Grant Thornton says proposed reforms could bring new compliance burden for Irish businesses by October 2026.
Irish employers with staff working across EU borders are being urged to review their compliance procedures as proposed changes to European social security rules move closer to implementation.
Grant Thornton has warned that organisations with employees engaged in business travel, remote working or international placements may face more demanding administrative requirements from as early as October 2026. The changes follow a provisional agreement at EU level to update Regulation (EC) No. 883/2004, which governs how social security systems are coordinated between Member States.
“The message is clear: don’t sleepwalk into an administrative headache this autumn”
The reforms are intended to reflect modern working practices, particularly the growth in hybrid work and increased cross-border mobility among employees. Sectors such as construction, technology and professional services, where staff frequently operate across jurisdictions, are expected to be among the most affected.
A1 certificates
A central element of the proposed overhaul is a shift in how A1 certificates are managed. These documents confirm which country’s social security system applies to an employee working in multiple EU states. Under the current framework, employers often apply for A1 certificates after work abroad has already begun.
The revised rules place stronger emphasis on securing these certificates in advance. Employers will need to introduce processes that ensure applications are completed before cross-border assignments begin, alongside systems to track employee movements and maintain accurate records.
While the proposals include some flexibility for short-term business travel, the overall direction points to tighter oversight. Authorities are expected to increase scrutiny of cross-border arrangements, supported by greater use of technology and data-sharing between Member States.
Practical challenges for businesses
Clare Fitzgerald, Tax director at Grant Thornton, said the changes reflect a broader shift in how and where people work.
“How and where we work has drastically changed over the past number of years with more companies doing business internationally than ever before and people taking workations abroad, for example, in another EU State.
“While the proposed EU reforms introduce some welcome simplifications for short-term travel, they significantly raise the bar on compliance – employers will need much stronger processes around A1 management, and cross-border governance.
“Employers should be looking at these proposed changes now, with a final vote expected in July and implementation possibly coming as early as October 2026. With increased use of technology and data-sharing by authorities, and growing divergence with the UK, the compliance environment is only getting more complex.
“While reviewing policies may sound straightforward on paper, the reality is that timelines are tight – and many organisations risk being caught off guard during the summer period. The message is clear: don’t sleepwalk into an administrative headache this autumn,” she said
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