Introduction

In December 2025, the Court of Justice of the European Union (CJEU) delivered a significant judgment concerning the determination of the applicable social security legislation for workers carrying out activities in two or more countries. The ruling has prompted a reassessment of the traditional approach used to evaluate the 25% threshold of activity in the State of residence, which is one of the key criteria used to determine the applicable social security legislation for multi-state workers.

Against a backdrop of increasing international mobility, remote working arrangements and cross-border employment structures, determining the applicable social security scheme has become an increasingly complex and strategically important issue for both employers and employees.

In April 2026, representatives of the EU Member States endorsed a provisional agreement reached between the Council of the European Union and the European Parliament on the revision of the EU social security coordination rules. The objective of the reform is to modernise the existing framework, improve legal certainty, strengthen administrative cooperation and better reflect the realities of today's mobile workforce.

Although Switzerland is not a member of the European Union, it participates in the European social security coordination framework through the Agreement on the Free Movement of Persons (AFMP).

Switzerland therefore generally seeks to maintain alignment with developments in EU social security coordination rules to ensure consistency for cross-border workers and internationally mobile employees.

However, any amendments adopted at EU level do not automatically apply in Switzerland. Before becoming effective, they must be incorporated into the EU–Switzerland social security coordination framework through the relevant bilateral procedures and decisions of the Joint Committee.

Consequently, a delay may arise between the date on which the revised rules enter into force within the European Union and the date on which they become applicable in Switzerland.

The Main Changes Introduced by the Reform

1. Unemployment Benefits: Greater Protection for Mobile Workers

The reform seeks to improve the position of workers who have exercised their right to free movement within the European Union.

Under the revised framework, unemployed persons seeking work in another Member State will generally be able to continue receiving unemployment benefits for up to six months, with the possibility of a longer export period where permitted under national legislation.

In addition, workers who have completed at least 22 weeks of insured employment in a Member State will, subject to certain conditions, be entitled to claim unemployment benefits in the country where they last worked. This reinforces the principle that unemployment benefits should be linked to the State where employment was carried out and contributions were paid.

For employers, these changes may facilitate labour mobility by providing greater certainty regarding employees' future entitlement to unemployment benefits.

2. Long-Term Care Benefits: A New Coordinated Framework

One of the most notable innovations of the reform is the explicit inclusion of long-term care benefits within the social security coordination framework.

As Europe's population continues to age, the need for cross-border coordination of long-term care benefits has become increasingly important.

The agreement introduces a clearer definition of such benefits and establishes rules aimed at avoiding overlaps, gaps in coverage and disputes between Member States. The reform should facilitate mobility for both individuals requiring long-term care and family members providing such care.

By clarifying entitlement and coordination mechanisms, the reform is expected to improve legal certainty and administrative efficiency.

3. Family Benefits: Clarification of Existing Rules

The existing principle allowing family benefits to be paid even where family members reside in another Member State remains unchanged.

However, the reform clarifies the distinction between:

• benefits intended to compensate for a reduction or loss of earnings linked to childcare responsibilities; and
• traditional family benefits.

This distinction aims to improve consistency across Member States and encourage a more balanced distribution of parental responsibilities between parents.

The changes may also help reduce financial barriers for parents who choose to reduce their working time in order to care for children.

4. Economically Inactive Persons: Codification of CJEU Case Law

The reform incorporates principles developed through recent CJEU case law concerning economically inactive individuals who move to another Member State.

The revised provisions seek to clarify the conditions under which such individuals may access certain social benefits while preserving the balance between freedom of movement and the protection of national social security systems.

The agreement also confirms that economically inactive persons should not be prevented from participating in health insurance systems where the applicable legislation provides for such participation.

5. Determination of the Applicable Legislation and Posting of Workers

The determination of the applicable social security legislation remains one of the most complex areas of EU social security coordination.

The reform therefore introduces several important measures designed to improve legal certainty and strengthen administrative cooperation.

Additional Guidance for Multi-State Workers

The revised rules provide further clarification on the determination of the applicable legislation for individuals working in two or more Member States.

Particular attention is given to identifying the employer's genuine place of business, which is often a decisive factor in determining the competent social security system.

These clarifications are intended to reduce divergent interpretations between national authorities and minimise disputes concerning affiliation.

This aspect of the reform is particularly relevant in light of the December 2025 CJEU judgment, which has prompted renewed scrutiny of how the 25% threshold should be assessed in practice.

New Prior Notification Requirements for Postings

The agreement introduces a general obligation to notify the competent authorities before a worker is posted to another Member State.

The objective is to improve transparency, facilitate cooperation between authorities and strengthen controls aimed at preventing fraud and abuse.

The notification requirement will become an important compliance obligation for employers managing cross-border assignments.

Exemptions for Very Short Activities

Certain exemptions are foreseen for very short business activities.

As a general rule, prior notification will not be required where activities do not exceed three consecutive days within a period of 30 consecutive days.

However, the construction sector remains subject to stricter requirements. Given the particular compliance risks associated with the sector, the exemption for short activities will not apply and notification obligations will continue to apply regardless of the duration of the activity.

Practical Consequences for Employers

Employers may face additional administrative requirements in relation to:

• posting notifications;
• documentation supporting social security affiliation;
• monitoring employees working in several jurisdictions;
• verification of the applicable legislation in remote working arrangements; and
• interactions with multiple social security authorities.

At the same time, the reform aims to provide greater certainty regarding the determination of the competent social security system and reduce the likelihood of conflicting decisions between Member States.

Points for Employers to Note

These developments are particularly significant for employers with internationally mobile workforces.
Determining the correct country of social security affiliation remains essential because it directly affects:

• social security contribution obligations;
• unemployment benefit entitlement;
• family benefit entitlement;
• healthcare coverage;
• long-term care benefits; and
• employer compliance obligations.

Employers should review existing cross-border working arrangements, including remote work, international assignments, business travel and multi-state employment structures, to assess whether the revised rules may affect current affiliation positions.

Particular attention should be paid to employees working simultaneously in several countries, as this remains one of the most complex areas of social security coordination.

Key Takeaways

• The December 2025 CJEU judgment has prompted a reassessment of the traditional application of the 25% threshold for workers carrying out activities in multiple countries.
• The 2026 reform seeks to modernise the EU social security coordination framework and better reflect the realities of an increasingly mobile workforce.
• Long-term care benefits are formally integrated into the coordination framework through clearer definitions and coordination rules.
• Mobile workers will benefit from enhanced protection regarding unemployment benefit entitlement and exportability.
• Additional guidance has been introduced regarding the determination of the applicable legislation for workers active in several Member States.
• A general prior notification requirement will apply to postings, strengthening administrative cooperation and compliance controls.
• Limited exemptions are foreseen for very short activities, although stricter requirements remain applicable in the construction sector.
• Determining the correct country of social security affiliation remains critical for both employers and employees given its impact on contributions and benefit entitlements.
• Switzerland will not automatically apply the revised rules. Their implementation will require incorporation into the EU–Switzerland coordination framework through the relevant bilateral procedures, potentially creating a delay between the effective date in the European Union and the effective date in Switzerland.

Next Steps

The provisional agreement remains subject to formal approval by the European Parliament and final adoption by the European Union institutions following legal and linguistic revision of the text.
Once adopted, the revised rules will enter into force within the European Union in accordance with the timetable established in the final legislative act.

For Switzerland, however, the position is different. The revised provisions will only become applicable once they have been incorporated into the EU–Switzerland social security coordination framework through the appropriate bilateral procedures and decisions of the competent Joint Committee.

Employers and employees should therefore continue to monitor developments closely, as different rules may temporarily apply within the European Union and Switzerland during the implementation phase.