Employment policy, labour market and free movement of workers

European Social PolicyFaculty of Social Sciences, Charles University in Prague

Free Movement of Workers

Fundamental freedom guaranteed by Community law

Article 39 of the Rome Treaty - 1957

Reason: Instrument for completing the common market

Main legislation Regulation 1612/68 of 15.10.1968 on freedom of movement for workers

within the Community (OJ No L 257, 19.10.1968) Directive 68/360/EEC of 15.10.1968 on the abolition of restrictions on

movement and residence within the Community for workers of Member States and their families (OJ No L 257, 19.10.1968)

Directive 64/221/EEC of 25.02.1964 on the co-ordination of special measures concerning the movement and residence of foreign nationals which are justified on grounds of public policy, public security or public health (OJ No 56, 4.04.1964)

Regulation (EEC) 1251/70 of 29.06.1970 on the right of workers to remain in the territory of a Member State after having been employed in that State (OJ No L 142, 30.6.1970)

Directive 2004/38/EC of 29.04.2004 on the right of citizens of the Union and their family members to move and reside freely within the territory of the Member States (OJ No L 158, 30.04.2004)

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 No L 209, 25.07.1998)

Basic rights

Right to look for a job in another Member State Right to work in another Member State Right to reside there for that purpose Right to remain there Right to equal treatment in respect of access to

employment, working conditions and all other advantages which could help to facilitate the worker's integration in the host Member State

Right to look for a job in another MS The same assistance from the national

employment offices as nationals of the host MS

Right to stay for a period "sufficient to enable him to appraise himself of offers of employment and to take the necessary steps to be engaged"

EURES

Right of residence

Less than 3 months - no residence formalities required

Residence permit must be valid for at least 5 years + renewable

New directive effective in May 2006 – no residence permit

Right to remain

Retirement age + employed in host MS for at least the last 12 months + resided there continuously for more than 3 years;

Permanent incapacity to work + resided continuously in host MS for more than 2 years - pension from institutions of host MS

Equal treatment

Access to employment

Working conditions

Social and tax advantages

Family members

Spouse

Descendants who are under the age of 21 or are dependant

Dependant relatives in the ascending line

Employment in the public sector May be restricted to only nationals of host MS

Limitations on public security, public policy and public health grounds

Case-by-case approach

Obstacles

Legal

Administrative

Linguistic

Lack of information

Lack of will

European Employment Strategy Economic and social problems - 1990's

Objectives: Creating more and better jobs for all Raising the employment rate of the working-age

population Ensuring a safety net for those unable to work

Development

1993 - "Delors' White Book" on Growth, Competitiveness and Employment

1997 - Amsterdam Treaty Employment Guidelines for the Member States National Action Plans for Employment

1997 - Luxembourg Jobs Summit Launched the European Employment Strategy

2000 – Lisbon Strategy Raise overall EU employment rate to 70% Women in employment to more than 60%

Current challenges

Removing obstacles to female employment

Substantially reducing youth unemployment

Prolonging working lives

Modernising social protection systems

Revision of the EES 2003 - Communication on future of the EES

3 overarching objectives Full employment Quality + productivity at work Cohesion + inclusive labour market

2005 EURES 3 year period from 2005 to 2008

Integrated Employment Guidelines National Reform Programmes Joint Employment Report Recommendations EU annual progress report

Enlargement

Transitional measures I.(Articles 1-6 of EEC Regulation No 1612/68)

Restrictive, where EU-8 citizens are treated the same way as non-EEA citizens (Belgium, Finland, Germany, Greece, France, Luxembourg and Spain)

Restrictive with a quota for EU-8 citizens (Austria, Italy, the Netherlands, Portugal)

General labour market access with limited welfare benefits (Ireland, UK)

Community regime fully applied (Sweden)

Transitional measures II. Principle 2 + 3 + 2 Britain, Ireland and Sweden - no restrictions Spain, Finland, Portugal and Greece - remove

restrictions in May 2006. France and Belgium - considering easing the

restrictions only gradually Denmark - careful review Austria and Germany - keep the restrictions Norway (non-EU member) - considering opening Switzerland (non-EU member) - referendum

September 2005 - opening labour market to workers from the EU-10

Current situation

Relatively low movement rate - cca 1.5% „Widely predicted influx of cheap labourers

and 'welfare tourists' from the east“ Czech Republic

UK – 17 000 IR – 5 000 SWE - 200