into self-employment. In 2017, the Commission adopted a legislative proposal for the European Solidarity Corps to create new opportunities for volunteering, traineeships or work placements for young people. It should consolidate and ensure a firm legal basis for such placements. The proposal is currently being negotiated between the European Parliament and the Council. The European Network of Employment Services (PES Network) is implementing the Benchlearning project, which aims to improve the public employment services' performance, linking indicator-based benchmarking with mutual learning to better provide active support for job seekers. The 2017 Commission Report on enhanced cooperation between public employment services evaluated how this has been implemented to date. In June 2016, the European Commission proposed actions to support Member States in integrating third-country nationals in a number of areas, including labour market and access to vocational training as part of the Action Plan on the Integration of Third-Country Nationals. Some of these actions are also set out in the New Skills Agenda for Europe (e.g. the skills profile tool for third country nationals, launched in 2017).



Chapter II – Fair working conditions Principle 5 - Secure and adaptable employment a. Regardless of the type and duration of the employment relationship, workers have the right to fair and equal treatment regarding working conditions, access to social protection and training. The transition towards open-ended forms of employment shall be fostered. b. In accordance with legislation and collective agreements, the necessary flexibility for employers to adapt swiftly to changes in the economic context shall be ensured. c. Innovative forms of work that ensure quality working conditions shall be fostered. Entrepreneurship and self-employment shall be encouraged. Occupational mobility shall be facilitated. d. Employment relationships that lead to precarious working conditions shall be prevented, including by prohibiting abuse of atypical contracts. Any probation period should be of reasonable duration. 1. Existing EU law in this field a) The Charter of Fundamental Rights of the European Union Article 31 of the Charter, entitled 'Fair and just working conditions', gives every worker the right to working conditions that respect his or her health, safety and dignity. Article 34 of the Charter affirms respect for the entitlement to social security benefits and social services providing protection in cases such as maternity, illness, industrial accidents, dependency or old age, and in the case of loss of employment, in accordance with the rules laid down by EU and national laws and practices. b) EU legislative powers and their limits Article 153(2) of the Treaty on the Functioning of the European Union (TFEU) empowers the EU to adopt measures to support and complement the activities of Member States inter alia in the areas of working conditions, social security and social protection of workers. Directives adopted on the basis of Article 153 TFEU shall avoid imposing administrative, financial and legal constraints in a way that would hold back the creation and development of small and medium-sized businesses. Article 153(4) states that any acts adopted under Article 153 shall not affect the right of Member States to define the fundamental principles of their social security systems and must not significantly affect the financial equilibrium thereof. Article 162 TFEU states that the European Social Fund shall aim to increase inter alia the geographical and occupational mobility of workers within the EU, and to help their adaptation to industrial changes and to changes in production systems. Article 166 TFEU states that the EU shall implement a vocational training policy. This policy must support and supplement the vocational training policy of Member States. At the same time, it must fully respect the responsibility of the Member States for the content and organisation of vocational training. c) Existing measures in this field

Three Directives have already been enacted to protect workers working under non-standard employment relationships: the Framework Agreement on part-time work concluded by social partners (UNICE, CEEP and the ETUC) and annexed to Council Directive 97/81/EC . It protects part-time workers from being treated less favourably than comparable full-time workers. It also requires employers to give consideration to requests by workers to transfer from full-time work to part-time work or vice-versa. The Framework Agreement on fixed-term work was also concluded by social partners (ETUC, UNICE and CEEP) and annexed to Council Directive 1999/70/EC . This agreement protects fixed-term workers from being treated less favourably than comparable permanent workers and requires Member States to take measures to prevent abuse arising from the use of successive fixed-term contracts. Directive 2008/104/EC of the European Parliament and of the Council on temporary agency work establishes equal treatment in the essential conditions of work of employment between temporary agency workers and workers directly recruited by the user company. In addition, Council Directive 91/533/EEC (the Written Statement Directive) gives workers the right to be notified in writing of the essential aspects of their employment relationship at the latest two months after the employment started. The Commission supports innovative business models that help people in the EU enter employment, make work flexible and create new sources of income. The Entrepreneurship 2020 action plan sets out a vision and concrete measures to foster the entrepreneurial spirit in Europe. Measures to support self-employment at EU level also aim to reach groups of people whose entrepreneurial potential is not yet fully exploited. This is particularly the case for women, who represent only 29% of entrepreneurs in Europe. Dedicated actions to develop social entrepreneurship were proposed by the Expert Group on Social Entrepreneurship (GECES) report adopted in 2016. Promoting greater mobility of workers (both geographical and occupational) in a fair way is an objective of both the European Network of Public Employment Services (PES), established through the Decision No 573/2014/EU of the European Parliament and Council, and of the EURES Network established through the Regulation (EU) 2016/589 of the European Parliament and of the Council of 13 April 2016 on a European network of employment services (EURES), workers' access to mobility services and the further integration of labour markets. Labour mobility is encouraged and supported by the European Social Fund under its thematic objective 8 on employment and labour mobility, including at transnational level. 2. Scope and changes introduced by the European Pillar of Social Rights The Pillar reflects the challenges posed by the changing world of work and new forms of employment. It endorses diversity of employment relationships, entrepreneurship and self-employment. But it also establishes safeguards to prevent abuse that can lead to precarious employment relationships. It also lays down certain guarantees to ensure workers can access training and social security throughout the course of their career. The Pillar extends the guarantee of equal treatment beyond the three forms of employment relationships (part-time, fixed-term and agency work) currently covered by existing EU law in this area. It provides for equal treatment between workers irrespective of the type of employment relationship. It also supports transitions towards open-ended employment relationships. The Pillar recognises the necessary flexibility for employers to adapt swiftly to changes in the economy. Such adaptations can for instance include differential treatment on objective grounds or adaptations in working conditions to avoid excessive job losses during downturns. Changes that employers make to working conditions cannot be unilateral and need to be circumscribed within the limits of existing legislation and collective bargaining agreements. The Pillar also extends the material scope of the equal treatment principle to guarantee access to social protection and to training. The principle ensures equal treatment in accessing statutory social security. Current EU rules (for part-time and fixed-term work) require employers to faciliate access to training. The Pillar principle goes beyond this and requires equality of treatment in access to training. However, equal treatment may not always be sufficient to prevent precarious employment. The Pillar principle therefore explicitly prohibits abuse. It goes beyond existing EU law to prohibit both abuse of employment relationships leading to precariousness and unreasonably long probation periods point. Measures to prevent this abuse can include differential taxation of employment relationships leading to precariousness or the establishment of bonus malus systems for the social security contributions. The Pillar underlines the importance of supporting emerging business models, innovative forms of work, entrepreneurship and self-employment. In general, new business models have the potential to create opportunities. They can facilitate entry into employment, work flexibility and new sources of income. But support for new business models should be premised on a requirement for quality working conditions. Maximising the employment impact of such new business models requires greater occupational mobility. Occupational mobility can be increased by improving access to vocational tranining and re-qualification and a social protection system that fosters and facilitates career changes. 3. Implementation a) What Member States and Social Partners can do Each Member State may define the balance between security and flexibility on its labour market differently. To give effect to the provisions of the Pillar, Member States are nevertheless invited to ensure that their employment and social rules are adapted to the emergence of new forms of work, in addition to transposing and enforcing rules adopted at EU level. At EU level, social partners are to be consulted in accordance with Article 154 TFEU on possible initiatives envisaged under Article 153 TFEU. They can sign agreements which can be implemented at EU level in accordance with Article 155 TFEU upon their request. Social partners may also collect and exchange good practices across the EU. Nationally, social partners can support the implementation of this Principle via collective bargaining and through involvement in the design and implementation of relevant policies. Good practice in the spirit of the Pillar In Finland the government has submitted a proposal to Parliament on legislation concerning employees with alternating working hours. The possibility to agree on alternating working hours would be restricted to jobs characterised by a highly fluctuating amount of work. Moreover, the employer would be required to inform the employees in which situations they will be called on to work. The employee’s right to paid sick leave and paid notice period would be guaranteed. When planning the work schedule, the employer shall give employees who work alternating working hours the opportunity to state how much and under what circumstances s/he will be available to work, in case the employer plans to offer the employee more work than the agreed minimum amount. The amendments shall enter into force on 1 June 2018. In Belgium a law on workable and flexible work was adopted in March 2017 aiming to facilitate more flexibility for employers and employees alike and simplify the combination of work and private life. Working time can now be set on an annual basis, the use of overtime has been relaxed, the formalities for part-time work have been simplified and a legal framework for occasional telework has also been created. At the sectoral level, the social partners now have the option of further adapting working hours and of further fine-tuning the relationship between employers and employees (through employer groups or through open-ended temporary employment).

b) Recent and ongoing initiatives at EU level Following a two-stage consultation of the social partners on the revision of Directive 91/533/EEC (the Written Statement Directive), the Commission proposed in December 2017 a new Directive for more transparent and predictable working conditions across the EU. The proposal complements and modernises existing obligations to inform each worker of his or her working conditions. In addition, the proposal creates new minimum standards to ensure that all workers, including those on atypical contracts, benefit from more predictability and clarity as regards their working conditions. The Commission is presenting a proposal for a recommendation on "Access to Social Protection for workers and the self-employed" as part of the "Social Fairness Package", The proposed recommendation aims at supporting all self-employed and non-standard workers who, due to their contract type or employment status, are not sufficiently protected by social security schemes regarding unemployment, sickness and healthcare, maternity or paternity, accidents at work and occupational diseases, disability and old age. The proposed recommendation, seeks to address gaps in access to social protection faced by people employed on non-standard contracts and in various forms of self-employment. It also seeks to make rights transferable and transparent when changing employer or contract type, or when transitioning to self-employment. The Commission is also putting forward a proposal for a European Labour Authority as part of the "Social Fairness Package". Under this proposal, the Authority will aim to strengthen fairness and efficiency in the European labour market by facilitating cross-border labour mobility. It will help Member States ensure that workers' and citizens' rights to equal treatment and opportunities regarding employment and social protection are guaranteed in cross-border situations. In 2018, the Commission expects to complete a REFIT evaluation of the Directives which give effect to the Social Partner Framework Agreements on fixed-term and part-time work. As part of the Pillar Package, the Commission adopted an Interpretative Communication on the Working Time Directive setting out the Directive's provisions together with the key judgments in an accessible format. Its aim is to make the rights and obligations arising from the Directive clearer and more intelligible. Eurofound, the European Foundation for the Improvement of Living and Working Conditions, is also active in supporting implementation. As one of the EU's decentralised agencies, it supports the work of the Commission, Member States and social partners on working conditions, sustainable work and industrial relations. It monitors structural change and manages restructuring, focusing also on opportunities and challenges in the digital age.



Principle 6 - Wages a. Workers have the right to fair wages that provide for a decent standard of living. b. Adequate minimum wages shall be ensured, in a way that provide for the satisfaction of the needs of the worker and his / her family in the light of national economic and social conditions, whilst safeguarding access to employment and incentives to seek work. In-work poverty shall be prevented. c. All wages shall be set in a transparent and predictable way according to national practices and respecting the autonomy of the social partners. 1. Existing EU law in this field a) The Charter of Fundamental Rights of the European Union Article 31 of the Charter, entitled 'Fair and just working conditions', gives every worker the right to working conditions which respect his or her health, safety and dignity. b) The legislative powers and their limits Article 153(5) TFEU provides that the provisions of Article 153 TFEU shall not apply to pay. Article 145 TFEU, requires the EU and the Member States to work towards developing a coordinated strategy for employment. Article 147 TFEU requires the EU to contribute to a high level of employment by encouraging cooperation between Member States and by supporting - and if necessary complementing - their action. In doing so, the competences of Member States shall be respected. c) Existing measures in this field The EU and its Member States together pursue the European Employment Strategy. This includes monitoring wage and minimum-wage developments and the underlying wage-setting mechanisms. Trends in labour costs, including their wage component, are also monitored under the EU economic policy coordination process under Articles 120 and following TFEU. As provided for in Art 136 (1) (b) TFEU, economic policy recommendations are also addressed to the euro area, and this may include the monitoring of labour costs. The surveillance under Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances includes the monitoring of competitiveness developments, including labour costs.

Commission Recommendation 2008/867/EC of 3 October 2008 sets out an integrated, comprehensive strategy for the active inclusion of those excluded from the labour market, including the promotion of quality work, in particular for pay and benefits, with a view to preventing in-work poverty. 2. Scope and changes introduced by the European Pillar of Social Rights The Pillar sets out the right to fair wages providing for a decent standard of living for all workers. Comparable rights are already included in the 1989 Community Charter of the Fundamental Social Rights of Workers, (one of the sources of Title X on Social Policy of the TFEU), as well as in the (revised) European Social Charter. The Pillar foresees a level of the minimum wage that takes into consideration both (i) the needs of workers and their families and (ii) social factors such as the evolution of the standards of living and (iii) economic factors, which include the need to keep wage developments in line with productivity developments to safeguard access to employment of the most vulnerable workers. The Pillar recognises the role of minimum wages in combatting poverty, while avoiding employment traps. Minimum wages boost the incomes of poor families and provide fair compensation from work for those on low incomes, increasing their incentives to work. Other measures may include (i) reducing the tax burden on low-wage earners and their families, and (ii) supplementing income from work with effective social benefits. The Pillar requires that all wages are set in a transparent and predictable way, in full respect of national practice, notably as concerns the right to collective bargaining of social partners and their autonomy. On minimum wages, most Member States have a national statutory minimum wage. This is a regulatory instrument making a single wage floor legally binding for all employees. A few Member States do not have a statutory minimum wage and different wage floors are set by the social partners through collective agreements, often at sector level. The Pillar does not challenge in any way this diversity of practices and recognises the autonomy of the social partners. Within this context, transparency means that well-established consultation procedures should be followed when setting the minimum wage. This procedure should lead to consensus between relevant national authorities and the social partners, and possibly build on input from other stakeholders and independent experts. In addition, the Pillar calls for ensuring the predictability of wage decisions, for example through the definition of rules such as adjustment to the cost of living for minimum wages. 3. Implementation a) What Member States and Social Partners can do Member States and the social partners are responsible for the definition of wage and minimum wage developments in accordance with their national practices, as set in their collective bargaining and minimum-wage-setting systems. They are invited to give effect to the provisions of the Pillar through transparent minimum-wage-setting mechanisms and effective collective bargaining at national, sector and firm level. They are also invited to take complementary measures to avoid in-work poverty. Furthermore, Member States may ratify (if they have not already done so) and apply (i) ILO N° 131 Convention on minimum-wage fixing and (ii) Convention N° 154 on the promotion of collective bargaining. At EU level, social partners must be consulted in accordance with Article 154 TFEU on possible initiatives based on Article 153 TFEU, and can sign agreements which may be implemented at EU level at their request in accordance with Article 155 TFEU. Social partners may also collect and exchange good practices across the EU. Nationally, social partners can support the implementation of the Pillar through collective bargaining and through involvement in the design and implementation of relevant policies. Good practice in the spirit of the Pillar In Germany important steps were taken to support adequate minimum wages with the introduction of a statutory minimum wage in 2015 and the increase of this minimum wage in January 2017. b) Recent and ongoing initiatives at EU level Minimum wages and other measures to address in-work poverty, as well as more general issues related to wage developments are addressed in Country Specific Recommendations within the European Semester process.

Principle 7 - Information about employment conditions and protection in case of dismissals a. Workers have the right to be informed in writing at the start of employment about their rights and obligations resulting from the employment relationship, including on probation period. b. Prior to any dismissal, workers have the right to be informed of the reasons and be granted a reasonable period of notice. They have the right to access to effective and impartial dispute resolution and, in case of unjustified dismissal, a right to redress, including adequate compensation. 1. Existing EU law in this field

a) The Charter of Fundamental Rights of the European Union Article 27 of the Charter gives every worker the right to be guaranteed information and consultation in good time and at the appropriate levels, in the cases and under the conditions provided for by EU law and national laws and practices. Article 30 of the Charter lays down the right for every worker to be protected against unjustified dismissal, in accordance with EU law and national laws and practices. Article 47 of the Charter guarantees an effective remedy to everyone whose rights and freedoms guaranteed by EU law are violated. b) EU legislative powers and their limits Under Article 153(2) of the Treaty on the Functioning of the European Union (TFEU), the EU is empowered to adopt measures to support and complement the activities of Member States in the fields of inter alia working conditions, protection of workers where their employment contract is terminated, and information and consultation of workers. Directives adopted on the basis of Article 153 TFEU must avoid imposing administrative, financial and legal constraints in a way that would hold back the creation and development of small and medium-sized businesses. c) Existing measures in this field Council Directive 91/533/EEC (the Written Statement Directive) gives workers the right to be notified in writing of the essential aspects of their employment relationship, at the latest two months after the employment started. It does not contain specific obligations in relation to probation periods. The Written Statement Directive requires an employer to notify an employee of the length of the periods of notice to be observed should their contract or employment relationship be terminated. Where this cannot be indicated at the time when the information is given, it requires the employer to notify the employee of the method for determining such periods of notice. Directive 2001/23/EC , which regulates workers' rights in the case of transfer of undertakings, states that the transfer of an undertaking does not in itself constitute valid grounds for dismissal. Council Directive 92/85/EEC on maternity protection and the revised Framework Agreement on parental leave concluded by social partners (BusinessEurope, UEAPME, CEEP and ETUC) are annexed to Council Directive 2010/18/EU . These two instruments provide, respectively, specific protection against dismissal for women during their pregnancy and for parents taking paternity or adoption leave. Council Directive 2000/78/EC (the Employment Equality Directive) on equal treatment in employment and occupation protects workers against dismissal where there is discrimination on a prohibited ground, including victimisation. Protection against unfavourable treatment is also provided under EU law through the Part-time Work Directive, the Gender Equality Directive, the Directive on equal treatment between men and women engaged in an activity in a self-employed capacity and the Parental Leave Directive, and has been reinforced by the case-law of the Court of Justice of the EU. Council Directive 98/59/EC on collective redundancies requires employers to inform and consult workers' representatives and to notify public authorities prior to collective redundancies. The Council Recommendation of 10 March 2014 on a Quality Framework for Traineeships aims to enhance the quality of traineeships, providing quality elements that are directly transferable to national legislation or social partner agreements. They relate in particular to learning content, working conditions, and transparency regarding financial conditions and hiring practices. 2. Scope and changes introduced by the European Pillar of Social Rights The Pillar requires written information to be provided to the worker about his or her working conditions at the start of the employment relationship, rather than within the two months currently provided for by the Written Statement Directive. Since probation periods are significant for most employment relationships, the Pillar also adds information duties for the probation period. These changes will increase awareness of rights on the part of employers and workers. They should also help reduce undeclared work. The Pillar also goes beyond the existing EU law by introducing procedural and substantive safeguards for workers in case of dismissals. It requires adequate reasoning to be provided and a reasonable period of notice be respected. Moreover, the Pillar provides that workers should have access to effective and impartial dispute-resolution procedures. These can include arbitration, mediation or conciliation procedures. The Pillar also introduces the right to adequate redress in case of unjustified dismissals, such as re-instatement or pecuniary compensation. Unjustified dismissals are dismissals that are in breach of the rules applicable to the employment relationship in question. 3. Implementation a) What Member States and Social Partners can do Member States are in charge of transposing and enforcing rules adopted at EU level. Given that the EU measures set out above contain minimum standards, Member States are invited to go beyond these rules in order to give effect to the Pillar. Furthermore, Member States are invited to ratify ( if they have not already done so) and apply relevant ILO Conventions such as (i) Convention N° 122 on Employment Policy, (ii) Convention N ° 144 on Tripartite Consultations, (iii) Convention N° 135 on Workers' Representatives and (iv) Convention N° 154 on Promotion of Collective Bargaining. At EU level, social partners must be consulted in accordance with Article 154 TFEU on possible initiatives based on Article 153 TFEU, and can sign agreements which may be implemented at EU level at their request in accordance with Article 155 TFEU. Social partners may also collect and exchange good practices across the EU. Nationally, social partners can support the implementation of this Principle via collective bargaining and through involvement in the design and implementation of relevant policies. Good practice in the spirit of the Pillar

In December 2017, Bulgaria amended its Labour Code and introduced a guarantee for payment of compensations due in case of termination of the employment relationship. These compensations must be paid no later than the last day of the month following the month of termination. In Lithuania, the new Labour Code imposes a compulsory pre-trial procedure for almost all types of individual and collective labour disputes. While prior to the reform, the collective disputes and cases related to dismissal were directly litigated before the general jurisdiction courts, now a special tripartite commission (Individual Labour Grievances Commission under the State Labour Inspectorate) is competent to hear all cases on the infringement of individual and collective labour rights. b) Recent and ongoing initiatives at EU level Following a two-stage consultation of the social partners on the revision of Directive 91/533/EEC (the Written Statement Directive), the Commission proposed in December 2017 a new Directive for more transparent and predictable working conditions across the EU. The Commission's proposal complements and modernises existing obligations to inform each worker of his or her working conditions. In addition, the proposal creates new minimum standards to ensure that all workers, including those on atypical contracts, benefit from more predictability and clarity as regards their working conditions.

Principle 8 - Social dialogue and involvement of workers a. The social partners shall be consulted on the design and implementation of economic, employment and social policies according to national practices. They shall be encouraged to negotiate and conclude collective agreements in matters relevant to them, while respecting their autonomy and the right to collective action. Where appropriate, agreements concluded between the social partners shall be implemented at the level of the Union and its Member States. b. Workers or their representatives have the right to be informed and consulted in good time on matters relevant to them, in particular on the transfer, restructuring and merger of undertakings and on collective redundancies. c. Support for increased capacity of social partners to promote social dialogue shall be encouraged. 1. Existing EU law in this field a) The Charter of Fundamental Rights of the European Union Article 28 of the Charter provides that workers and employers, or their respective organisations, have, in accordance with EU law and national laws and practices, the right to negotiate and conclude collective agreements at the appropriate levels. In cases of conflicts of interest, article 28 gives them the right to take collective action to defend their interests, including strike action. Article 27 of the Charter guarantees every worker the right at the appropriate levels to information and consultation in good time in the cases and under the conditions provided for by EU law and national laws and practices. b) EU legislative powers and their limits Article 151 of the Treaty on the Functioning of the European Union (TFEU) enshrines the promotion of dialogue between management and labour as a common objective of the EU and the Member States. Article 153(2) TFEU, empowers the EU to adopt measures to support and complement the activities of Member States in the fields of (i) the information and consultation of workers, and (ii) the representation and collective defence of the interests of workers and employers, including codetermination. The powers given by Article 153 TFEU do not apply to pay, the right of association, the right to strike or the right to impose lock-outs. Directives adopted on the basis of Article 153 TFEU must avoid imposing administrative, financial and legal constraints in a way which would hold back the creation and development of small and medium-sized businesses. c) Existing measures Directive 2002/14/EC of the European Parliament and of the Council on informing and consulting workers (the Information and Consultation Directive) aims at ensuring workers’ involvement before decision-making by management, notably where restructuring is envisaged. Directive 2009/38/EC of the European Parliament and of the Council on the establishment of a European Works Council addresses the need for proper information and consultation processes in the case of EU-wide companies through the setting up of European Works Councils to deal with transnational issues that could affect workers. Council Directive 98/59/EC on collective redundancies and Council Directive 2001/23/EC on the transfer of undertakings go beyond ensuring the information and consultation of workers' representatives. For instance, the latter Directive ensures the safeguarding of workers' rights when a business is transferred from one employer to another.



The EU Quality Framework for anticipation of change and restructuring promotes principles and good practices addressed to employers, employees, social partners and public authorities with regard to the anticipation of change and the management of the restructuring processes. The Joint Statement signed by the Presidency of the Council of the European Union, the European Commission and the European Social Partners on "A New Start for Social Dialogue" emphasises (i) the importance of capacity-building of national social partners, (ii) the strengthened involvement of social partners in EU policy and law-making and (iii) the commitment to promote cross-industry and sectoral social dialogue, including their outcomes at all levels.

2. Scope and changes introduced by the European Pillar of Social Rights The Pillar sets the right for social partners to be involved in the design and implementation of employment and social policies, and supports their greater involvement in policy and law-making while taking into account the diversity of national systems. Implementing this aspect of the Pillar entails setting the appropriate institutional or legal framework at EU and national level, by giving a clear role to social partners not only in consultation and preparation of relevant legislation and policies, but also in their implementation and enforcement. The Pillar entitles all workers in all sectors to be informed and consulted directly or through their representatives on matters relevant to them such as the transfer, restructuring and merger of undertakings and collective redundancies. It looks beyond existing EU law given that (i) it applies regardless of the staff numbers involved; (ii) it covers both the restructuring and merger of companies; and (iii) the right is not just to receive information but also to be consulted about any such corporate action, which implies an exchange of views and the establishment of a consistent dialogue with the employer. Moreover, principle 8b covers any issues that concern workers, whereas existing Directives contain a limited list of topics for engaging in information and consultation processes. By referring to 'matters relevant to them, in particular (…) the transfer, restructuring and merger of undertakings and (…) collective redundancies', it goes further than Article 27 of the Charter. Article 27 of the Charter provides for a right to information and consultation 'in the cases and under the conditions provided for by Union law and national laws and practices'. The provisions of the Pillar highlight that the efforts by the social partners can be complemented by public authorities while respecting the social partners' autonomy. It does so by recognizing that capacity-building is first and foremost a bottom-up process depending on the will and efforts of the social partners themselves. Capacity-building refers to increasing the representativeness of social partners and to strengthening their operational, analytical and legal capabilities to engage in collective bargaining and to contribute to policymaking. This support can take the form of setting the appropriate institutional/legal framework, by giving a clear role to social partners in policymaking and also by providing financial support. 3. Implementation a) What Member States and Social Partners can do While respecting the autonomy of the social partners, Member States are invited to involve the social partners closely in the design and implementation of relevant reforms and policies. Member states are also invited to help the social partners improve the functioning and effectiveness of social dialogue and industrial relations at national level. Member States are also invited to encourage good practices for informing and consulting workers and their representatives. Social partners can collect and exchange good practices across the EU. Nationally, social partners can support the implementation of this principle via collective bargaining and through involvement in the design and implementation of relevant policies. Social partners can improve membership and representativeness of both trade unions and employers' organisations, particularly with regard to their capacity to represent the self-employed, workers on all types of employment relationships, young people, people with a migrant background and women, micro and small enterprises. They can also help build legal and technical expertise in order to facilitate their proper involvement in the design and implementation of employment and social policies at both national and EU level. Good practice in the spirit of the Pillar Italian social partners signed a new agreement on the representativeness of trade unions. In Denmark, a tripartite agreement on adult education and training aims at improving upskilling. The French government is involving social partners in the negotiations on the reforms of vocational training and unemployment insurance. In Portugal, following the publication of a Green Book on Labour Relations, the government began discussions with social partners on measures to tackle labour market segmentation. In the Netherlands, social partners are being closely involved in the reform of the pension system. Estonia, Latvia, Lithuania and Slovakia have used support from the European Social Fund to enhance social partners' capacity to contribute to designing key reforms. b) Recent and ongoing initiatives at EU level At EU level, social partners must be consulted in accordance with Article 154 TFEU on possible initiatives based on Article 153 TFEU, and may sign agreements which may be implemented at EU level at their request in accordance with Article 155 TFEU. Social partners may also collect and exchange good practices across the EU. The Tripartite Social Summit for Growth and Employment and the Macroeconomic Dialogue remain the crucial fora for political-level discussions with social partner representatives. The EU social partners in different industries committed to promote capacity-building and improve the implementation of their autonomous agreements in their current work programme 2015-2017. In 2018, the Commission plans to publish a REFIT Evaluation of Directive 2009/38/CE of the European Parliament and of the Council on the establishment of a European Works Council or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the purposes of informing and consulting employees. It will also publish a guidance document concerning the same Directive aimed at improving take up of European Works Councils and their effectiveness. In 2018, the Commission will report to the other EU institutions and to the social partners on the way the good practices collected in the 2013 "EU quality framework for anticipation of change and restructuring" are being applied by Member States. The EU will continue to promote investment by the Member States in the capacity-building of social partners. It will also continue to foster the provision of information to employee representatives, and consultation of employee representatives. In doing so, it will take account of national legislation that has transposed the Directives on informing and consulting workers, collective redundancies and European Works Councils.





Principle 9 - Work-life balance Parents and people with caring responsibilities have the right to suitable leave, flexible working arrangements and access to care services. Women and men shall have equal access to special leaves of absence in order to fulfil their caring responsibilities and be encouraged to use them in a balanced way. 1. Existing EU law in this field a) The Charter of Fundamental Rights of the European Union Article 23 of the Charter states that equality between men and women must be ensured in all areas, including employment, work and pay. The principle of equality must not prevent the maintenance or adoption of measures providing for specific advantages in favour of the under-represented sex. Article 33(2) of the Charter states that in order to reconcile family and professional life, everyone must have the right to protection from dismissal for a reason connected with maternity and the right to paid maternity leave and to parental leave following the birth or adoption of a child. b) EU legislative powers and their limits Article 153(2) of the Treaty on the Functioning of the European Union (TFEU) empowers the EU to adopt measures to support and complement the activities of Member States inter alia in the fields of workers' health and safety, working conditions and equality between men and women with regard to labour market opportunities and treatment at work. Article 157(3) TFEU empowers the EU to adopt measures to ensure the application of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation. Directives adopted on the basis of Article 153 TFEU must avoid imposing administrative, financial and legal constraints in a way which would hold back the creation and development of small and medium-sized businesses. c) Existing measures in this field Council Directive 92/85/EEC requires Member States to provide workers with maternity leave of at least 14 weeks, with an allowance at least at the level of sick pay. Directive 2010/41/EU of the European Parliament and of the Council stipulates that female self-employed workers and the female spouses and life partners of self-employed workers need to be granted sufficient maternity allowance to enable the interruption of their occupational activity because of pregnancy or motherhood, for a period of at least 14 weeks. The revised Framework Agreement on parental leave concluded by social partners (BusinessEurope, UEAPME, CEEP and ETUC) - implemented at EU level by Council Directive 2010/18/EU - gives male and female workers an individual right to parental leave of at least four months. It also requires Member States to take measures to ensure that workers may request a change to their working hours and/or patterns when returning from parental leave, for a set period of time. The Framework Agreement on part-time work concluded by UNICE, CEEP and the ETUC - implemented by Directive 97/81/EC - protects part-time workers from being treated less favourably than full-time workers and requires employers to give consideration to requests by workers to switch from full-time work to part-time work or vice-versa. 2. Scope and changes introduced by the European Pillar of Social Rights The Pillar highlights the importance of work-life balance for all people with caring responsibilities and confers rights that are essential to attain this balance in today’s working environment, such as the right to access childcare or long-term care. The principle goes beyond existing EU law by providing rights for all people in employment with caring responsibilities. It will hence also apply to people in employment who are not parents, but who may, for example, care for elderly or disabled family members. The Pillar confers a right to request flexible working arrangements such as teleworking, adaptation of working schedules or switching between full-time and part-time work. That right to flexible working arrangements currently exists in EU legislation only when a worker returns to work following parental leave. On gender equality, the Pillar sets a new focus on ensuring equal access for women and men to special leave arrangements. The balanced use of these arrangements by men and women should be encouraged, for instance by adjusting the level of payment, or conditions related to flexibility and non-transferability. 3. Implementation a) What Member States and Social Partners can do Member States are in charge of transposing and enforcing rules adopted at EU level. Given that the EU measures set out above contain minimum standards, Member States are invited to go beyond these rules in order to give effect to the provisions of the Pillar. At EU level, social partners must be consulted in accordance with Article 154 TFEU on possible initiatives based on Article 153 TFEU and can request implementation of their agreements at EU level in accordance with Article 155 TFEU. Social partners can also collect and exchange good practices across the EU. Nationally, social partners can support the implementation of this Principle via collective bargaining and through involvement in the design and implementation of relevant policies.

The EU social partners at cross-industry level selected reconciliation of work, private and family life as a priority for their current work programme 2015-2017. Good practice in the spirit of the Pillar Luxembourg adopted a law in December 2017, which extends paternity leave from 2 to 10 days starting in January 2018, among a number of other changes of the family leave. The State will reimburse 8 of the 10 days’ leave to the employer. This leave also covers the adoption of a child aged under 16. The corporate programme “Success Factor Family” is the central platform for reconciling work and family life. Together with central German industr