The Commission’s proposal could make cross-border work easier and more transparent. However, the EU must address the structural conditions that lead to vulnerabilities and labour shortages.

The new Fair Labour Mobility package, presented by the Commission on 15 September, seeks to strengthen enforcement against labour exploitation and ease cross-border work by improving access to social-security rights and facilitating the recognition of qualifications. The proposal comes as shortages persist in sectors from healthcare to construction, many of which increasingly rely on foreign workers. Much of its impact will depend on the broader policy context, including effective enforcement by member states, accessible legal recruitment channels and increasingly restrictive environment.

Facilitating cross-border mobility: Qualification recognition and social-security portability

First, the package seeks to enhance skills portability into the EU and across the Union. The Skills Portability initiative introduces a standardised digital format for issuing EU qualifications and speeds up the recognition of EU and non-EU qualifications. Automatic recognition applies to seven professions with EU-wide training standards, such as doctors and nurses. This could help non-EU nationals access work matching their qualifications and EU businesses fill skills gap. Nevertheless, member states retain control over the standards required to practice most professions, meaning that significant differences in access will remain.

Second, the proposal aims to enhance the portability of social-security rights within the EU. The proposed European Social Security Pass (ESSPASS) will digitalise documents such as the social-security coverage and the European Health Insurance Card, helping workers demonstrate where social-security contributions are being paid. While helpful, this alone cannot provide a complete picture of employment relationships. This is where the e-declaration for posted workers, agreed provisionally in June 2026, becomes relevant.

Although separate from the Fair Labour Mobility package, the e-declaration would standardise information on the company and the posting, including information on subcontracting. The potential of these initiatives lies in an integrated information system, providing authorities with a fuller picture of working arrangements. Employers would also benefit from a single system, avoiding duplicate filings and clarifying requirements. However, the portal’s use will be voluntary for member states.

Tackling exploitation through the European Labour Authority

Non-EU nationals already play an important role in Europe’s in shortage sectors. They represent around 26% of home-based personal care workers and one third of seasonal agricultural workers. Despite this, they can be subject to harsh working conditions and even exploitation. If their migration status and access to accommodation are precarious, their bargaining power and ability to report abuse are more limited. Cross-border employment and posting further complicates enforcement, due to divided responsibilities, complex subcontracting chains and extensive reliance on intermediaries. Weak enforcement also harms compliant businesses, as they struggle to compete with those that underpay workers or evade their obligations.

Against this background, as a third element of the package, the Commission proposed a long-awaited reform of the European Labour Authority (ELA), expanding its functions and bringing non-EU nationals within its remit. ELA would also have a stronger role in risk analysis and helping member states and organisations target enforcement on high-risk sectors. While welcome, the proposed reform improves coordination rather than fundamentally changing where enforcement power sits. ELA can ask member states to open an inspection, with refusals requiring justification, but cannot order or conduct inspections on its own. The reform’s effectiveness will ultimately depend on national authorities’ capacity and readiness to enforce the rules.

Labour mobility in a more restrictive policy landscape

The proposed measures and their future implementation must be considered within the EU’s wider migration policy agenda. Stronger rhetoric against recruitment from abroad and stricter measures against irregular stay also affect labour-supply dynamics and precariousness, including in shortage sectors.

Structural difficulties in recruiting from abroad, including slow procedures and short-staffed ministries, will make labour intermediaries more attractive for both employers and workers. Despite the increasingly important role played by bona fide agents, greater reliance on intermediaries can make employment relationships opaque and standards harder to enforce. Limited recruitment channels may also push some employers towards informal or irregular employment, distorting competition with firms that recruit legally.

For non-EU nationals facing the withdrawal or expiry of a work permit, the lack of viable alternatives may similarly increase reliance on irregular work. Those without a residence permit are particularly exposed, as fear of return may discourage them from reporting abuse.

The upcoming Quality Jobs Act could complement the Fair Mobility package by addressing some of these structural vulnerabilities. Risk-mitigating measures include fair wages, safe workplaces and tackling abusive subcontracting. However, structural measures such as decoupling housing and residence status from the employer, more stable permits and clear work permit renewal rules are likely to fall outside the Act’s scope and will require separate action.

Beyond the package: Can fair mobility deliver?

The Fair Labour Mobility package is a welcome attempt to address both Europe’s labour and skills shortages and some of the risks posed by cross-border work. Greater transparency and stronger enforcement make labour arrangements easier to verify and abuses easier to detect. However, they treat the symptoms rather than the structural conditions that create dependencies, unfair competition and the risk of exploitation.

Ultimately, ensuring fair labour mobility will require reducing the structural vulnerabilities that allow irregular employment and fraudulent behaviours to persist, alongside safe and effective legal channels for employers and workers to meet increasing labour demand.

The support the European Policy Centre receives for its ongoing operations, or specifically for its publications, does not constitute an endorsement of their contents, which reflect the views of the authors only. Supporters and partners cannot be held responsible for any use that may be made of the information contained therein.