Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a European Labour Authority
Date: 2018-03-13
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: EU office or agency, employment service, free movement of workers, labour mobility, operation of the Institutions, single market

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   EUROPEAN COMMISSION  Strasbourg, 13.3.2018 COM(2018) 131 final 2018/0064 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a European Labour Authority (text with relevance for the EEA and for Switzerland) {SWD(2018) 68 final}  - {SWD(2018) 69 final}  - {SWD(2018) 80 final}  
 
 
EXPLANATORY MEMORANDUM  

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal  

Strengthening fairness of the Internal Market has been one of the priorities of the mandate of 
the Juncker Commission1. On 17 November 2017, the European Parliament, the Council and 
the Commission jointly proclaimed at the Social Summit in Gothenburg the European Pillar 
of Social Rights2. The Pillar sets out a number of key principles and rights to support fair and 
well-functioning  labour  markets  and  welfare  systems.  It  is  designed  as  a  compass  for  a 
renewed  process  of  convergence  towards  better  working  and  living  conditions  across  the 
Union, ensuring the citizens equal opportunities and access to the labour market, fair working 
conditions  and  social  protection  and  inclusion.  Ensuring  fair  labour  mobility  in  Europe  is 
central to this objective. 

Cross-border  labour  mobility  in  the  EU  benefits  individuals,  economies  and  societies  as  a 
whole.  From  the  EU's  policies  and  priorities,  the  one  that  citizens  support  most  is  the  free 
movement of EU citizens, encompassing the possibility for citizens to live, work, study and 
do business anywhere in the EU3. The free movement of workers and the freedom to provide 
services within the Union depend on clear, fair and effectively enforced rules on cross-border 
labour  mobility  and  social  security  coordination.  To  this  end,  the  EU  has  developed  an 
extensive  body  of  legislation  regulating  free  movement  of  workers,  posting  of  workers  and 
social  security  coordination.  The  Juncker  Commission  has  submitted  several  proposals  to 
improve this regulatory framework4. 

However, concerns remain regarding compliance with and effective and efficient enforcement 
of EU rules, which risks jeopardising trust and fairness in the Internal Market. In particular, 
concerns have been voiced in relation to mobile workers being vulnerable to abuse or being 
denied  their  rights,  as  well  as  businesses  operating  in  an  uncertain  or  unclear  business 
environment and unequal playing field. Cross-border labour mobility has notably increased in 
recent years. In 2017, 17 million citizens lived or worked in a Member State other than that of 
their  nationality.  This  figure  almost  doubled  compared  to  a  decade  ago.  Postings  have 
increased by 68% from 2010 to 2.3 million in 2016.5 1.4 million EU citizens commute to go 
to work in another Member State6. There are also over 2 million workers in the road transport 
sector who cross intra-EU borders on a daily basis to transport goods or passengers. There is a 
need  for  effective  cooperation  between  national  authorities and  for  concerted  administrative 
action to manage the increasingly European labour market.  

The  European  Parliament  has,  on  several  occasions,  underlined  the  need  both  to  reinforce 
controls and coordination between and by Member States7, including through strengthening of 

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of 

overview 

European 

A New Start for Europe: My Agenda for Jobs, Growth, Fairness and Democratic Change, 10 Commission priorities 
for 2015-19:https://ec.europa.eu/commission/priorities_en. 
An 
the 
https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-union/european-pillar-social-
rights_en. 
Standard Eurobarometer 88 - Public opinion in the European Union, December 2017. 
COM(2016) 128 final, COM(2016) 815 final, COM(2017) 278 final, COM(2017) 277 final and COM(2017) 281. 
2016 Annual Report on Intra-EU Labour Mobility, second edition May 2017. 
2017 Annual Report on Intra-EU Labour Mobility. 
European Parliament resolution of 14 September 2016 on social dumping in the European Union (2015/2255(INI)). 

available 

Rights 

Social 

Pillar 

here: 

of 

is 

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information exchanges between labour inspectorates8, and to actively support the exercise of 
free  movement  rights9.  The  Council  has  also  stressed  the  need  to  improve  administrative 
cooperation and develop assistance and information exchanges in the context of fighting fraud 
related to the posting of workers, while emphasising the importance of clear and transparent 
information for service providers and workers10.  
Against this backdrop, in his State of the Union address 201711, President Juncker proposed 
the establishment of a 'European Labour Authority' to ensure that EU rules on labour mobility 
are  enforced  in  a  fair,  simple,  and  effective  way.  This  proposal  aims  at  setting  up  such  a 
European  Labour  Authority  –  hereafter  referred  to  as  ‘the  Authority’  –  in  the  form  of  a 
decentralised EU agency to address the following main challenges: 

 

 

 

 

 

 

Inadequate  support  and  guidance  for  individuals  and  businesses  in  cross-border 
situations,  including  incomplete  or  sparse  information  available  to  the  public 
concerning their rights and obligations; 

Insufficient  access  to  and  sharing  of  information  between  national  authorities 
responsible for different domains of labour mobility and social security coordination; 

Insufficient capacity of national authorities  to  organise cooperation with authorities 
across borders; 

Weak or absent mechanisms for joint cross-border enforcement activities; 

The lack of a dedicated cross-border mediation mechanism between Member States 
across all domains of labour mobility and social security coordination; 

Insufficient cooperation set-up at EU level in this area. 

The overarching objective of the initiative is to contribute to ensuring fair labour mobility in 
the Internal Market. In this context, the proposal aims at:  

 

 

 

Improving access to information by individuals and employers about their rights and 
obligations in the areas of labour mobility and social security coordination as well as 
access to relevant services; 

Strengthening  operational  cooperation  between  authorities  in  the  cross-border 
enforcement of relevant Union law, including facilitating joint inspections; 

Providing mediation and facilitating solutions in cases of disputes between national 
authorities  and  cross-border  labour  market  disruptions,  such  as  a  restructuring  of 
companies affecting several Member States. 

Concretely,  the  Authority  will  be  entrusted  with  a  number  of  operational  tasks,  namely  to 
provide  relevant  information  and  services  to  individuals  and  employers,  as  well  as  support 
Member  States  in  cooperation,  information  exchange,  concerted  and  joint  inspections,  risk 
assessment, capacity building, mediation, and cooperation in the event of cross-border labour 
market  disruptions.  Existing  EU  structures  and  tools  in  the  area  of  cross-border  labour 
mobility and social security coordination will be integrated or complemented by an Authority 
providing Member States with unprecedented operational and technical support.  

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European  Parliament  resolution  of  14  January  2014  on  effective  labour  inspections  as  a  strategy  to  improve 
working conditions in Europe (2013/2112(INI)). 
European Parliament resolution of 19 January 2017 on a European Pillar of Social Rights (2016/2095(INI)). 
Council, General approach on the proposal for a Directive amending Directive 96/71/EC concerning the posting of 
workers, 13612/17, 24 October 2017. 
The 2017 State of the Union address is available at: https://ec.europa.eu/commission/state-union-2017_en  

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The  Authority  will  benefit  to  all  individuals  who  are  subject  to  Union  rules  in  the  area  of 
cross-border  labour  mobility  and  social  security  coordination,  concretely  workers,  self-
employed  persons  or  other  individuals  who  are  Union  citizens  or  third-country  nationals 
legally resident in the Union and in a cross-border situation. This includes posted workers, EU 
Blue  Card  holders,  intra-corporate  transferees  and  long-term  residents  as  long  as  they  are 
subject to the above mentioned rules. It will also benefit companies engaged in cross-border 
activities, including for recruitment purposes. 

• 

Consistency with existing policy provisions in the policy area 

The  Authority  will  help  to  ensure  that  workers'  and  citizens'  rights  to  equal  treatment  and 
access  to  employment  opportunities  and  social  security  are  guaranteed  in  cross-border 
situations.  It  will  also  provide  transparency  for  businesses  on  local  labour  standards 
throughout  the  Internal  Market.  Finally,  it  will  support  cooperation  between  national 
authorities to ensure that workers' and citizens' social rights are respected and to prevent fraud 
and abuse. 

The  Commission  has  adopted  a  number  of  initiatives  and  proposals  to  promote  fair  labour 
mobility,  in  particular,  the  revisions  of  the  Posting  of  Workers  Directive12  and  of  the 
Regulations on the Coordination of Social Security Systems13 as well as the package "Europe 
on  the  Move",  including  the  lex  specialis  on  the  posting  of  workers  in  international  road 
transport  operations14  and  the  revision  of  social  and  market  rules  in  road  transport15.  These 
recent initiatives follow in the path of previous legislative proposals, such as the Directives on 
enforcement  of  posting  of  workers16  and  free  movement  of  workers17,  the  Regulation  on 
EURES (European network of employment services)18 and initiatives such as the set-up of a 
European Platform to tackle undeclared work19. 

Within  the  context  of  the  preparations  of  these  proposals  and  discussions  during  their 
legislative  procedure,  the  need  for  a  strengthened  framework  for  the  application  and 
enforcement of existing rules became evident. The proposal of a European Labour Authority 
aims at filling this gap. 

Establishing  the  proposed  Authority  will  allow  to  concentrate  tasks  some  of  which  are 
currently  dispersed  over  several  committees  and  bodies  and  introduce  operational  support 
across  the  areas  of  labour  mobility  and  social  security  coordination,  thereby  increasing  the 
consistency of EU policy on issues of cross-border mobility (for details, see below the section 
‘Regulatory fitness and simplification’).  

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COM(2016) 128 final.   
COM(2016) 815 final.   
COM(2017) 0278 final.   
COM(2017) 277 final and COM(2017)281. 
Directive 2014/67/EU of the European Parliament and the Council of 15 May 2014 on the enforcement of Directive 
96/71/EC  concerning  the  posting  of  workers  in  the  framework  of  the  provision  of  services  and  amending 
Regulation  (EU)  No  1024/2012  on  administrative  cooperation  through  the  Internal  Market  Information  System 
(‘the IMI Regulation’) (OJ L 159, 28.05.2014, p. 11).  
Directive 2014/54/EU of the European Parliament and the Council of 16 April 2014 on measures facilitating the 
exercise of rights conferred on workers in the context of freedom of movement for workers (OJ L 128, 30.4.2014, 
p. 8). 
Regulation (EU) 589/2016 of the European Parliament and 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, 
and amending Regulations (EU) No 492/2011 and (EU) No 1296/2013 (OJ L 107, 22.04.2016, p. 1). 
Decision (EU) 2016/344 of the European Parliament and the Council of 9 March 2016 on establishing a European 
Platform to enhance cooperation in tackling undeclared work (OJ L 65, 11.03.2016, p. 12). 

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The proposed Authority will be complementary and ensure consistency with the activities of 
the four agencies in the area of employment and social policy: the European Foundation for 
the Improvement of Living and Working Conditions (Eurofound), the European Centre for the 
Development  of  Vocational  Training  (Cedefop),  the  European  Training  Foundation  (ETD), 
and the European Agency for Safety and Health at Work (EU OSHA).  

The  proposed  Regulation  will  contribute  to  the  implementation  of  the  principles  and  rights 
defined  in  the  European  Pillar  of  Social  Rights,  notably  by  promoting  awareness  of 
opportunities for training and life-long learning for mobile citizens as well as active support to 
employment  and,  more  generally,  through  the  efficient  and  effective  enforcement  of  Union 
law  on  labour  mobility  and  social  security  coordination  as  well  as  of  collective  agreements 
implementing such Union law.   

• 

Consistency with other Union policies 

This  initiative  complements  the  ongoing  work  to  achieve  the  goals  set  out  in  the  Political 
Guidelines: A New Start for Europe20 in relation to 'Priority 4: a Deeper and Fairer Internal 
Market with a Strengthened Industrial Base', and in particular the Internal Market Strategy21. 
In  practice,  labour  mobility  is  a  valuable  means  of  ensuring  a  more  efficient  allocation  of 
resources  between  and  within  sectors,  reducing  unemployment  and  addressing  skills 
mismatches. This initiative also complements Priority 1 of the Political Guidelines ('A New 
Boost  for  Jobs,  Growth  and  Investment')  by  creating  a  more  conducive  regulatory 
environment to support a climate of entrepreneurship and job creation.  

Furthermore, the Authority is consistent with the Digital Single Market strategic objective of 
modernising  public  administration,  achieving  cross-border  interoperability  and  facilitating 
easy interaction with individuals. In this context, it complements the Commission's proposal 
for a single digital gateway22 by aiming to facilitate the provision of high quality content and 
services  to  the  public  through  the  gateway,  based  on  the  existing  Your  Europe  Portal.  This 
initiative  will  also  build  on  the  experience  of  the  informal  problem  solving  network 
SOLVIT23.  In  particular,  the  initiative  will  feed  into  and  complement  where  relevant  the 
information and services provided through the single digital gateway. It will also promote the 
access to  SOLVIT  by  individuals  and  employers  to  solve  their  differences  and  build  on  the 
evidence gathered from that source to identify recurring problems in the areas under its scope. 

Moreover, this initiative will draw on good practices in the field of cross-border cooperation 
identified by the 'Border Focal Point'24 so as to help unlock the full economic potential of EU 
border regions. 

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“A New Start for Europe: My Agenda for Jobs, Growth, Fairness and Democratic Change - Political Guidelines for 
the  next  European  Commission”  is  available  at:  http://ec.europa.eu/priorities/publications/president-junckers-
political-guidelines_en   
An  overview  about  the  key  priorities  of  the  single  market  is  available  at:    http://ec.europa.eu/priorities/internal-
market_en  
Proposal COM(2017)256 for a Regulation of the European Parliament and of the Council on establishing a single 
digital  gateway  to  provide  information,  procedures,  assistance  and  problem  solving  services  and  amending 
Regulation (EU) No 1024/2012.  
Commission  Recommendation  2013/461/EU  of  17  September  2013  on  the  principles  governing  SOLVIT  (OJ  L 
249, 19.9.2013, p. 10).  
Communication from the Commission to the Council and the European Parliament, Boosting growth and cohesion 
in EU border regions, COM(2017)534. 

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2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  proposal  is  based  on  Articles  46,  48,  53(1),  62  and  91(1)  TFEU,  focusing  on  the  free 
movement of workers, the coordination of social security systems, the take-up and pursuit of 
activities  as  self-employed  persons,  the  freedom  to  provide  services  and  common  rules 
applicable to international transport. 

  • 

Subsidiarity  

The  subsidiarity  principle  applies  since  the  proposal  does  not  fall  under  the  exclusive 
competence of the EU. The objectives of the proposal cannot be sufficiently achieved by the 
Member States at national, regional or local level and can be better achieved at Union level 
for the following reasons: 

  Providing  high  quality  and  up-to-date  information  and  services  to  the  public  about 
their rights and obligations in cross-border situations needs to be coordinated at Union 
level in order to ensure a consistent, clear, and efficient approach.  

 

  The  application  of  Union  law  in  the  fields  of  cross  border  labour  mobility  and  the 
coordination of social security systems relies on cooperation between Member States, 
meaning that no Member State can act alone.  
In order to increase synergies and support cooperation between Member States in the 
application  of  Union  law  across  the  fields  of  labour  mobility  and  social  security 
coordination, to ensure legal certainty for administrations and individuals alike and to 
arrive at a shared understanding of enforcement needs, it is also necessary to develop a 
coordinated  and  joint  approach  at  Union  level  instead  of  relying  on  what  can  be  a 
complex network of bilateral or multilateral agreements.  

• 

Proportionality 

The initiative is a proportional response to the need for operational support and does not go 
beyond what is necessary to achieve this goal. It does not impose new obligations on Member 
States,  individuals  or  employers;  rather  it  focuses  on  supporting  cross-border  mobility  and 
creating  new  opportunities.  The  proposal  does  not  impinge  on  national  decision-making, 
legislation,  or  enforcement  activities,  which  remain  the  competence  of  Member  States. 
Moreover, it leaves to a large extent to the discretion of Member States how they make use of 
the possibilities put in place by the initiative. 
The  Impact  Assessment  Report  accompanying  the  proposed  Regulation25  outlines  how  the 
proposal achieves the best balance in meeting the objectives laid out by the initiative, ensuring 
benefits  (positive  impacts)  for  national  authorities,  individuals  and  employers  without 
significantly increasing costs. It also reports on the overall support of stakeholders consulted 
in the lead-up to this proposal.  

• 

Choice of the instrument 

The proposed instrument is a regulation on the establishment and functioning of a European 
Labour Authority. The regulation will build on the Common Approach on EU decentralised 
agencies endorsed in 2012 by the European Parliament, the Council and the Commission26. A 

25 
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SWD(2018)68. 
Joint Statement of the European Parliament, the Council of the EU and the European Commission on decentralised 
agencies: https://europa.eu/european-
union/sites/europaeu/files/docs/body/joint_statement_and_common_approach_2012_en.pdf.  

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regulation provides the legal certainty required for setting up the Authority, which could not 
be achieved by means of other legal instruments. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The  proposal  for  a  European  Labour  Authority  was  developed  in  synergy  with  ongoing 
legislative  proposals  in  the  related  areas  of  posting,  social  security  coordination,  and  the 
setting-up  of  a  single  digital  gateway.  In  this  regard,  the  proposal  builds  on  the  evidence 
collected  in  the  preparatory  process  associated  with  these  proposals,  including  impact 
assessments,  as  well  as  discussions  during  the  legislative  procedure.  An  important  point 
which  emerged  from  these  processes  was  the  need  for  operational  support,  in  terms  of 
improved  cross-border  cooperation  and  increased  transparency  and  awareness,  in  order  to 
improve the application and enforcement of these rules in the field of labour mobility.  

Similarly, the proposal has taken note of the ongoing evaluation of the above-mentioned four 
EU  Agencies  in  the  employment  policy  area.  That  evaluation  consists  of  an  individual 
assessment of each agency, a comparative perspective and a prospective assessment regarding 
the future functioning of the four agencies. The four agencies have quite different functions 
than the proposed Authority since they are predominantly research-centred and do not have a 
cross-border  focus.  Nonetheless,  certain  preliminary  elements  of  the  evaluation  have 
contributed  to  this  proposal,  most  notably  with  regard to the  organisation  of  the  Authority's 
tasks and governance. The Impact Assessment Report accompanying this proposal examines 
the possible interaction between the proposed Authority and the existing four agencies.  The 
periodic evaluation  of the Authority will allow exploring further  synergies  and streamlining 
opportunities with Agencies active in the area of employment and social policy.  
In  its  Special  Report  on  the  Free  Movement  of  Workers,  the  European  Court  of  Auditors27 
included recommendations to improve awareness about the tools of the Commission aimed to 
support persons who work abroad, to further enhance the EURES Portal, and to make better 
use of data in the design of initiatives and funding in this field. These aspects have fed into the 
preparation of the current proposal.  

• 

Stakeholder consultations 

In order to explore the views of stakeholders (including of citizens, national authorities, social 
partners  and  civil  society)  on  the  establishment  of  a  European  Labour  Authority,  the 
Commission  organised  an  internet-based  open  public  consultation  on  its  main  parameters 
from 27 November 2017 to 7 January 2018. The public consultation collected a total of 8,809 
replies,  out  of  which  8,420  were  identical  –  stemming  from  a  campaign  initiated  by  the 
European Trade Union Confederation – and 389 were unique replies.  

Overall, respondents to the public consultation expressed strong support for a new Authority, 
including  when  considering  unique  replies.  The  results  largely  supported  the  Commission's 
analysis of the main challenges. The vast majority of respondents (over seventy percent) were 
of the opinion that existing cooperation between national authorities is insufficient to ensure 
effective implementation of EU rules in the field of cross-border mobility. A similarly large 

27 

EN 

Special Report No 6/2018 “Free Movement of Workers – the fundamental freedom ensured but better targeting of 
website: 
is 
aid 
EU 
https://www.eca.europa.eu/en/Pages/DocItem.aspx?did=44964  

mobility” 

available 

worker 

would 

funds 

ECA 

the 

on 

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proportion of respondents considered that insufficient access to information and transparency 
on  cross-border  mobility  rules  is  a  problem  for  individuals  and  businesses.  The  possible 
functions proposed for the new Authority also received broad support, in particular supporting 
systematic cooperation and information exchange between national authorities. 

The Commission also conducted a series of targeted consultations of EU bodies in the field of 
labour mobility and social security coordination. A dedicated hearing with social partners at 
EU level was organised on 11 December 2017 and a strategic dialogue meeting with EU level 
civil society organisations was held on 15 December 2017. In addition to oral contributions 
during  dedicated  meetings,  written  position  papers  were  submitted  by  organisations  and 
representatives taking part in these targeted consultations.   

Targeted consultations yielded varied results. Overall respondents welcomed the creation of a 
new Authority which would focus on improving cooperation between national authorities by 
facilitating  the  exchange  of  information  and  good  practice.  At  the  same  time,  respondents 
underlined  that  the  new  Authority  should  fully  respect  Treaty-based  national  competencies, 
should  not  impose  additional  reporting  requirements  on  Member  States,  and  should  not 
complicate  or  duplicate  existing  administrative  structures.  Many  of  the  stakeholders  taking 
part  in  the  targeted  consultation  believed  that  the  mandate  and  objectives  of  the  future 
Authority needed to be specified along with its link to existing structures and instruments. 

The details of stakeholders' views can be found in Annex 2 of the Impact Assessment Report. 
The  outcomes  of  these  consultations,  including  discussions  within  the  Administrative 
Commission  for  the  Coordination  of  Social  Security  Systems,  the  European  Platform  to 
enhance  cooperation  in  tackling  undeclared  work,  the  Committee  of  Experts  on  Posting  of 
Workers, the Technical Committee on the Free Movement of Workers, the European Network 
of  Public  Employment  Services,  and  informal  exchanges  with  Ministers  during  the  lunch 
debate  of  the  Employment,  Social  Policy,  Health  and  Consumer  Affairs  (EPSCO)  Council 
meeting of October 2017 were duly taken into account when preparing this proposal.  

• 

Collection and use of expertise 

In  preparing  this  initiative  and  the  Impact  Assessment  Report  accompanying  the  proposed 
Regulation, the Commission made use of a wide range of secondary data published by the EU 
institutions (the European Parliament, the Commission and the Court of Auditors), dedicated 
Commission  services  (Your  Europe  Advice,  SOLVIT),  other  international  organisations 
(OECD),  relevant  academic  research  and  studies  by  think-tanks.  It  also  made  use  of  its 
internal policy expertise and analytical capacities, including for the  assessment of budgetary 
impacts.  

The  Commission  also  relied  on  primary  data  collected  for  the  purpose  of  this  initiative.  It 
made  use  of  existing  Framework  Contracts  to  gather  evidence.  This  included  an  ad  hoc 
request to  the  Network  of  legal  experts  on  intra  EU-mobility  (FreSsco)  on  the  capacities  of 
labour inspectorates to deal with cross-border cases. It also included a request to a consulting 
service to develop case studies on the basis of qualitative interviews on resources for cross-
border cooperation in the enforcement area.  

• 

Impact assessment 

In  line  with  its  policy  on  Better  Regulation,  the  Commission  carried  out  an  Impact 
Assessment of potential policy and delivery options in preparation of this initiative. This work 
was supported by structured consultation within the Commission via an Inter-Service Steering 
Group.  

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The Impact Assessment was presented to and discussed with the Regulatory Scrutiny Board 
(RSB)28. Recommendations made by the RSB in its negative opinion of 9 February 2018 were 
addressed by elaborating further on the scope and rationale of the initiative and on the views 
of  stakeholders,  and  developing  further  the  analysis  regarding  the  options  under  assessment 
and  the  way  in  which  the  initiative  can  fit  into  the  existing  governance  structure  on  labour 
mobility  and  social  security  coordination,  while  at  the  same  time  fostering  synergies  and 
simplification. To address the reservations raised by the Board in its (positive) opinion of 21 
February  2018,  the  Impact  Assessment  Report  has  further  clarified  how  the  setting  up  of  a 
new Authority would reorganise the landscape of existing committees and structures with the 
aim of reducing complexity and avoiding duplications, addressed the potential relation of the 
new Authority with existing Union Agencies in the field of employment, and strengthened the 
explanation of the budget estimates associated with the preferred option29.  

Three  policy  options  were  considered  for  the  proposed  Authority,  namely,  (1)  a  support 
option, (2) an operational option, and (3) a supervisory option. Each option proposed the same 
set of tasks for the Authority; however they varied in degree of powers attributed to it. The 
tasks  proposed  for  the  Authority  are:  (i)  labour  mobility  services  for  individuals  and 
businesses;  (ii)  cooperation  and  exchange  of  information  between  national  authorities,  (iii) 
support  to  joint  inspections;  (iv)  labour  market  analyses  and  risk  assessment;  (v)  support  to 
capacity building; (vi) mediation between national authorities; (vii) facilitation of cooperation 
between  relevant  stakeholders  in  the  event  of  cross-border  labour  market  disruptions. 
Similarly,  three  delivery  options  were  considered:  (1)  the  Commission  takes  up  some 
operational  tasks  and  a  European  Network  coordinating  the  existing  EU  labour  mobility 
bodies is established; (2) a new Authority is established building on the existing EU mobility 
bodies, (3) a new Authority is established building on an existing EU Agency in the area of 
employment and social policy.  

As part of the Impact Assessment, the policy and delivery options were assessed against the 
criteria of effectiveness, efficiency and coherence. As a result of this analysis, a combination 
of  the  operational  option  (policy  option  2)  to  be  performed  through  a  new  Authority  that 
builds  on  existing  EU  level  mobility  bodies  (delivery  option  2)  turned  out  to  be  the  most 
efficient and effective way to meet the objectives of this initiative. It allows ensuring positive 
impacts  for  national  authorities,  individuals  and  employers  without  significantly  increasing 
costs  while  overcoming  the  lack  of  operational  support  within  the  existing  EU  cooperation 
framework, which were two important concerns raised by stakeholders.  

• 

Regulatory fitness and simplification 

The proposal to establish the Authority will enhance the EU institutional landscape in the area 
of cross-border mobility, in order to improve and simplify current forms of cooperation, and 
eventually to facilitate the work of Member States and the Commission. 

Today, this institutional landscape includes several EU structures ('EU bodies') where national 
administrations cooperate and exchange best practices. These EU bodies include: the EURES 
European Coordination Office, the Technical Committee and the Advisory Committee on the 
Free Movement of Workers, the Committee of Experts on Posting of Workers, the European 
Platform  tackling  undeclared  work,  the  Administrative  Commission  for  the  Coordination  of 
Social Security Systems and all its subcommittees (including the Technical Commission and 

28 
29 

SEC(2018)144. 
See  Annex  1  of  the  Impact  Assessment  Report  SWD(2018)68  for  details  on  the  consultation  of  the  Regulatory 
Scrutiny Board. 

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the Audit Board created by legislation, and a Conciliation Board set up by the Administrative 
Commission  itself),  and  the  Advisory  Committee  for  the  Coordination  of  Social  Security 
Systems.  

The  new  Authority  will  pool  technical  and  operational  tasks  of  the  above-mentioned  EU 
bodies  into  a  permanent  structure  with  a  view  to  achieving  improved  and  more  efficient 
output on the basis of a strengthened forum for cooperation and joint investigative activities. 
In this context, the Authority will:  

– 

– 

– 

– 

– 

take  over  the  management  of  the  EURES  European  Coordination  Office,  currently 
ensured by the Commission;  

replace the Technical Committee on the Free Movement of Workers; 

replace the Committee of Experts on Posting of Workers; 

replace the Technical Commission, the Audit  Board, and the Conciliation Board of 
the Administrative Commission for the Coordination of Social Security Systems; 

replace the European Platform on tackling undeclared work.  

In  areas  of  social  security  coordination,  the  Authority  will  closely  cooperate  with  the 
Administrative  Commission  for  the  Coordination  of  Social  Security  Systems  regarding  the 
regulatory task for which that committee remains competent. In addition, the Authority will 
benefit from any input that social partners' and governments' representatives at national level 
provide within the Advisory Committee for the Coordination of Social Security Systems and 
the Advisory Committee on the Free Movement of Workers.  

This new setup will simplify the institutional landscape and foster synergies across the various 
aspects  of  cross-border  mobility  within  the  Authority's  scope.  This  will  further  support  the 
consistent and effective application of Union law, improve efficiency, and deliver more and 
better  quality  results  compared  to  the  current  institutional  setup,  where  EU  bodies  largely 
operate  in  silos,  focus  on  a  specific  legal  act  or  area  under  their  responsibility,  lack  an 
operation  dimension,  mostly  meet  only  a  couple  of  times  a  year  and  carry  out  certain 
overlapping activities.   

The initiative also aims to streamline the way in which information and services are provided 
to  the  public  about  rights,  obligations  and  opportunities  related  to  cross-border  labour 
mobility,  thus  simplifying  access  to  such  information  and  services  for  individuals  and 
employers.  

The proposal aims to further enhance the digitalisation of procedures and is complementary to 
the existing and planned initiatives in the field, such as the electronic data exchange between 
national  authorities  in  the  field  of  social  security  coordination  under  implementation  by  the 
Electronic  Exchange  of  Social  Security  Information  (EESSI)  system,  the  Internal  Market 
Information  (IMI) system, as  well as  the Your Europe  Portal and the single digital gateway 
proposed by the Commission.  

• 

Fundamental rights 

As the Authority should contribute to the clear, fair and effective enforcement of Union rules 
on cross-border labour mobility and social security coordination it will support the protection 
and  fruition  of  the  fundamental  rights  covered by  such  rules,  such  as  the  free  movement  of 
persons  and  workers  (Articles  15  and  45  of  the  Charter  of  Fundamental  Rights  of  the 

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9 

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European  Union,  hereafter  referred  to  as  'the  Charter'),  the  right  of  access  to  placement 
services  (Article  29  of  the  Charter),  and  the  freedom  to  provide  services  (Article  16  of  the 
Charter). It would also support the exercise of rights across borders in the field of fair and just 
working conditions, social security and healthcare (Articles 31, 34 and 35 of the Charter) and 
non-discrimination (Article 21 of the Charter). 

With  regards  to  the  protection  of  personal  data  (Article  8  of  the  Charter),  the  provisions  of 
Regulation  (EU)  No  679/2016  (General  Data  Protection  Regulation)30  and  Regulation  (EC) 
No  45/200131  apply  to  the  proceeding  of  personal  data  under  this  proposal.  In  compliance 
with  these  rules,  any  processing  of  personal  data  will  be  limited  to  what  is  necessary  and 
proportionate.  Data  will  be  collected  for  specified,  explicit  and  legitimate  purposes  and  not 
further processed in a manner that is incompatible with those purposes.  

Along  with  the  other  initiatives  proposed  by  the  Commission  under  this  mandate,  this 
proposal  also  helps  the  Commission  and  the  Member  States  implement  the  principles  and 
rights  defined  in  the  European  Pillar  of  Social  Rights  that support  fair  and  well-functioning 
labour markets and welfare systems.    

4. 

BUDGETARY IMPLICATIONS 

Under the preferred combined option identified in the impact assessment, the EU budgetary 
total  costs  of  the  Authority  are  estimated  to  be  50.9  million  per  year  at  cruising  speed 
expected  to  be  reached  by  2023.  The  costs  under  this  Multiannual  Financial  Framework 
(2019-2020)  will  be  met  partially  through  redeployment  from  existing  activities  currently 
implemented  under  the  EU  Programme  for  Employment  and  Social  Innovation  (EaSI)  and 
autonomous  lines  under  Employment  and  Transport  remit  (70%),  partially  through  the 
mobilisation of the margin of Heading 1a (30%). Existing activities shifted to the Authority 
will  not  be  discontinued;  their  implementation  will  be  shifted  from  the  Commission  to  the 
Authority as soon as this becomes operational. As regards staff, the Authority would require 
69 establishment plan posts, 60 seconded national experts and 15 contract agents. Details on 
the  financial  and  staff  needs  can  be  found  in  the  attached  Legislative  Financial  Statements. 
There will be minimum requirements on national budgets through the impact of the proposal 
on  the  EU  budget.  It  is  not  possible  to  exactly  quantify  the  impacts  on  administrations,  but 
case  studies  indicate  that  such  impact  will  be  positive  as  better  rule  enforcement  will  allow 
national  enforcement  bodies  to  capture  previously  unpaid  social  contributions  and  benefit 
from operational support from the Authority.  

The proposal includes an evaluation clause to assess the mandate and tasks of the Authority 
every 5 years, providing for the possibility to progressively extend the scope of its activities 
and to scale-up the Authority. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

A dedicated monitoring framework described in the Impact Assessment Report accompanying 
the  proposal  will  inform,  on  the  basis  of  a  number  of  indicators,  on  progress  achieved  in 

30 

31 

Regulation  (EU)  2016/679  of  the  European  Parliament and  of  the  Council  of  27  April  2016  on  the protection of 
natural persons with regard to the processing of personal data and on the free movement of such data, and repealing 
Directive 95/46/EC (General Data Protection Regulation) (OJ L 119 of 4.5.2016 p. 1). 
Regulation  (EC)  No  45/2001  of  the  European  Parliament  and  of  the  Council  of  18  December  2000  on  the 
protection of individuals with regard to the processing of personal data by the Community institutions and bodies 
and on the free movement of such data (OJ L 8, 12.1.2001, p. 1). 

EN 

10 

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attaining  the  objectives  of  the  Regulation.  The  requirements  and  timeline  of  the  monitoring 
framework  will  be  subject  to  further  adjustment  in  the  course  of  the  legislative  and 
implementing process.  

The Commission will evaluate the Regulation five years after its entry into force in line with 
the  requirements  of  the  Financial  Regulation32  and  Better  Regulation  Guidelines33.  The 
evaluation will particularly focus on the criteria set out in the Better Regulation Guidelines, 
i.e. effectiveness, efficiency, coherence, EU value added and relevance, in view of any review 
or update of the Regulation.  

• 

Detailed explanation of the specific provisions of the proposal 

Chapter  I  presents  the  main  principles  governing  the  establishment  and  functioning  of  the 
future Authority. 

Article 1 sets out the subject matter and policy areas that fall under its scope.  

Article  2  contains  the  main  objectives  of  the  Authority,  with  its  point  a)  explaining  the 
objectives  towards  the  public  including  individuals  and  employers,  point  b)  explaining  the 
role  towards  Member  States,  and  point  c)  referring  to  its  role  to  mediate  and  facilitate  the 
solution of cross-border disputes between national authorities or labour market disruptions.  

Article 3 provides for the Authority’s legal status. 

Article  4  will  indicate  the  seat  of  the  future  Authority,  once  it  has  been  decided  by  the 
Member  States  before  the  end  of  the  legislative  procedure  leading  to  the  adoption  of  this 
proposal. 

Chapter  II  outlines  the  tasks  of  the  future  Authority,  listed  in  Article  5,  with  each  task 
described in more detail in dedicated Article(s). 

Article 6 provides details about the way in which the Authority will improve the quality and 
access of information about the rights and obligations in the field of labour mobility offered to 
individuals and employers.  

Article 7 sets out how the Authority will facilitate the access of individuals and employers to 
labour mobility initiatives and services, defining its specific tasks in this respect. It also sets 
out the Authority’s role in managing the EURES European Coordination Office.  

Article  8  on  cooperation  and  exchange  of  information  between  Member  States  provides  for 
facilitating  the  cooperation  and  speeding  up  of  exchanges  between  national  authorities  on 
cross border cases (described in paragraph 1), describes the function the Authority will play in 
supporting  the  Administrative  Commission  for  the  Coordination  of  Social  Security  Systems 
set up by Regulation (EC) No 883/2004 on financial matters related to the implementation of 
that Regulation (paragraph 2), and underlines the role of the Authority in promoting the use of 
electronic tools and digitalising procedures (paragraphs 3 and 4). 

Articles 9 and 10 explain the way in which the Authority is to coordinate concerted and joint 
inspections  across  borders:  Article  9  defines  the  details  for  establishing  concerted  and  joint 
inspections, it explains that such actions will take place only with agreement of the Member 
States  concerned, either on the request of the national authorities, or  on the initiative of the 
Authority  (paragraph  1),  and  requires  for  Member  States  which  choose  not  to  carry  out  a 

32 

33 

Commission  Delegated  Regulation  (EU)  No.  1271/2013  of  30  September  2013  on  the  framework  financial 
regulation  for  the  bodies  referred  to  in  Article  208  of  Regulation  (EU,  Euratom)  No.  966/2012  of  the  European 
Parliament and of the Council (OJ L 328 07.12.2013, p. 42). 
Better Regulation Guidelines, SWD (2017) 350. 

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concerted or joint inspection to explain the reasons of their decision (paragraph  2), enabling 
Member  States  to  carry  out  joint  inspections  also  in  cases  where  not  all  Member  States 
concerned by the concerted or joint inspection decided to participate (paragraph 3). Article 10 
sets out the practical arrangements for carrying out a concerted or joint inspection under the 
coordination of the Authority.   

Article  11  outlines  the  analytical  and  risk  assessment  function  of  the  Authority  regarding 
cross-border  aspects  of  labour  mobility,  setting  out  the  details  of  the  activities  and  context 
under which such work will be carried out. 

Article 12 mandates the Authority to support Member States in strengthening their capacity, 
in  order  to  promote  consistent,  fair  and  effective  application  and  enforcement  of  relevant 
Union law, and defines specific activities for the Authority in order to fulfil this task. 

Article  13  on  mediation  describes  the  task  of  the  Authority  in  view  of  solving  disputes 
between Member States. 

Article 14 defined the role of the Authority in  fostering cooperation in  case of cross-border 
labour market disruptions. 

Article  15  provides  for  the  cooperation  of  the  Authority  with  other  decentralised  Union 
agencies. 

Article 16 ensures that all work of the Authority focusing on digitalisation of procedures used 
in the course of exchange of information between Member States will follow the principles of 
the relevant interoperability framework and reference architecture.  

Chapter III describes the organisation of the Authority, defining the details of its structure. 

Article  17  provides  for  the  administrative  and  management  structure  of  the  Authority 
comprising  a  Management  Board,  an  Executive  Director  and  a  Stakeholder  Group.  It  also 
establishes  the  possibility  for  the  Authority  to  create  specific  working  groups  and  panels  in 
order to tackle specific tasks. 

Articles 18 to 22 set out the detailed rules for the functioning of the Management Board. This 
section provides for the composition, functions, rules regarding the Chairperson, meetings and 
voting rules of the Management Board. 

Article 23 outlines the responsibilities of the Executive Director. 

Article 24 provides for the creation of a Stakeholder Group attached to the Authority, in order 
to provide for a forum for consultation with stakeholders on topics related to the tasks of the 
Authority. 

Chapter  IV  includes  provisions  on  the  establishment  and  structure  of  the  budget  of  the 
Authority.  

Chapter  V  defines  the  provisions  governing  the  staffing  of  the  Authority,  including  general 
rules  on  staff,  the  Executive  Director,  National  Liaison  Officers,  and  seconded  national 
experts and other staff. 

Chapter  VI  outlines  general  and  final  provisions,  including  privileges  and  immunities 
applicable  to  staff  of  the  Authority,  language  arrangements,  rules  on  transparency  and 
communication, on combating fraud, ensuring security and protection of information as well 
as  liability.  It  provides  that  the  Commission  will  assess  periodically  the  Authority’s 
performance. Provisions on administrative inquiries of the European Ombudsman, as well as 
cooperation  with  third  countries  are  also  contained  in  this  chapter.  The  headquarters 

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agreements  and  operating  conditions,  as  well  as  the  commencement  of  the  Authority’s 
activities are defined in this Chapter. 

Article 46 provides for amendments to Regulation (EC) No 883/2004. 

Article 47 provides for amendments to Regulation (EC) No 987/2009. 

Article 48 provides for amendments to Regulation (EU) No 492/2011. 

Article 49 provides for amendments to Regulation (EU) 2016/589. 

Article 50 provides for the repeal of Decision 2009/17/EC and Decision (EU) 2016/344. 

Article 51 deals with the entry into force of this Regulation.  

EN 

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2018/0064 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing a European Labour Authority 

(text with relevance for the EEA and for Switzerland) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on the Functioning  of  the  European  Union,  and  in  particular  Article  46, 
Article 48, Article 53(1), Article 62 and Article 91(1) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee34, 
Having regard to the opinion of the Committee of the Regions35,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The free movement of workers, freedom of establishment and freedom to provide services are 
fundamental  principles  of  the  internal  market  of  the  Union,  enshrined  in  the  Treaty  on  the 
Functioning of the European Union (TFEU).  

Pursuant  to  Article  3  TEU,  the  Union  is  to  work  for  a  highly  competitive  social  market 
economy,  aiming  at  full  employment  and  social  progress  and  promote  social  justice  and 
protection.  In  accordance  with  Article  9  TFEU,  the  Union,  in  defining  and  implementing  its 
policies and activities, is to take into account requirements linked to, inter alia, the promotion of 
a  high  level  of  employment,  the  guarantee  of  an  adequate  social  protection,  the  fight  against 
social exclusion, and the promotion of a high level of education, training and the protection of 
human health. 

The European Pillar of  Social  Rights was  jointly proclaimed by the European Parliament, the 
Council and the Commission at the Social Summit in Gothenburg on 17 November 2017. That 
Social  Summit  recalled  the  need  to  put  people  first,  in  order  to  further  develop  the  social 
dimension of the Union, and to promote convergence through efforts at all levels, as confirmed 
during the conclusions of the European Council of 14 December 2017. 

As outlined in their Joint Declaration on the legislative priorities for 2018-2019, the European 
Parliament,  the  Council  and  the  Commission  are  committed  to  taking  action  to  reinforce  the 
social  dimension  of  the  Union,  by  working  on  improving  the  coordination  of  social  security 

34 
35 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 

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systems36, by protecting workers from health risks in the workplace37, by ensuring fair treatment 
for  all  in  the  Union  labour  market  through  modernised  rules  on  posting  of  workers38,  and  by 
further improving cross-border enforcement of the Union law.  

A  European  Labour  Authority  (the  ‘Authority’)  should  be  established  in  order  to  help 
strengthen fairness and trust in the Single Market. To that effect, the Authority should support 
the Member States and the Commission in strengthening access to information for individuals 
and  employers  about  their  rights  and  obligations  in  cross-border  labour  mobility  situations  as 
well  as  access  to  relevant  services,  support  compliance  and  cooperation  between  the  Member 
States  to  ensure  the  effective  application  of  the  Union  law  in  these  areas,  and  mediate  and 
facilitate a solution in case of cross-border disputes or labour market disruptions. 

The  Authority  should  perform  its  activities  in  the  areas  of  cross-border  labour  mobility  and 
social  security  coordination,  including  free  movement  of  workers,  posting  of  workers  and 
highly mobile services. It should also enhance cooperation between Member States in tackling 
undeclared work. In cases where the Authority, in the course of the performance of its activities, 
becomes  aware  of  suspected  irregularities,  including  in  areas  of  Union  law  beyond  its  scope, 
such as violations of working conditions, health and safety rules, or the employment of illegally 
staying third-country nationals, it should be able to report them and cooperate on these matters 
with the Commission, competent Union bodies, and national authorities where appropriate.    

The  Authority  should  contribute  to  facilitating  the  free  movement  of  workers  governed  by 
Regulation  (EU)  No  492/2011  of  the  European  Parliament  and  of  the  Council39,  Directive 
2014/54/EU of the European Parliament and the Council40 and Regulation (EU) 2016/589 of the 
European Parliament and the Council41. It should facilitate the posting of workers governed by 
Directive 96/71/EC of the European Parliament and the Council42 and Directive 2014/67/EU of 
the  European  Parliament  and the  Council43,  including  by  supporting  the enforcement  of  those 
provisions  implemented  through  universally  applicable  collective  agreements  in  line  with  the 
practices  of  Member  States.  It  should  also  help  the  coordination  of  social  security  systems 
governed  by  Regulation  (EC)  No  883/2004  of  the  European  Parliament  and  the  Council44, 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  amending  Regulation  (EC)  No  883/2004  on  the 
coordination  of  social  security  systems  and  regulation  (EC)  No  987/2009  laying  down  the  procedure  for  implementing 
Regulation (EC) No 883/2004 (COM (2016) 815 final. 
Proposal for a Directive of the European Parliament and of the Council amending Directive 2004/37/EC on the protection of 
workers from the risks related to exposure to carcinogens or mutagens at work (COM(2017) 11 final). 
Proposal  for  a  Directive  of  the  European  Parliament  and  of  the  Council  amending  Directive  96/71/EC  of  the  European 
Parliament and of the Council of 16 December 1996 concerning the posting of workers in the framework of the provision of 
services (COM (2016) 128 final). 
Regulation  (EU)  No  492/2011  of  the  European  Parliament  and  of  the  Council  of  5  April  2011  on  freedom  of  movement  for 
workers within the Union (OJ L 141, 27.5.2011, p. 1). 
Directive  2014/54/EU of  the  European  Parliament  and  the  Council  of  16  April  2014  on  measures facilitating  the  exercise  of 
rights conferred on workers in the context of freedom of movement for workers (OJ L 128, 30.4.2014, p. 8). 
Regulation (EU) 2016/589 of the European Parliament and 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,  and  amending 
Regulations (EU) No 492/2011 and (EU) No 1296/2013 (OJ L 107, 22.04.2016, p. 1). 
Directive 96/71/EC of the European Parliament and of the Council of 16 December 1996 concerning the posting of workers in 
the framework of the provision of services (OJ L 18, 21.1.1997, p. 1). 
Directive  2014/67/EU  of  the  European  Parliament  and  of  the  Council  of  15  May  2014  on  the  enforcement  of  Directive 
96/71/EC concerning the posting of workers in the framework of the provision of services and amending Regulation (EU) No 
1024/2012  on  administrative  cooperation  through  the  Internal  Market  Information  System (‘the  IMI  Regulation’)  (OJ  L  159, 
28.05.2014, p. 11). 
Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social 
security systems, (OJ L 166, 30.4.2004, p.1, corrigendum OJ L 200, 7.6.2004, p. 1). 

(5) 

(6) 

(7) 

36 

37 

38 

39 

40 

41 

42 

43 

44 

EN 

15 

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(8) 

(9) 

Regulation (EC) No 987/2009 of the European Parliament and the Council45, Regulation (EU) 
No  1231/2010  of  the  European  Parliament  and  the  Council46;  as  well  as  Council  Regulation 
(EC) No 1408/7147 and Council Regulation (EC) No 574/7248. 

In certain instances, sector-specific Union law has been adopted in order to respond to specific 
needs in that sector, such as the area of international transport. The Authority should also deal 
with the cross-border aspects of the application of such sector-specific Union law, in particular 
Regulation  (EC)  No  561/2006  of  the  European  Parliament  and  the  Council49,  Directive 
2006/22/EC of the European Parliament and the Council50, Regulation (EC) No 1071/2009 of 
the  European  Parliament  and  the  Council51  and  Directive  (Amending  Directive  2006/22/EC  – 
COM(2017)278)52.  

The individuals covered by the activities of the Authority should be persons who are subject to 
the  Union  law  within  the  scope  of  this  Regulation,  including workers,  self-employed  persons, 
jobseekers,  and  economically  non-active  persons;  this  should  cover  both  Union  citizens  and 
third-country nationals who are legally resident in the Union, such as posted workers, EU Blue 
Card  holders,  intra-corporate  transferees  or  long-term  residents,  as  well  as  their  family 
members.  

(10)  The establishment of the Authority should not create new rights and obligations for individuals 
or employers, including economic operators or non-profit organisations, as the activities of the 
Authority should cover them to the extent to which they are covered by the Union law within 
the scope of this Regulation. 

(11)  To  ensure  they  can  benefit  from  a  fair  and  effective  internal  market,  the  Authority  should 
promote  opportunities  for  individuals  and  employers  to  be  mobile  or  provide  services  and 
recruit  anywhere  within  the  Union.  This  includes  supporting  the  cross-border  mobility  of 
individuals  by  facilitating  access  to  cross-border  mobility  services,  such  as  the  cross-border 
matching of jobs, traineeships and apprenticeships and by promoting mobility schemes such as 
'Your  first  EURES  job'  or  'ErasmusPRO’.  The  Authority  should  also  contribute  to  improving 
transparency of information, including on rights and obligations stemming from Union law, and 
access  to  services  to  individuals  and  employers,  in  cooperation  with  other  Union  information 

45 

46 

47 

48 

49 

50 

51 

52 

Regulation (EC) No 987/2009 of the European Parliament and of the Council of 16 September 2009 laying down the procedure 
for implementing Regulation (EC) No 883/2004 on the coordination of social security systems, (OJ L 284, 30.10.2009, p. 1). 
Regulation  (EU)  No  1231/2010  of  the  European  Parliament  and  of  the  Council  of  24  November  2010  extending  Regulation 
(EC)  No  883/2004  and  Regulation  (EC)  No  987/2009  to  nationals  of  third  countries  who  are  not  already  covered  by  these 
Regulations solely on the ground of their nationality (OJ L 344, 29.12.2010, p. 1).  
Council Regulation (EC) No 1408/71 of 14 June 1971 on the application of social security schemes to employed persons, to 
self-employed persons and to members of their families moving within the Community (OJ L 149, 5.7.1971 p. 2). 
Council  Regulation  (EC)  No  574/72  of  21  March  1972  laying  down  the  procedure  for  implementing  Regulation  (EEC)  No 
1408/71  on  the  application  of  social  security  schemes  to  employed  persons,  to  self-employed  persons,  and  to  their  families 
moving within the Community (OJ L 74, 27.3.1972, p. 1). 
Regulation (EC) No 561/2006 of the European Parliament and of the Council of 15 March 2006 on the harmonisation of certain 
social  legislation  relating  to  road  transport  and amending  Council  Regulations  (EEC)  No 3821/85  and  (EC)  No 2135/98  and 
repealing Council Regulation (EEC) No 3820/85 (OJ L 102, 11.4.2006, p. 1). 
Directive  2006/22/EC  of  the  European  Parliament  and  of  the  Council  of  15  March  2006  on  minimum  conditions  for  the 
implementation of Council Regulations (EEC) No 3820/85 and (EEC) No 3821/85 concerning social legislation relating to road 
transport activities and repealing Council Directive 88/599/EEC (OJ L 102, 11.4.2006, p. 35). 
Regulation (EC) No 1071/2009 of the European Parliament and of the Council of 21 October 2009 establishing common rules 
concerning  the  conditions  to  be  complied  with  to  pursue  the  occupation  of  road  transport  operator  and  repealing  Council 
Directive 96/26/EC (OJ L 300, 14.11.2009, p. 51). 
COM(2017)278 – Proposal for a Directive of the European Parliament and of the Council amending Directive 2006/22/EC as 
regards enforcement requirements and laying down specific rules with respect to Directive 96/71/EC and Directive 2014/67/EU 
for posting drivers in the road transport sector. 

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services, such as Your Europe Advice, and taking full advantage and ensuring consistency with 
the Your Europe portal, which will form the backbone of the future single digital gateway53.  

(12)  For  these  purposes,  the  Authority  should  cooperate  with  other  relevant  Union  initiatives  and 
networks,  in  particular  the  European  Network  of  Public  Employment  Services  (PES)54,  the 
European  Enterprise  Network55,  the  Border  Focal  Point56  and  SOLVIT57,  as  well  as  with 
relevant national services such as the bodies to promote equal treatment and to support Union 
workers  and  members  of  their  family,  designated  by  Member  States  under  Directive 
2014/54/EU,  and  national  contact  points  designated  under  Directive  2011/24/EU  of  the 
European Parliament and of the Council58 to provide information on healthcare. The Authority 
should also explore synergies with the proposed European services e-card59, notably with regard 
to those cases in which Member States opt for the submission of declarations regarding posted 
workers  through  the  e-card  platform.  The  Authority  should  replace  the  Commission  in 
managing  the  European  network  of  employment  services  (‘EURES’)  European  Coordination 
Office  established  pursuant  to  Regulation  (EU)  No  2016/589,  including  the  definition  of  user 
needs  and  business  requirements  for  the  effectiveness  of  the  EURES  portal  and  related  IT 
services,  but  excluding  the  IT  provision,  and  the  operation  and  development  of  the  IT 
infrastructure, which will continue to be ensured by the Commission.  

(13) 

In view of the fair, simple and effective application of Union law, the Authority should support 
cooperation and timely exchange of information between Member States. Together with other 
staff,  National  Liaison  Officers  working  within  the  Authority  should  support  Member  States’ 
compliance with cooperation obligations, speed up exchanges between them through procedures 
dedicated  to  reducing  delays,  and  ensure  links  with  other  national  liaison  offices,  bodies,  and 
contact  points  established  under  Union  law.  The  Authority  should  encourage  the  use  of 
innovative approaches to effective and  efficient  cross-border cooperation, including electronic 
data  exchange  tools  such  as  the  Electronic  Exchange  of  Social  Security  Information  (EESSI) 
system  and  the  Internal  Market  Information  (IMI)  system,  and  should  contribute  to  further 
digitalising  procedures  and  improving  IT  tools  used  for  message  exchange  between  national 
authorities.  

(14)  To  increase  Member  States'  capacity  to  tackle  irregularities  with  a  cross-border  dimension  in 
relation to Union law within its scope, the Authority should support the national authorities in 
carrying out concerted and joint inspections, including by facilitating the implementation of the 
inspections in accordance with Article 10 of Directive 2014/67/EU. These should take place at 
the  request  of  Member  States  or  upon  their  agreement  to  the  Authority's  suggestion.  The 
Authority  should  provide  strategic,  logistical,  and  technical  support  to  Member  States 
participating in the concerted or joint inspections in full respect of confidentiality requirements. 
Inspections  should  be  carried  out  in  agreement  with  the  Member  States  concerned  and  take 
place  fully  within  the  legal  framework  of  national  law  of  Member  States  concerned,  which 

53 
54 

55 
56 

57 
58 

59 

Regulation [Single Digital Gateway – COM(2017)256] 
Decision No 573/2014/EU of the European Parliament and of the Council of 15 May 2014 on enhanced cooperation between 
Public Employment Services (PES) (OJ L 159, 28.5.2014, p. 32). 
European Enterprise Network, https://een.ec.europa.eu/    
Communication from the Commission to the Council and the European Parliament, Boosting growth and cohesion in EU border 
regions, COM(2017) 534.  
Commission Recommendation of 17 September 2013 on the principles governing SOLVIT (OJ L 249, 19.9.2011, p. 10). 
Directive 2011/24/EU of the European Parliament and of the Council of 9 March 2011 on the application of patients’ rights in 
cross-border healthcare (OJ L 88, 4.4.2011, p. 45). 
COM(2016) 824 final and COM(2016) 823 final.  

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(15) 

should follow up on the outcomes of the concerted and joint inspections according to national 
law.   

In  order  to  keep  track  of  emerging  trends,  challenges,  or  loopholes  in  the  areas  of  labour 
mobility  and  social  security  coordination,  the Authority  should  develop  an  analytical  and risk 
assessment  capacity.  This  should  involve  carrying  out  labour  market  analyses  and  studies,  as 
well as peer reviews. The authority should monitor potential imbalances in terms of skills and 
cross-border labour flows, including their possible impact on territorial cohesion. The Authority 
should also support the risk assessment referred to in Article 10 of Directive 2014/67/EU. The 
Authority should ensure synergies and complementarity with other Union Agencies or services 
or networks. This should include seeking input from SOLVIT and similar services on recurring 
problems encountered by individuals and businesses in the exercise of their rights in the areas 
under  the  scope  of  the  Authority.  The  Authority  should  also  facilitate  and  streamline  data 
collection  activities  provided  for  by  the  relevant  Union  laws  within  its  scope.  This  does  not 
entail the creation of new reporting obligations for Member States. 

(16)  To strengthen the capacity of national authorities and improve consistency in the application of 
Union  law  within  its  scope,  the  Authority  should  provide  operational  assistance  to  national 
authorities, including by developing practical guidelines, establishing training and peer learning 
programmes,  promoting  mutual  assistance  projects,  facilitating  staff  exchanges  such  as  those 
referred to in Article 8 of Directive 2014/67/EU, and supporting Member States in organising 
awareness-raising  campaigns  informing  individuals  and  employers  of  their  rights  and 
obligations.  The  Authority  should  promote  the  exchange,  dissemination  and  uptake  of  good 
practices.  

(17)  The  Authority  should  provide  a  platform  for  resolving  disputes  between  Member  States  in 
relation to the application of Union law that falls within its scope. It should build on dialogue 
and  conciliation  mechanisms  that  are  currently  in  place  in  the  area  of  social  security 
coordination, which  are valued by Member States60 and  their importance is recognised by the 
Court of Justice61. Member States should be able to refer cases to the Authority for mediation 
according to standard procedures put in place for this purpose. The Authority should only deal 
with disputes between Member States, while individuals and employers facing difficulties with 
exercising their  Union rights  should continue to have  at  their disposal  the national and Union 
services  dedicated  to  dealing  with  such  cases,  such  as  the  SOLVIT  network  to  which  the 
Authority  should  refer  such  cases.  The  SOLVIT  network  should  also  be  able  to  refer  to  the 
Authority for its consideration cases in which the problem cannot be solved due to differences 
between national administrations. 

(18)  To  facilitate  the  management  of  labour  market  adjustments,  the  Authority  should  facilitate 
cooperation among relevant stakeholders in order to address labour market disruptions affecting 
more  than  one  Member  State,  such  as  cases  of  restructuring  or  major  projects  impacting 
employment in border regions. 

60 

61 

Council, Partial general approach of 26 October 2017 on the proposal for a Regulation amending Regulation (EC) No 883/2004 
on the coordination of social security systems and regulation (EC) No 987/2009 laying down the procedure for implementing 
Regulation (EC) No 883/2004 13645/1/17.  
Case  C-236/88  EU:C:1990:303,  paragraph  17;  Case  C-202/97  EU:C:2000:75,  paragraphs  57-58;  Case  C-178/97 
EU:C:2000:169, paragraphs 44-45; Case C-2/05 EU:C:2006:69, paragraphs 28-29; Case C-12/14 EU:C:2016:135, paragraphs 
39-41; Case C-359/16  EU:C:2018:63, paragraphs 44-45. 

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(19)  The  European  Interoperability  Framework  (EIF)62  offers  principles  and  recommendations  on 
how to improve governance of interoperability activities and public services delivery, establish 
cross-organisational and cross-border relationships, streamline processes supporting end-to-end 
digital  exchanges,  and  ensure  that  both  existing  and  new  legislation  support  interoperability 
principles. The European Interoperability Reference Architecture (EIRA) is a generic structure, 
comprising  principles  and  guidelines  applying  to  the  implementation  of  interoperability 
solutions63.  Both  the  EIF  and  the  EIRA  should  guide  and  support  the  Authority  when 
considering interoperability matters. 

(20) 

 The  Authority  should  be  governed  and  operated  in  line  with  the  principles  of  the  Joint 
Statement  of  the  European  Parliament,  the  Council  and  the  Commission  on  decentralised 
agencies of 19 July 2012.   

(21)  The  Member  States  and  the  Commission  should  be  represented  on  a  Management  Board,  in 
order to ensure the effective functioning of the Authority. The composition of the Management 
Board,  including  the  selection  of  its  Chair  and  Deputy-Chair,  should  respect  the  principles  of 
gender balance, experience and qualification. In view of the effective and efficient functioning 
of  the  Authority,  the  Management  Board,  in  particular,  should  adopt  an  annual  work 
programme, carry out its functions relating to the Authority’s budget, adopt the financial rules 
applicable to the Authority, appoint an Executive Director, and establish procedures for taking 
decisions  relating  to  the  operational  tasks  of  the  Authority  by  the  Executive  Director. 
Representatives from countries other than Union Member States, which are applying the Union 
rules  within  the  scope  of  the  Authority,  may  participate  in  the  meetings  of  the  Management 
Board as observers. 

(22)  Without prejudice to the powers of the Commission, the Management Board and the Executive 
Director should be independent in the performance of their duties and act in the public interest.   

(23)  The Authority should directly rely on the expertise of relevant stakeholders in the areas under 
its  scope  through  a  dedicated  Stakeholder  Group.  The  members  should  be  representatives  of 
Union-level social  partners.  In  carrying out  its activities, the Stakeholder  Group will  take due 
account  of  the  opinions  and  draw  on  the  expertise  of  the  Advisory  Committee  for  the 
Coordination of Social Security Systems established by Regulation (EC) No 883/2004 and the 
Advisory  Committee  on  the  Free  Movement  of  Workers  established  pursuant  to  Regulation 
(EU) No 492/2011. 

(24)  To  guarantee  its  full  autonomy  and  independence,  the  Authority  should  be  granted  an 
autonomous budget, with revenue coming from the general budget of the Union, any voluntary 
financial  contribution  from  the  Member  States  and  any  contribution  from  third  countries 
participating in the work of the Authority. In exceptional and duly justified cases it should also 
be  in  the  position  to  receive  delegation  agreements  or  ad  hoc  grants,  and  to  charge  for 
publications and any service provided by the Authority.  

(25)  Processing of personal data carried out in the context of this Regulation should be conducted in 
accordance  with  Regulation  (EU)  No  2016/679  of  the  European  Parliament  and  of  the 

62 

63 

Communication from the Commission to the European Parliament, the Council, the European Economic Social Committee and 
the Committee of the Regions: European Interoperability Framework – Implementation Strategy - COM(2017) 134 final. 
Decision (EU) 2015/2240 of the European Parliament and of the Council of 25 November 2015 establishing a programme on 
interoperability  solutions  and  common  frameworks  for  European  public  administrations,  businesses  and  citizens  (ISA2 
programme) as a means for modernising the public sector (OJ L 318, 4.12.2015, p. 1). 

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Council64,  or  Regulation  (EC)  No  45/2001  of  the  European  Parliament  and  of  the  Council65, 
whichever is applicable. This includes putting in place appropriate technical and organisational 
measures  to  comply  with  the  obligations  imposed  by  these  Regulations,  in  particular  those 
relating  to  the  lawfulness  of  the  processing,  the  security  of  the  processing  activities,  the 
provision of information and the rights of data subjects.  

(26) 

In order to ensure the transparent operation of the Authority, Regulation (EC) No 1049/2001 of 
the European Parliament and of the Council66 should apply to the Authority. The activities of 
the Authority should be subject to the scrutiny of the European Ombudsman in accordance with 
Article 228 TFEU.  

(27)  Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council67 should 
apply to the Authority, which should accede to the Interinstitutional Agreement of 25 May 1999 
between the European Parliament, the Council of the European Union and the Commission of 
the European Communities concerning internal investigations by the OLAF.  

(28)  The  Authority’s  host  Member  State  should  provide  the  best  possible  conditions  to  ensure  the 

proper functioning of the Authority.   

(29) 

In order to ensure open and transparent employment conditions and equal treatment of staff, the 
Staff  Regulations  of  Officials  of  the  European  Union  (Staff  Regulations  of  Officials)  and  the 
Conditions  of  Employment  of  Other  Servants  of  the  European  Union  (Conditions  of 
Employment), laid down in Regulation (EEC, Euratom, ECSC) No 259/68  (together referred to 
as  the  ‘Staff  Regulations’),  should  apply  to  the  staff  and  to  the  Executive  Director  of  the 
Authority,  including  the  rules  of  professional  secrecy  or  other  equivalent  duties  of 
confidentiality. 

(30)  Within  the  framework  of  their  respective  competences,  the  Authority  should  cooperate  with 
other agencies of the Union, in particular those established in the area of employment and social 
policy, building on their expertise and maximising synergies: the European Foundation for the 
Improvement  of  Living  and  Working  Conditions  (Eurofound),  the  European  Centre  for  the 
Development of Vocational Training (Cedefop), the European Agency for Safety and Health at 
Work  (EU-OSHA),  and  the  European  Training  Foundation  (ETF),  as  well  as,  as  regards  the 
fight  against  organised  crime  and  trafficking  in  human  beings,  with  the  European  Union 
Agency for Law Enforcement Cooperation (Europol) and European Union Agency for Criminal 
Justice Cooperation (Eurojust).   

(31) 

In  order  to  bring  an  operational  dimension  to  the  activities  of  existing  bodies  in  the  areas  of 
cross-border  labour  mobility,  the  Authority  should  take  over  the  performance  of  tasks  carried 
out  by  the  Technical  Committee  on  the  Free  Movement  of  Workers  established  pursuant  to 
Regulation  (EU)  No  492/2011,  the  Committee  of  Experts  on  Posting  of  Workers  set  up  by 

64 

65 

66 

67 

Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons 
with  regard  to  the  processing  of  personal  data  and  on  the  free  movement  of  such  data,  and  repealing  Directive  95/46/EC 
(General Data Protection Regulation) (OJ L 119 of 4.5.2016, p. 1). 
Regulation  (EC)  No  45/2001  of  the  European  Parliament  and  of  the  Council  of  18  December  2000  on  the  protection  of 
individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement 
of such data (OJ L8, 12.1.2001, p. 1), currently under revision by COM(2017) 8 final.    
Regulation  (EC)  No  1049/2001  of  the  European  Parliament  and  of  the  Council  of  30  May  2001  regarding  public  access  to 
European Parliament, Council and Commission documents (OJ L 145, 31.5.2001, p. 43). 
Regulation  (EU,  Euratom)  No  883/2013  of  the  European  Parliament  and  of  the  Council  of  11  September  2013  concerning 
investigations  conducted  by  the  European  Anti-Fraud  Office  (OLAF)  and  repealing  Regulation  (EC)  No  1073/1999  of  the 
European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1). 

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Commission  Decision  2009/17/EC68  and  the  European  Platform  to  enhance  cooperation  in 
tackling undeclared work set up by Decision (EU) 2016/344 of the European Parliament and the 
Council69. With the establishment of the Authority, those bodies should cease to exist. 

(32)  The  Authority  should  complement  the  activities  of  the  Administrative  Commission  for  the 
Coordination  of  Social  Security  Systems  created  by  Regulation  (EC)  No  883/2004  (‘the 
Administrative Commission’) in so far as it exercises regulatory tasks related to the application 
of Regulations (EC) No 883/2004 and (EC) No 987/2009. The Authority should however take 
over  operational  tasks  currently  carried  out  under  the  framework  of  the  Administrative 
Commission, such as providing a mediation function between Member States,  ensuring a forum 
for handling financial matters related to the application of Regulations (EC) No 883/2004 and 
(EC) No 987/2009,  replacing the function  of the Audit  Board set up by those Regulations,  as 
well as matters related to electronic data exchange and IT tools to facilitate the application of  
those Regulations, replacing the function of the Technical Commission for Data Processing set 
up by those Regulations.  

(33)  The  Advisory  Committee  for  the  Coordination  of  Social  Security  Systems  established  by 
Regulation (EC) No 883/2004 and the Advisory Committee on the Free Movement of Workers 
established pursuant to Regulation (EU) No 492/2011 provide a forum for consultation of social 
partners  and  government  representatives  at  national  level.  The  Authority  should  contribute  to 
their work and may participate in their meetings.  

(34) 

In  order  to  reflect  this  new  institutional  set-up,  Regulations  (EC)  No  883/2004,  (EC)  No 
987/2009,  (EU)  No  492/2011,  and  (EU)  2016/589  should  be  amended,  and  Decision 
2009/17/EC and Decision (EU) 2016/344 should be repealed.   

(35)  Respect  for  the  diversity  of  national  industrial  relations  systems  as  well  as  the  autonomy  of 
social  partners  is  explicitly  recognised  by  the  TFEU.  Taking  part  in  the  activities  of  the 
Authority  is  without  prejudice  to  the  Member  States'  competences,  obligations  and 
responsibilities  under,  inter  alia,  relevant  and  applicable  International  Labour  Organization 
(ILO)  conventions,  such  as  Convention  No  81  concerning  Labour  Inspection  in  Industry  and 
Commerce, and to the Member States' powers to regulate, mediate or monitor national industrial 
relations, in particular on the exercise of the right to collective bargaining and to take collective 
action.  

(36)  Since the  objectives  of  this  Regulation  to  support the  free movement  of  workers  and  services 
and to contribute to strengthening fairness in the internal market cannot be sufficiently achieved 
by the Member States acting in an uncoordinated manner, but can rather, by reason of the cross-
border nature of those activities and the need for increased cooperation between Member States, 
be  better  achieved  at  Union  level,  the  Union  may  adopt  measures  in  accordance  with  the 
principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance 
with the principle of proportionality, this Regulation does not go beyond what is necessary in 
order to achieve those objectives. 

(37)  This  Regulation  respects  the  fundamental  rights  and  observes  the  principles  recognised  in 
particular by the Charter of Fundamental Rights of the European Union, as referred to in Article 
6 of the Treaty on European Union, 

68 

69 

Commission Decision 2009/17/EC of 19 December 2008 setting up the Committee of Experts on Posting of Workers (OJ L 8, 
13.1.2009, p. 26). 
Decision (EU) 2016/344 of the European Parliament and of the Council of 9 March 2016 on establishing a European Platform 
to enhance cooperation in tackling undeclared work (OJ L 65, 11.3.2016, p. 12). 

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HAVE ADOPTED THIS REGULATION: 

Chapter I 

Principles 

Article 1 

Subject matter and scope 

1. 

2. 

This Regulation establishes the European Labour Authority (‘the Authority’). 

The  Authority  shall  assist  Member  States  and  the  Commission  in  matters  relating  to  cross-
border labour mobility and the coordination of social security systems within the Union.  

Article 2 

Objectives  

The  objective  of  the  Authority  shall  be  to  contribute  to  ensuring  fair  labour  mobility  in  the  internal 
market. To this end, the Authority shall:   

(a) 

(b) 

facilitate  access  for  individuals  and  employers  to  information  on  their  rights  and 
obligations as well as to relevant services;  

support cooperation between Member States in the cross-border enforcement of relevant 
Union law, including facilitating joint inspections; 

(c)  mediate  and  facilitate  a  solution  in  cases  of  cross-border  disputes  between  national 

authorities or labour market disruptions. 

Article 3 

Legal status 

1. 

2. 

The Authority shall be a body of the Union with legal personality. 

In  each  of  the  Member  States,  the  Authority  shall  enjoy  the  most  extensive  legal  capacity 
accorded  to  legal  persons  under  their  laws.  It  may,  in  particular,  acquire  and  dispose  of 
movable and immovable property and be party to legal proceedings. 

The seat of the Authority shall be [x]. 

Article 4 

Seat 

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Chapter II 

Tasks of the Authority 

Article 5 

Tasks of the Authority  

In order to achieve its objectives, the Authority shall carry out the following tasks: 

(a) 

(b) 

(c) 

(d) 

(e) 

facilitate access to information by individuals and employers on rights and obligations in 
cross-border  situations  as  well  as  access  to  cross-border  labour  mobility  services,  in 
accordance with Articles 6 and 7; 

facilitate cooperation and the exchange of information between national authorities with 
a view to the effective enforcement of relevant Union law, in accordance with Article 8; 

coordinate  and  support  concerted  and  joint  inspections,  in  accordance  with  Articles  9 
and 10; 

carry  out  analyses  and  risk  assessments  on  issues  of  cross-border  labour  mobility,  in 
accordance with Article 11; 

support  Member  States  with  capacity-building  regarding  the  effective  enforcement  of 
relevant Union law, in accordance with Article 12; 

(f)  mediate  in  disputes  between  Member  States'  authorities  on  the  application  of  relevant 

Union law, in accordance with Article 13; 

(g) 

facilitate cooperation between relevant stakeholders in the event of cross-border labour 
market disruptions, in accordance with Article 14.   

Article 6 

Information on cross-border labour mobility  

The  Authority  shall  improve  the  availability,  quality  and  accessibility  of  information  offered  to 
individuals and employers to facilitate labour mobility across the Union, in accordance with Regulation 
(EU) 589/2016 on EURES and Regulation [Single Digital Gateway – COM(2017)256]. To that end, the 
Authority shall: 

(a)  provide relevant information on the rights and obligations of individuals in cross-border 

labour mobility situations;  

(b)  promote  opportunities  to  support  the  labour  mobility  of  individuals,  including  through 

guidance on access to learning and language training; 

(c)  provide relevant  information to  employers on labour rules, and the living and working 
conditions  applicable  to  workers  in  cross-border  labour  mobility  situations,  including 
posted workers; 

(d) 

support  Member  States  in  complying  with  the  obligations  on  the  dissemination  of  and 
access to information relating to the free movement of workers as laid down in Article 6 

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of    Directive  2014/54/EU,  and  to  the  posting  of  workers  as  laid  down  in  Article  5  of 
Directive 2014/67/EU; 

(e) 

(f) 

support Member States in improving the accuracy, completeness and user-friendliness of 
relevant national information services, in accordance with the quality criteria laid down 
in Regulation [Single Digital Gateway – COM(2017)256]; 

support  Member  States  in  streamlining  the  provision  of  information  and  services  to 
individuals  and  employers  pertaining  to  cross-border  mobility  on  a  voluntary  basis, 
while fully respecting Member States' competences.   

Article 7 

Access to cross-border labour mobility services 

1. 

The Authority shall provide services to individuals and employers to facilitate labour mobility 
across the Union. To that end, the Authority shall: 

(a)  promote  the  development  of  initiatives  supporting  the  cross-border  mobility  of 

individuals, including targeted mobility schemes; 

(b) 

(c) 

(d) 

enable the cross-border matching of job, traineeship, and apprenticeship vacancies with 
CVs  and  applications  for  the  benefit  of  individuals  and  employers,  particularly  via 
EURES; 

cooperate with other Union initiatives and networks, such as the European Network of 
Public  Employment  Services,  the  European  Enterprise  Network  and  the  Border  Focal 
Point, in particular to identify and overcome cross-border obstacles to labour mobility; 

facilitate  cooperation  between  competent  services  at  the  national  level  designated  in 
accordance with Directive 2014/54/EU to provide information, guidance and assistance 
to  individuals  and  employers  on  cross-border  mobility,  and  the  national  contact  points 
designated  in  accordance  with  Directive  2011/24/EU  to  provide  information  on 
healthcare. 

The  Authority  shall  manage  the  EURES  European  Coordination  Office  and  ensure  that  it 
fulfils its responsibilities in accordance with Article 8 of Regulation (EU) 2016/589, except for 
the technical operation and development of the EURES portal and related IT services, which 
shall continue to be managed by the Commission. The Authority, under the responsibility of 
the  Executive  Director  as  set  out  in  Article  23(4)(k),  shall  ensure  that  this  activity  fully 
complies  with  requirements  of  the  applicable  data  protection  legislation,  including  the 
requirement to appoint a Data Protection Officer, in accordance with Article 37. 

2. 

Article 8 

Cooperation and exchange of information between Member States  

1. 

The Authority shall facilitate cooperation between Member States and support their effective 
compliance  with  cooperation  obligations,  including  on  information  exchange,  as  defined  in 
Union law within the scope of the Authority’s competences.  

To that end, the Authority shall, upon request of national authorities, and in order to speed up 
exchanges between them, in particular:  

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(a) 

(b) 

support  national  authorities  in  identifying  the  relevant  contact  points  of  national 
authorities in other Member States; 

facilitate  the  follow-up  to  requests  and  information  exchanges  between  national 
authorities  by  providing  logistical  and  technical  support,  including  translation  and 
interpretation services, and through exchanges on the status of cases; 

(c)  promote and share best practices;  

(d) 

(e) 

facilitate cross-border enforcement procedures of penalties and fines; 

report  to  the  Commission  on  a  quarterly  basis  about  unresolved  requests  between 
Member States, and if considered necessary, refer those to mediation in accordance with 
Article 13. 

The Authority shall support the work of the Administrative Commission for the Coordination 
of  Social  Security  Systems  with  handling  financial  matters  related  to  social  security 
coordination, in accordance with Article 74 of Regulation (EC) No 883/2004 and Articles 65, 
67 and 69 of Regulation (EC) No 987/2009.  

The Authority shall promote the use of electronic tools and procedures for message exchange 
between national authorities, including the Internal Market Information (IMI) system and the 
Electronic Exchange of Social Security Information (EESSI) system. 

The  Authority  shall  encourage  the  use  of  innovative  approaches  to  effective  and  efficient 
cross-border  cooperation,  and  explore  the  potential  use  of  electronic  exchange  mechanisms 
between  the  Member  States  to  facilitate  the  detection  of  fraud,  providing  reports  to  the 
Commission with a view to their further development. 

Article 9 

 Coordination of concerted and joint inspections   

At  the  request  of  one  or  several  Member  States,  the  Authority  shall  coordinate  concerted  or 
joint inspections in the areas under the scope of the Authority’s competences. The request may 
be  submitted  by  one  or  several  Member  States.  The  Authority  may  also  suggest  to  the 
authorities of the Member States concerned that they perform a concerted or joint inspection.  

Where the authority of a Member State decides not to participate in or carry out the concerted 
or  joint  inspection  referred  to  paragraph  1,  it  shall  inform  the  Authority  in  writing  of  the 
reasons  for  its  decision  duly  in  advance.  In  such  cases,  the  Authority  shall  inform  the  other 
national authorities concerned.   

The organisation of a concerted or joint inspection shall be subject to the prior agreement of 
all  participating  Member  States  via  their  National  Liaison  Officers.  In  the  event  that  one  or 
more Member States refuse to take part in the concerted or joint inspection, the other national 
authorities may, where appropriate, only carry out the envisaged concerted or joint inspection 
in  the  participating  Member  States.  The  Member  States  that  declined  to  participate  in  the 
inspection shall keep information about the envisaged inspection confidential.   

2. 

3. 

4. 

1. 

2. 

3. 

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1. 

2. 

3. 

4. 

5. 

6. 

7. 

1. 

Article 10 

Arrangements for concerted and joint inspections 

An agreement for setting up a joint inspection ('the joint inspection agreement') between the 
participating  Member  States  and  the  Authority  shall  set  out  the  conditions  for  carrying  out 
such  an  exercise.  The  joint  inspection  agreement  may  include  provisions  which  enable  joint 
inspections,  once  agreed  and  planned,  to  take  place  at  short  notice.  The  Authority  shall 
establish a model agreement.  

Concerted and joint inspections and their follow-up shall be carried out in accordance with the 
national law of the Member States concerned.    

The  Authority  shall  provide  logistical  and  technical  support,  which  may  include  translation 
and interpretation services, to Member States carrying out concerted or joint inspections.  

Staff  of  the  Authority  may  participate  in  a  concerted  or  joint  inspection  with  the  prior 
agreement of the Member State on whose territory they will be providing their assistance to 
the inspection. 

National  authorities  carrying  out  a  concerted  or  joint  inspection  shall  report  back  to  the 
Authority  on  the  outcomes  within  their  respective  Member  States  and  on  the  overall 
operational running of the concerted or joint inspection.  

Information  on  concerted  and  joint  inspections  shall  be  included  in  quarterly  reports  to  be 
submitted  to  the  Management  Board.  A  yearly  report  on  the  inspections  supported  by  the 
Authority shall be included in the Authority's annual activity report. 

In the event that the Authority, in the course of concerted or joint inspections, or in the course 
of any of its activities, becomes aware of suspected irregularities in the application of Union 
law,  including  beyond  the  scope  of  its  competences,  it  shall  report  those  suspected 
irregularities  to  the  Commission  and  authorities  in  the  Member  State  concerned,  where 
appropriate.  

Article 11 

Cross-border labour mobility analyses and risk assessment 

The  Authority  shall  assess  risks  and  carry  out  analyses  regarding  cross-border  labour  flows, 
such as labour market imbalances, sector-specific threats and recurring problems encountered 
by  individuals  and  employers  in  relation  to  cross-border  mobility.  For  that  purpose,  the 
Authority  shall  ensure  complementarity  with,  and  draw  on  the  expertise  of,  other  Union 
agencies or services, including in the areas of skills forecasting and health and safety at work. 
Upon  a  request  by  the  Commission,  the  Authority  may  carry  out  focused  in-depth  analyses 
and studies to investigate specific labour mobility issues. 

2. 

The Authority shall organise peer reviews amongst national authorities and services in order 
to: 

(a) 

examine any questions, difficulties and specific issues which might arise concerning the 
implementation  and  practical  application  of  Union  law  within  the  scope  of  the 
Authority’s competences, as well as its enforcement in practice; 

(b) 

strengthen consistency in the provision of services to individuals and businesses; 

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3. 

4. 

(c) 

improve the knowledge and mutual understanding of different systems and practices, as 
well as to assess the effectiveness of different policy measures, including prevention and 
deterrence measures.  

The Authority shall regularly report its findings to the Commission, as well as directly to the 
Member States concerned, outlining possible measures to address identified weaknesses.  

The  Authority  shall  collect  statistical  data  compiled  and  provided  by  Member  States  in  the 
areas  of  Union  law  within  the  scope  of  the  Authority’s  competences.  In  doing  so,  the 
Authority  shall  seek  to  streamline  current  data  collection  activities  in  those  areas.  Where 
relevant, Article 16 shall apply. The Authority shall liaise with the Commission (Eurostat) and 
share the results of its data collection activities, where appropriate.  

Article 12 

Support to capacity building 

The Authority shall support Member States with capacity building aimed at promoting the consistent 
enforcement of the Union law in all areas covered by this Regulation. The Authority shall, in particular, 
carry out the following activities:  

(a)  develop  common  guidelines  for  use  by  Member  States,  including  guidance  for 
inspections  in  cases  with  a  cross-border  dimension,  as  well  as  shared  definitions  and 
common concepts, building on relevant work at the Union level; 

(b)  promote  and  support  mutual  assistance,  either  in  the  form  of  peer-to-peer  or  group 
activities,  as  well  as  staff  exchanges  and  secondment  schemes  between  national 
authorities; 

(c)  promote  the  exchange  and  dissemination  of  experiences  and  good  practices,  including 

examples of cooperation between the relevant national authorities;  

(d)  develop sectoral and cross-sectoral training programmes and dedicated training material; 

(e)  promote  awareness-raising  campaigns,  including  campaigns  to  inform  individuals  and 
employers, especially small and medium-sized enterprises (‘SMEs’), of their rights and 
obligations and the opportunities available to them. 

Article 13 

Mediation between Member States  

1. 

2. 

3. 

In the event of disputes between Member States regarding the application or interpretation of 
Union law in areas covered by this Regulation, the Authority may perform a mediation role.  

Upon request of one of the Member States concerned by a dispute, the Authority shall launch 
a mediation procedure before its Mediation Board set up for this purpose in accordance with 
Article  17(2).  The  Authority  may  also  launch  a  mediation  procedure  on  its  own  initiative 
before the Mediation Board, including on the basis of a referral from SOLVIT, subject to the 
agreement of all Member States concerned by that dispute.  

When  presenting  a  case  for  mediation  by  the  Authority,  Member  States  shall  ensure  that  all 
personal  data  related  to  that  case  is  anonymised  and  the  Authority  shall  not  process  the 

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personal data of individuals concerned by the case at any point in the course of the mediation 
procedure.   

Cases  in  which  there  are  ongoing  court  proceedings  at  national  or  Union  level  shall  not  be 
admissible for mediation by the Authority. 

Within three months of the conclusion of the mediation by the Authority, the Member States 
concerned shall report to the Authority on measures they have taken in order to follow-up on it 
or on the reasons for not taking action in the event that they did not follow-up. 

The Authority shall report to the Commission on a quarterly basis about the outcomes of the 
mediation cases it handles. 

4. 

5. 

6. 

Article 14 

Cooperation in case of cross-border labour market disruptions  

At  the  request  of  the  national  authorities,  the  Authority  may  facilitate  cooperation  between  relevant 
stakeholders in order to address labour market disruptions affecting more than one Member State, such 
as large-scale restructuring events or major projects impacting employment in border regions. 

Article 15 

 Cooperation with other agencies 

The Authority shall establish cooperation arrangements with other decentralised Union agencies where 
appropriate. 

Article 16 

Interoperability and exchange of information 

The  Authority  shall  coordinate,  develop  and  apply  interoperability  frameworks  to  guarantee  the 
exchange  of  information  between  Member  States  and  also  with  the  Authority.  Those  interoperability 
frameworks shall be based on and supported by the European Interoperability Framework70 and by the 
European  Interoperability  Reference  Architecture  referred  to  in  Decision  (EU)  2015/2240  of  the 
European Parliament and of the Council 71. 

70 

71 

Communication from the Commission to the European Parliament, the Council, the European Economic Social Committee and 
the Committee of the Regions: European Interoperability Framework – Implementation Strategy - COM(2017) 134 final. 
Decision (EU) 2015/2240 of the European Parliament and of the Council of 25 November 2015 establishing a programme on 
interoperability  solutions  and  common  frameworks  for  European  public  administrations,  businesses  and  citizens  (ISA2 
programme) as a means for modernising the public sector (OJ L 318, 4.12.2015, p. 1). 

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Chapter III 

Organisation of the Authority 

Article 17 

Administrative and management structure 

1. 

The Authority's administrative and management structure shall be composed of: 

(a) 

(b) 

(c) 

a Management Board, which shall exercise the functions set out in Article 19; 

an Executive Director who shall exercise the responsibilities set out in Article 23; 

a Stakeholder Group, which shall exercise the functions set out in Article 24. 

2. 

The Authority may set up working groups or expert panels with representatives from Member 
States and/or from the Commission, or external experts following selection procedures, for the 
fulfilment  of  its  specific  tasks  or  for  specific  policy  areas,  including  a  Mediation  Board  in 
order to fulfil its tasks in accordance with Article 13 of this Regulation, and a dedicated group 
for the purpose of handling financial matters related to the application of Regulations (EC) No 
883/2004 and (EC) No 987/2009, as referred to in Article 8(2) of this Regulation.     

The rules  of procedure of such  working  groups and  panels shall  be set  out  by the Authority 
following consultation of the Commission. In matters related to social security coordination, 
the Administrative Commission for the Coordination of Social Security Systems shall also be 
consulted.  

SECTION 1 

MANAGEMENT BOARD 

Article 18 

Composition of the Management Board 

1. 

2. 

3. 

The  Management  Board  shall  be  composed  of  one  senior  representative  from  each  Member 
State and two representatives of the Commission, all of whom have voting rights.  

Each member of the Management Board shall have an alternate. The alternate shall represent 
the member in his or her absence. 

Members  of  the  Management  Board  representing  their  Member  States  and  their  alternates 
shall be appointed by their respective Member States in light of their knowledge in the fields 
referred  to  in  Article  1(2),  taking  into  account  relevant  managerial,  administrative  and 
budgetary skills. 

The Commission shall appoint the members who are to represent it.  

The  Member  States  and  the  Commission  shall  make  efforts  to  limit  the  turnover  of  their 
representatives on the Management Board in order to ensure continuity of the Board's work. 

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All  parties  shall  aim  to  achieve  balanced  representation  between  men  and  women  on  the 
Management Board. 

The  term  of  office  for  members  and  their  alternates  shall  be  four  years.  That  term  shall  be 
extendable. 

Representatives  from  third  countries,  which  are applying  the  Union  law in  areas  covered  by 
this Regulation, may participate in the meetings of the Management Board as observers. 

4. 

5. 

Article 19 

Functions of the Management Board 

1. 

The Management Board shall, in particular: 

(a)  oversee the Authority's activities; 

(b) 

(c) 

(d) 

(e) 

(f) 

adopt, by a two-thirds majority of its members entitled to vote, the annual budget of the 
Authority and exercise other  functions  in  respect of the Authority's budget  pursuant to 
Chapter IV; 

assess  and  adopt  the  consolidated  annual  activity  report  on  the  Authority's  activities, 
including  an  overview  of  the  fulfilment  of  its  tasks,  and  send  it  to  the  European 
Parliament,  the  Council,  the  Commission  and  the  Court  of  Auditors.  The  consolidated 
annual activity report shall be made public; 

adopt the financial rules applicable to the Authority in accordance with Article 30; 

adopt  an  anti-fraud  strategy,  proportionate  to  the  risk  of  fraud,  taking  into  account  the 
costs and benefits of the measures to be implemented; 

adopt rules for the prevention and management of conflicts of interest in respect of its 
members, as well as the members of the Stakeholder Group and the working groups and 
panels  of  the  Authority  set  up  in  accordance  with  Article  17(2),  and  shall  publish 
annually on its website the declaration of interests of the Management Board members;  

(g) 

adopt  and  regularly  update  the  communication  and  dissemination  plans  referred  to  in 
Article 37(3), based on an analysis of needs; 

(h) 

adopt its rules of procedure; 

(i) 

(j) 

adopt the rules of procedures of the working groups and panels of the Authority set up in 
accordance with Article 17(2); 

in accordance with paragraph 2, exercise, with respect to the staff of the Authority, the 
powers  conferred  by  the  Staff  Regulations  on  the  Appointing  Authority  and  by  the 
Conditions of Employment of Other Servants on the Authority Empowered to Conclude 
a Contract of Employment72 ("the appointing authority powers"); 

(k) 

adopt implementing rules for giving effect to the Staff Regulations and the Conditions of 
Employment of Other Servants in accordance with Article 110 of the Staff Regulations; 

72 

Regulation  (EEC,  Euratom,  ECSC)  No  259/68  of  the  Council  of  29  February  1968  laying  down  the  Staff  Regulations  of 
Officials and the Conditions of Employment of Other Servants of the European Communities and instituting special measures 
temporarily applicable to officials of the Commission (OJ L 56, 4.3.1968, p. 1). 

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(l) 

establish, where appropriate, an internal audit capacity; 

(m)  appoint the Executive Director, and where necessary extend his or her term of office or 

remove him or her from office in accordance with Article 32; 

(n) 

appoint  an  Accounting  Officer  who  shall  be  subject  to  the  Staff  Regulations  and 
Conditions of Employment for Other Servants and who shall be totally independent in 
the performance of his or her duties; 

(o)  determine  the  procedure  for  selecting  the  members  and  alternates  of  the  Stakeholder 
Group set up in accordance with Article 24 and appoint said members and alternates; 

(p) 

(q) 

(r) 

(s) 

ensure  an  adequate  follow-up  to  findings  and  recommendations  stemming  from  the 
internal or external audit reports and evaluations, as well as from investigations from the 
European Anti-fraud Office (OLAF); 

take  all  decisions  on  the  establishment  of  the  Authority's  internal  committees  or  other 
bodies  and,  where  necessary,  their  modification,  taking  into  consideration  the 
Authority's activity needs and having regard to sound financial management; 

approve  the  Authority’s  draft  single  programming  document  referred  to  in  Article  25 
before its submission to the Commission for its opinion; 

adopt,  having  received  the  opinion  of  the  Commission,  the  Authority's  single 
programming  document  by  a  two-thirds  majority  of  members  entitled  to  vote  and  in 
accordance with Article 25; 

The Management Board shall adopt, in accordance with Article 110 of the Staff Regulations, a 
decision  based  on  Article  2(1)  of  the  Staff  Regulations  and  Article  6  of  the  Conditions  of 
Employment  of  Other  Servants  delegating  the  relevant  appointing  authority  powers  to  the 
Executive Director and defining the conditions under which this delegation of powers can be 
suspended. The Executive Director shall be authorised to sub-delegate those powers. 

Where exceptional circumstances so require, the Management Board may, by way of decision, 
temporarily  suspend  the  delegation  of  the  appointing  authority  powers  to  the  Executive 
Director and those sub-delegated by the latter and exercise them itself or delegate them to one 
of its members or to a staff member other than the Executive Director.  

Article 20 

Chairperson of the Management Board 

The Management Board shall elect a Chairperson and a Deputy Chairperson from among the 
members  with  voting  rights,  and  shall  strive  for  gender  balance.  The  Chairperson  and  the 
Deputy  Chairperson  shall  be  elected  by  a  majority  of  two-thirds  of  the  members  of  the 
Management Board with voting rights.  

In  the  event  that  a  first  vote  does  not  reach  the  two-thirds  majority,  a  second  vote  shall  be 
organised  whereby  the  Chairperson  and  Deputy  Chairperson  shall  be  elected  by  a  simple 
majority of the members of the Management Board with voting rights.  

The Deputy Chairperson shall automatically replace the Chairperson if he or she is prevented 
from attending to his or her duties. 

2. 

3. 

1. 

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2. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

1. 

2. 

3. 

4. 

5. 

The term of office of the Chairperson and the Deputy Chairperson shall be four years. Their 
term of office may be renewed once. Where, however, their membership of the Management 
Board  ends  at  any  time  during  their  term  of  office,  their  term  of  office  shall  automatically 
expire on that date. 

Article 21 

The Chairperson shall convene the meetings of the Management Board.  

Meetings of the Management Board 

The Executive Director of the Authority shall take part in the deliberations, without the right 
to vote.  

The Management Board shall hold at least two ordinary meetings per year. In addition, it shall 
meet at the request of its Chairperson, at the request of the Commission, or at the request of at 
least one-third of its members. 

The  Management  Board  shall  convene  meetings  with  the  Stakeholder  Group  at  least  once  a 
year. 

The Management Board may invite any person whose opinion may be of interest to attend its 
meetings as an observer. 

The  members  of  the  Management  Board  and  their  alternates  may,  subject  to  its  rules  of 
procedure, be assisted at the meetings by advisers or experts. 

The Authority shall provide the secretariat for the Management Board. 

Article 22 

Voting rules of the Management Board 

Without  prejudice  to  point (b)  of  Article  19(1) and  to  Article  32(8), the  Management  Board 
shall take decisions by the majority of members with voting rights. 

Each member with voting rights shall have one vote. In the absence of a member with the right 
to vote, his or her alternate shall be entitled to exercise his or her right to vote.  

The Chairperson shall take part in the voting. 

The Executive Director shall not take part in the voting. 

The  Management  Board's  rules  of  procedure  shall  establish  more  detailed  voting 
arrangements, in particular the circumstances in which a member may act on behalf of another 
member and the circumstances in which written procedures are to be used for voting. 

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SECTION 2 

EXECUTIVE DIRECTOR 

Article 23 

Responsibilities of the Executive Director 

1. 

2. 

3. 

4. 

The  Executive  Director  shall  manage  the  Authority.  The  Executive  Director  shall  be 
accountable to the Management Board. 

The Executive Director shall report to the European Parliament on the performance of his or 
her duties when invited to do so. The Council may invite the Executive Director to report on 
the performance of his or her duties. 

The Executive Director shall be the legal representative of the Authority. 

The Executive Director shall be responsible for the implementation of the tasks assigned to the 
Authority by this Regulation. In particular, the Executive Director shall be responsible for: 

(a) 

(b) 

the day-to-day administration of the Authority; 

implementing decisions adopted by the Management Board; 

(c)  preparing  the  draft  single  programming  document  and  submitting  it  to  the 

Management Board for approval; 

(d) 

implementing the single programming document and reporting to the Management 
Board on its implementation; 

(e)  preparing  the  consolidated  annual  report  on  the  Authority's  activities  and 

presenting it to the Management Board for assessment and adoption; 

(f) 

preparing  an  action  plan  following  up  on  the  conclusions  of  internal  or  external 
audit reports and evaluations, as well as investigations by OLAF and reporting on 
progress twice a year to the Commission and regularly to the Management Board; 

(g)  protecting  the  financial  interests  of  the  Union  by  applying  preventive  measures 
against  fraud,  corruption  and  any  other  illegal  activities,  without  prejudicing  the 
investigative  competence  of  OLAF  by  effective  checks  and,  if  irregularities  are 
detected,  by  recovering  amounts  wrongly  paid  and,  where  appropriate,  by 
imposing  effective,  proportionate  and  dissuasive    administrative,  including 
financial penalties; 

(h)  preparing  an  anti-fraud  strategy  for  the  Authority  and  presenting  it  to  the 

Management Board for approval; 

(i) 

(j) 

(k) 

preparing the financial rules applicable to the Authority and presenting them to the 
Management Board; 

preparing the Authority's draft statement of estimates of revenue and expenditure 
and implementing its budget; 

implementing  measures  established  by  the  Management  Board  to  comply  with 
obligations on data protection imposed by Regulation (EC) No 45/2001. 

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5. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

The Executive Director shall decide whether it is necessary to locate one or more staff in one 
or  more  Member  States.  Before  deciding  to  establish  a  local  office,  the  Executive  Director 
shall  obtain  the  prior  consent  of  the  Commission,  the  Management  Board  and  the  Member 
State(s) concerned. The decision shall specify the scope of the activities to be carried out at the 
local  office  in  a  manner  that  avoids  unnecessary  costs  and  the  duplication  of  administrative 
functions  of  the  Authority.  A  headquarters  agreement  with  the  Member  State(s)  concerned 
may be required.   

SECTION 3 

STAKEHOLDER GROUP  

Article 24 

Creation and composition of the Stakeholder Group 

To facilitate consultation with relevant stakeholders and to benefit from their expertise in areas 
covered  by  this  Regulation,  a  Stakeholder  Group  with  advisory  functions  attached  to  the 
Authority shall be established.  

The  Stakeholder  Group  may,  in  particular,  submit  opinions  and  advice  to  the  Authority  on 
issues  related  to  the  application  and  enforcement  of  Union  law  in  the  areas  covered  by  this 
Regulation. 

The Stakeholder Group shall be chaired by the Executive Director and shall meet at least twice 
a year on the initiative of the Executive Director or at the request of the Commission. 

The Stakeholder Group shall be composed of six representatives of Union-level social partners 
equally representing trade unions and employer’s organisations, and two representatives of the 
Commission.  

The members of the Stakeholder Group shall be nominated by their respective organisations 
and appointed by the Management Board. The Management Board shall also appoint alternate 
members,  in  accordance  with  the  same  conditions  as  members,  who  shall  automatically 
replace  any  members  who  are  absent  or  indisposed.  To  the  extent  possible,  an  appropriate 
gender balance shall be respected, as well as adequate representation of SMEs. 

The Authority shall provide the secretariat for the Stakeholder Group. The Stakeholder Group 
shall adopt its rules of procedure by a two-thirds majority of its members entitled to vote. The 
rules of procedure shall be subject to approval by the Management Board. 

The  Authority  shall  make  public  the  opinions  and  advice  of  the  Stakeholder  Group  and  the 
results of its consultations, except in case of confidentiality requirements. 

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Chapter IV 

Establishment and structure of the budget of the Authority 

SECTION 1 

SINGLE PROGRAMMING DOCUMENT OF THE AUTHORITY 

Article 25 

Annual and multi-annual programming 

Each  year,  the  Executive  Director  shall  draw  up  a  draft  single  programming  document 
containing 
in  accordance  with 
Commission  Delegated  Regulation  (EU)  No  1271/201373  and  taking  into  account  guidelines 
set by the Commission. 

in  particular  multi-annual  and  annual  programming 

By 30 November each year, the Management Board shall adopt the draft single programming 
document  referred  to  in  paragraph  1.  It  shall  forward  it  to  the  European  Parliament,  the 
Council and the Commission by 31 January of the following year, as well as any later updated 
version of that document. 

The  programming  document  shall  become  definitive  after  the  final  adoption  of  the  general 
budget of the Union, and if necessary shall be adjusted accordingly. 

The  annual work  programme  shall  set  out  detailed  objectives  and  expected  results  including 
performance indicators. It shall also contain a description of the actions to be financed and an 
indication  of  the  financial  and  human  resources  allocated  to  each  action.  The  annual  work 
programme shall be consistent with the multi-annual work programme referred to in paragraph 
4. It shall clearly indicate tasks that have been added, changed or deleted in comparison with 
the  previous  financial  year.  The  Management  Board  shall  amend  the  adopted  annual  work 
programme when a new task is given to the Authority.  

Any  substantial  amendment  to  the  annual  work  programme  shall  be  adopted  by  the  same 
procedure  as  the  initial  annual  work  programme.  The  Management  Board  may  delegate  the 
power to make non-substantial amendments to the annual work programme to the Executive 
Director.  

The multi-annual work programme shall set out the overall strategic programming including 
objectives, expected results  and performance indicators. It shall also show, for each activity, 
the indicative financial and human resources considered necessary to attain the objectives set.  

The strategic programming shall be updated where appropriate, and in particular to address the 
outcome of the evaluation referred to in Article 41. 

Commission  Delegated  Regulation  (EU)  No 1271/2013  of  30 September  2013  on  the  framework  financial  regulation  for  the 
bodies referred to in Article 208 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council (OJ 
L 328, 7.12.2013, p. 42). 

1. 

2. 

3. 

4. 

73 

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35 

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Article 26 

Establishment of the budget 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

Each year, the Executive Director shall draw up a provisional draft estimate of the Authority's 
revenue and expenditure for the following financial year, including the establishment plan, and 
send it to the Management Board. 

The  Management  Board  shall,  on  the  basis  of  the  provisional  draft  estimate  referred  to  in 
paragraph  1,  adopt  a  draft  estimate  of  the  Authority's  revenue  and  expenditure  for  the 
following financial year. 

The draft estimate of the Authority's revenue and expenditure shall be sent to the Commission 
by 31 January each year.  

The  Commission  shall  send  the  draft  estimate  to  the  budgetary  authority  together  with  the 
draft general budget of the Union. 

On the basis of the draft estimate, the Commission shall enter in the draft general budget of the 
Union  the  estimates  it  considers  necessary  for  the  establishment  plan  and  the  amount  of  the 
contribution  to  be  charged  to  the  general  budget,  which  it  shall  place  before  the  budgetary 
authority in accordance with Articles 313 and 314 TFEU. 

The  budgetary  authority  shall  authorise  the  appropriations  for  the  contribution  to  the 
Authority. 

The budgetary authority shall adopt the Authority's establishment plan. 

The Management Board shall adopt the Authority's budget. It shall become final following the 
final  adoption  of  the  general  budget  of  the  Union.  Where  necessary,  it  shall  be  adjusted 
accordingly. 

For any building project likely to have significant implications for the budget of the Authority 
the provisions of Delegated Regulation (EU) No 1271/2013 shall apply. 

PRESENTATION, IMPLEMENTATION AND CONTROL OF THE BUDGET OF THE AUTHORITY 

SECTION 2 

Article 27 

Structure of the budget 

1. 

2. 

3. 

Estimates  of  all  revenue  and  expenditure  for  the  Authority  shall  be  prepared  each  financial 
year, corresponding to the calendar year, and shall be shown in the Authority's budget. 

The Authority's budget shall be balanced in terms of revenue and of expenditure.  

Without prejudice to other resources, the Authority's revenue shall comprise of: 

(a) 

(b) 

a contribution from the Union; 

any voluntary financial contribution from the Member States; 

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(c) 

any contribution from third countries participating in the work of the Authority, pursuant 
to Article 43; 

(d)  possible  Union  funding  in  the  form  of  delegation  agreements  or  ad  hoc  grants  in 
accordance  with  the  Authority's  financial  rules  referred  to  in  Article  30  and  with  the 
provisions of the relevant instruments supporting the policies of the Union; 

(e) 

 charges for publications and any service provided by the Authority.  

4. 

The  expenditure  of  the  Authority  shall  include  staff  remuneration,  administrative  and 
infrastructure expenses and operational expenditure. 

Article 28 

Implementation of the budget 

The Executive Director shall implement the Authority's budget. 

Each year the Executive Director shall send to the budgetary authority all information relevant 
to the findings of evaluation procedures.  

Article 29 

Presentation of accounts and discharge 

By 1 March of the following financial year, the Authority's accounting officer shall send the 
provisional accounts to the Commission's Accounting Officer and to the Court of Auditors.  

By  1  March  of  the  following  financial  year,  the  Authority's  accounting  officer  shall  also 
provide  the  required  accounting  information  for  consolidation  purposes  to  the  accounting 
officer of the Commission, in the manner and format required by the latter. 

By  31  March  of  the  following  financial  year,  the  Authority  shall  send  the  report  on  the 
budgetary and financial management to the European Parliament, the Council and the Court of 
Auditors.  

On receipt of the Court of Auditor's observations on the Authority's provisional accounts, the 
Authority's  accounting  officer  shall  draw  up  the  Authority's  final  accounts  under  his  or  her 
own responsibility. The Executive Director shall submit the final accounts to the Management 
Board for an opinion.  

The Management Board shall deliver an opinion on the Authority's final accounts. 

By 1 July following each financial year, the Executive Director shall send the final accounts to 
the  European  Parliament,  the  Council,  the  Commission  and  the  Court  of  Auditors,  together 
with the Management Board's opinion. 

A  link  to  the  pages  of  the  website  containing  the  final  accounts  of  the  Authority  shall  be 
published  in  the  Official  Journal  of  the  European  Union  by  15  November  of  the  following 
financial year.   

1. 

2. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

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37 

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8. 

9. 

10. 

The Executive Director shall send to the Court of Auditors a reply to its observations by 30 
September. The Executive Director shall also send this reply to the Management Board and to 
the Commission. 

The  Executive  Director  shall  submit  to  the  European  Parliament,  at  the  latter's  request,  any 
information  required  for  the  smooth  application  of  the  discharge  procedure  for  the  financial 
year in question, in accordance with Article 165(3) of Financial Regulation.  

On a recommendation from the Council acting by qualified majority, the European Parliament 
shall, before 15 May of year N + 2, give a discharge to the Executive Director in respect of the 
implementation of the budget of year N.  

Article 30 

Financial rules 

The  financial  rules  applicable  to  the  Authority  shall  be  adopted  by  the  Management  Board  after 
consulting the Commission. They shall not depart from Delegated Regulation (EU) 1271/2013 unless 
such a departure is specifically required for the Authority's operation and the Commission has given its 
prior consent. 

Chapter V 

Staff 

Article 31 

General provision 
The Staff Regulations and the Conditions of Employment of Other Servants74 and the rules adopted by 
agreement  between  the  institutions  of  the  Union  for  giving  effect  to  those  Staff  Regulations  and  the 
Conditions of Employment of Other Servants shall apply to the staff of the Authority. 

Article 32 

Executive Director 

1. 

2. 

The Executive Director shall be engaged as a temporary agent of the Authority in accordance 
with Article 2(a) of the Conditions of Employment of Other Servants.  

The  Management  Board  shall  appoint  the  Executive  Director  from  a  list  of  candidates 
proposed by the Commission, following an open and transparent selection procedure.  

74 

OJ L 56, 4.3.1968, p. 1. 

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3. 

4. 

5. 

6. 

7. 

8. 

1. 

2. 

3. 

1. 

2. 

For the purpose of concluding the contract with the Executive Director, the Authority shall be 
represented by the Chairperson of the Management Board. 

The term of office of the Executive Director shall be five years. By the end of that period, the 
Commission  shall  undertake  an  assessment  that  takes  into  account  an  evaluation  of  the 
Executive Director's performance and the Authority's future tasks and challenges.  

The Management Board, acting on a proposal from the Commission that takes into account the 
assessment referred to in paragraph 4, may extend the term of office of the Executive Director 
once, for no more than five years.   

An Executive Director whose term of office has been extended may not participate in another 
selection procedure for the same post at the end of the cumulative period. 

The Executive Director may be removed from office only upon a decision of the Management 
Board acting on a proposal from the Commission.  

The  Management  Board  shall  reach  decisions  on  the  appointment,  extension  of  the  term  of 
office or removal from office of the Executive Director on the basis of a two-thirds majority of 
its members entitled to vote.  

Article 33 

National Liaison Officers 

Each  Member  State  shall  designate  one  National  Liaison  Officer  to  be  seconded  to  the 
Authority and work at its seat, pursuant to Article 34. 

National Liaison Officers shall contribute to executing the tasks of the Authority, in particular 
by  facilitating  the  cooperation  and  exchange  of  information  set  out  in  Article  8(1)  and  by 
acting as contact points of the Authority for questions from their Member States and relating 
to their Member States, either by answering those questions directly or by liaising with their 
national administrations.  

National Liaison Officers shall have competence under their Member States’ national law to 
request information from the authorities concerned. 

Article 34 

Seconded national experts and other staff 

In addition to the National Liaison Officers, the Authority may make use in any areas of its 
work of other seconded national experts or other staff not employed by the Authority.  

The  Management  Board  shall  adopt  the  necessary  implementing  arrangements  for  seconded 
national experts, including National Liaison Officers. 

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39 

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Chapter VI 

General and final provisions 

Article 35 

Privileges and immunities 

The Protocol on the Privileges and Immunities of the European Union shall apply to the Authority and 
its staff. 

Article 36 

Language arrangements 
The provisions laid down in Council Regulation No 175 shall apply to the Authority. 

The translation services required for the functioning of the Authority shall be provided by the 
Translation Centre of the Bodies of the European Union. 

Article 37 

Transparency, protection of personal data and communication 

Regulation  (EC)  No  1049/2001  shall  apply  to  documents  held  by  the  Authority.  The 
Management Board shall, within six months of the date of its first meeting, adopt the detailed 
rules for applying Regulation (EC) No 1049/2001. 

The Management Board shall establish measures to comply with the obligations laid down in 
Regulation  (EC)  No  45/2001,  in  particular  those  concerning  the  appointment  of  a  Data 
Protection  Officer  of  the  Authority  and  those  relating  to  the  lawfulness  of  the  processing  of 
data,  the  security  of  the  processing  activities,  the  provision  of  information  and  the  rights  of 
data subjects.  

The Authority may engage in communication activities on its own initiative within its field of 
competence. The allocation of resources to communication activities shall not be detrimental 
to the effective exercise of the tasks referred to in Article 5. Communication activities shall be 
carried  out  in  accordance  with  the  relevant  and  communication  and  dissemination  plans 
adopted by the Management Board.  

Regulation  No  1  of  15  April  1958  determining  the  languages  to  be  used  by  the  European  Economic  Community  (OJ  17, 
6.10.1958, p. 385). 

1. 

2. 

1. 

2. 

3. 

75 

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40 

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Article 38 

Combating fraud 

1. 

2. 

3. 

4. 

In  order  to  facilitate  the  combating  of  fraud,  corruption  and  other  unlawful  activities  in 
accordance  with  Regulation  (EC)  No  883/2013,  within  six  months  from  the  day  that  the 
Authority becomes operational, it shall accede to the Interinstitutional Agreement of 25 May 
1999 concerning internal investigations by OLAF and adopt appropriate provisions applicable 
to all employees of the Authority using the template set out in the Annex to that Agreement. 

The Court of Auditors shall have the power of audit, on the basis of documents and on-the-
spot  checks,  over  all  grant  beneficiaries,  contractors  and  subcontractors  who  have  received 
Union funds from the Authority. 

OLAF may carry out investigations, including on-the-spot checks and inspections, with a view 
to establishing whether there has been fraud, corruption or any other illegal activity affecting 
the  financial  interests  of  the  Union  in  connection  with  a  grant  or  a  contract  funded  by  the 
Authority, in accordance with the provisions and procedures laid down in Regulation (EC) No 
1073/1999 and Regulation (Euratom, EC) No 2185/96. 

Without prejudice to paragraphs 1, 2 and 3, cooperation agreements with third countries and 
international  organisations,  contracts,  grant  agreements  and  grant  decisions  of  the  Authority 
shall contain provisions expressly empowering the European Court of Auditors and OLAF to 
conduct such audits and investigations, according to their respective competences. 

Article 39 

Security rules on the protection of classified and sensitive non-classified information 

The  Authority  shall  adopt  its  own  security  rules  equivalent  to  the  Commission's  security  rules  for 
protecting  European  Union  Classified  Information  (EUCI)  and  sensitive  non-classified  information, 
inter alia, provisions for the exchange, processing and storage of such information, in accordance with 
Commission Decisions (EU, Euratom) 2015/44376 and 2015/44477.  

Article 40 

Liability 

The Authority's contractual liability shall be governed by the law applicable to the contract in 
question. 

The Court of Justice of the European Union shall have jurisdiction to give judgement pursuant 
to any arbitration clause contained in a contract concluded by the Authority. 

Commission Decision (EU, Euratom) 2015/443 of 13 March 2015 on Security on the Commission (OJ L 72, 17.3.2015, p.41). 
Commission Decision (EU, Euratom) 2015/444 of 13 March 2015 on the security rules for protecting EU classified information 
(OJ L 72, 17.3.2015, p.53). 

1. 

2. 

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77 

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3. 

4. 

5. 

1. 

2. 

3. 

In  the  case  of  non-contractual  liability,  the  Authority  shall,  in  accordance  with  the  general 
principles  common to  the laws of the Member  States,  make  good any damage  caused  by its 
departments or by its staff in the performance of their duties.  

The  Court  of  Justice  of  the  European  Union  shall  have  jurisdiction  in  disputes  over 
compensation for damages referred to in paragraph 3. 

The  personal  liability  of  its  staff  towards  the  Authority  shall  be  governed  by  the  provisions 
laid down in the Staff Regulations or Conditions of Employment applicable to them. 

Article 41 

Evaluation  

No later than five years after the date referred to in Article 51, and every five years thereafter, 
the Commission shall assess the Authority's performance in relation to its objectives, mandate 
and tasks. The evaluation shall, in particular, address the possible need to modify the mandate 
of the Authority, and the financial implications of any such modification, including by further 
synergies and streamlining with Agencies active in the area of employment and social policy.  

Where the Commission considers that the continuation of the Authority is no longer justified 
with regard to its assigned objectives, mandate and tasks, it may propose that this Regulation 
be amended accordingly or repealed. 

The  Commission  shall  report  to  the  European  Parliament,  the  Council  and  the  Management 
Board on the evaluation findings. The findings of the evaluation shall be made public. 

Article 42 

Administrative inquiries 

The activities of the Authority shall be subject to the inquiries of the European Ombudsman in 
accordance with Article 228 TFEU. 

Article 43 

Cooperation with third countries  

1. 

In  so  far  as  is  necessary  to  achieve  the  objectives  set  out  in  this  Regulation,  and  without 
prejudice  to  the  respective  competences  of  the  Member  States  and  the  institutions  of  the 
Union, the Authority may cooperate with the national authorities of third countries to which 
the relevant Union law on labour mobility and social security coordination applies.   

To  that  end,  the  Authority  may,  subject  to  prior  approval  by  the  Commission,  establish 
working  arrangements  with  the  authorities  of  third  countries.  Those  arrangements  shall  not 
create legal obligations incumbent on the Union and its Member States. 

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42 

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2. 

The  Authority  shall  be  open  to  the  participation  of  third  countries  that  have  entered  into 
agreements with the Union to this effect.  

3. 

1. 

2. 

1. 

2. 

Under  the  relevant  provisions  of  the  agreements  referred  to  in  the  first  subparagraph  of 
paragraph 1, arrangements shall be developed specifying, in particular, the nature, extent and 
manner in which the third countries concerned shall participate in the work of the Authority, 
including  provisions  relating  to  participation  in  the  initiatives  undertaken  by  the  Authority, 
financial  contributions  and  staff.  As  regards  staff  matters,  those  arrangements  shall,  in  any 
event, comply with the Staff Regulations.  

The Commission shall ensure that the Authority operates within its mandate and the existing 
institutional  framework  by  concluding  an  appropriate  working  arrangement  with  the 
Authority's Executive Director. 

Article 44 

Headquarters agreement and operating conditions 

The necessary arrangements concerning the accommodation to be provided for the Authority 
in the host Member State, together with the specific rules applicable in the host Member State 
to the Executive Director, members of the Management Board, Authority staff and members 
of their families, shall be laid down in a Headquarters agreement between the Authority and 
the  Member  State  where  the  seat  is  located,  concluded  after  obtaining  the  approval  of  the 
Management Board and no later than two years after the entry into force of this Regulation.  

The  Authority's  host  Member  State  shall  provide  the  best  possible  conditions  to  ensure  the 
smooth  and  efficient  functioning  of  the  Authority,  including  multilingual  European-oriented 
schooling and appropriate transport connections. 

Article 45 

Commencement of the Authority's activities 

The Authority shall become operational within a year of entry into force of this Regulation.  

The  Commission  shall  be  responsible  for  the  establishment  and  initial  operation  of  the 
Authority  until  the  Authority  has  the  operational  capacity  to  implement  its  own  budget.  For 
this purpose: 

(a)  until the Executive Director takes up his or her duties following his or her appointment 
by  the  Management  Board  in  accordance  with  Article  32,  the  Commission  may 
designate  a  Commission  official  to  act  as  interim  Executive  Director  and  exercise  the 
duties assigned to the Executive Director; 

(b)  by  derogation  from  point  (j)  of  Article  19(1)  and  until  the  adoption  of  a  decision  as 
referred to in Article 19(2), the interim Executive Director shall exercise the appointing 
authority power; 

(c) 

the  Commission  may  offer  assistance  to  the  Authority,  in  particular  by  seconding 
Commission officials to carry out the activities of the Authority under the responsibility 
of the interim Executive Director or the Executive Director; 

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(d) 

the  interim  Executive  Director  may  authorise  all  payments  covered  by  appropriations 
entered  in  the  Authority's  budget  after  approval  by  the  Management  Board  and  may 
conclude  contracts,  including  staff  contracts,  following  the  adoption  of  the  Authority's 
establishment plan. 

Article 46 

Amendments to Regulation (EC) 883/2004 [regarding provisions currently under revision the 
Commission will align its proposal after adoption of the revised regulation] 

Regulation (EC) No 883/2004 is amended as follows: 

(1) 

in Article 1, the following point (na) is inserted: 

“(na)  ‘European  Labour  Authority’  means  the  body  established  by  [Regulation  Establishing 
the Authority] and referred to in Article 74;”; 

(2) 

in Article 72, point (g) is replaced by the following:  

“(g)  establish  the  factors  to  be  taken  into  account  for  drawing  up  accounts  relating  to  the 
costs to be borne by the institutions of the Member States under this Regulation and to adopt 
the  annual  accounts  between  those  institutions,  based  on  the  report  of  the  European  Labour 
Authority referred to in Article 74.”; 

(3) 

(4) 

Article 73 is deleted; 

Article 74 is replaced by the following:  

 “Article 74 

The European Labour Authority  

1.  The  European  Labour  Authority  shall  support  the  implementation  of  this  Regulation  in 
accordance with its tasks set out in [Regulation establishing the Authority]. 

2.  To  support  the  work  of  the  Administrative  Commission  with  financial  matters,  the 
European Labour Authority shall:  

(a)  verify the method of determining and calculating the annual average costs presented by 

Member States; 

(b) 

collect  the  necessary  data  and  carry  out  the  calculations  required  for  establishing  the 
annual statement of claims of each Member State; 

(c)  give 

the  Administrative  Commission  periodic  accounts  of 

the 
implementation of this Regulation and of the Implementing Regulation, in particular as 
regards the financial aspect; 

the  results  of 

(d)  provide  the data  and  reports  necessary  for  decisions  to  be  taken  by  the Administrative 

Commission pursuant to point (g) of Article 72; 

(e)  make  any  relevant  suggestions  it  may  have  to  Administrative  Commission,  including 

those concerning this Regulation, in accordance with points (a), (b) and (c); 

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(f) 

carry out all work, studies or assignments on matters referred to it by the Administrative 
Commission. 

3.  In  order  to  support  the  work  of  the  Administrative  Commission  on  technical  matters,  the 
European  Labour  Authority  shall  propose  to  the  Administrative  Commission  common 
architecture  rules  for  the  operation  of  data  processing  services,  in  particular  on  security  and 
the  use  of  standards.  The  European  Labour  Authority  shall  deliver  reports  and  a  reasoned 
opinion before decisions are taken by the Administrative Commission pursuant to point (d) of 
Article 72. 

4. In the event of disputes between institutions or authorities regarding the application of this 
Regulation and the Implementing Regulation, the European Labour Authority shall mediate in 
accordance with [Article 13 on mediation of the Regulation establishing the Authority].”; 

(5) 

in Article 76(6), the second sentence is replaced by the following: 

“If  a  solution  cannot  be  found  within  a  reasonable  period,  the  authorities  concerned  may  call  on  the 
European Labour Authority to intervene.”.   

Article 47 

Amendments to Regulation (EC) No 987/2009 [regarding provisions currently under revision the 
Commission will align its proposal after adoption of the revised regulation] 

Regulation (EC) No 987/2009 is amended as follows: 

(1) 

in Article 1(2), point (f) is replaced by the following:  

“(f)  ‘European  Labour  Authority’  means  the  body  referred  to  in  Article  74  of  the  basic 
Regulation.”; 

(2) 

in Article 5, paragraph 4 is replaced by the following:  

“4.  Where  no  agreement  is  reached  between  the  institutions  concerned,  the  matter  may  be 
brought  before  the  European  Labour  Authority  by  the  competent  authorities  no  earlier  than 
one month following the date on which the institution that received the document submitted its 
request.  The  European  Labour  Authority  shall  endeavour  to  reconcile  the  points  of  view  in 
accordance with the procedures set out in [Regulation establishing the Authority – Article 13 
on mediation].”; 

(3) 

in Article 6, paragraph 3 is replaced by the following:  

“3.  Where  no  agreement  is  reached  between  the  institutions  or  authorities  concerned,  the 
matter may be brought before the European Labour Authority by the competent authorities no 
earlier  than  one  month  after  the  date  on  which  the  difference  of  views,  as  referred  to  in 
paragraph 1 or 2 arose. The European Labour Authority shall seek to reconcile the points of 
view line with the procedures set out in [Regulation establishing the Authority – Article 13 on 
mediation].”; 

(4) 

Article 65 is replaced by the following: 

“Article 65 

Notification of annual average costs 

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1. The annual average cost per person in each age group for a specific year shall be notified to 
the European Labour Authority at the latest by the end of the second year following the year in 
question.  

2. The annual average costs notified in accordance with paragraph 1 shall be published each 
year  in  the  Official  Journal  of  the  European  Union  after  approval  by  the  Administrative 
Commission.  

3.  Where  a  Member  State  is  unable  to  notify  the  average  costs  for  a  specific  year  by  the 
deadline  referred  to  in  paragraph  1,  it  shall  by  the  same  deadline  ask  permission  from  the 
Administrative  Commission  and  the  European  Labour  Authority  to  use  the  annual  average 
costs for that Member State as published in the Official Journal of the European Union for the 
year  preceding  the  specific  year  in  which  notification  is  outstanding.  When  seeking  such 
permission, the Member State shall be required to explain the reasons as to why it is unable to 
notify  the  annual  average  costs  for  the  year  in  question.  If  the  Administrative  Commission, 
having considered the opinion of the European Labour Authority, approves the request of the 
Member State, those annual average costs shall be republished in the Official Journal of the 
European Union. 

4. The derogation in paragraph 3 shall not be granted for consecutive years.”;    

(5) 

in Article 67, paragraph 7 is replaced by the following:  

“7. The European Labour Authority shall facilitate the final closing of accounts in cases where 
a  settlement  cannot  be  reached  within  the  period  referred  to  in  paragraph  6,  and,  upon  a 
reasoned request by one of the parties, shall give its opinion on a dispute within six months 
following the month in which the matter was referred to it.”; 

(6) 

 Article 69 is replaced by the following: 

“Article 69 

Statement of annual accounts 

1.  The Administrative Commission shall establish the claims situation for each calendar year 
in accordance with point (g) of Article 72 of the basic Regulation, on the basis of the European 
Labour  Authority’s  report.  To  that  end,  the  liaison  bodies  shall  notify  the  European  Labour 
Authority,  by  the  deadlines  and in  accordance  to  the  procedures laid  down  by  the latter,  the 
amount  of  the  claims  introduced,  settled  or  contested  (creditor  position)  and  the  amount  of 
claims received, settled or contested (debtor position). 

2.  The Administrative Commission may perform any appropriate checks on the statistical and 
accounting data used as the basis for drawing up the annual statement of claims provided for 
in  paragraph  1  in  order,  in  particular,  to  ensure  that  they  comply  with  the  rules  laid  down 
under this Title.”. 

Article 48 

Amendments to Regulation (EU) No 492/2011 

Regulation (EU) No 492/2011 is amended as follows: 

(1) 

in Article 26 the following paragraph is added: 

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46 

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"The European Labour Authority, established by [Regulation establishing a European Labour 
Authority]"  shall  participate  in  the  meetings  of  the  Advisory  Committee  as  an  observer, 
providing technical input and expertise as relevant."; 

(2) 

(3) 

Articles 29 to 34 are deleted; 

Article 35 is replaced by the following: 

"Article 35  

The rules of procedure of the Advisory Committee in force on 8 November 1968 shall 
continue to apply."; 

(4) 

 Article 39 is replaced by the following: 

"Article 39  

The  administrative  expenditure  of  the  Advisory  Committee  shall  be  included  in  the  general 

budget of the European Union in the section relating to the Commission.". 

Article 49 

Amendments to Regulation (EU) 2016/589 

Regulation (EU) 2016/589 is amended as follows: 

(1) 

Article 1 is amended as follows:  

(a)  point (a) is replaced by the following: 

"(a) the organisation of the EURES network between the Commission, the European Labour 

Authority and the Member States;"; 

(b)  point (b)  is replaced by the following: 

"(b)  cooperation  between  the  Commission,  the  European  Labour  Authority  and  the  Member 

States on sharing relevant available data on job vacancies, job applications and CVs;"; 

(c)  point  (f) is replaced by the following: 

"(f)  promotion  of  the  EURES  network  at  Union  level  through  effective  communication 
measures  taken  by  the  Commission,  the  European  Labour  Authority  and  the  Member 
States."; 

(2) 

in Article 3, the following point (8) is added: 

"(8)  ‘European  Labour  Authority’  means  the  body  established  pursuant  to  [Regulation 

establishing a European Labour Authority]"; 

(3) 

in Article 4(2), the second sentence is replaced by the following: 

"The  Commission,  the  European  Labour  Authority  and  the  EURES  Members  and  Partners 
shall determine the means to ensure this with regard to their respective obligations."; 

(4) 

Article 7(1) is amended as follows:  

(a)  point (a) is replaced by the following: 

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"(a) a European Coordination Office which shall be established within  the European Labour 
Authority and which shall be responsible for assisting the EURES network in carrying 
out its activities;"; 

(b) 

the following point (e) is added: 

"(e) the Commission."; 

(5) 

Article 8 is amended as follows: 

(a)  paragraph 1 amended as follows: 

(i) 

the introductory phrase is replaced by the following: 

"The European Coordination Office shall assist the EURES network in carrying out its 
activities,  in  particular  by  developing  and  conducting,  in  close  cooperation  with  the 
NCOs and the Commission, the following activities:"; 

(ii) 

in point (a), point (i) is replaced by the following: 

"(i) as the system owner for the EURES portal, and related IT services, the definition of 
user  needs  and  business  requirements  to  be  transmitted  to  the  Commission  for  the 
operation  and  development  of  the  portal,  including  its  systems  and  procedures  for  the 
exchange  of  job  vacancies,  job  applications,  CVs  and  supporting  documents  and  other 
information, in cooperation with other relevant Union information and advisory services 
or networks, and initiatives;"; 

(b)  paragraph 2 is replaced by the following: 

"2. The European Coordination Office shall be managed by the European Labour Authority. 
The  European  Coordination  Office  shall  establish  a  regular  dialogue  with  the 
representatives of the social partners at Union level."; 

(c)  paragraph 3 is replaced by the following: 

"3.      The  European  Coordination  Office  shall,  in  consultation  with  the  Coordination  Group 
referred  to  in  Article  14  and  with  the  Commission,  draw  up  its  multiannual  work 
programmes."; 

(6) 

in Article 9(2), point (b) is replaced by the following: 

"(b) cooperation with the Commission, the European Labour Authority and the Member States 

on the clearance within the framework set in Chapter III;"; 

(7) 

in Article 14,  paragraph 1 is replaced by the following: 

"1. The Coordination Group shall be composed  of representatives at the appropriate level of 

the European Coordination Office, the Commission and the NCOs."; 

(8) 

Article 29 is replaced by the following: 

"Article 29  

Exchange of information on flows and patterns 

The Commission and the Member States shall monitor and make public labour-mobility flows 
and  patterns  in  the  Union  on  the  basis  of  reports  by  the  European  Labour  Authority, 
using Eurostat statistics and available national data.". 

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Article 50 

Repeal  

Decision 2009/17/EC and Decision (EU) 2016/344 are repealed. 

References  to  Decision  2009/17/EC  and  Decision  (EU)  2016/344  shall  be  construed  as  references  to 
this Regulation. 

Article 51 

Entry into force  

This  Regulation  shall  enter  into  force  on  the  twentieth  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in the Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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Annex - Legislative financial statement ‘Agencies’ 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management mode(s) planned  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on [body]'s appropriations  

3.2.3. Estimated impact on [body]'s human resources 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions  

3.3.  Estimated impact on revenue 

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LEGISLATIVE FINANCIAL STATEMENT  

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  establishing  a 
European Labour Authority 

1.2. 

Policy area(s) concerned 

04: Employment, social affairs and inclusion 

04 03: Employment, social affairs and inclusion 

04 03 15: European Labour Authority 

1.3. 

Nature of the proposal/initiative  

 The proposal/initiative relates to a new action  

  The  proposal/initiative  relates  to  a  new  action  following  a  pilot  project/preparatory 
action78  

 The proposal/initiative relates to the extension of an existing action  

 The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objective(s) 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative  

The  objective  of  the  European  Labour  Authority  is  to  contribute  to  ensuring  fair  labour 
mobility  in  the  internal  market,  focusing  on  Union  rules  in  the  areas  of  cross-border  labour 
mobility and coordination of social security systems within the Union.   

This directly contributes to the Commission's political priority on 'A deeper and fairer internal 
market with a strengthened industrial base' (Priority 4 of the Political Guidelines A New Start 
for  Europe79),  and  it  complements  the  priority  on  'A  New  Boost  for  Jobs,  Growth  and 
Investment'  (Priority  4)  by  creating  a  more  conducive  regulatory  environment  to  support  a 
climate of entrepreneurship and job creation.  

By  promoting  a  better  functioning  internal  market,  it  will  also  facilitate  the  take-up  of 
opportunities  for  cross-border  employment  and  the  provision  of  services,  in  line  with  the 
Europe 2020 strategy which emphasises smart, sustainable and  inclusive growth as a way to 
overcome  the  structural  weaknesses  in  Europe's  economy,  improve  its  competitiveness  and 
productivity and underpin a sustainable social market economy. 

1.4.2. 

Specific objective(s)  

Specific objective No 1 

78 
79 

As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 
http://ec.europa.eu/priorities/publications/president-junckers-political-guidelines_en    

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(a)  Facilitate  access  for  individuals  and  employers  to  information  on  their  rights  and 
obligations as well as to relevant services.  

Specific objective No 2 

(b)  Support cooperation between Member States in the cross-border enforcement of relevant 
Union law, including facilitating joint inspections. 

Specific objective No 3 

(c)  Mediate  and  facilitate  a  solution  in  cases  of  cross-border  disputes  between  national 
authorities or labour market disruptions. 

1.4.3.  Expected result(s) and impact 

Individuals  and  employers  should  benefit  from  increased  transparency  and  access  to 
information on their rights and obligations, greater awareness of the opportunities available to 
them,  more  consistent  service  provision  across  the  Union  and  strengthened  enforcement  of 
their rights.  

National  authorities  are  expected  to  benefit  in  particular  from  smoother  cooperation  and 
enhanced exchange of information, synergies in the work of committees and streamlined data 
collection, analytical and technical support, and access to a mediation procedure in the areas 
under the Authority's scope. 

1.4.4. 

Indicators of results and impact  

Detailed objectives and expected results including performance indicators will be established 
by the annual work programme, while the multi-annual work programme will set out overall 
strategic  objectives,  expected  results  and  performance  indicators.  The  key  performance 
indicators for the Agencies developed by the Commission should be respected.  

In addition, a dedicated monitoring framework, including a number of indicators, is described 
in the Impact Assessment Report accompanying the proposal. The framework will be subject 
to  further  adjustment  according  to  the  final  legal  and  implementation  requirements  and 
timeline.  

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

The  proposal  is  based  on  Articles  46,  48,  53(1),  62  and  91(1)  TFEU,  focusing  on  the  free 
movement of workers, the coordination of social security systems, the take-up and pursuit of 
activities  as  self-employed  persons,  the  freedom  to  provide  services  and  common  rules 
applicable to international transport. 

The choice of legal basis reflects the main objectives and scope of the initiative, focusing on 
cross  border  labour  mobility  and  social  security  coordination,  including  posting  of  workers. 
The legal basis for this proposal is also in line with that of the Union acts which will fall under 
the scope of activities of the Authority. The immediate result is to create a European Labour 
Authority,  which  will  support  the  provision  of  information  and  services  to  individuals  and 
employers,  and  support  Member  States  on  cooperation  and  exchange  of  information,  joint 
inspections,  risk  assessments,  capacity  building,  mediation  between  national  authorities,  and 

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cooperation in cases of labour market disruptions. In the longer term the scope of the Agency 
may be modified, subject to an evaluation to be performed no later than 5 years from the entry 
into force of the founding regulation.  

1.5.2.  Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g.  coordination 
gains,  legal  certainty,  greater  effectiveness  or  complementarities).  For  the  purposes  of  this 
point 'added value of Union involvement' is the value resulting from Union intervention which 
is additional to the value that would have been otherwise created by Member States alone. 

Reasons for action at European level (ex-ante) 

The  objectives  of  the  proposal  cannot  be  sufficiently  achieved  by  the  Member  States  at 
national, regional  or  local  level, and can  be  better  achieved at Union level for the following 
reasons: 

(a)  providing  high  quality  and  up-to-date  information  and  services  to  the  public  about  their 
rights  and  obligations  in  cross-border  situations  needs  to  be  coordinated  at  Union  level  in 
order to ensure a consistent, clear, and efficient approach, 

(b)  the  application  of  Union  law  in  the  fields  of  cross  border  labour  mobility  and  the 
coordination of social security systems relies on cooperation between Member States, meaning 
that no Member State can act alone, 

(c)  in  order  to  increase  synergies  and  support  cooperation  between  Member  States  in  the 
application of Union law across the fields of labour mobility and social security coordination, 
to  ensure  legal  certainty  for  administrations  and  individuals  alike  and  to  arrive  at  a  shared 
understanding  of  enforcement  needs,  it  is  necessary  to  develop  a  coordinated  and  joint 
approach at Union level instead of relying on what can be a complex network of bilateral or 
multilateral agreements. 

Expected generated Union added value (ex-post)  

The  setting  up  of  the  Authority  will  facilitate  the  fair,  simple  and  effective  application  of 
Union law across the Union. It will improve cooperation and timely exchange of information 
between Member States, and increase transparency and access to information and services for 
individuals and employers. It will support joint inspections with the participation of competent 
authorities from different Member States. It will provide Member States with dedicated labour 
market analyses and capacity building services. 

1.5.3.  Lessons learned from similar experiences in the past 

The initiative takes stock of recent and on-going legislative proposals in the related fields of 
labour mobility, posting, and social security coordination, and the setting up of a single digital 
gateway.  The  Impact  Assessment  and  proposal  builds  on  the  progress  and  lessons  learned 
from these ongoing initiatives, which highlighted the need for operational support, in terms of 
improved  cross-border  cooperation  and  increased  transparency  and  awareness,  in  order  to 
improve the application and enforcement of relevant Union law.   

The  proposal  has  also  taken  note  of  the  ongoing  evaluation  of  four  EU  Agencies  in  the 
employment policy area80. This evaluation includes an individual assessment of each agency, a 
comparative perspective, and a prospective assessment regarding the future functioning of the 
four  agencies.  The  nature  of  the  four  agencies  is  quite  distinct  to  that  of  the  proposed 

80 

[Reference to evaluation to be added when available] 

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Authority since they are predominantly research-centred and do not have a cross-border focus. 
Nonetheless, certain relevant preliminary  elements of the evaluation have contributed to  this 
proposal,  most  notably  with  regard  to  the  organisation  of  tasks  and  governance.  The  Impact 
Assessment  report  accompanying  this  proposal  examines  the  possible  interaction  between  a 
new European Labour Authority and the existing four agencies. 

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

The Authority should cooperate and promote synergies with other Union information services, 
such  as  Your  Europe  Advice,  and take  full  advantage  and ensure  consistency  with  the  Your 
Europe  portal,  which  will  form  the  backbone  of  the  future  single  digital  gateway81.  The 
Authority  should  also  cooperate  with  other  relevant  Union  initiatives  and  networks,  in 
particular  the  European  Network  of  Public  Employment  Services  (PES)82,  the  European 
Enterprise  Network83,  the  Border  Focal  Point84  and  SOLVIT85,  as  well  as  with  relevant 
national services such as the bodies to promote equal treatment and to support Union workers 
and members of their family, designated by Member States under Directive 2014/54/EU, and 
national  contact  points  designated  under  Directive  2011/24/EU  to  provide  information  on 
healthcare. 

The  Authority  will  take  over  some  tasks  currently  performed  by  the  Commission  under  the 
EaSI  programme,  in  particular  technical  and  operational  tasks.  The  respective  work 
programmes of both EaSI and the Authority will make sure that they are complementary and 
do not overlap.  

It will cooperate with other EU Agencies working in related fields, in particular the European 
Agency for Safety and Health at Work (EU OSHA), the European Centre for the Development 
of Vocational Training (CEDEFOP), and the European Agency for the improvement of living 
and working conditions (EUROFOUND).   

81 
82 

83 
84 

85 

Regulation [Single Digital Gateway – COM(2017)256] 
Decision No 573/2014/EU of the European Parliament and of the Council of 15 May 2014 on enhanced cooperation between 
Public Employment Services (PES) (OJ L 159, 28.5.2014, p. 32). 
An overview about the European Enterprise Network is available at: https://een.ec.europa.eu/    
Communication from the Commission to the Council and the European Parliament, Boosting growth and cohesion in EU border 
regions, COM(2017) 534.  
Commission Recommendation 2013/461/EU of 17 September 2013 on the principles governing SOLVIT (OJ L 249, 19.9.2011, 
p. 10). 

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1.6. 

Duration and financial impact  

 Proposal/initiative of limited duration  

–    Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–    Financial impact from YYYY to YYYY 
 Proposal/initiative of unlimited duration86 

–  Implementation with a start-up period from 2019 to 2023, 

–  followed by full-scale operation from 2023 on. 

1.7.  Management mode(s) planned  

 Direct management by the Commission through 

–    executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

 international organisations and their agencies (to be specified); 

the EIB and the European Investment Fund; 

 bodies referred to in Articles 208 and 209; 

 public law bodies; 

 bodies governed by private law with a public service mission to the extent that they provide 
adequate financial guarantees; 

  bodies  governed  by  the  private  law  of  a  Member  State  that  are  entrusted  with  the 
implementation of a public-private partnership and that provide adequate financial guarantees; 

  persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP  pursuant  to 
Title V of the TEU, and identified in the relevant basic act. 

Comments  

In  order  to  finance  this  new  initiative,  both  redeployment  and  fresh  money  are  necessary.  Existing 
activities  currently  implemented  under  the  EaSI  regulation  as  well  as  under  the  Commission 
prerogative  “Free  Movement  of  Workers”  will  be  shifted  with  their  financial  resources.  Financial 
contribution from prerogatives “Support activities to the European transport policy and passenger rights 
including  communication  activities”  and  “Transport  security”  will  complement  the  Commission's 
redeployment efforts to finance this new initiative. The remainder will be made available through the 
available margin of Heading 1A.  

86 

The  financial  aspects  of  this  proposal  will  not  prejudge  the  Commission's  proposal  on  the  next  Multiannual 
Financial Framework.  

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

All  Union  agencies  work  under  a  strict  monitoring  system  involving  an  internal  control 
coordinator,  the  Internal  Audit  Service  of  the  Commission,  the  Management  Board,  the 
Commission, the Court of Auditors and the Budgetary Authority.  This system is reflected and 
laid down in the European Labour Authority  founding regulation.  

In  accordance  with  the  Joint  Statement  on  the  EU  decentralised  agencies,  the  annual  work 
programme of the Authority shall comprise detailed objectives and expected results including 
performance  indicators.  The  Authority  will  accompany  its  activities  included  in  its  working 
programme  by  key  performance  indicators.  The  activities  of  the  Authority  will  be  then 
measured against these indicators in the Annual Activity Report. The annual work programme 
shall  be  coherent  with  the  multi-annual  work  programme  and  both  shall  be  included  in  an 
annual  single  programming  document  which  shall  be  submitted  to  European  Parliament,  the 
Council and the Commission. 

The Management Board of Authority will be responsible for supervision of the administrative, 
operational and budgetary efficient management of the Authority.  

No later than five years after the entry into force of the founding regulation of the Authority, 
and  every  five  years  thereafter,  the  Commission  shall  assess  the  Agency's  performance  in 
relation  to  its  objectives,  mandate  and  tasks.  The  evaluation  shall,  in  particular,  address  the 
possible  need  to  modify  the  mandate  of  the  Authority,  and  the  financial  implications  of  any 
such modification. The Commission shall report to the European Parliament, the Council and 
the  Management  Board  on  the  evaluation  findings.  The  findings  of  the  evaluation  shall  be 
made public. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The  Authority  being  a  totally  new  agency,  if  the  recruitment  process  is  not  on  schedule,  it 
might impact the operational capacity of the Authority. The support of the parent DG will be 
crucial  to  play  the  roles  of  Authorising  Officer  and  AIPN  until  the  Authority  is  granted 
administrative autonomy.  

Frequent  meetings  and  regular  contacts  will  be  needed  between  the  parent  DG  and  the 
Authority  during  the  start-up  phase,  in  order  to  make  sure  that  the  Authority  can  be 
autonomous and operational as quickly as possible.  

2.2.2.  Control method(s) envisaged  

The Authority will be subject to administrative controls including budgetary control, internal 
audit,  annual  reports  by  the  European  Court  of  Auditors,  the  annual  discharge  for  the 
execution  of  the  EU  budget  and  possible  investigations  conducted  by  OLAF  to  ensure,  in 
particular, that the resources allocated to agencies are put to proper use. The activities of the 
Authority will also be subject to the supervision of the Ombudsman in accordance with Article 
228 of the Treaty. These administrative controls provide a number of procedural safeguards to 
ensure that account is taken of the interests of the stakeholders. 

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2.3.  Measures to prevent fraud and irregularities  

Anti-fraud measures are foreseen in the Article 38 of the proposal for a founding regulation of 
European Labour Authority and the Executive Director and the Management Board will take 
the appropriate measures in accordance with the Internal Control Standards applied across all 
EU institutions. In line with the Common Approach an anti-fraud strategy will be developed 
by the Authority.  

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

THE ESTIMATED IMPACT ON EXPENDITURE AND STAFFING FOR THE YEARS 2021 AND BEYOND 
IN  THIS LEGISLATIVE FINANCIAL STATEMENT  IS  ADDED  FOR  ILLUSTRATIVE  PURPOSES  AND 
DOES NOT PRE-JUDGE THE NEXT MULTI-ANNUAL FINANCIAL FRAMEWORK 

3.1. 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading 1A – Competitiveness for growth and 
jobs 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 21(2)(b) 
of the Financial 
Regulation  

Heading of 
multiannual 
financial 
framework 

1a 

04 03 15 

Diff./Non-
diff. 

YES 

NO 

YES 

NO 

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3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial  
framework  

1A 

European Labour Authority (the Authority) 

EUR million (to three decimal places) 

European Labour Authority (the Authority) 

Year 
2019 

Year 
2020 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Etc. 

Title 1:- Staff costs 

Title 2:- Administrative costs 

Title 3:- Operational costs 

TOTAL appropriations 
for the Authority 

Commitments 
Payments 

Commitments 

Payments 

Commitments 

Payments 

(1) 

(2) 

(1a) 

(2a) 

(3a) 

(3b) 

2.416 

2.416 
0.568 
0.568 

6.658 

6.658 
1.115 
1.115 

11.071 

15.125 

17.349  17.696 

11.071 
6.470 
6.470 

15.125 
5.160 
5.160 

17.349  17.696 
5.763 
5.650 
5.763 
5.650 

8.088 

14.172 

21.390 

24.695 

28.000  28.560 

8.088 

14.172 

21.390 

24.695 

28.000  28.560 

Commitments 

=1+1a +3a 

11.072 

21.945 

38.930 

44.980 

50.999  52.019 

Payments 

=2+2a 

+3b 

11.072 

21.945 

38.930 

44.980 

50.999  52.019 

All calculations have been made on a Brussels-based assumption, as the seat of the Authority is not determined. The start-up period has been assessed to 
five years, with a full operational capacity in 2023. From that moment on, the overall budget of the Authority increases by 2% every year to cover the 
inflation.  Payments  are  aligned  on  commitments  as,  at  this  stage,  it  is  not  decided  yet  whether  Title  3  will  be  non-differentiated  or  differentiated 
appropriations.  

In the years 2019 and 2020, the existing activities currently implemented by the Commission under the EaSI programme will be shifted to the Agency. 
The EURES portal will indeed be shifted in 2020 only. The corresponding amounts made available to the Authority from EaSI are 6,300 MEUR in 2019 
and 10,187 MEUR in 2020, or a total amount of 16,487 MEUR until the end of the 2014-2020 Multiannual Financial Framework. The amount made 
available to the Authority from the Free Movement of Workers both in 2019 and 2020 is 1,287 MEUR per year or a total amount of 2,574 MEUR until 
the end of the 2014-2020 Multiannual Financial Framework.  

In addition, in order to finance the transport related activities that the Authority will implement, the amounts made available to the Authority from DG 
MOVE  are  1,360 MEUR  in  2019  and  2,720 MEUR  in  2020,  or  a  total  amount  of  4,080  MEUR  until  the  end  of  the  current  Multiannual  Financial 
Framework 2014-2020.  

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Details on the sources of redeployment 

European Union Programme for Employment 
and Social Innovation (EaSI) 
04.010402  –  Support  expenditure  for  the  programme 
Employment and Social Innovation 
04.030201  –  Progress  –  Supporting  the  development, 
implementation,  monitoring  and  evaluation  of  Union 
employment and social policy and working conditions 
legislation 
04.030202 –  EURES – Promoting workers'  voluntary 
geographical  mobility  and  boosting  employment 
opportunities 
TOTAL EaSI 

DG EMPL - Autonomous budget lines 

04.030103 – Free movement of workers, coordination 
of social security schemes and measures for migrants, 
including migrants from third countries 

EUR million (to three decimal places) 

Commitments 
= Payments 

(1) 

Year 
2019 

Year 
2020 

Total 2014-2020 
MFF 

0,450 

0,450 

0,900 

Commitments 

(2) 

1,500 

1,500 

3,000 

Commitments 

(3) 

Commitments 

(1) + (2) 
+ (3) 

4;350 

6,300 

8,237 

10,187 

12,587 

16,487 

Year 
2019 

Year 
2020 

Total 2014-2020 
MFF 

Commitments 

(1) 

1,287 

1,287 

2,574 

DG MOVE -  Autonomous budget lines 

06 02 05- Support activities to the European transport 
policy  and  passenger  rights  including  communication 
activities 
06 02 06- Transport security 
TOTAL Transport autonomous lines 

Commitments 

Commitments 
Commitments 

(1) 

(2) 

(1) + (2) 

Year 
2019 

Year 
2020 

Total 2014-2020 
MFF 

1,360 

- 
1,360 

2,576 

0,144 
2,720 

3,936 

0,144 
4,080 

Margin Heading 1a 

Commitments 

(1) 

2,125 

7,750 

9,875 

Year 
2019 

Year 
2020 

Total 2014-2020 
MFF 

EN 

60 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial  
framework  

5 

‘Administrative expenditure’ 

DG: EMPL 

 Human Resources  
 Other administrative expenditure  

EUR million (to three decimal places) 

Year 
2019 

Year 
2020 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Etc. 

3.289 

0.400 

2.860 

0.400 

2.860 

1.420 

2.860 

1.420 

2.860 

1.420 

2.860 

1.420 

TOTAL DG EMPL 

Appropriations  

3.689 

3.260 

4.280 

4.280 

4.280 

4.280 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

3.689 

3.260 

4.280 

4.280 

4.280 

4.280 

Year 
2019 

Year 
2020 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Etc. 

EUR million (to three decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

Payments 

14.761  

25.205  

43.210  

49.260  

55.279  

56.299  

14.761  

25.205  

43.210  

49.260  

55.279  

56.299  

EN 

61 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
                            
                            
                            
                            
                            
                            
 
                            
                            
                            
                            
                            
                            
 
3.2.2.  Estimated impact on the Authority’s appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–   The proposal/initiative requires the use of operational appropriations, as explained below: 

Commitment appropriations in EUR million (to three decimal places) 

Indicate objectives and outputs   

ò 

Type[1] 

Average 
cost 

r
e
b
m
u
N

2019 

Cost 

r
e
b
m
u
N

2020 

Cost 

r
e
b
m
u
N

2021 

Cost 

r
e
b
m
u
N

2022 

Cost 

r
e
b
m
u
N

Specific objective No. 1 - Facilitate access for individuals and employers to information on their rights and obligations as well as to relevant services  

- Output 

Services to 
individuals and 
employers 

- Output 

Communication 
activities 

Subtotal for specific 
objective N°2 

1.267 

0.679 

1.946 

2.220 

1.189 

3.410 

3.351 

1.795 

5.146 

3.869 

2.073 

5.942 

2023 

Cost 

4.387 

2.350 

6.737 

Specific objectives No. 2 and 3 - Support cooperation between Member States in the cross-border enforcement of relevant Union law, including facilitating joint inspections, and Mediate 
and facilitate a solution in cases of cross-border disputes between national authorities or labour market disruptions. 

- Output 

- Output 

Framework for 
exchange of 
information 
between MS 

Practical 
(cooperation) 
meetings 

0.404 

0.709 

1.069 

1.235 

1.400 

1.357 

2.378 

3.589 

4.144 

4.699 

EN 

62 

EN 

 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
- Output 

Analytical 
support/provisio
n of expertise to 
MS and 
Commission 

- Output 

Trainings and 
staff exchanges 

- Output 

Technical and 
logistical support 
to cooperation, 
incl. Guidance 

Subtotal for specific 
objective N°1 

Total 

1.026 

1.798 

2.714 

3.134 

3.553 

1.733 

1.621 

6.142 

8.088 

3.037 

2.840 

10.762 

14.172 

4.583 

4.287 

16.243 

21.390 

5.292 

4.949 

18.753 

24.695 

6.000 

5.612 

21.263 

28.000 

The future Authority has 3 key objectives: (a) to facilitate access for individuals and employers to information on their rights and obligations as well 
as  to  relevant  services,  (b)  to  support  cooperation  between  Member  States  in  the  cross-border  enforcement  of  relevant  Union  law,  including 
facilitating  joint  inspections,  and  (c)  to  mediate  and  facilitate  a  solution  in  cases  of  cross-border  disputes  between  national  authorities  or  labour 
market disruptions. 

For operational and financial purposes, these are grouped in two categories: 

 

 

Specific objective No 1 - Facilitate access for individuals and employers to information on their rights and obligations as well as to relevant 
services, 

Specific  objectives  No  2  and  3:  Support  cooperation  between  Member  States  in  the  cross-border  enforcement  of  relevant  Union  law, 
including facilitating joint inspections, and mediate and facilitate a solution in cases of cross-border disputes between national authorities or 
labour market disruptions. 

EN 

63 

EN 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
3.2.3.  Estimated impact on the Authority's human resources  

3.2.3.1.  Summary  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–   The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
2019 

Year 
2020 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Etc. 

(AD 

(AST 

Officials 
Grades) 

Officials 
grades) 

Contract staff 

Temporary staff  

Seconded  National 
Experts 

TOTAL 

Posts  

Officials (AD Grades) 

Officials 
grades) 

(AST 

Contract staff 

Temporary staff  

Seconded National 
Experts 

0.259 

0.814 

1.110 

1.110 

1.110 

1.138 

1.144 

3.504 

5.935 

8.509 

9.867 

10.114 

0.615 

1.845 

3.075 

4.305 

4.920 

5.043 

2.018 

6.1625 

10.1195 

13.9235 

15.897 

16.294 

7 

16 

15 

15 

33 

30 

15 

50 

45 

15 

69 

60 

15 

69 

60 

15 

69 

60 

TOTAL 

38 

78 

110 

144 

144 

144 

It has to be noted that the shift to the Authority of existing activities currently implemented by 
the Commission  would likely  entail the shift of ca.  10 posts to the Authority. However, the 
date of the shift as well as the staff category cannot be assessed at this stage. The number of 
staff would be reduced accordingly, respecting the staff category.  

EN 

64 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated impact on the staff (additional FTE) – establishment plan 

Function group and grade 

2019 

2020 

2021 

2022 

2023 

AD16 
AD15 
AD14 
AD13 
AD12 
AD11 
AD10 
AD9 
AD8 
AD7 
AD6 
AD5 

AD Total 
AST11 
AST10 
AST9 
AST8 
AST7 
AST6 
AST5 
AST4 
AST3 
AST2 
AST1 
AST Total 
AST/SC 6 
AST/SC 5 
AST/SC 4 
AST/SC 3 
AST/SC 2 
AST/SC 1 
AST/SC  Total 
GRAND TOTAL 

12 

24 

36 

52 

52 

4 

9 

14 

17 

17 

0 
16 

0 
33 

0 
50 

0 

69 

0 
69 

EN 

65 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated impact on the staff (additional) – external personnel 

Contract agents 

2019 

2020 

2021 

2022 

2023 

Function group IV 

Function group III 

Function group II 

Function group I 

Total 

7 

15 

15 

15 

15 

Seconded National Experts 

2019 

2020 

2021 

2022 

Total 

15 

30 

45 

60 

2023 

60 

The staff costs have been adjusted in such a way that the newly recruited staff is accounted for 
6 months during the year of recruitment. Cruising speed is scheduled for 2023, with 100% of 
staff accounted from 1st January 2023.  

The planning of recruitment is differentiated according to the staff category:  

 

 

 

For  Temporary  Agents,  it  is  assessed  that  the  recruitment  of  69  individuals  will 
take four years, starting in 2019; 

For  Contract  Agents,  it  is  assessed  that  the  recruitment  of  15  individuals  will  be 
finalised in two years, starting in 2019; 

For  Seconded  National  Experts,  it  is  assessed  that  the  recruitment  of  60  experts 
will start in 2019 and will be finalised within 4 years.  

EN 

66 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.2.  Estimated requirements of human resources for the parent DG 

–    The proposal/initiative does not require the use of human resources.  

–   The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

2019 

2020 

2021 

2022 

2023 

 Establishment plan posts (officials and 

temporary staff) 

04 01 01 01 (Headquarters and 
Commission’s Representation Offices) 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

23 

20 

20 

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

20 

n.a.  

n.a.  

20 

n.a.  

10 01 05 01 (Direct research) 

 External staff (in Full Time Equivalent 
unit: FTE)87 

XX 01 02 01 (AC, END, INT from the 
‘global envelope’) 

XX 01 02 02 (AC, AL, END, INT and 
JED in the Delegations) 

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

XX 01 04 yy 

n.a. 

n.a. 

n.a. 

n.a.  

n.a.  

n.a.  

n.a.  

n.a. 

n.a.  

XX 01 05 02 (AC, END, INT – 
Indirect research) 

10 01 05 02 (AC, END, INT – Direct 
research) 

n.a.  

n.a.  

n.a.  

n.a.  

n.a.  

Other budget lines (specify) 

n.a.  

n.a.  

n.a.  

TOTAL 

23 

20 

20 

n.a.  

20 

n.a.  

20 

The  human  resources  required  will  be  met  by  staff  from  the  DG  who  are  already  assigned  to 
management of the action and/or have been redeployed within the DG, together if necessary with any 
additional allocation which may be granted to the managing DG under the annual allocation procedure 
and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Officials 
temporary staff 

and 

Represent  the  Commission  in  the  Management  Board  of  the  Authority.  Draw  up  Commission 
opinion on the annual work programme and monitor its implementation. Supervise the preparation 
of  the  Authority's  budget  and  monitor  implementation  of  the  budget.  Assist  the  Authority  in 
developing its activities in line with EU policies including by participating in experts meetings. 

External staff 

N/A 

Description  of  the  calculation  of  cost  for  FTE  units  should  be  included  in  the  Annex  V, 
section 3.  

87 

AC = Contract Staff; AL = Local Staff; END = Seconded National Expert; INT = agency staff; JED = 
Junior Experts in Delegations.  

EN 

67 

  EN 

 
 
 
 
 
 
 
 
 
 
                                                 
3.2.4.  Compatibility with the current multiannual financial framework  

–   The  proposal  is  compatible  with  the  current  multiannual  financial  framework 
and  may  entail  the  use  of  special  instruments  as  defined  in  Council  Regulation 
(EU, Euratom) No 1311/2013.88. 

–    The proposal/initiative will entail reprogramming of the relevant heading in the 

multiannual financial framework. 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding 
amounts. 

[…] 

–    The  proposal/initiative  requires  application  of  the  flexibility  instrument  or 

revision of the multiannual financial framework89. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

[…] 

3.2.5.  Third-party contributions  

–  The proposal/initiative provides for the co-financing estimated below: 

EUR million (to three decimal places) 

2019 

2020 

2021 

2022 

2023 

2024 

Etc. 

EEA  EFTA 
(NO, LI, IC) 

countries 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

Switzerland 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

TOTAL 
co-financed  

appropriations 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

88 

89 

Council  Regulation  (EU,  Euratom)  No 1311/2013  of  2 December  2013  laying  down  the  multiannual 
financial framework for the years 2014-2020 (OJ L 347, 20.12.2013, p. 884). 
See  Articles  11  and  17  of  Council  Regulation  (EU,  Euratom)  No  1311/2013  laying  down  the 
multiannual financial framework for the years 2014-2020. 

EN 

68 

  EN 

 
 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–   The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

 

 

on own resources  

on miscellaneous revenue  

Appropriation
s available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

EUR million (to three decimal places) 

Impact of the proposal/initiative

90

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected. 

[…] 

Specify the method for calculating the impact on revenue. 

[…] 

90 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 25 % for collection costs. 

EN 

69 

  EN