30.4.2014 EN Official Journal of the European Union L 128/8 DIRECTIVE 2014/54/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 April 2014 on measures facilitating the exercise of rights conferred on workers in the context of freedom of movement for workers (Text with EEA relevance) THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 46 thereof, Having regard to the proposal from the European Commission, After transmission of the draft legislative act to the national parliaments, Having regard to the opinion of the European Economic and Social Committee (1), After consulting the Committee of the Regions, Acting in accordance with the ordinary legislative procedure (2), Whereas: (1) The free movement of workers is a fundamental freedom of Union citizens and one of the pillars of the internal market in the Union enshrined in Article 45 of the Treaty on the Functioning of the European Union (TFEU). Its implementation is further developed by Union law aiming to guarantee the full exercise of rights conferred on Union citizens and the members of their family. ‘Members of their family’ should be understood as having the same meaning as the term defined in point (2) of Article 2 of Directive 2004/38/EC of the European Parliament and of the Council (3), which applies also to family members of frontier workers. (2) The free movement of workers is also a key element in the development of a genuine Union labour market, allowing workers to move to areas where there are labour shortages or more employment opportunities, helping more people find posts which are better suited to their skills and overcoming bottlenecks in the labour market. (3) The free movement of workers gives every citizen of the Union, irrespective of his or her place of residence, the right to move freely to another Member State in order to work there and/or to reside there for work purposes. It protects them against discrimination on grounds of nationality as regards access to employment, conditions of employment and work, in particular with regard to remuneration, dismissal, and tax and social advantages, by ensuring their equal treatment, under national law, practice and collective agreements, in comparison to nationals of that Member State. Such rights should be enjoyed without discrimination by all Union citizens exercising their right to free movement, including permanent, seasonal and frontier workers. The free movement of workers needs to be distinguished from the freedom to provide services, which includes the right of undertakings to provide services in another Member State, for which they may post their own workers to another Member State temporarily in order for them to carry out the work necessary to provide services in that Member State. (4) With respect to Union workers and members of their family exercising their right to free movement, Article 45 TFEU confers substantial rights for the exercise of this fundamental freedom, which are further specified in Regulation (EU) No 492/2011 of the European Parliament and of the Council (4). (5) The effective exercise of the freedom of movement of workers is, however, still a major challenge and many Union workers are very often unaware of their rights to free movement. Because of, inter alia, their potentially more vulnerable position, Union workers may still suffer from unjustified restrictions or obstacles to the exercise of their right to free movement, such as non-recognition of qualifications, discrimination on grounds of nationality and exploitation when they move to another Member State. There is, therefore, a gap between the law and its application in practice that needs to be addressed. (6) In July 2010, in its Communication entitled ‘Reaffirming the free movement of workers: rights and major developments’ the Commission pointed out that it would explore ways of tackling the new needs and challenges, in particular in the light of new patterns of mobility, facing Union workers and members of their family. It also stated that, in the context of the new strategy for the internal market, it would consider how to promote and enhance mechanisms for the effective implementation of the principle of equal treatment for Union workers and members of their family exercising their right to free movement. The Commission also summarised developments in legislation and case-law, in particular with regard to the personal scope of the Union law on free movement of workers and the substance of the rights enjoyed by Union workers and members of their family. (7) In the 2010 EU Citizenship Report entitled ‘Dismantling the obstacles to EU citizens' rights’ of 27 October 2010, the Commission identified the divergent and incorrect application of Union law on the right to free movement as one of the main obstacles that Union citizens are confronted with in the effective exercise of their rights under Union law. Accordingly, the Commission announced its intention to take action to facilitate free movement of EU citizens and their third-country national family members by enforcing EU rules strictly, including on non-discrimination, by promoting good practices and increased knowledge or EU rules on the ground and by stepping up the dissemination of information to EU citizens about their free movement rights (action 15 of the 2010 EU Citizenship Report). In addition in the 2013 EU Citizenship Report entitled ‘EU citizens: your rights, your future’, the Commission addressed the need to remove administrative hurdles and to simplify procedures for Union citizens living, working and travelling in other Member States. (8) In the Commission Communication entitled ‘Towards a job-rich recovery’ of 18 April 2012 (the Employment Package), the Commission announced its intention to: present a legislative proposal (information and advice) in order to support mobile workers in the exercise of rights derived from the TFEU and Regulation (EU) No 492/2011, and urged Member States to: raise awareness of and access to rights conferred by Union law in relation to anti-discrimination, gender equality and free movement of workers and to open and facilitate access by Union citizens to public sector posts, in accordance with Union law, as interpreted by the Court of Justice of the European Union. In this context, the Court has consistently held that the restriction of access to certain posts in the public service to a Member State's own nationals is to be interpreted restrictively and that it covers only posts involving direct or indirect participation in the exercise of powers conferred by public law and duties designed to safeguard the general interests of the State or of other public authorities. (9) Adequate and effective application and enforcement of Article 45 TFEU and Regulation (EU) No 492/2011, as well as awareness of rights, are key elements in protecting the rights and equal treatment of Union workers and members of their family, whereas poor enforcement undermines the effectiveness of Union rules applicable in this area and endangers the rights and protection of Union workers and members of their family. (10) A more effective and uniform application of rights conferred by Union rules on the free movement of workers is also necessary for the proper functioning of the internal market. (11) The application and monitoring of the Union rules on the free movement of workers should be improved to ensure that Union workers and members of their family as well as employers, public authorities, and other persons concerned are better informed about free movement rights and responsibilities, to assist and to protect Union workers and members of their family in the exercise of those rights, and to combat circumvention of those rules by public authorities and public or private employers. In that context Member States may also take into consideration the effects of increased mobility, such as ‘brain drain’ or ‘youth drain’. (12) In order to ensure the correct application of, and to monitor compliance with, the substantive Union rules on free movement of workers, Member States should take the appropriate measures to protect Union workers and members of their family exercising their right to free movement against both discrimination on grounds of nationality and any unjustified restriction or obstacle to the exercise of that right. (13) To that end, it is appropriate to provide specific rules for effective enforcement and to facilitate a better and more uniform application of the substantive rules governing the freedom of movement of workers under Article 45 TFEU and under Regulation (EU) No 492/2011. Enforcement of that fundamental freedom should take into consideration the principle of equality between women and men and the prohibition of discrimination of Union workers and members of their family on any ground set out in Article 21 of the Charter of Fundamental Rights of the European Union (‘the Charter’). (14) In that context, Union workers and members of their family who have been subject to discrimination on the grounds of nationality, or to any unjustified restriction or obstacles to exercising their right to free movement, should be guaranteed real and effective judicial protection. Where Member States provide for administrative procedures as a means of legal redress, they should ensure that any administrative decision may be challenged before a tribunal within the meaning of Article 47 of the Charter. Taking into account the right to effective legal protection, Union workers should be protected from any adverse treatment or consequence resulting from a complaint or proceedings which aim to enforce the rights safeguarded under this Directive. (15) In order to provide more effective levels of protection, associations and legal entities, including the social partners, should also be empowered to engage, as the Member States determine, either on behalf of or in support of any alleged victim, with his or her approval, in proceedings. This should be without prejudice to national rules of procedure concerning representation and defence before the courts and to other competences and collective rights of social partners, employees' and employers' representatives, such as those relating to the enforcement of collective agreements, where applicable, including actions on behalf of a collective interest, under national law or practice. With a view to ensuring effective legal protection, and without prejudice to the existing collective defence mechanisms available to the social partners and national law or practice, Member States are invited to examine the implementation of common principles for injunctive and compensatory collective redress mechanisms. (16) In accordance with the case-law of the Court of Justice, national rules on time limits for the enforcement of rights under this Directive should be such that they cannot be regarded as capable of rendering virtually impossible or excessively difficult the exercise of those rights. (17) Protection against discrimination based on the grounds of nationality would itself be strengthened by the existence of effective bodies with appropriate expertise in each Member State with competence to promote equal treatment, to analyse the problems faced by Union workers and members of their family, to study possible solutions and to provide specific assistance to them. The competence of those bodies should include, inter alia, the provision to Union workers and members of their family of independent legal and/or other assistance, such as the provision of legal advice on the application to them of the relevant Union and national rules on free movement of workers, of information about complaint procedures, and of help to protect the rights of workers and members of their family. It may also include assistance in legal proceedings. (18) It should be up to each Member State to decide whether to attribute the tasks to be carried out under this Directive to the bodies referred to above or whether to attribute those tasks to existing bodies with similar objectives at national level, for example, the promotion of free movement of persons, the implementation of the principle of equal treatment or the safeguarding of individual rights. Should a Member State decide to expand the mandate of an existing body, it should ensure allocation of sufficient resources to the existing body for the effective and adequate performance of its existing and additional tasks. Where the tasks are allocated to more than one body, Member States should ensure that they are adequately coordinated. (19) Member States should ensure that one or more of those bodies act as a contact point and that they cooperate and share information, such as the contact details of all the bodies, the means of redress and the contact details of the associations, organisations or other legal entities which provide information and services to Union workers and members of their family, with equivalent contact points in other Member States. The list of contact points should be made publicly available. (20) Member States should promote cooperation between the bodies designated by them under this Directive and existing information and assistance services provided by the social partners, associations, organisations or other relevant legal entities, such as organisations with responsibility for coordination arrangements under Regulation (EC) No 883/2004 of the European Parliament and of the Council (5) and, where relevant, labour inspectorates. (21) Member States should ensure the promotion of synergies with existing information and support tools at Union level and, to that end, should ensure that existing or newly created bodies work closely with the existing information and assistance services, such as Your Europe, SOLVIT, Enterprise Europe Network, the Points of Single Contact and EURES, including, where relevant, EURES cross-border partnerships. (22) Member States should promote dialogue with the social partners and with appropriate non-governmental organisations to address and combat unjustified restrictions and obstacles to the right to free movement or different forms of discrimination on the grounds of nationality. (23) Member States should establish how Union citizens, such as workers, students and recent graduates, as well as employers, the social partners and other interested parties can be provided with easily accessible, relevant information on the provisions of this Directive and of Regulation (EU) No 492/2011, including information about the bodies designated under this Directive and available means of redress and protection. Member States should take measures to make this information available in more than one official Union language taking into account demands in the labour market. This should not interfere with Member States' legislation on the use of languages. That information could be provided by individual counselling and should also be easily accessible through Your Europe and EURES. (24) In order to facilitate the enforcement of the rights granted under Union law, Council Directive 91/533/EEC (6) should be implemented and monitored consistently. (25) This Directive lays down minimum requirements, thus giving the Member States the option of introducing or maintaining more favourable provisions. Member States also have the possibility to extend the competences of the organisations entrusted with tasks related to the protection of Union workers against discrimination on grounds of nationality so as to cover the right to equal treatment without discrimination on grounds of nationality of all Union citizens exercising their right to free movement and the members of their family, as enshrined in Article 21 TFEU and in Directive 2004/38/EC. The implementation of this Directive should not serve to justify any regression in relation to the situation which already prevails in each Member State. (26) The effective implementation of this Directive implies that Member States, when adopting the appropriate measures to comply with their obligations under this Directive, should provide a reference to this Directive or be accompanied by such a reference on the occasion of the official publication of implementing measures. (27) In accordance with the Joint Political Declaration of Member States and the Commission on explanatory documents of 28 September 2011, Member States have undertaken to accompany, in justified cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. With regard to this Directive, the legislator considers the transmission of such documents to be justified. (28) After sufficient time for the implementation of this Directive has elapsed, the Commission should prepare a report on its implementation, evaluating in particular the opportunity to present any necessary proposal aiming to guarantee a better enforcement of Union law on free movement. In that report, the Commission should address the possible difficulties faced by young graduates looking for employment across the Union and by third-country spouses of Union workers. (29) This Directive respects the fundamental rights and observes the principles recognised in the Charter in particular the freedom to choose an occupation and the right to engage in work, the right to non-discrimination, in particular on grounds of nationality, the right to collective bargaining and action, fair and just working conditions, the right to freedom of movement and residence and the right to an effective remedy and a fair trial. It has to be implemented in accordance with those rights and principles. (30) This Directive respects the different labour market models of the Member States, including labour market models regulated by collective agreements. (31) Since the objective of this Directive, namely to establish a general common framework of appropriate provisions, measures and mechanisms necessary for the better and more uniform application and enforcement in practice of the rights relating to free movement of workers conferred by the TFEU and by Regulation (EU) No 492/2011, cannot be sufficiently achieved by the Member States, but can rather, by reason of the scale and effect of the action, be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve that objective, HAVE ADOPTED THIS DIRECTIVE: Article 1 Subject matter This Directive lays down provisions which facilitate the uniform application and enforcement in practice of the rights conferred by Article 45 TFEU and by Articles 1 to 10 of Regulation (EU) No 492/2011. This Directive applies to Union citizens exercising those rights and to members of their family (‘Union workers and members of their family’). Article 2 Scope 1. This Directive applies to the following matters, as referred to in Articles 1 to 10 of Regulation (EU) No 492/2011, in the area of freedom of movement for workers: (a) access to employment; (b) conditions of employment and work, in particular as regards remuneration, dismissal, health and safety at work, and, if Union workers become unemployed, reinstatement or re-employment; (c) access to social and tax advantages; (d) membership of trade unions and eligibility for workers' representative bodies; (e) access to training; (f) access to housing; (g) access to education, apprenticeship and vocational training for the children of Union workers; (h) assistance afforded by the employment offices. 2. The scope of this Directive is identical to that of Regulation (EU) No 492/2011. Article 3 Defence of rights 1. Member States shall ensure that after possible recourse to other competent authorities including, where they deem it to be appropriate, conciliation procedures, judicial procedures, for the enforcement of obligations under Article 45 TFEU and under Articles 1 to 10 of Regulation (EU) No 492/2011, are available to all Union workers and members of their family who consider that they have suffered or are suffering from unjustified restrictions and obstacles to their right to free movement or who consider themselves wronged by a failure to apply the principle of equal treatment to them, even after the relationship in which the restriction and obstacle or discrimination is alleged to have occurred has ended. 2. Member States shall ensure that associations, organisations, including the social partners, or other legal entities, which have, in accordance with the criteria laid down in their national law, practice or collective agreements, a legitimate interest in ensuring that this Directive is complied with, may engage, either on behalf of or in support of, Union workers and members of their family, with their approval, in any judicial and/or administrative procedure provided for the enforcement of the rights referred to in Article 1. 3. Paragraph 2 shall apply without prejudice to other competences and collective rights of the social partners, employees' and employers' representatives, where applicable, including the right to take action on behalf of a collective interest, under national law or practice. 4. Paragraph 2 shall apply without prejudice to national rules of procedure concerning representation and defence in court proceedings. 5. Paragraphs 1 and 2 of this Article shall apply without prejudice to national rules on time limits for enforcement of the rights referred to in Article 1. However, those national time-limits shall not render virtually impossible or excessively difficult the exercise of those rights. 6. Member States shall introduce in their national legal systems such measures as are necessary to protect Union workers from any adverse treatment or adverse consequence as a reaction to a complaint or proceedings aimed at enforcing compliance with the rights referred to in Article 1. Article 4 Bodies to promote equal treatment and to support Union workers and members of their family 1. Each Member State shall designate one or more structures or bodies (‘bodies’) for the promotion, analysis, monitoring and support of equal treatment of Union workers and members of their family without discrimination on grounds of nationality, unjustified restrictions or obstacles to their right to free movement and shall make the necessary arrangements for the proper functioning of such bodies. Those bodies may form part of existing bodies at national level which have similar objectives. 2. Member States shall ensure that the competences of those bodies include: (a) providing or ensuring the provision of independent legal and/or other assistance to Union workers and members of their family, without prejudice to their rights, and to the rights of associations, organisations and other legal entities referred to in Article 3; (b) acting as a contact point vis-à-vis equivalent contact points in other Member States in order to cooperate and share relevant information; (c) conducting or commissioning independent surveys and analyses concerning unjustified restrictions and obstacles to the right to free movement, or discrimination on grounds of nationality, of Union workers and members of their family; (d) ensuring the publication of independent reports and making recommendations on any issue relating to such restrictions and obstacles or discrimination; (e) publishing relevant information on the application at national level of Union rules on free movement of workers. In relation to point (a) of the first subparagraph where bodies provide assistance in legal proceedings, such assistance shall be free of charge to persons who lack sufficient resources, in accordance with national law or practice. 3. Member States shall communicate to the Commission the names and contact details of the contact points and any updated information or changes thereto. The Commission shall keep a list of contact points and shall make it available to the Member States. 4. Member States shall ensure that existing or newly created bodies are aware of, and are able to make use of, and cooperate with, the existing information and assistance services at Union level, such as Your Europe, SOLVIT, EURES, Enterprise Europe Network and the Points of Single Contact. 5. Where the tasks referred to in paragraph 2 are allocated to more than one body, Member States shall ensure that those tasks are adequately coordinated. Article 5 Dialogue Member States shall promote dialogue with the social partners and with relevant non-governmental organisations which have, in accordance with national law or practice, a legitimate interest in contributing to the fight against unjustified restrictions and obstacles to the right to free movement, and discrimination on grounds of nationality, of Union workers and members of their family with a view to promoting the principle of equal treatment. Article 6 Access to and dissemination of information 1. Member States shall ensure that the provisions adopted pursuant to this Directive and to Articles 1 to 10 of Regulation (EU) No 492/2011, are brought to the attention of the persons concerned throughout their territory, in particular Union workers and employers, by all appropriate means. 2. Member States shall provide, in more than one official language of the institutions of the Union, information on the rights conferred by Union law concerning the free movement of workers that is clear, free of charge, easily accessible, comprehensive and up-to-date. This information should also be easily accessible through Your Europe and EURES. Article 7 Minimum requirements 1. Member States may introduce or maintain provisions which are more favourable to the protection of the principle of equal treatment than those laid down in this Directive. 2. Member States may provide that the competences of the bodies referred to in Article 4 of this Directive for the promotion, analysis, monitoring and support of equal treatment of Union workers and members of their family without discrimination on grounds of nationality also cover the right to equal treatment without discrimination on grounds of nationality of all Union citizens exercising their right to free movement and the members of their family, in accordance with Article 21 TFEU and Directive 2004/38/EC. 3. The implementation of this Directive shall under no circumstances be sufficient grounds for a reduction in the level of protection of Union workers and members of their family, in the areas to which it applies, without prejudice to the Member States' right to respond to changes in the situation by introducing laws, regulations and administrative provisions which differ from those in force on 20 May 2014, provided that this Directive is complied with. Article 8 Transposition 1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 21 May 2016. They shall forthwith communicate to the Commission the text of those measures. When Member States adopt those measures they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made. 2. Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive. Article 9 Report By 21 November 2018, the Commission shall submit a report to the European Parliament, to the Council and to the European Economic and Social Committee on the implementation of this Directive, with a view to proposing, where appropriate, the necessary amendments. Article 10 Entry into force This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. Article 11 Addressees This Directive is addressed to the Member States. Done at Strasbourg, 16 April 2014. For the European Parliament The President M. SCHULZ For the Council The President D. KOURKOULAS (1) OJ C 341, 21.11.2013, p. 54. (2) Position of the European Parliament of 12 March 2014 (not yet published in the Official Journal) and decision of the Council of 14 April 2014. (3) Directive 2004/38/EC of the European Parliament and of the Council of 29 April 2004 on the right of citizens of the Union and their family members to move and reside freely within the territory of the Member States, amending Regulation (EEC) No 1612/68 and repealing Directives 64/221/EEC, 68/360/EEC, 72/194/EEC, 73/148/EEC, 75/34/EEC, 75/35/EEC, 90/364/EEC, 90/365/EEC and 93/96/EEC (OJ L 158, 30.4.2004, p. 77). (4) Regulation (EU) No 492/2011 of the European Parliament and of the Council of 5 April 2011 on freedom of movement for workers within the Union (OJ L 141, 27.5.2011, p. 1). (5) Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (OJ L 166, 30.4.2004, p. 1). (6) Council Directive 91/533/EEC of 14 October 1991 on an employer's obligation to inform employees of the conditions applicable to the contract or employment relationship (OJ L 288, 18.10.1991, p. 32).

Summary: Ensuring that EU workers’ rights are respected when working abroad Ensuring that EU workers’ rights are respected when working abroad SUMMARY OF: Directive 2014/54/EU on measures facilitating the exercise of rights conferred on workers in the context of freedom of movement for workers WHAT IS THE AIM OF THE DIRECTIVE? Among the many rights enjoyed by individuals in the European Union (EU) is the ability to live and work in another EU Member State. This legislation ensures the existence of national legal remedies in case workers or their families consider that these rights are being abused. KEY POINTS The EU free movement and anti-discrimination principles guarantee that people working abroad have the same employment rights as nationals. These are set out in Regulation (EU) No 492/2011 (see summary). Workers’ rights Access to employment and clear working conditions on pay, dismissal and health and safety. Access to social and tax advantages. Access to training, housing, education and apprenticeships. Membership of trade unions. Assistance from employment offices. Defending these rights The directive requires national authorities to ensure that judicial procedures are available for all EU workers who consider that they are suffering from discrimination in some way. In addition, organisations, associations, trade unions and employers’ bodies involved in the directive’s implementation may represent or support EU workers and their families in any legal action that they might undertake. Promoting equal treatment Every Member State must designate at least one organisation or central point to ensure that workers and their families do not suffer from discrimination or unjustified restrictions on their right to work where they wish because of their nationality. These organisations must: provide independent legal and other assistance, which must be free of charge for those who cannot afford it, in line with national practice; act as a contact point for similar national organisations in other Member States and cooperate with EU information and assistance services such as Your Europe and Solvit; carry out or commission independent surveys and analyses of unjustified restrictions and discrimination; make recommendations for tackling discrimination. FROM WHEN DOES THE DIRECTIVE APPLY? It has applied since 20 May 2014 and had to become law in the Member States by 21 May 2016. BACKGROUND For more information, see: Informing employees of their working conditions — summary (European Commission) Equal treatment in employment and occupation — summary (European Commission). MAIN DOCUMENT Directive 2014/54/EU of the European Parliament and of the Council of 16 April 2014 on measures facilitating the exercise of rights conferred on workers in the context of freedom of movement for workers (OJ L 128, 30.4.2014, pp. 8–14). RELATED DOCUMENTS Report from the Commission to the European Parliament, the Council and the European Economic and Social Committee on the implementation of Directive 2014/54/EU of the European Parliament and of the Council of 16 April 2014 on measures facilitating the exercise of rights conferred on workers in the context of freedom of movement for workers (COM(2018) 789 final, 4.12.2018). Regulation (EU) No 492/2011 of the European Parliament and of the Council of 5 April 2011 on freedom of movement for workers within the Union (OJ L 141, 27.5.2011, pp. 1–12). Successive amendments to Regulation (EU) No 492/2011 have been incorporated into the original document. This consolidated version is of documentary value only. last update 28.10.2021


30.4.2014 EN Official Journal of the European Union L 128/1 DIRECTIVE 2014/50/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 April 2014 on minimum requirements for enhancing worker mobility between Member States by improving the acquisition and preservation of supplementary pension rights (Text with EEA relevance) THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 46 thereof, Having regard to the proposal from the European Commission, Having regard to the opinion of the European Economic and Social Committee (1), Acting in accordance with the ordinary legislative procedure (2), Whereas: (1) The free movement of persons is one of the fundamental freedoms of the Union. Article 46 of the Treaty on the Functioning of the European Union (TFEU) provides that the European Parliament and the Council, acting in accordance with the ordinary legislative procedure and after consulting the European Economic and Social Committee, are to issue Directives setting out the measures required to bring about freedom of movement for workers as laid down in Article 45 TFEU. Article 45 TFEU provides that the freedom of movement for workers entails, inter alia, the right to accept offers of employment and to move freely within the territory of Member States for this purpose. This Directive aims to promote worker mobility by reducing the obstacles to that mobility created by certain rules concerning supplementary pension schemes linked to an employment relationship. (2) The social protection of workers with regard to pensions is guaranteed by statutory social security schemes, together with supplementary pension schemes linked to the employment contract which are becoming increasingly common in the Member States. (3) The European Parliament and the Council have wide powers of discretion regarding the choice of measures which are the most appropriate when it comes to achieving the objective of Article 46 TFEU. The system of coordination provided for in Council Regulation (EEC) No 1408/71 (3) and in Regulation (EC) No 883/2004 of the European Parliament and of the Council (4) and, in particular, the rules that apply to aggregation, do not relate to supplementary pension schemes, except for schemes defined as legislation in those Regulations, or which have been the subject of a declaration to that effect by a Member State pursuant to those Regulations. (4) Council Directive 98/49/EC (5) represents an initial specific measure designed to improve the exercise of the right of freedom of movement for workers as regards supplementary pension schemes. (5) The objective of this Directive is to further facilitate worker mobility between Member States by improving the acquisition and preservation of supplementary pension rights of members of those supplementary pension schemes. (6) This Directive is not applicable to the acquisition and preservation of supplementary pension rights of workers moving within a single Member State. Member States may consider using their national competences in order to extend the rules applicable pursuant to this Directive to scheme members who change employment within a single Member State. (7) A Member State may request that outgoing workers who move to another Member State notify their supplementary pension schemes accordingly. (8) Account should be taken of the characteristics and the special nature of supplementary pension schemes and of the way they differ within and among the Member States. The introduction of new schemes, the sustainability of existing schemes and the expectations and rights of current pension scheme members should be adequately protected. This Directive should also take particular account of the role of the social partners in designing and implementing supplementary pension schemes. (9) This Directive does not call into question the right of Member States to organise their own pension systems. Member States retain full responsibility for the organisation of such systems, and when transposing this Directive into national law they are not obliged to introduce legislation providing for the setting up of supplementary pension schemes. (10) This Directive does not limit the autonomy of the social partners where they are responsible for setting up and managing pension schemes, provided they can ensure the outcomes set out by this Directive. (11) This Directive should apply to all supplementary pension schemes established in accordance with national law and practice that offer supplementary pensions for workers, such as group insurance contracts, pay-as-you-go schemes agreed by one or more branches or sectors, funded schemes or pension promises backed by book reserves, or any collective or other comparable arrangement. (12) This Directive should not apply to supplementary pension schemes or, where applicable, sub-sections of such schemes that have been closed with the effect that no new members can be accepted because the introduction of new rules could place an unjustifiable burden on such schemes. (13) This Directive should not affect any arrangements for insolvency guarantee or compensation arrangements which are not part of a supplementary pension scheme linked to an employment relationship and which aim to protect the pension rights of workers in the event of insolvency of the undertaking or the pension scheme. Similarly, this Directive should not affect national pension reserve funds. (14) This Directive should apply only to supplementary pension schemes where entitlement exists by virtue of an employment relationship and is linked to reaching retirement age or to fulfilling other requirements, as laid down by the scheme or by national legislation. This Directive does not apply to individual pension arrangements, other than those concluded through an employment relationship. Where invalidity or survivor's benefits are attached to supplementary pension schemes, special rules may govern the entitlement to such benefits. This Directive does not affect existing national law and rules of supplementary pension schemes concerning such special rules. (15) A one-off payment which is unrelated to contributions made for the purpose of supplementary retirement provision, that is paid directly or indirectly at the end of an employment relationship, and that is financed solely by the employer, should not be considered to be a supplementary pension within the meaning of this Directive. (16) Since supplementary retirement provision is becoming increasingly important in many Member States as a means to secure people's standard of living in old age, the conditions for acquiring and preserving pension rights should be improved in order to reduce obstacles to workers' freedom of movement between Member States. (17) The fact that in some supplementary pension schemes pension rights can be forfeited if a worker's employment relationship ends before he or she has completed a minimum period of scheme membership ('vesting period'), or before he or she has reached the minimum age ('vesting age'), can prevent workers who move between Member States from acquiring adequate pension rights. The requirement of a lengthy waiting period before a worker can become a member of a pension scheme can have a similar effect. Such conditions therefore represent obstacles to workers' freedom of movement. By contrast, minimum age requirements for membership do not constitute an obstacle to freedom of movement, and are therefore not addressed by this Directive. (18) Vesting requirements should not be likened to other conditions laid down for the acquisition of a right to an annuity made with regard to the payout phase under national law or under the rules of certain supplementary pension schemes, in particular in defined contribution schemes. For instance, a period of active scheme membership which a member needs to complete after becoming entitled to a supplementary pension in order to claim his or her pension in the form of an annuity or capital sum does not constitute a vesting period. (19) Where an employment relationship is terminated before an outgoing worker has accrued vested pension rights and when the scheme or the employer bears the investment risk, in particular in defined benefit schemes, the scheme should always refund the pension contributions of that outgoing worker. Where an employment relationship is terminated before an outgoing worker has accrued vested pension rights and when the outgoing worker bears the investment risk, in particular in defined contribution schemes, the scheme may refund the value of the investments derived from those contributions. The value may be more or less than the contributions paid by the outgoing worker. Alternatively, the scheme may reimburse the sum of the contributions. (20) Outgoing workers should have the right to leave their vested pension rights as dormant pension rights in the supplementary pension scheme in which their entitlement was established. As regards the preservation of dormant pension rights, the level of protection may be considered equivalent where, particularly in the context of a defined contribution scheme, the outgoing workers are afforded the possibility of having the value of their vested pension rights discharged to a supplementary pension scheme which meets the conditions laid down in this Directive. (21) In accordance with national law and practice, steps should be taken to ensure the preservation of dormant pension rights or their value. The value of those rights at the time when the member leaves the scheme should be established in accordance with national law and practice. Where the value of those rights is adjusted, account should be taken of the particular nature of the scheme, the interests of the deferred beneficiaries, the interests of the remaining active scheme members and the interests of retired beneficiaries. (22) This Directive does not create any obligation to establish more favourable conditions for dormant pension rights than for the rights of active scheme members. (23) When the vested pension rights or the value of the vested pension rights of an outgoing worker do not exceed an applicable threshold established by the Member State concerned, and in order to avoid excessive administrative costs resulting from the management of a large number of low-value dormant pension rights, pension schemes may be given the option not to preserve those vested rights but, instead, to pay the outgoing worker a capital sum equivalent to the value of the vested pension rights. Where applicable, the transfer value or the capital payment should be established in accordance with national law and practice. Member States should set, where applicable, a threshold for such payments, taking into account the adequacy of workers' future retirement income. (24) This Directive does not provide for the transfer of vested pension rights. However, in order to facilitate worker mobility between Member States, Member States should endeavour, as far as possible, and in particular when introducing new supplementary pension schemes, to improve the transferability of vested pension rights. (25) Without prejudice to Directive 2003/41/EC of the European Parliament and of the Council (6), active scheme members and deferred beneficiaries who exercise or plan to exercise their right to freedom of movement should be suitably informed, upon request, about their supplementary pension rights. Where survivor's benefits are attached to schemes, surviving beneficiaries should also have the same right to information as deferred beneficiaries. Member States should be able to stipulate that such information need not be provided more than once a year. (26) In view of the diverse nature of supplementary pension schemes, the Union should confine itself to establishing the objectives to be achieved in general terms, which means that a Directive is the appropriate legal instrument. (27) Since the objective of this Directive, namely facilitating the exercise of the right of workers to freedom of movement between Member States, cannot be sufficiently achieved by the Member States but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve that objective. (28) This Directive establishes minimum requirements, thus enabling the Member States to adopt or maintain more favourable provisions. The implementation of this Directive cannot be used to justify a regression vis-à-vis the existing situation in each Member State. (29) The Commission should draw up a report on the application of this Directive no later than six years after its date of entry into force. (30) In accordance with the national provisions governing the organisation of supplementary pension schemes, the Member States may grant the social partners, at their joint request, responsibility for implementing this Directive as regards the provisions relating to collective agreements, provided that the Member States take all the necessary steps to ensure that they are at all times able to guarantee the outcomes set out in this Directive, HAVE ADOPTED THIS DIRECTIVE: Article 1 Subject matter This Directive lays down rules aimed at facilitating the exercise of the right of workers to freedom of movement between Member States by reducing the obstacles created by certain rules concerning supplementary pension schemes linked to an employment relationship. Article 2 Scope 1. This Directive applies to supplementary pension schemes with the exception of schemes covered by Regulation (EC) No 883/2004. 2. This Directive does not apply to the following: (a) supplementary pension schemes that, on the date of entry into force of this Directive, no longer accept new active members and remain closed to them; (b) supplementary pension schemes that are subject to measures involving the intervention of administrative bodies established by national legislation or judicial authorities, which are intended to preserve or restore their financial situation, including winding-up proceedings. This exclusion shall not extend beyond the end of that intervention; (c) insolvency guarantee schemes, compensation schemes and national pension reserve funds; and (d) a one-off payment made by an employer to an employee at the end of that employee's employment relationship which is not related to retirement provision. 3. This Directive does not apply to invalidity and/or survivor's benefits attached to supplementary pension schemes, with the exception of the specific provisions of Articles 5 and 6 relating to survivor's benefits. 4. This Directive applies only to periods of employment falling after its transposition in accordance with Article 8. 5. This Directive does not apply to the acquisition and preservation of supplementary pension rights of workers moving within a single Member State. Article 3 Definitions For the purposes of this Directive the following definitions apply: (a) 'supplementary pension' means a retirement pension provided for by the rules of a supplementary pension scheme established in accordance with national law and practice; (b) 'supplementary pension scheme' means any occupational retirement pension scheme established in accordance with national law and practice and linked to an employment relationship, intended to provide a supplementary pension for employed persons; (c) 'active scheme members' means workers whose current employment relationship entitles them or is likely to entitle them, after fulfilling any acquisition conditions, to a supplementary pension in accordance with the provisions of a supplementary pension scheme; (d) 'waiting period' means the period of employment, required under national law or by the rules of a supplementary pension scheme or by the employer, before a worker becomes eligible for membership of a scheme; (e) 'vesting period' means the period of active membership of a scheme, required under national law or the rules of a supplementary pension scheme, in order to trigger entitlement to the accumulated supplementary pension rights; (f) 'vested pension rights' means any entitlement to the accumulated supplementary pension rights after the fulfilment of any acquisition conditions, under the rules of a supplementary pension scheme and, where applicable, under national law; (g) 'outgoing worker' means an active scheme member whose current employment relationship terminates for reasons other than becoming eligible for a supplementary pension and who moves between Member States; (h) 'deferred beneficiary' means a former active scheme member who has vested pension rights in a supplementary pension scheme and is not yet in receipt of a supplementary pension from that scheme; (i) 'dormant pension rights' means vested pension rights retained within the scheme in which they have been accrued by a deferred beneficiary; (j) 'value of the dormant pension rights' means the capital value of the pension rights calculated in accordance with national law and practice. Article 4 Conditions governing the acquisition of rights under supplementary pension schemes 1. The Member States shall take all necessary steps to ensure that: (a) where a vesting period or a waiting period, or both, is applied, the total combined period shall under no circumstances exceed three years for outgoing workers; (b) where a minimum age is stipulated for the vesting of pension rights, that age shall not exceed 21 years for outgoing workers; (c) where an outgoing worker has not yet acquired vested pension rights when the employment relationship is terminated, the supplementary pension scheme shall reimburse the contributions paid by the outgoing worker, or paid on behalf of the outgoing worker, in accordance with national law or collective agreements or contracts, or, where the outgoing worker bears the investment risk, either the sum of the contributions made or the investment value arising from these contributions. 2. Member States shall have the option of allowing the social partners to lay down different provisions by collective agreement, to the extent that those provisions provide no less favourable protection and do not create obstacles to the freedom of movement for workers. Article 5 Preservation of dormant pension rights 1. Subject to paragraphs 3 and 4, Member States shall adopt the measures necessary to ensure that the vested pension rights of outgoing workers can remain in the supplementary pension scheme in which they vested. The initial value of those rights for the purposes of paragraph 2 shall be calculated at the moment in time when an outgoing worker's current employment relationship terminates. 2. Member States shall, having regard to the nature of the pension scheme rules and practice, adopt the measures necessary to ensure that outgoing workers' and their survivors' dormant pension rights or their values are treated in line with the value of the rights of active scheme members or the development of pension benefits currently in payment, or are treated in other ways which are considered as fair, such as: (a) where the pension rights in the supplementary pension scheme are acquired as an entitlement to a nominal sum, by safeguarding the nominal value of the dormant pension rights; (b) where the value of accrued pensions rights changes over time, by adjusting the value of the dormant pension rights by applying: (i) a rate of interest built into the supplementary pension scheme; or (ii) the return on investments derived by the supplementary pension scheme; or (c) where the value of the accrued pension rights is adjusted, for instance, in accordance with the inflation rate or salary levels, by adjusting the value of the dormant pension rights accordingly subject to any proportionate limit set by national law or agreed by the social partners. 3. Member States may allow supplementary pension schemes not to retain the vested rights of an outgoing worker but to pay, with the worker's informed consent, including as regards applicable charges, a capital sum equivalent to the value of the vested pension rights to the outgoing worker, as long as the value of the vested pension rights does not exceed a threshold established by the Member State concerned. The Member State shall inform the Commission of the threshold applied. 4. Member States shall have the option of allowing the social partners to lay down different provisions by collective agreement, to the extent that those provisions provide no less favourable protection and do not create obstacles to the freedom of movement for workers. Article 6 Information 1. Member States shall ensure that active scheme members can obtain, on request, information on how a termination of employment would affect their supplementary pension rights. In particular, information relating to the following shall be provided: (a) the conditions governing the acquisition of supplementary pension rights and the effects of applying them when the employment relationship is terminated; (b) the value of their vested pension rights or an assessment of the vested pension rights that has been carried out no more than 12 months preceding the date of the request; and (c) the conditions governing the future treatment of dormant pension rights. Where the scheme allows early access to vested pension rights through the payment of a capital sum, the information provided shall also include a written statement that the member should consider taking advice on investing that capital sum for retirement provision. 2. Member States shall ensure that deferred beneficiaries obtain, on request, information regarding the following: (a) the value of their dormant pension rights or an assessment of the dormant pension rights that has been carried out no more than 12 months preceding the date of the request; and (b) the conditions governing the treatment of dormant pension rights. 3. For survivor's benefits attached to supplementary pension schemes, paragraph 2 shall apply to surviving beneficiaries as regards the payment of survivor's benefits. 4. Information shall be provided clearly, in writing, and within a reasonable period of time. Member States may provide that such information need not be provided more than once a year. 5. The obligations under this Article shall be without prejudice to and shall be in addition to the obligations of the institutions for occupational retirement provision under Article 11 of Directive 2003/41/EC. Article 7 Minimum requirements and non-regression 1. Member States may adopt or maintain provisions on the acquisition of supplementary pension rights for workers, on the preservation of supplementary pension rights of outgoing workers and on active scheme members' and deferred beneficiaries' right to information which are more favourable than those set out in this Directive. 2. The transposition of this Directive shall not under any circumstances be used as a reason for reducing existing rights for the acquisition and preservation of supplementary pensions or to scheme members' or beneficiaries' right to information in the Member States. Article 8 Transposition 1. Member States shall adopt the laws, regulations and administrative provisions necessary to comply with this Directive by 21 May 2018, or shall ensure that the social partners introduce the required provisions by way of agreement by that date. Member States are required to take the necessary steps enabling them to guarantee the results imposed by this Directive. They shall immediately inform the Commission thereof. 2. When Member States adopt the measures referred to in paragraph 1, they shall contain a reference to this Directive or shall be accompanied by such reference on the occasion of their official publication. The methods of making such reference shall be laid down by the Member States. Article 9 Report 1. Member States shall communicate all available information concerning the application of this Directive to the Commission by 21 May 2019. 2. By 21 May 2020, the Commission shall draw up a report on the application of this Directive and submit it to the European Parliament, to the Council and to the European Economic and Social Committee. Article 10 Entry into force This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. Article 11 Addressees This Directive is addressed to the Member States. Done at Strasbourg, 16 April 2014. For the European Parliament The President M. SCHULZ For the Council The President D. KOURKOULAS (1) OJ C 185, 8.8.2006, p. 37. (2) Position of the European Parliament of 20 June 2007 (OJ C 146 E, 12.6.2008, p. 216) and position of the Council at first reading of 17 February 2014 (OJ C 77 E, 15.3.2014, p. 1). Position of the European Parliament of 16 April 2014 (not yet published in the Official Journal). (3) Council Regulation (EEC) No 1408/71 of 14 June 1971 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community (OJ L 149, 5.7.1971, p. 2). (4) Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (OJ L 166, 30.4.2004, p. 1). (5) Council Directive 98/49/EC of 29 June 1998 on safeguarding the supplementary pension rights of employed and self-employed persons moving within the Community (OJ L 209, 25.7.1998, p. 46). (6) Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision (OJ L 235, 23.9.2003, p. 10).

Summary: Supplementary pensions - keeping your rights when moving abroad Supplementary pensions - keeping your rights when moving abroad The legislation guarantees that people who move to another EU country to work will not lose the benefits they have already acquired in their existing company or occupational pension scheme. ACT Directive 2014/50/EU of the European Parliament and of the Council of 16 April 2014 on minimum requirements for enhancing worker mobility between Member States by improving the acquisition and preservation of supplementary pension rights. SUMMARY EU countries provide state pensions for their citizens when they retire. Since the early days of the EU, these basic rights have been respected when someone leaves one country to work or live in another. For the increasing number of people who have an additional pension scheme linked to their employment, and later decide to work abroad, the situation was far less clear. Many could lose out on their future pension if they left the job before fulfilling conditions such as lengthy qualifying periods. These either penalised them or deterred them from moving. The legislation ensures that anyone with supplementary pension rights does not lose out when they go to live or work in another EU country. Protecting rights The directive stipulates the following: Pension rights should be guaranteed after 3 years of employment at the latest. If a minimum age is required, it must not be higher than 21 years. The rights of workers who leave an employer-run pension scheme before retirement must be preserved and treated like those who remain in the scheme on matters such as indexation. Information Workers in a pension scheme can ask its administrators how stopping employment or moving would affect their supplementary pension rights and the conditions that would apply to the future treatment of those rights. People who have left the scheme must be informed about the value and treatment of their rights. Timetable The provisions of the legislation must be in place by 21 May 2018. The Commission will draft a report on its implementation by 21 May 2020. REFERENCES Act Entry into force Deadline for transposition in the Member States Official Journal Directive 2014/50/EU 20.5.2014 21.5.2018 OJ L 128 of 30.4.2014 Last updated: 23.07.2014