Government Affairs

European Labour Authority to be Established by Year’s End

In his 2017 State of the Union Address before the European Parliament, EU President Jean-Claude Juncker announced the creation of an authority to address labour mobility enforcement within European Union (EU) members states. Since the delivery of his speech in September 2017, the EU has moved forward with the formation of a European Labour Authority (ELA). The ELA is expected to be formally established by the end of this year.

According to the fact sheet about the ELA released by the European Commission, 16 million Europeans reside and are employed in an EU country other than the one of their nationality and 1.7 million Europeans commute every day to another EU country to reach their job.

Creation of the ELA is intended to ensure that EU labour regulations are enforced in a “fair, simple, and effective way” and enhance mobility between EU states. The ELA will be specifically responsible for:

  1. Enhancing mobility cooperation and resolving disputes between EU states
  2. Leveraging current resources to create a single location for individuals working in another EU state (including the possibility of an EU social security number)
  3. Tackling abuses of labour legislation
  4. Working to improve mobility activities of states

Related: GDPR Now Underway Across the Globe

In mid-March, the European Commission adopted the legislative proposal for the creation of the ELA. On 23 May 2018, the Commission proposed a 2019 budget for the EU with €11 million to cover the costs of establishing the Authority. Once fully operational by the anticipated 2023 target date, the ELA would have approximately 140 staff members and an annual budget of around €50 million.

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