Proposal for a COUNCIL RECOMMENDATION on access to social protection for workers and the self-employed
Date: 2018-03-13
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: EU Member State, European social policy, labour force, labour market, self-employed person, social security

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   EUROPEAN COMMISSION  Strasbourg, 13.3.2018  COM(2018) 132 final 2018/0059 (NLE)  Proposal for a COUNCIL RECOMMENDATION on access to social protection for workers and the self-employed {SWD(2018) 70 final} - {SWD(2018) 71 final} - {SWD(2018) 79 final}  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Offering  access  to  social  protection  is  crucial  for  the  economic  and  social  safety  of  the 
workforce  and  well-functioning  labour  markets  that  create  jobs  and  sustainable  growth. 
Nevertheless,  there  is  a  growing  number  of  people  who,  due  to  their  type  of  employment 
relationship or form of self-employment, are left without sufficient access to social protection.  

Social protection can be provided through in-kind or in-cash benefits. It is generally provided 
their 
through  social  assistance  schemes 
citizenship/residency  and  financed  through  general  taxation)  and  through  social  security 
schemes that protect people in the labour market, often based on contributions related to their 
work-income.  Social  security  includes  several  branches,  covering  a  variety  of  social  risks 
ranging from unemployment to illness or old age.  

that  protect  all 

(based  on 

individuals 

The  European  Pillar  of  Social  Rights1  jointly  proclaimed  by  the  European  Parliament,  the 
Council and the Commission in November 2017, set out 20 principles and rights to support 
fair  and  well-functioning  labour  markets  and  welfare  systems.  Principle  12  of  the  Pillar  in 
particular  states  that  'regardless  of  the  type  and  duration  of  their  employment  relationship, 
workers,  and,  under  comparable  conditions,  the  self-employed  have  the  right  to  adequate 
social protection'. This initiative aims at implementing this principle as well as at contributing 
to  the  implementation  of  other  Pillar  principles  such  as  the  principles  on  "secure  and 
adaptable  employment",  "unemployment  benefits",  "access  to  healthcare"  and  "old-age 
income  and  pensions".The  present  Recommendation  applies  to  the  branches  of  social 
protection which are more closely related to the labour market status or type of employment 
relationship  and  mostly  ensure  protection  from  loss  of  work-related  income  upon  the 
occurrence of a certain risk.  

Welfare  and  social  protection  systems  differ  across  the  EU  reflecting  different  national 
traditions,  political  preferences  and  budgets.  Nevertheless,  they  are  faced  with  similar, 
transformative challenges. Namely, in the past, work relationships were mainly characterised 
by full-time, open-ended contracts between a worker and a single employer. Over the last two 
decades  however,  globalisation, 
individual  preferences  and 
technology,  changes 
demographic changes have contributed to important changes in the labour markets. They have 
led to the growth of forms of employment other than full-time open-ended contracts such as 
temporary  work,  part-time  work,  and  casual  employment.  Such  forms  of  employment  are 
providing more flexibility for companies to adjust work supply to their business needs and for 
workers  to  adjust  their  work  patterns  in  line  with  personal  preferences.  Careers  have  also 
become  less  linear,  with  people  more  often  transitioning  between  labour  market  statuses 
and/or combining salaried employment and self-employment. 

in 

More  recently,  digitalisation  has  increased  significantly  the pace  of  change.  Companies  and 
businesses  need  to  adapt  faster  their  economic  activities  to  different  markets,  to  implement 
new  product  cycles  and  seasonal  activities,  and  to  deal  efficiently  with  fluctuations  in 
business volumes and flows. In many circumstances, new forms of employment and contracts, 

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COM(2017)251 

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such as on-demand work, voucher-based work, and intermittent work, are being favoured by 
businesses  in  order  to  respond  to  these  needs.  Other  new  forms  of  self-employment  or 
employment such as platform work are also creating new opportunities for people to enter or 
remain in the labour market or to supplement the income from their main job. 

Likewise, and for similar reasons, self-employment has evolved over the last two decades in 
the  EU.  Importantly,  the  structural  changes  in  the  labour  markets  have  blurred  boundaries 
between  labour  market  statuses.  Alongside  the  traditional  "entrepreneurs"  and  liberal 
professions, the self-employed status is being used more widely, in some cases even when de 
facto a subordinate employment relationship exists.  

As the world of work evolves - with growing numbers of people in self-employment, in jobs 
not governed by standard contracts, or going through transitions between and combinations of 
dependent employment and self-employment - larger parts of the workforce are left without 
sufficient  access  to  social  protection  due  to  their  labour  market  status  or  the  type  of 
employment relationship.  

These  gaps  increase  risks  to  the  welfare  of  the  affected  individuals  and  their  families  who 
endure  greater  economic  uncertainty  but  also  for  the  economy  and  society,  in  terms  of 
domestic demand, investment in human capital and social cohesion. The accumulated effects 
of disparities in access to social protection overtime are likely to give rise to new inter- and 
intra-generational  inequalities  between  those  who  have  or  manage  to  gain  employment  on 
contracts  with  full  social  rights  and  those  who  do  not.  They  may  constitute  an  indirect 
discrimination against young people, the foreign-born and women, who are more likely to be 
hired on non-standard contracts. 

The  gaps  in  access  to  social  protection,  due  to  labour  market  status  and  due  to  type  of 
employment  relationship,  may  hinder  the  take-up  of  opportunities  to  move  from  one  labour 
market status to another, if this means losing entitlements, and ultimately may result in lower 
labour  productivity  growth.  Thus,  they  may  also  not  be  supportive  of  entrepreneurship  and 
hinder competitiveness and sustainable growth. 

In  the  long  run,  it  is  the  social  and  economic  sustainability  of  national  social  protection 
systems  that  is  at  stake.  Gaps  in  access  to  social  protection  for  growing  groups  of  the 
workforce  will  lead them  to  take  recourse  to  tax-funded  safety  nets  of  last  resort  in  case  of 
social risk while the number of people contributing to social protection will be proportionately 
smaller.  These  gaps  also  may  result  in  abuse  of  employment  statuses  and  create  unfair 
competition between companies that continue to contribute to social protection and those that 
do not contribute.  

The  'Access  to  social  protection  for  workers  and  the  self-employed'  initiative  aims  at 
supporting  all  self-employed  and  non-standard  workers  who,  due  to  their  contract  type  or 
labour  market  status,  are  not  sufficiently  protected  by  social  protection  schemes  regarding 
unemployment, sickness, maternity or paternity, accidents at work and occupational diseases, 
disability and old-age. In particular the initiative aims to encourage Member States to: 

 

 

Allow  all  individuals  in  employment  and  self-employment  to  adhere  to 
corresponding social protection systems (closing formal coverage gaps), 

Take measures allowing all individuals in employment and self-employment to 
build up and take up adequate entitlements as members of a scheme (adequate 
transferability  of  social  protection 
effective  coverage)  and 
entitlements between schemes, 

facilitate 

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 

Increasing transparency regarding social protection systems and rights.  

This initiative is part of the Social Fairness Package, together with a proposal for a Regulation 
of the European Parliament and the Council establishing a European Labour Authority2 and a 
Communication  on  the  monitoring  of  the  implementation  of  the  European  Pillar  of  Social 
Rights3 

Other  initiatives  contributing  to  the  implementation  of  the  European  Pillar  of  Social  Rights 
are  closely  related  to  and  complementary  to  this  proposed  Recommendation,  notably  the 
Commission's  Proposal  for  a  Directive  of  the  European  Parliament  and  of  the  Council  on 
transparent and predictable working conditions in the European Union (see below section on 
consistency with existing policies). 

The  present  Recommendation  builds  on  and  complements  the  ILO  Social  Protection  Floors 
Recommendation4,  which  provides  guidance  to  countries  in  extending  social  protection 
coverage by prioritizing the establishment of national floors of social protection accessible to 
all in need. 

The challenge addressed by the Recommendation affects a significant number of people in the 
EU. Altogether self-employment and non-standard forms of work represent a significant share 
of the labour market. In 2016, 14% of the employed persons in the EU were self-employed, 
8% were full-time temporary employees, 4% were part-time temporary employees, 13% were 
part-time  permanent  employees  and  60%  were  employees  with  a  full-time  permanent 
contract.  

The prevalence of non-standard work and of self-employment varies greatly across Member 
States, regions, sectors and generations. The proportion of younger workers aged between 20 
to 30 years old in temporary contractual arrangements or with ‘other or no contract’ is twice 
that  of  the  other  age  groups.  A  gender  division  is  also  evident,  with  a  strong  prevalence  of 
men  among  the  self-employed,  and  a  strong  prevalence  of  female  workers  in  fixed-term 
and/or part-time situations. 

The self-employed also form a heterogeneous group. Most individuals voluntarily choose to 
be self-employed, with or without employees, taking the risk to become entrepreneurs, while 
around 20% become self-employed because they cannot find a job as employees. Some enjoy 
a good level of job  quality and autonomy;  others, accounting for less  than 10%,  experience 
economic dependence and financial vulnerability. Among the companies being newly created 
every  year  in  the  EU,  those  created  by  self-employed  account  for  15%  to  100%  in  the 
Member States where data allow performing this analysis5. Newly founded firms, created by 
the  self-employed,  have  survival  rates  typically  between  30%  and  60%  after  the  first  five 
years.  

In  addition,  a  growing  number  of  people  is  accumulating,  in  parallel,  several  employment 
contracts or combines employment with self-employment. In some cases, an identifiable main 
source  of  income  is  accompanied  by  marginal/ancillary  activities;  in  other  cases  several 
activities allow to form a full income but no principal source of income can be identified.  

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COM(2018)131 
COM(2018)130 
ILO Social Protection Floors Recommendation, 2012 (N. 202). 
Belgium,  Cyprus,  Czech  Republic,  Estonia,  Finland,  France,  Greece,  Hungary,  Ireland,  Lithuania, 
Luxembourg, Malta, Poland and the United Kingdom. 

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In  a  number  of  countries  the  self-employed  were  never  fully  included  in  social  protection 
systems. In 2017, the self-employed did not have any access to unemployment protection in 
eleven  Member  States  (MS).  They  were  not  insured  against  accidents  at  work  and 
occupational  injury  in  ten  MS  and  were  not  covered  by  sickness  benefits  in  three.  In  the 
countries  where  voluntary  coverage  is  provided  for  the  self-employed,  the  take  up  rates  are 
low, ranging from 1% to 20%.  By contrast, people in non-standard employment usually have 
the same statutory access to social protection schemes as those on standard contracts, with the 
important exception of certain categories of workers including casual and seasonal workers, 
apprentices or trainees, on-demand workers, and those on temporary agency contracts or with 
country-specific contracts. 

Some non-standard workers and some self-employed face obstacles in building and taking up 
adequate  entitlements  to  benefits  due  to  the  rules  governing  contributions  and  entitlements 
(minimum qualifying period, minimum working period, long waiting period or short duration 
of benefits), the way the income based is assessed or due to the insufficient adequacy of the 
benefits. 

Moreover, while most Member States provide general information on rights and obligations 
related to the participation in social protection schemes, only half of them provide information 
on individual rights and obligations. Access to individualised information would help people 
to be aware of the entitlements they have accrued thoughout their career and thus enable them 
to make informed decisions. 

• 

Consistency with existing policy provisions in the policy area 

The Recommendation is consistent and builds further upon the existing policies in the area of 
social protection.  
In particular, the existing EU guidance in the area of access to social protection6 in the context 
of  the  European  Semester  and  the  Social  Open  Method  of  Coordination,  has  established  a 
consensus among Member States and the EU institutions that social protection systems need 
to  be  modernised7.  In  this  context,  policy  guidance  has  been  developed  in  key  branches  of 
social  protection  (pensions,  unemployment  insurance,  etc.).  The  present  initiative  would 
therefore complement on-going cooperation on social protection, by examining the situation 
of the self-employed and non-standard workers across different branches of social protection.  

Over the years, an EU legal framework for protection of rights in some areas of non-standard 
employment  has  been  developed  through  the  Directive  on  Temporary  Agency  Work8  and 
through negotiated agreements between social partners and implemented via the Directives on 

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Council  Recommendation  of  27  July  1992  on  the  convergence  of  social  protection  objectives  and 
policies  (92/442/EEC),  OJ  L  245,  26.8.1992,  p.  49–52,  Commission  Recommendation  of  3  October 
2008  on  the  active  inclusion  of  people  excluded  from  the  labour  market  (C(2008)  5737),  OJ  L  307, 
18.11.2008,  p.  11–14,  Commission  Communication  Towards  Social  Investment  for  Growth  and 
Cohesion – including implementing the European Social Fund 2014-2020, COM (2013)83, A renewed 
commitment to social Europe: Reinforcing the Open Method of Coordination for Social Protection and 
Social  Inclusion’,  COM(2008)  418  final,  Council  Decision  (EU)  2015/1848  of    5  October  2015  on 
guidelines for the employment policies of the Member States for 2015, OJ L 268, 15.10.2015, Country-
specific recommendations. 
Modernising  and  improving  social  protection  in  the  European  Union,  Communication  from  the 
Commission, COM (97) 102 final, 12 March 1997. 
Temporary Agency Work, available online. 

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Part-Time  Work  and  Fixed-Term  Work9.  But  as  the  Directives  apply  to  employment 
conditions,  their  impact  on  social  protection  is  rather  limited.  They  cover  social  protection 
rights that are closely linked to employment conditions and are considered as part of pay, such 
as occupational pensions10 maternity pay and sickness pay. However, the Court of Justice has 
made  clear  in  its  case-law  that  the  Directives  do  not  apply  to  statutory  social  protection 
schemes11. In the preambles to their Agreements12, the social partners call on Member States 
to ensure that social protection arrangements are adapted to fit with evolving flexible forms of 
work. These preambles are not legally binding and, while Member States on several occasions 
have stated their commitment to make social protection more employment friendly, a recent 
review of the extent to which this has happened suggests that in several Member States there 
is still ample room for improvement13. 

In  the  field  of  gender  equality,  a  number  of  directives  provides  for  some  rights  related  to 
work-life balance. The Directive 2010/41/EU14 on equal treatment between men and women 
engaged in self-employed activity foresees the possibility to grant women (including spouses 
of  the  self-employed)  the  right  to  be  entitled  to  maternity  leave  and  benefits  for  at  least  14 
weeks. Since this Directive leaves to Member States the decision if the right to such benefits 
should  be  granted  on  a  mandatory  or  voluntary  basis,  levels  of  benefits  and  eligibility 
conditions vary widely among Member States. The Commission's proposal for a Directive on 
Work-Life Balance for Parents and Carers15 provides for coverage by paternity and parental 
benefit  and  carers'  benefit  for  all  workers,  including  non-standard  workers,  with  an 
employment contract or relationship. 

Regarding  transferability,  there  is  no  requirement  in  EU  law  to  ensure  the  transferability  of 
the  portability  of 
occupational  pension  rights  but 
supplementary  pension  rights  encourages  Member  States  to  improve  it  and  in  fact,  all 
Member  States  have  opted  to  extend  the  same  legal  treatment  to  all  workers  (the  Directive 
does not apply to self-employed persons) who leave an occupational pension scheme. 

the  Directive  2014/50/EU16  on 

Moreover,  several  recent  EU  initiatives  will  contribute  to  address  the  problem  of 
transparency.  First,  this  concerns  old-age  benefits  in  the  context  of  occupational  pensions. 
This  will  be  addressed  by  the  Directive  on  minimum  requirements  for  enhancing  worker 
mobility  between  Member  States  by  improving  the  acquisition  and  preservation  of 
supplementary  pension  rights17  (Portability  Directive)  and  by  the  recast  Directive  on  the 
activities  and  supervision  of  institutions  for  occupational  retirement  provision  (IORP 

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Fixed-Term  Work  Directive  1999/70/EC,  available  online;  Part-time  Work  Directive  97/81/EC, 
available online. 
See Joined Cases C-396/08 and 395/08 Bruno and others at para.41, available online. 
Ibid and Case C-385/11 Moreno v INSS, available online. 
Framework agreement on fixed-term contracts concluded on 18 March 1999 between the general cross-
industry  organisations  (ETUC,  UNICE  and  CEEP),  Framework  Agreement  on  part-time  work 
concluded  on  6  June  1997  between  the  general  cross-industry  organizations  (UNICE,  CEEP  and  the 
ETUC). 
ESPN (2017), Thematic Reports on Access to social protection of people working as self-employed or 
on non-standard contracts. 
Available online. 
COM(2017)253/884003. 
See Annex 8 for more details. 
Directive  2014/50/EU  on  minimum  requirements  for  enhancing  worker  mobility  between  Member 
States by improving the acquisition and preservation of supplementary pension rights. Article 6 requires 
Member  States  to  ensure  that  active  scheme  members  can  obtain,  on  request,  information  on  how  a 
termination of employment would affect their supplementary pension rights. 

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directive)18.  Both  directives  improve  the  provision  of  information  on  the  pension  schemes. 
The  Portability  Directive  also  covers  the  protection  of  pension  rights  upon  termination  of 
employment19. The two directives should be transposed into national law by 21 May 2018 and 
13 January 2019, respectively. 

Second, the lack of transparency for other social protection areas for workers will be partially 
addressed  by  the  Commission's  proposal  for  a  Directive  on  transparent  and  predictable 
working  conditions  in  the  European  Union20,  but  the  scope  does  not  include  the  self-
employed.  According  to  the  proposal,  workers  will  receive  information  on  the  social 
protection  institution(s)  receiving  the  social  contributions  attached  to  an  employment 
relationship  and  any  protection  relating  to  social  protection  provided  by  the  employer. 
However, the proposed directive does not determine whether workers should have access to 
social  protection. It limits itself  to  secure  that  information  on  acquired  rights  is  available to 
employees.  

• 

Consistency with other Union policies 

The  initiative  is  consistent  with  the  political  priority  given  to  a  fairer  and  deeper  economic 
and  monetary  union.  The  EU  economy  as  a  whole  could  benefit  from  positive  effects  on 
labour market dynamism, and from reduced economic insecurity and social costs. Depending 
on  financing  choices,  companies  could  experience  an  increase  in  the  cost  of  managing 
fluctuations in production in line with some cost increase for non-standard employment and 
self-employment. However, they could also benefit from a possible increase in productivity of 
individuals in the newly protected forms of employment and from a fairer competition.  

The  provision  of  benefits  to  previously  uncovered  groups  through  public  social  protection 
systems  could  lead  to  a  rise  in  public  expenditure.  The  initial  budgetary  costs  could  be 
nevertheless  reduced  due  to  increased  social  protection  contributions  and  to  tax  revenues 
related  to  household  consumption  given  the  positive  effect  on  the  disposable  household 
income,  especially  for  poorer  households.  Moreover,  in  cases  where  previously  uncovered 
groups  currently  rely  on  safety  nets  of  last  resort  such  as  social  assistance,  expenditure  for 
other  parts  of  the  budget  could  be  reduced.  Some  costs  for  provision  of  personalised 
information would also arise. However, this cost is judged to be considerably lower than the 
expected  benefits  both  for  the  individuals  over  a  life-time  and  for  the  social  protection 
systems over the medium to long-term.  

This initiative is consistent with the Commission Communication on 'A European agenda for 
the collaborative economy', which highlighted that whether or not an employment relationship 
exists between a platform and the provider of the underlying service must  be established on 
the  basis  of  a  case-by-case  assessment  looking  cumulatively  in  particular  at  whether  the 
services provider acts under the direction of the platform determining the choice of activity, 
remuneration  and  working  conditions;  whether  the  services  provider  receives  remuneration; 
and the nature of work.21 

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Directive  2016/2341/EU  on  the  activities  and  supervision  of  institutions  for  occupational  retirement 
provision (IORPs). 
Article 37 (1,j) of Directive 2016/2341 on general information on the pension scheme has provision on 
transferability. In case a member has the right to transfer pension rights, further information about the 
arrangements relating to such a transfer must be provided.  
COM(2017) 797 final, available online. 
COM(2016)356 

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2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The initiative "Access to social protection for workers and the self-employed" will support the 
Union's aims recognised in Article 3 of the Treaty on the EU: to promote the well-being of its 
peoples,  the  sustainable  development  of  Europe  aiming  at  full  employment  and  social 
progress, but also the aim to promote social justice and protection, equality between women 
and  men  and  solidarity  between  generations.  Pursuant  to  Article  9  of  the  Treaty  on  the 
Functioning of the European Union, the Union, in defining and implementing its policies and 
activities,  shall  take  into  account  requirements  linked  to  the  promotion  of  a  high  level  of 
employment,  the  guarantee  of  adequate  social  protection,  the  fight  against  social  exclusion 
and a high level of education, training and protection of human health.  

The  Council  Recommendation  would  be  based  on  Article  292  TFEU  in  combination  with 
Articles 153(1)(c) and 153(2), third subparagraph, as well as with Article 352 TFEU. 

Article  153(1)(c)  and  (2)  TFEU  enables  the  EU  legislator  to  adopt  measures  in  the  field  of 
social  protection  and  social  protection  of  workers  as  long  as  it  (i)  avoids  imposing 
administrative,  financial  and  legal  constraints  in  a  way  which  would  hold  back  the  creation 
and  development  of  small-  and  medium-sized  undertakings,  ii)  does  not  affect  the  right  of 
Member States to define fundamental principles of their social protection systems; (iii) does 
not  significantly  affect  the  financial  equilibrium  of  these  systems.    This  legal  basis  can  be 
used  to  address  the  challenges  of  access  to  social  protection  for  persons  in  non-standard 
employment. The Council is required to act by unanimity. 

Article  352  TFEU  can  provide  the  legal  basis  of  an  initiative  related  to  the  challenges  of 
access to social protection for people in different forms of self-employment. In this case the 
Council is also required to act by unanimity.  

• 

Subsidiarity (for non-exclusive competence)  

Employment  and  social  protection  policy  remain  primarily  a  responsibility  of  the  Member 
States.  

The problem of insufficient access to social protection for a growing number of people in the 
labour  market  and  its  negative  consequences  for  social  cohesion,  labour  market  dynamism 
and  sustainable  growth  are  wide-spread  across  Member  States.  While  several  have  adopted 
reforms or are carrying out national debates on the subject, evidence shows that these reforms, 
while being steps in the right direction, are not comprehensive and systematic, i.e. they are not 
closing  gaps  in  access  for  all  groups  and  all  branches  of  social  protection.  Nor  do  current 
debates imply  that  all Member States  necessarily  plan to  take action. Single Member States 
may hesitate to regulate in this area on their own, as they may fear that such action could put 
their own companies at a disadvantage relative to companies from other Member States.  

EU  action  can  be  a  springboard  for  further  national  reforms  and  ensure  that  progress  is  not 
partial or uneven but is instead secured across groups, social protection branches and Member 
States.  EU  action  can  also  avoid  a  "race  to  the  bottom"  and  ensure  that  all  Member  States 
move  in  the  same  direction  at  the  same  time,  promoting  upward  convergence  within  and 
between Member States, to the benefit of the EU economy as a whole.  

EU action can also diminish the obstacles that the problem poses to the pursuit of the Union's 
objectives. Differences between types of employment relationships or between labour market 
statuses in access to social protection can be detrimental to the EU's fundamental objective of 
promoting  full  employment  by  hampering  occupational  labour  mobility  including  towards 
higher  productivity  sectors.  It  can  discourage  workers  to  undertake  certain  type  of 

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employment or  deter  people from taking  on the risks associated with  self-employment, thus 
hindering  entrepreneurship  and  innovation.  The  problem  can  also  be  an  obstacle  to  the 
achievement  of  the  Union's  objectives  in  relation  to  quality  of  jobs  and  the  fight  against 
poverty and social exclusion. 

By enhancing convergence towards robust labour market institutions, EU action can facilitate 
resilient economic structure and foster social cohesion in the Union.  

The  measures  proposed  in  this  Recommendation  aim  at  eliminating  or  reducing  obstacles 
which impair social protection systems from providing people with adequate social protection 
regardless of their type of employment relationships or labour market status, while respecting 
Member  States’  competences  in  designing  their  social  protection  systems.  A  number  of 
choices are left to Member States’ discretion, in particular: i) the level of protection provided, 
ii) whether to extend coverage under existing schemes or by the creation of new schemes, iii) 
the  way  to  finance  the  protection,  and  iv)  combinations  of  schemes  to  be  used  (public, 
occupational or private). These issues are beyond the scope of the current initiative. Member 
States are best placed to decide about these dimensions in ensuring effective protection in the 
most efficient way, given the diversity of existing social protection systems across the Union. 

• 

Proportionality 

The  proportionality  principle  is  fully  respected  as  the  scope  of  the  proposal  is  limited  to 
ensuring minimum standards in access to social protection.  

Moreover,  the  proposal  leaves  the  Member  States  the  option  of  keeping  or  setting  more 
favourable standards and taking into account features specific to their national situations. As a 
consequence,  it  leaves  room  for  flexibility  as  regards  the  choice  of  actual  implementing 
measures.  

Proportionality also plays a key role in guiding the choice of instrument (see section below).  

As  documented  in  Annex  7  of  the  Impact  Assessment,  several  Member  States  have  started 
national  debates  and  are  undertaking  some  reforms.  This  Recommendation  will  further 
support these efforts at national level, by building on good practices, experience and evidence 
gathered from across the Union and fostering actions to address gaps in data collection.  

As indicated in the Impact Assessment (Chapters 5 and 6), available quantifications indicate 
that  the costs implied  by extending formal  and  effective access and improving transparency 
are reasonable and justified in light of the accrued and longer-term benefits in terms of more 
secure  employment,  increased  productivity  and  social  cohesion,  matching  the  wider  social 
ambitions of the EU.  

• 

Choice of the instrument 

The instrument preferred for the initiative is a Council Recommendation, providing guidance 
to Member States on how to achieve access to social protection for all people in employment 
and self-employment. 

to  a  Directive  which  would 

The Commission considers a Council Recommendation to be the most proportionate approach 
at  this  point  in  time  for  an  EU  action  to  address  the  challenges  related  to  access  to  social 
the 
protection.  Compared 
Recommendation  allows  the  EU  level  and  the  Member  States  to  work  further  together  to 
address  the  different  dimensions  of  the  problem  and  anticipate  how  they  will  evolve, 
including its implications at national level and possible spill-overs in the internal market, to 
stimulate and guide national reforms and ensure that progress is not partial or uneven across 
target  groups  and  social  protection  branches.  The  Recommendation  responds  to  the  need  to 

impose  binding  outcomes, 

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act at EU level, while taking into account the lack of political consensus, at this point in time, 
on  the  direction  of  the  reforms.  Indeed,  the  stakeholders'  consultations  (see  below)  reveal 
substantial  divergence  on  the  best  instrument,  as  well  as  the  direction  of  reforms. 
Furthermore,  it  can  support  the  efforts  to  strengthen  the  statistical  and  knowledge-base 
necessary to monitor the situation at EU level.  

The key added value of a Recommendation is therefore to create momentum supporting and 
complementing national debates and reforms, guide Member States in their efforts and create 
consensus on the best reform options, which would also steer the position of the EU and its 
Member States in all relevant international fora. A Council Recommendation also allows the 
EU to leave flexibility to Member States on the way to achieve the goals, depending on the 
point of departure, national history and practices.  

At  the  same  time,  a  stand-alone  Council  Recommendation  has  significant  value  added 
compared  to  addressing  the  issue  only  through  existing  processes  such  as  the  European 
Semester or through the Social Open Method of Coordination. A focused approach is needed 
to give the issue the necessary political visibility, raise awareness and build momentum. Also, 
efforts  are  needed  from  all  Member  States  in  a  coherent  way  and  also  in  a  somewhat  co-
ordinated fashion to dispel doubts about possible first mover disadvantages.  

The EU support in implementing and monitoring the Recommendation can be fully embedded 
in the on-going processes of the European Semester and of the Open Method of Coordination 
on  Social  Protection  and  Social  Inclusion.  The  uptake  of  the  Recommendation  can  be 
promoted  by  a  number  of  flanking  measures,  notably  through  mutual  learning  programmes 
and funding supporting experimentations and reforms in Member States.  

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The Commission has not yet published the evaluation of the Directive 2010/41/EU on equal 
treatment  between  men  and  women  engaged  in  self-employed  activity,  the  Directive 
2014/50/EU  on  minimum  requirements  for  enhancing  worker  mobility  between  Member 
States  by  improving  the  acquisition  and  preservation  of  supplementary  pension  rights 
(Portability  directive)  and  the  Directive  2016/2341/EU  on  the  activities  and  supervision  of 
institutions for occupational retirement provision (IORP directive). However, an independent 
expert evaluation concluded that the Directive 2010/41/EU on equal treatment between men 
and  women  engaged  in  self-employed  activity  was  unsuccessful  in  delivering  improved 
maternity and social benefits to the self-employed22.  

Moreover,  the  Commission's  proposal  for  a  Directive  on  transparent  and  predictable 
working  conditions  in  the  European  Union23  is  based  on  the  Commission's 
REFIT  evaluation  of  the  Written  Statement  Directive  (91/533/EEC).  •

Stakeholder consultations 

Several  stakeholder  consultations  have  been  conducted  to  inform  this  initiative  over  the 
course  of  2017  and  in  early  2018.  This  includes  a  two-stage  consultation  procedure  of 

22 

23 

Barnard C. and Blackham A. (2015), The implementation of Directive 2010/41 on the application of the 
principle  of  equal  treatment  between  men  and  women  engaged  in  an  activity  in  a  self-employed 
capacity, report of the European network of legal experts in the field of gender equality, commissioned 
by the Directorate-General Justice of the European Commission. 
COM(2017) 797 final, available online. 

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European  social  partners  as  stipulated  in  Article  154  TFEU,  an  open  public  consultation, 
targeted hearings with key stakeholders and with representatives of Member States within the 
Social Protection Committee.  

The  consultations  provided  indications  on  the  degree  of  divergence  between  different 
stakeholders' views.  

All stakeholders agreed, largely, that there are problems related to access to social protection 
for workers in non-standard forms of employment and for the self-employed. 

The consultations carried out showed that there is no general consensus on the best instrument 
to  be  used.  In  particular,  the  feedback  from  the  Member  States  in  discussions  in  the  Social 
Protection Committee and through position papers submitted in the context of the open public 
consultation signalled the lack of general Member State support for a legislative proposal in 
relation  to  all  the  objectives  presented.  The  European  Parliament  also  called  for  a 
recommendation  enabling  all  people  in  all  employment  forms  and  self-employment  to 
accumulate entitlements for social insurance in its resolution (2016/2095(INI)) on a European 
Pillar of Social Rights. Social partners expressed diverging views. Trade unions consider that 
improvements  should  be  made  to  EU  legislation,  while  cautioning  that  it  should  not 
undermine existing EU acquis, nor lower existing national standards, nor lead to  downward 
harmonisation  of  rights.  By  contrast,  some  employers  organisation  consider  that  the  open 
method of coordination and the European Semester process, including benchmarks, would be 
the right tools to facilitate  mutual learning and exchanges of good practice. 

All trade unions favour mandatory formal coverage, equalised to that of standard workers but 
taking  into  account  national  traditions.  Employers  held  different  views  regarding  the 
coverage. Some agree that social protection should be mandatory, but employees should have 
the right to choose the form of coverage (public or private), whilst the freedom of choice for 
the  self-employed  is  particulary  highlighted.  Other  employers  favour  voluntary  formal 
coverage  to  take  into  account  the  diversity  of  forms  of  employment  and  the  heterogeneity 
within the self-employed. All social partners agreed on the need for higher transparency.  

Whereas trade unions call for full transferability, employers would like to limit it to minimum 
social protection rights and stress that there should be no associated additional burden or cost. 

Choices regarding policy options and the legal instrument strike a balance between divergent 
stakeholder views. 

• 

Collection and use of expertise 

The Impact Assessment relies on a thorough mapping of policies in Member States, a review 
of literature, an analysis of current trends, derived from comparative data and the results of a 
social partners’ consultation and a public consultation. The estimation of social and economic 
impacts  includes  several  sets  of  microeconomic  simulations,  quantifying  the  likely  social 
impacts and impact on public budgets, as well as more qualitative analysis, allowing to better 
understand  behavioural  reactions  and  attitudes  (through  a  dedicated  survey)  and  country 
specific context (through case studies).  

• 

Impact assessment 

In  line  with  its  policy  on  Better  Regulation,  the  Commission  carried  out  an  Impact 
Assessment  of  potential  policy  and  governance  options.  This  work  was  supported  by 
structured  consultation  within  the  Commission  via  an  Inter-Service  Steering  Group24.  The 

24 

Including DG GROW, DG SANTE, DG ECFIN, DG TAXUD, DG JUST, Legal Service.  

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Impact Assessment was discussed with the Regulatory Scrutiny Board (RSB) on 7 February 
2018. On 9 February 2018, the RSB issued a positive opinion with reservations, which have 
been addressed by further substantiating the rationale for the choice of a recommendation and 
further  clarifying  and  underpinning  the  scope  of  the  initiative  and  its  expected  benefits  and 
economic effects25.  

The  Impact  Assessment  examined  different  policy  options,  which  combine  measures 
addressing  the  objectives  of  the  initiative.  The  policy  option  preferred  in  the  context  of  the 
Impact Assessment is:  

  Mandatory coverage for all workers in non-standard forms of employment not 

yet covered and voluntary for the self-employed; 

 

 

Adjustment  of  time  thresholds;  mandatory  transferability  of  accumulated 
entitlements; aggregation of periods; 

Provision of generic and personalised information. 

This  would  lead  to  high  effectiveness  regarding  protection  and  thus  pronounced  positive 
social  impacts,  including  reductions  in  income  uncertainty  and  poverty,  while  entailing 
corresponding  costs  for  public  authorities  and  for  employers.  The  differentiated  approach 
fully  takes  into  account  the  nature  of  self-employment  while  reflecting  the  significant 
heterogeneity  among  the  concerned  group.  The  provision  of  generic  and  personalised 
information  improving  transparency  could  stimulate  higher  voluntary  enrolment,  at  a 
relatively small cost for public authorities.  

However, it was decided that  this  proposal should  adopt a more refined approach regarding 
formal coverage for the self-employed, notably based on further differentiation between social 
protection branches to better reflect the nature of self-employed work. For the unemployment 
risk, which is more difficult to evaluate and control in case of self-employment and is more 
intimately related to the entrepreneurial risk, more flexibility is given to Member States in the 
design  of  the  scheme  through  the  possibility  to  extend  coverage  to  the  self-employed  on  a 
voluntary  basis.  This  also reflects the heterogeneity of the self-employed  and  would respect 
their  freedom  of  choice.  For  other  risks  such  as  old-age,  invalidity,  sickness  and  maternity, 
mandatory coverage is recommended for both the self-employed and the workers. These risks 
are less difficult to evaluate than the unemployment risk and more similar for the two groups; 
a differentiated approach by  labour market status are therefore more difficult to justify. The 
differentiated approach for people in self-employment is likely to increase the effectiveness of 
the EU action. For Member States where voluntary schemes exist for the self-employed, low 
rates  of  enrolment  are  observed  (less  than  1%  to  20%),  which  would  be  explained  by 
individual myopic behaviour and preferences, lack of awareness and financial disincentives. 
The higher resulting enrolment rates under a mandatory approach can be expected to lead to 
higher social benefits, including the reduction of income uncertainty and poverty, compared 
to a voluntary approach.  Establishing mandatory coverage for the self-employed is a realistic 
option, as the mapping presented in the Impact Assessment shows that mandatory schemes for 
this  group  exist  for  each  social  protection  branch  in  at  least  a  few  Member  States.  The 
proposal is thus in line with realities in the Member States and it sets a high level of ambition 
in terms of formal coverage. It may thus also be even more effective in reducing incentives 
for unfair competition which exploits differentiated social protection rights, as reflected e.g. in 
bogus self-employment.    

25 

See Annex I of the Impact Assessment. 

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The  material  scope  of  the  initiative  has  also  been  adjusted  compared  to  the  Impact 
Assessment to include healthcare. Healthcare is a particular area that mixes social assistance 
provisions  (ensured  to  all  citizens/legal  residents)  with  health  insurance  related  to  social 
contributions. In a few countries, non-standard workers and the self-employed may face gaps 
in access to healthcare, due to their type of employment relationship or to their labour market 
status.  In  line  with  the  European  Pillar  of  Social  Rights  and  its  Principle  on  healthcare,  the 
initiative should therefore call on Member States to ensure access to healthcare for all people 
in employment and self-employment.  

Overall, if the measures proposed in the Recommendation are fully implemented by Member 
States,  non-standard  workers  and  the  self-employed,  who  represent  all  together  39%  of  the 
employed  population,  will benefit  from better protection. This  is  set to  entail a reduction  in 
the  individualisation  of  risk,  income  uncertainty,  precariousness  and  notably  a  reduction  in 
these  groups'  risk  of  poverty  to  levels  closer  to  those  of  standard  workers.  Currently,  non-
standard  workers  face  a  much  higher  risk  of  poverty  (16%  compared  to  6%  for  standard 
workers in 2016) as a result of low income and gaps in coverage. Similarly, social protection 
systems play a much weaker role in reducing the poverty risk for the self-employed compared 
to salaried workers on average in the EU.  

Reducing differences in access to social protection is also expected to encourage transitions 
between  contract  types  and  labour  market  statuses,  promoting  labour  market  dynamism. 
Reducing  the  possibility  of  over-reliance  on  contracts  exempted  from  social  protection 
contributions is set to create a more level playing field between firms. Stemming the trend of 
an  increasing  share  of  people  outside  social  protection  systems  avoids  weakening  their  role 
including for labour markets and the stabilisation of economic cycles and may have positive 
effects on their fiscal sustainability. 

Businesses could benefit from reduced unfair competition, a possible increase in productivity 
of  individuals  in  the  newly  protected  forms  of  employment  and  self-employment  and  from 
positive  effects  on  labour  market  dynamism.  Depending  on  financing  choices,  companies 
could experience an increase in the cost of managing fluctuations in production in line with 
some cost increase for non-standard employment and working with  self-employed people. 

The  level  of  costs  and  their  distribution  between  public  budgets,  insurance  providers, 
employees  and  the  self-employed  and  taxpayers  strongly  depend  on  key  decisions  left  to 
Member  States  for  subsidiarity  reasons,  including  on  the  organisation  of  schemes,  their 
financing and the level of protection provided. Direct costs are mainly related to the provision 
of benefits, with exemplary simulations on the extension of coverage by unemployment and 
sickness benefits to the self-employed suggesting a limited cost, which varies inter alia with 
the number of self-employed in the country, the unemployment risk they face as well as on 
the generosity of the system. Indirect costs could result from behavioural changes in response 
to the increased social protection coverage. 

It is important to note that the wide scope of the initiative addressing simultaneously different 
branches  of  social  protection,  the  differences  in  the  organisation  of  social  security  schemes 
among  Member  States,  in  conjunction  with  the  limitations  in  data  available  seriously 
constrains  the  possibility  to  provide  a  comprehensive  quantitative  picture  in  the  Impact 
Assessment. The limited nature of the quantification equally reflects the uncertainty related to 
the  key  decisions  on  protection  levels,  design  and  financing  of  social  protection  systems, 
which are left to the Member States for subsidiarity reasons. 

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• 

Regulatory fitness and simplification 

The  key  expected  impacts  stemming  from  the  improved  protection  would  be  an  increase  in 
the  mutualisation  of  risk,  increase  of  income  security  resulting  in  less  precariousness  and 
poverty  for  individuals.  The  initiative  is  also  expected  to  contribute  to  increased  labour 
market dynamism and a better allocation of resources and to strengthen the well-established 
key role of automatic stabilisers of social protection, dampening business cycle fluctuations. 
The  companies  will  also  benefit  from  a  well-functionning  labour  market  and  from  resilient 
economic structures.  

Companies  could  benefit  from  an  increase  in  productivity  of  individuals  in  the  newly 
protected  forms  of  employment,  from  reduced  unfair  competition  and  from  the  positive 
effects of social protection systems on labour  markets and on domestic demand. Depending 
on  financing  choices,  companies  are  expected  to  experience  an  increase  in  the  cost  of 
managing  fluctuations  in  production,  in  line  with  some  labour  cost  increase  related  to  non-
standard employment and the self-employment. 

The initiative will apply to all employers. It will, however, particularly affect all employers of 
non-standard  employees  and,  to  a  slightly  lesser  extent,  companies  working  with  the  self-
employed.  The  data  presented  in  the  Impact  Assessment  allow  determining  to  which  extent 
the  companies  use  these  typologies  of  contracts.  The  self-employed  with  and  without 
employees  work  mainly  with  micro-enterprises  (1-9  employees),  and  much  less  with  SMEs 
and 
the 
effectiveness  of  the  initiative.  Non-standard  employees  work  particularly  in  the  public 
administration (28%) and in SMEs and to a less extent also in large and micro enterprises.  

large  companies.  Exempting  micro-enterprises 

thus  would  unduly  reduce 

• 

Fundamental rights 

No negative impact has been identified on fundamental rights. On the contrary, the initiative 
promotes the entitlement to social security benefits and social services providing protection in 
cases such as maternity, illness, industrial accidents, dependency or old age, and in the case of 
loss of employment, in line with article 34 of the EU Charter of fundamental rights.  

4. 

BUDGETARY IMPLICATIONS 

This Recommendation has no financial implications to the EU budget. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The  Commission  will  monitor  implementation  in  the  Member  States  and  review  the 
Recommendation in cooperation with the Member States and after consulting the concerned 
stakeholders, ensuring a sufficiently long period to evaluate the effects of the initiative after it 
has been fully implemented. The effectiveness of the Recommendation could be measured on 
the  basis  of  existing  and  new  data  and  of  information  gathered  through  Member  States' 
reporting.  

A mapping of existing gaps of social protection has been done for the purposes of this Impact 
Asssessment (see Annex 6)  and will be repeated in  some years. The comparison  of the two 
mappings  –  ex-ante  and  ex-post    -  will  provide  a  picture  of  the  evolution  of  the  social 
protection scheme, their coverage and their eligibility conditions.  

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At the same time, one of the current limitations in the analysis of the probem pertains to the 
lack of a good statistical base allowing to fully quantify the size of affected groups. For this 
purpose,  statistical  reporting  commitments  will  be  included  in  the  Recommendation  itself. 
This will encourage Member States to collect and publish reliable statistics on access to social 
protection  broken  down  by  labour  market  status  (self-employed/employee),  type  of 
forms  of 
employment 
work/standard employment), gender, age and citizenship.  

(temporary/permanent,  part-time/full-time,  new 

relationship 

Moreover,  reinforced  cooperation  will  be  established  with  Eurostat  to  create  indicators 
appropriate  for  this  area.  Although  long-time  series  would  not  be  available,  it  should  be 
possible to track progress towards formal coverage, effective coverage and transparency since 
the  publication  of  the  Recommendation.  Work  on  improving  indicators  has  already  started 
and  they  could  be  available  at  the  same  time  as  the  Member  States  start  implementing  the 
Recommendation.  

Further, work would be undertaken by the Commission in the context of the Social Protection 
Committee to establish a benchmarking framework for social protection. 

• 

Explanatory documents (for directives) 

Not applicable.  

• 

Detailed explanation of the specific provisions of the proposal 

§  1  to  6  indicate  the  subject  matter  of  the  Recommendation  and  its  objectives.  They  also 
define the personal scope (who are the individuals to be covered) and the material scope (what 
are the branches of social protection that are concerned) of the Recommendation.  

§ 7 contains definitions which are to be applied for the purpose of the Proposal.  

§ 8 and 9 recommend to Member States to extend formal coverage to all workers, regardless 
of the type and duration of their employment relationship, and to the self-employed.  

§  10  recommends  to  Member  States  to  ensure  effective  coverage,  regardless  of  type  of 
employment  relationship  and  labour  market  status,  by  reviewing  the  rules  governing 
contributions and entitlements. § 11 introduces the principle of transferability of entitlements, 
which should contribute to an effective coverage.  

§ 12 to 15 encourage Member States to ensure the adequacy of social protection and to better 
tailor the schemes to the situation of beneficiaries.  

§ 16 and 17 introduce the principle of transparency by encouraging Member States to improve 
access  to  information  on  social  protection  rights  and  obligations  and  to  simplify 
administrative requirements.  

§ 18 to 23 establish the maximum period that Member States have in order to implement the 
principles  set  out  in  the  Recommendation  and  to  publish  regular  data.  They  invite  the 
Commission to propose a benchmarking framework within a year after the publication of the 
Recommendation, to review  the implementation of the Recommendation within  three years, 
and to support Member States through funding and mutual learning exchanges.  

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2018/0059 (NLE) 

Proposal for a 

COUNCIL RECOMMENDATION 

on access to social protection for workers and the self-employed 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 292, in conjunction with Articles 153 and 352 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

26 
27 

Pursuant to Article 3 TEU, the aims of the Union are inter alia to promote the well-
being of its peoples and to work for the sustainable development of Europe based on 
a highly competitive  social market economy, aiming at full  employment  and  social 
progress.  The  Union  combats  social  exclusion  and  discrimination,  promote  social 
justice  and  protection,  equality  between  women  and  men,  solidarity  between 
generations and protection of the rights of the child.  

Pursuant to Article 9 TFEU, the Union, in defining and implementing its policies and 
activities, takes into account requirements linked to the promotion of a high level of 
employment,  the  guarantee  of  adequate  social  protection,  the  fight  against  social 
exclusion and a high level of education, training and protection of human health.  

Point (c) of Article 153(1) TFEU enables the Union to support and complement the 
activities of the Member States in the field of social security and social protection of 
workers.  The  Union  action  may  also  be  pursued  to  address  challenges  of  access  to 
social protection for people in self-employment based on Article 352 TFEU, which 
contains a provision allowing the Union to adopt an act necessary to attain objectives 
laid  down  by  the  Treaties  when  the  latter  have  not  provided  the  powers  of  action 
necessary to attain them.  

The European Parliament, the Council and the Commission solemnly proclaimed the 
European  Pillar  of  Social  Rights  in  their  Interinstitutional  proclamation  of  17 
November  201726.  Principle  12  of  the  Pillar  states  that  regardless  of  the  type  and 
duration  of  their  employment  relationship,  workers,  and,  under  comparable 
conditions, the self-employed, have the right to adequate social protection.  

The social partners have committed to continue contributing to a Europe that delivers 
for its workers and enterprises27.   
In  its  Resolution  on  a  European  Pillar  of  Social  Rights28  the  European  Parliament 
underlined the need for adequate social protection and social investment throughout 

OJ C 428, 13.12.2017, p. 10–15. 
Joint statement of the social partners of 24 March 2017. 

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people’s lives, enabling everyone to participate fully in society and the economy and 
sustaining  decent  living  standards.  In  its  opinion  on  a  European  Pillar  of  Social 
Rights,  the  European  Economic  and  Social  Committee  emphasised  the  need  to 
ensure  that  all  workers  are  covered  by  fundamental  labour  standards  and  adequate 
social protection. 

Social  protection  systems  are  the  cornerstone  of  the  Union  social  model  and  of  a 
well-functioning social market economy. The key function of social protection is to 
protect  people  against  the  financial implications  of  social  risks,  such  as  illness,  old 
age,  accidents  at  work,  or  job  loss,  to  prevent  and  alleviate  poverty  and  uphold  a 
decent standard of living. Well-designed social protection systems may also facilitate 
participation  in  the  labour  market  by  supporting  labour  market  transition  for 
individuals  who  switch  jobs,  move  in  or  out  of  work,  start  a  company  or  close  it 
down.  They  contribute  to  competitiveness  and  sustainable  growth  as  they  support 
investment  in  human  capital  and  as  they  may  help  to  reallocate  human  resources 
towards emerging and dynamic sectors of the economy. They also have a role to play 
as  automatic  stabilisers  by  smoothing  consumption  over  the  course  of  the  business 
cycle. 

Social protection can be provided through in-kind or in-cash benefits. It is generally 
provided  through  social  assistance  schemes  that  protect  all  individuals  (based  on 
their  citizenship  or  residency  and  financed  through  general  taxation)  and  through 
social  security  schemes  that  protect  people  in  the  labour  market,  often  based  on 
contributions  related  to  their  work-income.  Social  protection  includes  several 
branches, covering a variety of social risks ranging from unemployment to illness or 
old age. This Recommendation applies to the branches of social protection which are 
more closely related to the labour market status or type of employment relationship 
and mostly ensure protection from loss of work-related income upon the occurrence 
of  a  certain  risk.  It  complements  existing  guidance,  at  the  Union  level,  on  social 
services and assistance, and more broadly on the active inclusion of people excluded 
from the labour market29.  

Globalisation,  technological  developments,  changes  in  individual  preferences,  and 
demographic ageing have driven changes in the European labour markets for the last 
two decades and will continue to do so in the future. Employment will increasingly 
be more diverse and careers will be less and less linear.  

A variety of employment relationships and forms of self-employment exist in Union 
labour markets alongside full-time open-ended employment contracts. Some of them 
have  already  been  known  in  the  labour  market  for  a  long  time  (such  as  fixed, 
temporary,  part-time,  domestic  work,  or  traineeships);  others  developed  more 
recently  and  increased  in  importance  since  the  2000s:  on-demand  work,  voucher-
based work, platform work, etc.  

The self-employed in  particular also form a  heterogeneous group.  Most individuals 
voluntarily choose to be self-employed, with or without employees, taking the risk to 
become entrepreneurs, while one out of five self-employed is self-employed because 
he or she cannot find a job as an employee.  

http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P8-TA-2017-
0010+0+DOC+XML+V0//EN 
Commission Recommendation of 3 October 2008 on the active inclusion of people excluded from the 
labour market (2008/867/EC). 

(7) 

(8) 

(9) 

(10) 

(11) 

28 

29 

EN 

16 

  EN 

                                                                                                                                                         
(12) 

As  labour  markets  evolve,  social  protection  systems  need  to  evolve  too,  to  ensure 
that the European social model is future-proof and that it enables Union societies and 
economies to make the most of the future world of work. However, in most Member 
States,  the  rules  governing  contributions  and  entitlements  of  social  protection 
schemes are still largely based on full-time open-ended contracts between a worker 
and  a  single  employer  while  other  groups  of  workers  and  the  self-employed  have 
been more marginally covered. Evidence shows that some non-standard workers and 
some  self-employed  have  insufficient  access  to  the  branches  of  social  protection 
which  are  more  closely  related  to  the  labour  market  status  or  type  of  employment 
relationship.  Only  a  few  Member  States  have  undertaken  reforms  to  adapt  social 
protection systems to the changing nature of work to better protect affected workers 
and the self-employed. Improvements have been uneven across countries and across 
branches of social protection. 

(13) 

In the long run, the gaps in access to social protection may put at risk the welfare and 
health of individuals, contribute to increasing economic uncertainty, poverty risk and 
inequalities,  and  may  also  lead  to  suboptimal  investment  in  human  capital,  reduce 
trust in institutions and limit inclusive economic growth.  

(14)  Workers  and  self-employed  people  can  be  identified  as  formally  covered  by  a 
specific social protection branch if the existing legislation or collective agreement set 
out that they are entitled to participate in a social protection scheme in that specific 
branch. Formal coverage can be provided via mandatory or voluntary schemes. The 
latter  give  the  opportunity  to  individuals  to  adhere  to  a  scheme  (opt-in  clauses)  or 
cover  all  individuals  of  the  target  group  by  default  giving  them  the  opportunity  to 
leave  the  scheme  if  they  so  wish  (opt-out  clauses).  Evidence  shows  that  voluntary 
schemes  with  opt-out  clauses  have  higher  rates  of  adherence  and  therefore  provide 
better coverage. 

(15)  Workers  and  self-employed  people  can  be  identified  as  effectively  covered  in  a 
specific  social  protection  branch  if  they  have  the  opportunity  to  accrue  adequate 
benefits and the ability, in case of materialisation of the corresponding risk, to access 
a  given  level  of  benefits.  A  person  may  be  granted  formal  access  without  de  facto 
being able to build and take up entitlements to benefits.  

(16) 

(17) 

Social  protection  is  considered  as  adequate  when  it  allows  individuals  to  uphold  a 
decent standard of living, to replace their income loss in a reasonable manner and to 
live with dignity and prevents them from falling into poverty.  

In  some  Member  States,  certain  categories  of  workers  such  as  short  part-time 
workers,  seasonal  workers,  on-demand  workers,  platform  workers  and  those  on 
temporary  agency  contracts  or  traineeships  are  excluded  from  social  protection 
schemes.  Moreover,  workers  who  do  not  have  full-time,  open-ended  contracts  can 
encounter difficulties in being effectively covered by social protection, because they 
may  not  fulfil  entitlements  criteria  for  receiving  benefits  from  contributions-based 
social protection schemes. The self-employed are completely excluded from formal 
access  to  key  social  protection  schemes  in  some  Member  States;  in  other  Member 
States they are able to adhere to them on a voluntary basis. Voluntary coverage may 
be a suitable solution in the case of unemployment insurance, which is more closely 
associated  to  the  entrepreneurial  risk;  it  is  less  justifiable  for  other  risks  such  as 
illness, which are largely independent from their status in the labour market.  

(18) 

The  rules  governing  entitlements  may  work  to  the  disadvantage  of  non-standard 
workers and the self-employed. In particular, income and time thresholds (qualifying 

EN 

17 

  EN 

periods,  waiting  periods,  minimum  working  periods,  duration  of  benefits)  may 
constitute  an  unduly  high  obstacle  to  access  social  protection  for  some  groups  of 
non-standard workers and for the self-employed. In general, two sets of issues have 
been identified: firstly, existing differences in rules between standard employees and 
people  in  non-standard  employment  or  self-employed  may  unnecessarily  penalise 
one  group;  secondly,  the  same  rules  applied  to  all  groups  may  lead  to  poorer 
outcomes  for  people  outside  standard  employment  and  may  not  be  adapted  to  the 
situation of the self-employed. In both cases, there may be scope to better tailor the 
rules to the situation of the specific groups while maintaining a general principle of 
universality  so  that  no-one  in  the  labour  market  is  left  uncovered  upon  the 
materialisation  of  a  social  risk.  Specific  measures  may  be  needed  to  avoid  people 
contributing  to  overlapping  schemes,  for  example  when  exercising  ancillary 
activities while already fully covered in their main job. 

Social  protection  rights  are  not  always  preserved  and  transferred  when  individuals 
are  transiting  between  different  labour  market  statuses,  for  instance  going  from 
employment to self-employment or unemployment, combining salaried employment 
and  self-employment,  starting  or  closing  down  a  business.  The  transferability  of 
rights  across  schemes  and  their  aggregation  is  also  crucial  to  allow  people  who 
combine or change jobs or pass from a worker status to a self-employed status and 
vice  versa  to  effectively  access  benefits  in  contributory  schemes  and  to  have 
adequate  coverage,  but  also  in  order  to  encourage  their  participation  in  case  of 
voluntary social protection schemes.  

Benefits  may  be  inadequate,  i.e.  insufficient  or  untimely  to  uphold  the  standard  of 
living, to live with dignity and prevent individuals from falling into poverty. In this 
case, there may be scope to improve adequacy, while also being attentive to enabling 
measures  that  facilitate  the  return  to  work.  The  rules  governing  contributions  may 
skew  the  level  playing  field  and  work  to  the  disadvantage  of  some  categories  of 
workers and the self-employed. For instance, social protection contributions for self-
employed may include contributions independent of income, or be set based on past 
incomes  or  assumptions  about  future  income.  This  can  create  cash  flows  problems 
for  the  individual  when  their  income  drops  below  the  estimates.  Moreover, 
progressivity  and  reductions  in  social  contributions  for  low-income  groups  could 
apply more equally to workers and the self-employed, while also ensuring that such 
exemptions do not induce under-reporting of income. 

The  current  regulatory  complexity  and  lack  of  transparency  regarding  social 
protection rules in many Member States hamper people's ability to be aware of their 
rights  and  obligations  and  their  possibilities  of  exercising  them.  They  may  also 
contribute  to  a  low  take-up  rate,  or  low  participation  in  social  protection  schemes, 
especially in the case of a voluntary scheme.  

Lack  of  statistics  on  coverage  by  social  protection  broken  down  by  type  of 
employment  relationship,  age,  sex  and  citizenship  may  limit  the  possibilities  of 
improving  the  capacity  of  social  protection  systems  to  adapt  and  respond  to  the 
changing world of work.  

The  gaps  in  access  to  social  protection  may  have  detrimental  effects,  in  terms  of 
economic and fiscal impacts, which are felt across the Union. They are a matter of 
common interest for the Member States and they potentially present obstacles to the 
achievement of key objectives of the Union.  

(19) 

(20) 

(21) 

(22) 

(23) 

EN 

18 

  EN 

(24) 

(25) 

(26) 

Union  legislation  already  ensures  the  principle  of  equal  treatment  between  various 
types  of  employment  relationships,  prohibits  any  direct  or  indirect  discrimination 
based on sex in matters of employment, occupation, social protection and access to 
goods and services, ensures portability and preservation of rights in case of mobility 
between  Member  States  and  guarantees  minimum  requirements  for  the  acquisition 
and  preservation  of  supplementary  pension  rights  across  borders,  as  well  as  
minimum  requirements  in  terms  of  transparency  of  occupational  schemes.  This 
Recommendation should be without prejudice to the provisions of the directives and 
regulations already setting out some rights to social protection30.  
In its case law31 the Court of Justice of the European Union has established criteria 
for determining the status of a worker. The definition of worker in point 7 is based on 
these criteria. 
Council Recommendation 92/442/EEC32 identified commonly held objectives in the 
area  of  social  protection  and  invited  Member  States  to  'examine  the  possibility  of 
introducing  and/or  developing  appropriate  social  protection  for  self-employed 
persons’.  Those  commonly  defined  objectives  have  opened  room  for  the  Open 
Method  of  Coordination  in  the  field  of  social  protection  and  social  inclusion,  an 
essential  instrument  to  support  the  definition,  implementation  and  evaluation  of 
national  social  protection  frameworks  and  to  foster  Member  States'  mutual 
cooperation in this area. 

30 

31 

32 

Council Directive 97/81/EC of 15 December 1997 concerning the Framework Agreement on part-time 
work concluded by UNICE, CEEP and the ETUC - Annex : Framework agreement on part-time work 
(OJ L 14, 20.1.1998, p. 9), Council Directive 1999/70/EC of 28 June 1999 concerning the framework 
agreement on fixed-term work concluded by ETUC, UNICE and CEEP (OJ L 175, 10.7.1999, p. 43), 
Directive  2008/104/EC  of  the  European  Parliament  and  of  the  Council  of  19 November  2008  on 
temporary agency work (OJ L 327, 5.12.2008, p. 9), Directive 2008/94/EC of the European Parliament 
and of the Council of 22 October 2008 on the protection of employees in the event of the insolvency of 
their  employer  (OJ  L  283,  28.10.2008,  p.  36),  Directive  (EU)  2016/2341  of  the  European  Parliament 
and  of  the  Council  of  14  December  2016  on  the  activities  and  supervision  of  institutions  for 
occupational retirement provision (OJ L 354, 23.12.2016, p. 37), Directive 2010/41/EC of the European 
Parliament  and  of  the  Council  of  7 July  2010  on  the  application  of  the  principle  of  equal  treatment 
between  men  and  women  engaged  in  an  activity  in  a  self-employed  capacity  and  repealing  Council 
Directive 86/613/EEC (OJ L 180, 15.7.2010, p. 1), Directive 2006/54/EC of the European Parliament 
and  of  the  Council  of  5  July  2006  on  the  implementation  of  the  principle  of  equal  opportunities  and 
equal treatment of men and women in matters of employment and occupation (OJ L 204, 26.7.2006, p. 
23),  Council  Directive  1979/7/EC  of  19  December  1978  on  the  progressive  implementation  of  the 
principle of equal treatment for men and women in matters of social security (OJ L 6, 10.1.1979, p. 24), 
Council  Directive  2004/113/EC  of  13  December  2004  implementing  the  principle  of  equal  treatment 
between men and women in the access to and supply of goods and services (OJ L 373, 21.12.2004, p. 
37), Council Directive 2010/18/EC of 8 March 2010 implementing the revised Framework Agreement 
on  parental  leave  concluded  by  BUSINESSEUROPE,  UEAPME,  CEEP  and  ETUC  and  repealing 
Directive 96/34/EC (OJ L 68, 18.3.2010, p. 13) and proposal of 16 April 2017 repealing it (COM(2017) 
253  final),  Council  Directive  93/103/EC  of  23  November  1993  concerning  the  minimum  safety  and 
health  requirements  for  work  on  board  fishing  vessels  (thirteenth  individual  Directive  within  the 
meaning  of  Article  16  (1)  of  Directive  89/391/EEC)  (OJ  L  307,  13.12.1993,  p.  1),  Regulation  (EC) 
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) and proposal for a Directive on transparent and predictable 
working conditions in the European Union, COM/2017/0797 final of 21 December 2017.  
See Judgments of 3 July 1986, Deborah Lawrie-Blum, Case 66/85; 14 October 2010, Union Syndicale 
Solidaires  Isère,  Case  C-428/09;  9  July  2015,  Balkaya,  Case  C-229/14;  4  December  2014,  FNV 
Kunsten, Case C-413/13; and 17 November 2016, Ruhrlandklinik, Case C-216/15.  
Council  Recommendation  92/442/EEC  of  27  July  1992  on  the  convergence  of  social  protection 
objectives and policies (OJ L 245, 26.8.1992, p. 49). 

EN 

19 

  EN 

                                                 
(27) 

(28) 

(29) 

(30) 

(31) 

(32) 

(33) 

(34) 

(35) 

In the framework of the European Semester, the Annual Growth Survey 2018 recalls 
that improving the adequacy and coverage of social protection is crucial to prevent 
social exclusion while the 2018 Guidelines for the employment policies call on the 
Member States to modernise social protection systems. 

In  its  Social  Protection  Floors  Recommendation  of  2012,  the  International  Labour 
Organisation  recommends  its  members,  in  accordance  with  national  circumstances, 
to  establish  as  quickly  as  possible  and  maintain  their  social  protection  floors 
comprising basic social protection guarantees. 

two-stage  consultation  with 

The  Commission  has  undertaken  a 
the  social 
partners33on  access  to  social  protection  for  people  in  all  forms  of  employment,  in 
accordance with Article 154(2) TFEU. The procedure of Article 154(2) TFEU is not 
as  such  applicable  to  Union  action  to  address  the  challenges  related  to  the  self-
employed  on  the  basis  of  Article  352  TFEU.  The  Commission  invited  the  social 
partners  to  share  their  views  as  regards  persons  in  self-employment  on  a  voluntary 
basis. 

The Commission also carried out a public consultation to seek the views of various 
stakeholders  and  citizens  and  gathered  evidence  to  assess  the  socio-economic 
impacts to this Recommendation34. 

The implementation of this Recommendation should not be used to reduce existing 
rights set out in existing Union legislation in this field nor should it constitute valid 
grounds for reducing the general level of protection afforded to workers in the field 
covered by this Recommendation.  

This  Recommendation  should  avoid  imposing  administrative,  financial  and  legal 
constraints in a way which would hold back the creation and development of small- 
and  medium-sized  undertakings  (SMEs).  Member  States  are  therefore  invited  to 
assess the impact of their reforms on SMEs in order to make sure that SMEs are not 
disproportionately  affected,  with  specific  attention  for  micro-enterprises  and  for 
administrative burden, and to publish the results of such assessments.  

This  Recommendation  should  not  aggravate  further  the  liquidity  of  undertakings  – 
and especially of SMEs – when their financial situation has been negatively affected 
by late payments from public authorities. 

The Member States may involve stakeholders, including social partners, in the design 
of  reforms.  This  Recommendation  should  not  limit  the  autonomy  of  the  social 
partners  where  they  are  responsible  for  setting  up  and  managing  social  protection 
schemes. 

This  Recommendation  should  be  without  prejudice  to  the  powers  of  the  Member 
States  to  organise  their  social  protection  systems.  The  exclusive  competence  of  the 
Member  States  with  regard  to  the  organisation  of  their  social  protection  systems 
includes  inter  alia  decisions  on  the  setting  up,  financing  and  management  of  such 
systems and related institutions as well as on the substance and delivery of benefits, 
the  level  of  contributions  and  the  conditions  for  access.  This  Recommendation 
should not prevent Member States from maintaining or establishing more advanced 
provisions on social protection than the ones recommended here.  

33 
34 

C(2017)7773 
SWD(2018)70 

EN 

20 

  EN 

                                                 
(36) 

(37) 

This  Recommendation  should  duly  observe,  reinforce  and  enhance  fundamental 
rights,  in  particular  as  established  by  Articles  29  and  34  of  the  Charter  of 
Fundamental Rights of the European Union.  

The  financial  sustainability  of  social  protection  schemes  is  essential  for  the 
resilience,  efficiency  and  effectiveness  of  the  schemes.  The  implementation  of  this 
Recommendation should not significantly affect the financial equilibrium of Member 
States' social protection systems,  

HAS ADOPTED THIS RECOMMENDATION: 

1. 

2. 

3. 

4. 

5. 

Objective and scope 

This  Recommendation  aims  to  provide  access  to  adequate  social  protection  to  all 
workers and the self-employed in Member States.   

This  Recommendation  aims  to  establish  minimum  standards  in  the  field  of  social 
protection  of  workers  and  the  self  employed.  Social  protection  can  be  provided 
through  a  combination  of  schemes,  including  public,  occupational  and  private 
schemes  and  can  involve  contributions,  in  accordance  with  the  fundamental 
principles  of  national  social  protection  systems.  Member  States  are  competent  to 
define  the  level  of  contributions  and  decide  which  combination  of  schemes  is 
appropriate, in accordance with Article 153(4) TFEU.  

This  Recommendation  covers  the  right  to  participate  in  a  scheme  as  well  as  the 
build-up and take-up of entitlements. It aims in particular to ensure the following for 
all workers and the self-employed:  

(a) 

(b) 

(c) 

formal coverage of social protection; 

effective coverage, adequacy and transferability of social protection;  

transparency of social protection entitlements. 

This  Recommendation  applies  to  workers  and  the  self-employed,  including  people 
transitioning between either status or having both statuses, as well as people whose 
work  is  interrupted  due  to  the  occurrence  of  one  of  the  risks  covered  by  social 
protection. 

This Recommentation applies to the following branches of social protection, insofar 
provided in the Member States: 

(a)  unemployment benefits;  

(b) 

sickness and health care benefits; 

(c)  maternity and equivalent paternity benefits; 

(d) 

invalidity benefits; 

(e)  old-age benefits; 

(f) 

benefits in respect of accidents at work and occupational diseases; 

6. 

The principles of accessibility, transferability, adequacy and transparency defined in 
this  Recommendation  apply  to  all  workers  and  to  the  self-employed,  whilst 
acknowledging that different rules may apply for workers and for the self-employed. 

EN 

21 

  EN 

 
 
7. 

For the purposes of this Recommendation, the following definitions apply:  

Definitions 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

'worker' means a natural person who for a certain period of time performs 
services  for  and  under  the  direction  of  another  person  in  return  for 
remuneration; 

'employment relationship' means the work relationship between a worker 
and employer(s); 

'type  of  employment  relationship'  means  one  of  the  various  types  of 
relationships between a worker and employer(s) that can differ regarding 
the duration of employment, the number of working hours or other terms 
of the employment relationship;  

' labour market status' means the statuses of a person as either working in 
the  framework  of  an  employment  relationship  (worker)  or  working  on 
their own behalf (self-employed); 

'social protection scheme' means a distinct framework of rules to provide 
benefits to entitled beneficiaries. Such rules specify the personal scope of 
the  programme,  entitlement  conditions,  the  type  of  benefits,  benefit 
amounts, benefits duration and other benefit characteristics, as well as the 
financing (contributions, general taxation, other sources), governance and 
administration of the programme. The social protection branches referred 
to in paragraph 5 of this Recommendation are defined in accordance with 
Regulation  (EC)  No  883/2004  of  the  European  Parliament  and  of  the 
Council; 

'benefit'  means  a  transfer  in  cash  made  by  a  public  or  private  entity  to 
someone entitled to receive it as part of a social protection scheme; 

branch 

'formal  coverage'  of  a  group  means  a  situation  in  a  specific  social 
protection 
protection, 
maternity/paternity protection) where the existing legislation or collective 
agreement  sets  out  that  the  individuals  of  this  group  are  entitled  to 
participate in a social protection scheme covering a specific branch; 

unemployment 

(e.g. 

age, 

old 

'effective  coverage'  of  a  group  means  a  situation  in  a  specific  social 
protection branch where the individuals in this group have an opportunity 
to  accrue  benefits  and  the  ability;  in  case  of  materialisation  of  the 
corresponding risk, to access a given level of benefits;  

'duration of benefits' means the period of time during which an insured or 
the insured's dependents can avail of the benefits of the social protection 
scheme; 

'qualifying period' means the period of membership of a scheme, required 
under  national  law  or  by  the  rules  of  a  scheme,  in  order  to  trigger 
entitlements to the accumulated social protection rights; 

'minimum  working  period’  means  that  the  person  is  required  to  have 
worked  a  minimum  of  hours/months/years  before  being  eligible  to 
receive the benefit in case of materialisation of risk; 

EN 

22 

  EN 

 
(l) 

(m) 

(n) 

'economic  sectors'  means  sectors  of  the  economy,  grouped  according  to 
the kind of products or services they produced; 

'transferability'  means  the  possibility  of  i)  transferring  accumulated 
entitlements  to  another  scheme,  ii)  making  qualifying  periods  in  a 
previous labour market status (or in concomitant labour market statuses) 
count towards the qualifying periods in the new status; 

the 

'transparency'  means 
accessible, 
provision 
comprehensive  and  clearly  understandable  information  to  the  general 
public,  potential  scheme  members,  schemes  members  and  beneficiaries 
about  the  scheme's  rules  and/or  about  the  individual  obligations  and 
entitlements. 

available, 

of 

Formal coverage 

8. 

9. 

Member  States  should  ensure  that  workers  have  access  to  social  protection  by 
extending  formal  coverage  on  a  mandatory  basis  to  all  workers,  regardless  of  the 
type of their employment relationship; 

Member States should ensure that the self-employed have access to social protection 
by extending their formal coverage: 

(a)  on  a  mandatory  basis 

sickness  and  healthcare  benefits, 
maternity/paternity  benefits,  old  age  and  invalidity  benefits  as  well  as 
benefits in respect of accidents at work and occupational diseases;  

for 

(b)  on a voluntary basis for unemployment benefits. 

Effective coverage and transferability 

10. 

Member States should ensure effective coverage to all workers, regardless of the type 
of  the  employment  relationship,  and  to  the  self-employed,  under  the  conditions  set 
out in paragraphs 7 and 8, while also preserving the sustainability of the system and 
implementing safeguards to avoid abuse. To that end: 

(a) 

rules governing contributions (e.g. qualifying periods, minimum working 
periods)  and  rules  governing  entitlements  (e.g.  waiting  periods, 
calculation  rules  and  duration)  should  not  hinder  the  possibility  of 
accruing  and  accessing  benefits  due  to  the  type  of  the  employment 
relationship or of the labour market status; 

(b)  differences  in  the  rules  governing  the  schemes  between  labour  market 
statuses  or  types  of  employment  relationships  should  be  proportionate 
and reflect the specific situation of beneficiaries. 

11. 

In  accordance  with  the  national  arrangements  on  social  dialogue,  Member  States 
should  ensure  that  entitlements    -  whether  they  are  acquired  through  mandatory  or 
voluntary schemes - are accumulated, preserved and transferable across all types of 
employment  and  self-employment  statuses  and  across  economic  sectors.  This  may 
include: 

(a) 

aggregating all contributions and preserving all entitlements accumulated 
throughout the person's career or during a certain reference period;  

EN 

23 

  EN 

 
 
12. 

13. 

14. 

15. 

16. 

17. 

18. 

(b)  making all entitlements transferable between different schemes  within a 

given social protection branch.  

Adequacy 

Where  a  risk  insured  by  social  protection  schemes  for  workers  and  for  the  self-
employed  occurs,  Member  States  should  ensure  that  schemes  provide  an  adequate 
level of protection to their members, i.e. sufficient and timely to uphold the standard 
of  living,  provide  appropriate  income  replacement,  while  always  preventing  those 
members from falling into poverty.   

Member  States  should  ensure  that  the  contributions  to  social  protection  are 
proportionate to the contributory capacity of workers and the self-employed. 

Member  States  should  ensure  that  any  exemptions  or  reductions  in  social 
contributions  for  low-income  groups  apply,  regardless  of  the  type  of  employment 
relationship and labour market status. 

Member  States  should  ensure  that  the  calculation  of  social  protection  contributions 
and  entitlements  of  the  self-employed  are  based  on  an  objective  and  transparent 
assessment  of  their  income  base,  including  taking  account  of  their  income 
fluctuations, and reflect their actual earnings.  

Transparency 

Member States should ensure that the conditions and rules of all social schemes are 
transparent  and  that  individuals  are  given  regularly  updated,  comprehensive, 
accessible, user-friendly, and clearly understandable information free of charge about 
their individual entitlements and obligations by, for example:  

(a) 

(b) 

(c) 

sending regular updates on individual entitlements; 

setting up online simulation tools regarding benefit entitlements; 

creating online and off-line one-stop information centres  or personal accounts.  

Member States should simplify the administrative requirements of social protection 
schemes  for  workers,  the  self-employed  and  employers,  notably  micro-,  small-  and 
medium-sized enterprises.   

Implementation, reporting and evaluation 

Member States and the Commission should jointly work on improving the scope and 
relevance of data collection at the Union  level on labour  force  and access to  social 
protection, with a particular view to informing policy making on social protection of 
new  forms  of  work.  In  this  context,  Member  States  should  collect  and  publish 
reliable national statistics on access to the various forms of social protection broken 
down  by  labour  market  status  (self-employed/employee),  the  type  of  employment 
relationship (temporary/permanent, part-time/full-time, new  forms  of  work/standard 
employment),  gender,  age  and  citizenship  by  [ADD  date  18  months  from  the 
publication of the Recommendation].  

EN 

24 

  EN 

 
 
 
19. 

20. 

21. 

22. 

23. 

The Commission should, jointly with the Social Protection Committee, establish  a 
benchmarking framework, and develop agreed common quantitative and qualitative 
indicators to monitor the implementation of this Recommendation by [ADD date 12 
months from the publication of the Recommendation] and enabling its evaluation.  

Member  States  should  implement  the  principles  set  out  in this  Recommendation  as 
soon  as  possible  and  submit  action  plans  reporting  on  the  corresponding  measures 
taken  at  the  national  level  by  [ADD  date  12  months  from  the  publication  of  the 
Recommendation]. The progress in the implementation of the action plans should be 
monitored  in  the  context  of  the  multilateral  surveillance  tools  in  line  with  the 
European  Semester  and  the  Open Method  of Coordination  for  Social  Inclusion  and 
Social Protection. 

this 
The  Commission  should  evaluate  progress 
Recommendation,  also  taking  into  account  the  impact  on  small-  and  medium-sized 
enterprises,  in  cooperation  with  the  Member  States  and  after  consulting  the 
stakeholders  concerned,  and  report  to  the  Council  by  [ADD  date  3  years  from  the 
publication of the Recommendation]. On the basis of the results of the review,  the 
Commission may consider making further proposals.  

implementation  of 

the 

in 

The Commission should ensure that the implementation of this Recommendation is 
supported through actions funded by the relevant Union programmes. 

The Commission should facilitate mutual learning and the exchange of best practices 
between Member States and with stakeholders.  

Done at Strasbourg, 

For the Council 
The President 

EN 

25 

  EN