A weekly briefing on European HR, labour law and compliance developments for SME HR teams across the EU, UK, Switzerland and the Nordics.
Top story: EU agrees overhaul of cross-border social security coordination
Member-state representatives have confirmed a compromise text revising Regulation 883/2004, the EU rulebook that determines which country’s social security system covers workers moving across borders. The European Parliament adopted the revision on 7 July 2026 and the Council’s formal endorsement is expected before year-end, completing a legislative process that began in 2016.
The most significant change for employers is operational. A1 certificates and prior notification will become mandatory before cross-border work begins, replacing the common practice of obtaining certificates retrospectively. Workers posted to another member state will need at least three months’ prior affiliation to the sending country’s system. A narrow exemption covers business trips and work of up to three consecutive days in any 30-day period, but construction work is excluded from that exemption entirely. Separately, jobseekers will be able to export unemployment benefits for six months, doubled from the current three.
Most substantive provisions apply 24 months after the regulation formally enters into force, so new obligations are unlikely to bite before late 2028 at the earliest. But the shift from retrospective to prospective compliance is a change in kind, not just degree, and it will reshape how SMEs manage cross-border mobility.
What to do: Map which assignments, postings and short-term cross-border travel in your organisation would fall under the new mandatory A1 requirement. Build the process change into your mobility administration planning now: you’ll need certificates before work starts, not afterwards. Companies in construction should note that the short-trip exemption doesn’t apply to their sector at all.
Also developing
Germany: The Federal Labour Court (BAG) has ruled that an employee’s request for parental leave is, in principle, binding and cannot be unilaterally withdrawn, even if personal circumstances change before the leave begins (Ref. 9 AZR 11/26, decided 6 October 2026). An employee who separated from his partner and moved out before his parental leave was due to start asked his employer to let him continue working. The court held that the statute provides for automatic termination of parental leave only on the death of the child: ending leave early or not taking it at all requires the employer’s consent, unless the employee can demonstrate “particular hardship” such as serious illness or a considerable threat to economic existence. Losing parental allowance after a separation doesn’t, by itself, meet that threshold. What to do: German employers who’ve already hired a replacement or reorganised work schedules after receiving a parental leave request can rely on its binding nature. Before refusing an early return, check whether the employee has raised a particular hardship claim and, if so, respond in writing within four weeks.
Austria: Amendments to the Settlement and Residence Act (NAG) and the Act Governing the Employment of Foreign Nationals (AuslBG) have eased several rules for employers hiring third-country nationals. Holders of combined work and residence permits can now change employers more easily: the switch is filed as a notification and the new job can begin 45 days after filing, even before a formal decision is issued. Workers on employer-specific permits who lose their job are protected from permit withdrawal for six months, giving them time to find new employment. Family members of EU Blue Card, Red-White-Red Card and researcher permit holders face reduced German-language requirements, and family members with derived permits under Section 69 NAG can now access the labour market more broadly. What to do: Austrian employers should update onboarding and mobility processes to reflect the 45-day employer-change window and the six-month unemployment protection period. Review whether current or planned hires of accompanying family members benefit from the expanded work access.
EU (ECJ ruling): The European Court of Justice has clarified that when an employer relocates a site and employees refuse to follow because the move is permanent and significant, their subsequent termination can count as a “dismissal” under the Collective Redundancies Directive (Case C-907/24). The court identified three factors for assessing significance: permanence of the relocation, distance between old and new sites and compensatory measures offered. In the underlying case (a move of over 600 km across Italy), the court found “much to suggest” a significant change. The ruling means employers planning major relocations must assess early whether refusals could push them past collective redundancy notification thresholds. What to do: If your business is planning a site relocation, model the potential number of refusals against your country’s collective redundancy thresholds. Precautionary notification to the relevant employment authority may be worth considering: dismissals issued without required prior notification can be void.
United Kingdom: The Court of Appeal has ruled that an employer’s potential vicarious liability to third parties for its employees’ acts doesn’t transfer to a new employer under TUPE (ABC v Huntercombe (No 12) Ltd). The case concerned a healthcare provider whose employees may have harmed hospital patients. On a business transfer, the question was whether the incoming employer inherited liability for those acts. The court held that vicarious liability protects third parties, not employees, so it falls outside the purpose of TUPE. The Supreme Court hasn’t considered the point, so a further appeal remains possible. What to do: UK employers involved in business transfers should note that third-party claims arising from the transferor’s employees’ conduct are less likely to follow the workforce across. However, this ruling could still be challenged, so TUPE due diligence should continue to identify and allocate potential third-party liabilities through indemnity provisions in the transfer agreement.
On the radar
UK, 30 October (previously covered): the strengthened “all reasonable steps” harassment prevention duty, third-party harassment liability and statutory trade union workplace access rights all take effect on 30 October. The union right-to-join notification duty has been postponed to January 2027 for new workers and April 2027 for existing workers.
UK, 2027: unpaid bereavement leave of up to two weeks takes effect in April 2027, covering the death of a close relative or pregnancy loss. Changes to the flexible working request process are expected in autumn 2027.
EU Platform Workers Directive (previously covered): the 2 December 2026 transposition deadline is six weeks away. Germany is actively drafting. Most member states haven’t completed transposition.
Belgium (previously covered): the Private Investigations Act compliance deadline of 16 December 2026 is two months away.
EU Pay Transparency Directive (previously covered): Greece’s employer obligations take effect from 1 November. France’s transposition bill is in parliamentary debate.
Sources
- Remote Work Europe: EU social security coordination reform, final approval
- Vialto Partners: provisional agreement on revised rules on EU social security coordination
- Mercer: Global Legislative Update, October 2026
- Littler: can employees unilaterally cancel parental leave? German Federal Labour Court rules
- Pinsent Masons: German court reinforces binding nature of parental leave requests
- Vialto Partners: Austria immigration 2026 legislative update
- Ogletree Deakins: site relocation as a mass dismissal, ECJ sharpens the concept of dismissal
- Hogan Lovells: employment in the news, October 2026
- Morgan Lewis: UK Employment Rights Act 2025, October reforms taking effect
Europe HR Compliance Pulse Weekly is an informational summary of publicly reported legal and regulatory developments. It is not legal advice. Always confirm obligations for your specific situation and market with a qualified adviser.
