Benefit Tourism : A Moral Panic?
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- Rafe Nathan Pitts
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1 Benefit Tourism : A Moral Panic? Simon Roberts Maltese Seminar: Benefit Tourism: Myth or Reality 27 May 2015 Funded by
2 The Problem Benefit tourists Coming to exploit host state s generous and open welfare system Community rules on free movement are the cause of the problem Funded by
3 Folk Devils and Moral Entrepreneurs A new race scare is running in the media. It began on an inside page of the Sunday Times with a news story suggesting that at least 100,000 Gypsies are expected to arrive in the UK when the European Union expands by 10 states in May. The Sun followed up on Monday with a front page and two inside pages on the tens of thousands of Eastern European Gypsies heading for Britain. By yesterday, the Express was forecasting on its front page that 1.6 million Roma were ready to "flood in". Guardian Leader, Wednesday 21 January 2004 Funded by
4 Enlargement 2007 Post 2007 recession Coincided with enlargement 2007 Apocalyptic warnings Funded by
5 Fears of benefit tourism not new UK Poor Law and Vagrancy Laws of early C17 People who moved between local parishes were excluded from poor relief. The UK Poor Law and Vagrancy Laws of the early Seventeenth Century allowed magistrates to send back to their own parish anyone arriving to inhabit a tenement with a yearly value of less than 10 upon receiving a complaint about the presence of such a person and parish officers kept a look out for people newly arrived who might apply for poor relief. (Gordon and Newnham, 1985). Early immigration laws required aliens to support themselves Funded by
6 A European phrase book for benefit tourists Wo ist das Hotel? Where is the housing department? Où est le bureau de change? Where do I cash my benefit cheque? Mio bambino e in Italia. Send child benefits to my family in Italy Je suis un citoyen de l Europe. Give me benefits or I ll take you to the European Court Secretary of State for Social Security Peter Lilley s speech to the 1993 Conservative Party Conference Funded by
7 Habitual Residence Test The stated target of the Habitual Residence Test was abuse of the UK s generous and open social security system by benefit tourists when they have no commitment to this country and pay no taxes here. Peter Lilley, Secretary of State for Social Security, Hansard, 28/2/95 Funded by
8 Enlargement 2004 Despite its assessment of the positive benefits of A8 migration, the UK Government s stated policy was that accession nationals are welcome to come to the UK to work but not to claim benefits To ensure that those affected are aware of the new rules before they come to the UK, the Home Office is working with the International Organisation for Migration (IOM) to put in place an information campaign in the Czech Republic, Slovakia, Hungary and Poland. The campaign will communicate a simple message You can come to the UK to work, if you register, but you cannot claim benefits. David Blunkett, Home Secretary, 23 February 2004 Funded by
9 The Right to Reside Test Angela Eagle, Parliamentary Under-Secretary of State at the Department for Social Security: "It is right that our social security system should be safeguarded from abuse by people with little or no connection to the UK and we will continue to do this. Funded by
10 A Continuing Story In announcing the intention to further restrict benefit entitlement the Prime Minister said his intention is: to tighten up our EEA migration rules to ensure our welfare system is not taken advantage of Funded by
11 The Evidence Study commissioned by the European Commission finds little evidence of benefits tourism in Europe Contradicts claims by the UK, Germany, Austria and the Netherlands that EU social security systems are under strain from Romanian and Bulgarian migrants A fact finding analysis on the impact on the Member States' social security systems of the entitlements of non-active intra-eu migrants to special non-contributory cash benefits and healthcare granted on the basis of residence, DG Employment, Social Affairs and Inclusion via DG Justice Framework Contract, Final report submitted by ICF GHK in association with Milieu Ltd. 14 October 2013 hereafter ICF GHK in association with Milieu Ltd, 2013 Funded by
12 The Data Non-active EU migrants very small portion of total population in each Member State Between 0.7% and 1.0% of the overall EU population Exceptions are Belgium (3%), Cyprus (4.1%), Ireland (3%) and Luxembourg (13.9%). Approximately 98% of non-active intra-eu migrants live in EU-15 countries ICF GHK in association with Milieu Ltd, 2013 Funded by
13 Increasing free movement Intra-EU migration increased 2003 and 2012 number of intra-eu migrants aged 15 and above increased from 1.3% to 2.6% of total EU-27 population Non active intra-eu migrants also risen but to a lesser extent from 0.7% in 2003 to 1.0% in 2012 ICF GHK in association with Milieu Ltd, 2013 Funded by
14 Who are the non-actives Pensioners, students and jobseekers accounted for more than two-thirds of the non-active EU migrant population (71%) in 2012 although significant differences can be found between countries Other non-active intra-eu migrants e.g., homemakers fulfilling domestic tasks and other non-active family members of EU nationality account for 25% of the entire non-active EU migrant population Persons who cannot work due to permanent disabilities represent a relatively small group of migrants (3%) ICF GHK in association with Milieu Ltd, 2013 Funded by
15 Economic activity On average EU migrants more likely to be in employment than nationals living in the same country The vast majority of non-active EU migrants (79%) live in economically active households, with only a minority of them living with other household members out of work ICF GHK in association with Milieu Ltd, 2013 Funded by
16 Fluid group Non-active intra-eu migrants not a static group Two-thirds (64%) of non-active migrants worked in the current country of residence A third (32%) of EU migrant jobseekers were employed one year before ICF GHK in association with Milieu Ltd, 2013 Funded by
17 Motivated by work opportunities Vast majority of migrants move to find (or take up) employment Migrants seeking to improve standard of living Significance of available employment opportunities motivating migration is demonstrated by recent shifts in migration patterns resulting from the impact of the crisis Data show a trend shift away from East-West to more South-North intra-eu migration, albeit East-West migration remains most significant in volume terms ICF GHK in association with Milieu Ltd, 2013 Funded by
18 Not motivated by benefits Little evidence in the literature to suggest that the main motivation of EU citizens to migrate and reside in a different Member State is benefit-related as opposed to work or familyrelated Analysis of EU data shows that migrants less likely to receive unemployment or disability benefits in most countries studied Where some studies found evidence supporting the welfare magnet effect hypothesis, the overall estimated effects are typically small or not statistically significant ICF GHK in association with Milieu Ltd, 2013 Funded by
19 SNCBs EU migrants account for a very small share of SNCBs beneficiaries less than 1% of all SNCB beneficiaries (of EU nationality) in six countries (AT, BG, EE, EL, MT and PT) between 1% and 5% in five other countries (DE, FI, FR, NL and SE) above 5% in BE and IE (although the figures for Ireland are estimates based on claimant data rather than benefits paid) There is limited trend data on the use of SNCBs by EU migrants to draw any robust conclusions In the 8 countries for which trend data is available, there has been an overall increase in the number of EU migrants in receipt of SNCBs albeit in absolute numbers, figures remain small in most countries ICF GHK in association with Milieu Ltd, 2013 Funded by
20 Healthcare Estimations indicate that expenditure on healthcare for non-active EU migrants very small relative to the size of total health spending in or the size of the economy of the host countries Estimated median values are 0.2 % of the total health spending and 0.01% of GDP Remember non-actives includes retired and disabled ICF GHK in association with Milieu Ltd, 2013 Funded by
21 A storm in a tea cup? Study concludes that Share of non-active intra-eu migrants is very small Non-active intra-eu migrants account for a very small share of SNCB recipients Budgetary impact of such claims on national welfare budgets is very low Costs associated with the take-up of healthcare by non-active intra-eu migrants is very small Employment remains the key driver for intra-eu migration and activity rates among such migrants have indeed increased over the 7 years to 2013 ICF GHK in association with Milieu Ltd, 2013 Funded by
22 Claims for Benefits Claims for benefits have been extremely low since accession in 2004 Between 1 May 2004 to 31 March 2008 just under 875,000 National Insurance Number applications from A8 nationals Of these the vast majority (97.6%) were allocated for employment purposes, 1.6 per cent for tax credit purposes and only a very small number (0.8%) for benefit purposes (UK Home Office, 2008) Funded by
23 Contribution European immigrants who arrived in the UK since 2000 have contributed more than 20bn to UK public finances between 2001 and 2011 provided the country with productive human capital that would have cost the UK 6.8bn in spending on education Between 2001 to 2011 European immigrants from the EU-15 countries contributed 64% more in taxes than they received in benefits Immigrants from the Central and East European accession countries (the A10 ) contributed 12% more than they received Immigrants who arrived since % less likely than natives to receive state benefits or tax credits Christian Dustmann and Tommaso Frattini of the fiscal consequences of European immigration to the UK, published by the Royal Economic Society on Wednesday 5 November 2014 in the Economic Journal. Funded by
24 A view supported by the UK government s own analysis In the long run, it is likely that the net fiscal contribution of an immigrant will be greater than that of a non-immigrant. For migrants of working age who enter the country this is relatively clear; the UK is receiving the fiscal contribution of their work, without paying for the education and training that enables them to work. Home Office, 2007 Funded by
25 Moral Panic "...[a] condition, episode, person or group of persons emerges to become defined as a threat to societal values and interests". (Cohen, S.,1973) Those who start the panic are referred to as moral entrepreneurs while those who allegedly threaten the social order are 'folk devils'. Are concerns with benefit tourism feeding on nationalist and anti-european emotions? Stanley Cohen (1973). Folk Devils and Moral Panics the Creation of the Mods and Rockers. London: Paladin. Funded by
26 Funded by
27 Benefit tourism legal framework Prof Eleanor Spaventa, School of Law, University of Durham Funded by
28 Categories of problematic claimants: Part time workers when economic activity very limited Work-seekers Economically inactive Union citizens Funded by
29 Part time workers Provided activity genuine and effective and non purely marginal and ancillary à worker entitled to full ET (also means-tested benefits) Reason to take up employment immaterial à C-46/12 N But if employment not part of normal employment market can be excluded à Trojani Funded by
30 Work seekers Pre-citizenship à excluded Collins à work seekers entitled to equal treatment in relation to benefits that facilitate access to employment market à but MS can justify denial à real link 24(2) Dir 2004/38 à MS not obliged to confer social assistance to WSs Vatsouras à benefits for access to lab market not social assistance Funded by
31 Economically inactive citizens Pre-90 à covered by service provisions as recipient of services à only some benefits e.g. Cowan; Museum entry etc 1990 à residency directives à right to reside even when non ec. active provided suff. res. +comp. HI à unreasonable burden à balance between effective rights and protection of welfare societies. Funded by
32 Union Citizenship First wave of cases à if lawfully resident, equal treatment applies but it is open to MSs to justify denial à prop. and FRs apply à personal assessment à real link Real link à recognises that membership of welfare society limited (birth / contribution) à before you claim you must have become a member à real link + personal assesement Funded by
33 Union citizenship after 2004/38 Directive 2004/38 seek to balance FM of ec inactive citizens with national welfare state How far should limited degree of financial solidarity stretch? Incremental approach: Up to 3 months à no membership of host welfare society 3 months to 5 years à limited membership After 5 years full membership Funded by
34 Medium stay Citizens Sufficient resources à in theory ensures that migrant not eligible for means-tested benefits Comprehensive health insurance à ensures migrant not a burden on national health service Art 24(1)à general right to ET Art 14(3) à recourse to social assistance à no automatic expulsion Funded by
35 Sufficient resources Art 8(4) à no fixed amount; personal circumstances to be taken into account; max threshold for social assistance or minimum soc security pension (Cp Grzelcyck à ex post expulsion if no suff res.) Brey (C-140/12) à catch 22 à if applying for non compens. benefit à no sufficient resources à no right to reside Funded by
36 Brey CJ à Austrian rules incomp. with EU law à automatic; no pers. circum. taken into account; need to assess burden (cumulative claims?) Traditional citizenship discourse à Treaty rights + any limit (including 7(1)(b)) interpreted narrowly No examination of existence of suff. resources à Cf with Dano Funded by
37 Dano Ms Dano + son à living with sister who also provides materially for them + about EUR 300 in child maintenance Applies for benefit rejected (moved to receive benefits?) CJ à Treaty Equal Treatment given effect in Art /38 Funded by
38 Dano Basic problem à how do you co-ordinate Reg 883/2004 and Dir 2004/38? Reg 883/2004 à spec non contr cash benefits awarded by state of residence Dir 2004/38 à ec. inactive no burden on soc. assistance Court à non contr cash b = social assistance Funded by
39 Avoiding Benefit Tourism? 24(1) à Right to ET à applies only to those who reside pursuant to Dir 2004/38 Art 7(1)(b) à Suff Res and CHI Ms Dano à no suff res à no right to reside purs to Dir à no right to ET And. ET in Reg 883/2004 can be limited to those residing lawfully pursuant to Dir Funded by
40 Suff. Res not examined Rights derived first by Treaty then by Dir / Reg Justification needed à Personal assessment + proport + burden (v high threshold) Brey v Dano Suff resources looked into Sister s support not taken into account Rights derive exclusively from Dir 2004/38 No justification needed Funded by
41 Benefit tourism, citizenship and welfare states Transnational solidarity very limited à need to have suff. res. and CHI for ET to apply (also in context of 883/2004) Very broad int. of soc. assistance But some important exceptions à Workseekers that have link to lab. marketà right to ET in rel to access to emp. market benefits Pensioners? Brey overrulled by Dano? Funded by
42 Social Security Coordination & the Labour Mobility Package FRESSCO SEMINAR QAWRA 27 MAY 2015 Andrea Pontiroli, Policy officer: "Free Movement of Workers and Coordination of Social Security Systems" Social Europe
43 Overview of the presentation Recent facts and figures on labour mobility The impact of labour mobility Updates Recent case law Healthcare EESSI Informing citizens Labour Mobility Package 2015: a balanced approach to labour mobility The Reflection Forum FreSsco & Statistical Network contributions Social Europe
44 Key Figures Mobility 10.6 million economically active third-country nationals living in the EU (4.3% of total labour force in EU) 8 million economically active EU citizens living in another MS in 2013 (3.3% of total labour force in EU) 20% of EU citizens interested to move to another country but only1.2% with firm intentions (planning to move in next 12 months) 1.2 million frontier workers 1.3 million certificates for posted workers 3
45 Labour Mobility in 2015 Labour Mobility overall positive Obstacles remain New challenges for Member States of origin and destination Intense public and political debate Social Europe
46 Facts & figures MOBILE EU CITIZENS & WORKERS Social Europe
47 Social Europe
48 Main reason to move: WORK EU 15 EU Job Education Family Other Social Europe Main reasons to move to another MS (% of Eurobarometer respondents)
49 EU mobile citizens are more likely to be economically active Source: Eurostat, LFS Social Europe
50 and because of their young age and employment status they tend to be less likely to claim benefits than nationals Social Europe
51 Facts & figures AN OVERALL POSITIVE IMPACT Social Europe
52 The positive impact of labour mobility Ø It helps correct imbalances between high and low unemployment regions Ø It promotes the dissemination of knowledge and innovation across Europe. Social Europe
53 Countries of destination Ø positive contribution to the skill mix Ø fill labour shortages Ø GDP of EU-15 estimated to have increased by almost 1% in the long-term as a result of post-enlargement mobility ( ) Ø Migrants tend to be financial NET contributors to the budget of host state (true for all migrants, and even more so for EU migrants; source: OECD) Social Europe
54 countries of origin Ø It helps mitigating unemployment Ø Gives the possibility to workers: to look for better job opportunities; to send remittances home; and to come back with additional experience, skills or savings to invest. Social Europe
55 Facts & figures BUT CHALLENGES EXIST Social Europe
56 In countries of destination Ø Pressure on local services Ø Health services Ø Schools Ø Housing Ø Transport Ø Socio-economic integration of mobile EU workers and their families Ø Risk of abuse of mobile workers (and consequent risk of social dumping) Social Europe
57 and in countries of origin Ø Can be negative on GDP owing to large population outflows Ø But impact on GDP per capita is smaller Ø Many young people have left their country of origin Ø But they send remittances to country of origin Ø And mobility is not necessarily a one-way street: many mobile workers return with additional experience Ø While there is no overall brain-drain effect Ø Percentage of tertiary educated has increased in the last decade Ø But impact on certain sectors may be significant (e.g. health sector) Social Europe
58 Recent relevant case law BREY, DANO AWAITING ALIMANOVICH AND GARCIA-NIETO Social Europe
59 BREY & DANO Member States may require EU citizens to show legal residence in order to be entitled to "special noncontributory cash benefits" In BREY the Court underlined that mere application for such benefits cannot automatically deprive economically inactive EU citizens of their right of residence. In DANO, however, the Court indicated that an economically inactive EU citizen who exercised her right of free movement solely in order to obtain social assistance in another Member State did not have a right of residence and could therefore legitimately be denied the benefit in question. Social Europe
60 GARCIA NIETO & ALIMANOVIC Relationship between Article 45 TFEU (free movement of workers) and the Free Movement Directive Clarification on access by EU jobseekers to job-seeking allowances. AG Wathelet gave his Opinion in the Alimanovic case on 26 March 2015: first-time jobseekers should have no right to such a benefit but distinguishing those jobseekers who have already worked in the host state whose claims for social assistance should be individually assessed. The judgment in Alimanovic is expected in early autumn 2015 and Garcia-Nieto in late Social Europe
61 Healthcare APPLICATION, INFORMATION, REPORT Social Europe
62 Healthcare So far, smooth application of the Regulation and the Directive after transposition in 2013 Focus is now on information tools The report from the Commission on the functioning of the Directive is expected by October 2015 Social Europe
63 EESSI WHERE ARE WE? Social Europe
64 EESSI - Highlights 14.1 million EU citizens living in another Member State, all insured persons potential beneficiaries of social security coordination rules Around institutions expected to be connected through Access Points (over 60) Several million messages are likely to be exchanged each year Approximately 300 Structured Electronic Documents (SEDs) are defined and agreed for the exchanges Master Directory with contact details of institutions already available Social Europe 23
65 EESSI - High Level Steps towards Project Delivery 2016 to to 2016 Close of 2013 in all MS Pilot phases with gradual development of the IT platform Full implementation of the EESSI solution Agreement on choice of technical solution and technical option Social Europe
66 Information & communication INFORMING CITIZENS ABOUT SSC RULES Social Europe
67 Providing information to citizens on social security coordination rules Social Europe
68 Informing citizens Press releases, communication campaigns, social media Revision of the guides to national security systems Social Europe
69 Social Europe
70 Social Europe
71 Social Europe
72 Social Europe
73 Social Europe
74 WORKING WITH MEMBER STATES TO INFORM CITIZENS Social Security Coordination Communication Network (SSC-CN) A network of government officials (Ministries of Health, Social Affairs, Employment, etc.) who are involved in communication activities about social security coordination rules To discuss and exchange common challenges and best practices in communicating on social security coordination Suggestions, comments re: Commission's communication initiatives on social security coordination Possibility to work together Social Europe
75 The Labour Mobility Package A BALANCED APPROACH TO LABOUR MOBILITY Social Europe
76 Communication on free movement of EU citizens and their families: 5 actions to make a difference (1) Ø Clarification of EU citizens' rights to free movement and access to social benefits, acknowledging concerns raised by some Member States in relation to the challenges that migration flows can represent for local authorities. Ø Five concrete actions to support Member States' efforts to uphold EU citizens' rights to live and work in another EU country, strengthening the right to free movement, while helping Member States to reap the positive benefits it brings Social Europe
77 Communication on free movement of EU citizens and their families: 5 actions to make a difference (2) 1. Help Member States fight against marriages of convenience (handbook). 2. Practical guide to clarify the application of "habitual residence" test. 3. As from 01/01/2014 : 20% of European Social Fund assigned to promoting social inclusion, combating poverty and discrimination. 4. Address local authorities' needs by promoting exchanges of good practices (conference with mayors). 5. Help local authorities apply free movement rules on the ground: development of an online training tool on free movement rights; proposal to facilitate exercise of rights of mobile EU workers; proposal to modernise EURES. Social Europe
78 Jean-Claude Juncker Free Movement of Workers: one of the key pillars of the internal market Right of national authorities to fight abuse of fraudulent claims Targeted review of Posting Directive to ensure "that social dumping has no place in the European Union Free movement is an economic opportunity and not a threat (vacancies and skill matching) Political Guidelines for the new Commission (15 July 2014) Social Europe
79 Commission Work Programme 2015 "It will be important to support labour mobility, especially in cases of persistent vacancies and skill mismatches, including across borders, while supporting the role of national authorities in fighting abuse or fraudulent claims" Social Europe
80 Labour Mobility Package 2015 (1) A Balanced Approach Ø Lifting remaining obstacles to free movement of workers and promoting labour mobility, especially in fields with large skill mismatches or unfilled vacancies Ø Improving Member States' capacity to prevent and fight social dumping, frauds and abuse, as regards the posting of workers and the access to welfare benefits. Social Europe
81 Labour Mobility Package 2015 (2) Ø Revision of Social Security Coordination Rules Ø Targeted Review of the Posting of Workers Directive Ø Other possible components still to be decided Ø Subject to a thorough Impact Assessment (collection of data and figures) Ø Consultation with stakeholders (Member States, social partners, public consultation ) Ø Planned adoption date: December 2015 Social Europe
82 The Reflection Forum of the AC EU Social Security Coordination in 2020 and beyond March 2015: discussion on FB and UB June 2015: discussion on access to SNCBs for inactive mobile EU citizens à important contribution to the work on the labour mobility package Social Europe
83 Contribution from FreSsco to the Mobility Package FreSsco experts are conducting a legal analysis of possible options for a revision of EU rules on social security coordination Social Europe
84 Data & statistics The Network of Experts on Statistics on FMW and SSC are conducting statistical analysis on the economic impact of possible options for a revision of EU rules on social security coordination Social Europe
85 Comments? Questions? THANK YOU! Social Europe
86 Francisco Pérez Flores DG Employment, Social Affairs and Inclusion Recent developments concerning free movement of workers FRESSCO SEMINAR QWARA 27 MAY 2015
87 Main ongoing activities Finalisation of the report on the functioning of the transitional arrangements with Croatia Preparation of the transposition of Directive 2014/54
88 Main Features of new Directive on facilitating the exercise of rights in the context of free movement of workers 1. Specific measures to ensure effective protection of rights conferred by Art 45 TFEU and Regulation (EU) No 492/ National body or bodies must exist to provide assistance to Union workers (including jobseekers) and their family members; 3. Promotion of dialogue 4. Better information provision at national level;
89 Provisions of the new Directive Article 1 What does it deal with? Subject matter - application and enforcement of Article 45 TFEU and Articles 1-10 of Regulation 492/2011 "Union workers and members of their families" Article 2 Article 3 Article 4 Article Article 6 Article 7 Scope matters covered by Articles 1-10 of Regulation 492/2011 Defence of Rights Requirement for body and duties Promotion of dialogue Provision for information Minimum requirements
90 1. DEFENCE OF RIGHTS
91 Article 3: Defence of Rights - Overview Explicit guarantee of effective protection of rights Associations and organisations, with a legitimate interest, including social partners, given entitlement to enforce rights on behalf of Union workers Protection from victimisation
92 1. Effective Protection of Rights: Judicial procedures must be made available for the enforcement at national level of rights given to Union workers and their family members by Article 45 TFEU and Regulation 492/2011; Guarantee of effective dissuasive and proportionate remedies (Case C-14/83); National procedural rules must comply with principles of effectiveness and equivalence.
93 2. Assistance with Protection of Rights: Article 3(2) Right of associations, organisations or other entities with a legitimate interest in accordance with criteria laid down in national law - to represent Union workers in judicial and/or administrative proceedings in order to ensure enforcement of rights. National collective action rules unaffected [Article 3(3) and Recital 15]
94 Protection from victimisation Article 3(6) Member States must guarantee ".measures to protect Union workers from any adverse treatment or adverse consequence as a reaction to a complaint of proceedings aimed at enforcing compliance with the rights referred to in Article 1" Cf. Article 9 of Directive 2000/43/EC
95 2. THE NATIONAL "FMOW BODY"
96 FMOW Body (1) Awareness-raising role A national body for the "promotion, analysis, monitoring and support of Union workers and their family members", in particular to promote: Equal treatment and non-discrimination on grounds of nationality; and The removal of unjustified restrictions or obstacles on the right of free movement
97 FMOW Body (2) Art. 4 Tasks -Each Member State shall designate "one or more structures or bodies" to: Provide or ensure provision of independent legal and/or other assistance to Union workers and their family members in pursuing their complaints Conduct independent surveys and publish independent reports Publish relevant information on application at national level of the EU rules on free movement of workers
98 Art. 4: FMOW Body (3 ) cooperation and coordination duties Make use of and cooperate with existing information and assistance services at EU level [Added by Legislators (EP)] Act as a contact point vis-a-vis equivalent contact points in other Member States [Added by Legislators in recital 20]: Cooperate with existing information and assistance services provided by social partners and other entities at national level
99 FMOW body (4) - flexibility for national implementation "one or more structures or bodies" "may form part of existing bodies at national level which have similar objectives" Possibility under Article 8(2) to extend competences to cover discrimination on ground of nationality under Article 18 TFEU
100 Resources for the body/coordination? If a Member State decides to allocate the tasks to an existing body "It should ensure allocation of adequate resources for the effective and adequate performance of its existing an additional tasks" [Recital 18] If the tasks are allocated to more than one body "MS should ensure they are adequately coordinated" [Recital 18]
101 3. PROMOTION OF DIALOGUE
102 DIALOGUE Member States shall promote dialogue with the social partners and with relevant non-governmental organisations which have, in accordance with national law or practice, a legitimate interest in contributing to the fight against unjustified restrictions and obstacles to the right to free movement, and discrimination on grounds of nationality, of Union workers and members of their family with a view to promoting the principle of equal treatment.
103 4. PROVISION OF INFORMATION
104 Provision of Information: Article 4(2) (e) and Article 6 Art. 4(2) (e) Art. 6(1) FMOW body to publish information on national implementation of EU rules Duty on MS to provide information to all stakeholders about rights conferred by Directive and associated EU rights Art. 6(2) Duty as to how the information should be provided: "clear, free of charge, easily accessible, comprehensive up-to-date" and in more than one EU language.
105 5. MINIMUM REQUIREMENTS
106 1.MORE FAVOURABLE MEASURES Member States may introduce or maintain provisions which are more favourable to the protection of the principle of equal treatment than those laid down in this Directive.
107 2.POSSIBILITY FOR M.S. TO EXTEND THE COMPETENCES OF BODIES Member States may provide that the competences of the bodies referred to in Article 4 of the Directive for the promotion, analysis, monitoring and support of equal treatment of Union workers and members of their family without discrimination on grounds of nationality also cover the right to equal treatment without discrimination on grounds of nationality of all Union citizens exercising their right to free movement and the members of their family, in accordance with Article 21 TFEU and Directive 2004/38/EC.
108 3.IMPLEMENTANTION WITHOUT REGRESSION OF THE PROTECTION The implementation of this Directive shall under no circumstances be sufficient grounds for a reduction in the level of protection of Union workers and members of their family, in the areas to which it applies, without prejudice to the Member States' right to respond to changes in the situation by introducing laws, regulations and administrative provisions which differ from those in force on 20 May 2014, provided that this Directive is complied with.
109 Time-line for Directive 30 April 2014 Publication in OJ and entry into force on the twentieth day following its publication, 21 May 2016 Implementation date for Member States and communication of national measures to Commission 21 November 2018 Commission to submit a report to the EP, Council, ECSC on implementation of the Directive
110 Freedom of Movement of Workers Current and Past Employment Trends in Malta
111 Overview Introduction Freedom of Movement of Workers / Work Permits Introduction to Labour Market Tests Employment in Malta: Statistics Occupations filled: Statistics Unemployment Register: March 2015
112 Introduction Who are we? The Employment and Training Corporation is the entity providing Public Employment Services What do we offer? Services to Jobseekers, such as: Registration for work; Training opportunities; Access to vacancies; Access to employment / training related schemes. Services to Employers, such as: Recruitment drives and job fairs; Advertising of vacancies; Access to employment / training related schemes. EURES
113 FMOW/ Work Permits EU Nationals and their family members do not require Employment Licences to work in Malta; Croatian Nationals are still subject to Transitional Arrangements and need an Employment Licence; The ELU is responsible for: the issuing of Employment Licences to Croatian nationals and their family members; the issuing of Employment Licences to Third Country Nationals, LTRs, Irregular Migrants; carrying out Labour Market Tests for Single Residence/Work Permit Applications;
114 Categories of TCNs Presently Active Employment Licences/ Work Permits STATUS FEMALE MALE TOTAL Third Country Nationals Long Term Residents Asylum Seekers Failed Asylum Seekers Holders of THP Holders of SP Refugees
115 Labour Market Test Checks on the Employer Staff lists; Memorandum and Articles of Association; Audited Accounts (if available); Staff turnover and redundancies; Efforts made to recruit EEA/Swiss/Maltese nationals; Trading licence; Licences to operate in particular industries such as betting companies; History of any illegal employment; Business plan (for new companies); Menus and number of covers (catering companies); Sites of work (construction companies); Copies of service contracts (temping agencies); Participation in recruitment exercises.
116 continued Checks on the Third Country National (subject to LMT) Employment history; Records of past employment licences; Reference letters; CV submitted in comparison to past CVs (if any); Qualification validity and accreditation; Health clearance (for health professions); Warrants, certificates and approval from regulatory body (for regulated professions); Approval from various stakeholders, such as KMS, MEDE, ITS etc.
117 Some Statistics... Employment in Malta: (Full-time and Part-time) Year EU TCNs Maltese Total ,672 3, , , ,934 3, , , ,875 4, , , ,706 5, , , ,507 6, , ,498
118 continued Comparison between EUs & TCNs EU TCNs
119 continued TCNs EU Maltese
120 Current Situation...as at December % 3% 2014 TOTAL: 199,498 EU TCNs Maltese 89% Since 2010: Increase in Employment by 11.8%; 63.4% Increase in the number of EU nationals in employment
121 Top occupations...as at December 2014 Full-time employment NACE Description EU Gambling and betting activities 1,941 Office administrative, office support and other business support activities 1,137 Food and beverage service activities 759 NACE Description Maltese Education 15,150 Public Administration & Defence; Compulsory Social Security 13,820 Retail trade, except of motor vehicles and motorcycles 12,037 NACE Description TCNs Services to buildings and landscape activities 916 Construction of buildings 398 Food and beverage service activities 355
122 ...continued Part-time employment NACE Description EU Food and beverage service activities 696 Accommodation 608 Education 277 NACE Description Maltese Retail trade, except of motor vehicles and motorcycles 4,782 Food and beverage service activities 3,133 Education 2,505 NACE Description TCNs Accommodation 203 Food and beverage service activities 80 Services to buildings and landscape activities 57
123 Top FT occupations filled by EU Nationals NACE Description % Increase between 2010 and 2014 Gambling and betting activities 1,045 1,941 86% Office administrative, office support and other business support activities 360 1, % Accommodation % Food and beverage service activities % Computer programming, consultancy and related activities % Retail trade, except of motor vehicles and motorcycles % Activities of head offices; management consultancy activities % Advertising and market research % Education % Financial service activities, except insurance and pension funding %
124 Top PT occupations filled by EU Nationals NACE Description % Increase/Decrease between Food and beverage service activities % Accommodation % Education % Retail trade, except of motor vehicles and motorcycles % Activities of head offices; management consultancy activities % Other personal service activities % Services to buildings and landscape activities >1000% Sports activities and amusement and recreation activities % Office administrative, office support and other business support activities % Creative, arts and entertainment activities %
125 Unemployment in March 2015 Registering as unemployed and looking for a full time job - Maltese Nationals EU Nationals Top three job preferences Maltese Nationals Clerks and support workers EU Nationals Technicians and Associate Professionals Services and sales workers Professionals Craft and related trades workers Managers
126 Further information Employment Licences Unit Guidelines in the form of Frequently Asked Questions are uploaded on our website, accessible from: EURES Services:
127 THANK YOU Graziella Cauchi Unit Manager Employment Licences Unit Employment Training Corporation Tel : E.mail : graziella.cauchi@gov.mt Website : Giliane Mallia Unit Manager EURES Employment Training Corporation Tel : E.mail : giliane.mallia@gov.mt Website :
128 Malta s experience with Benefit Tourism from a Social Security Perspec<ve GEORGE CREMONA DEPARTMENT OF SOCIAL SECURITY MALTA
129 Social Security Act (Cap318) The means test is governed by the Second Schedule of the Act and has two basic components to be sa:sfied: Capital Resources Test Income Test
130 Capital Resources Test The Capital Resources Test for an Age Pension, Social Assistance and for Medical Assistance provides that in the case of a single person, capital does not exceed 14,000 while in the case of a household of two or more persons, capital does not exceed 23,000.
131 Income Test In the case of the income test, all income of the head of household and spouse is taken into considera:on. In the case of other members of the household, working members are excluded and in those cases where wages are taken these are taken net of the social security contribu:on and allowance is made for travelling expenses.
132 Legal No<ce 191/2007 Free Movement of European Union Na<onals and their Family Members Order 2007 Ar:cles 3, 10 & 11 in this Legal No:ce clearly guide the Department of Social Security in tackling applica:ons for Non- Contributory Benefits. Under the disposi:ons of this Legal No:ce the Union Ci:zen is to give assurance to the Director for residence recogni:on that he has sufficient resources for himself and his family members to avoid becoming a burden on the social assistance system in Malta.
133 claims All applica:ons are treated on a case by case basis Offered guidance to apply for Unemployment Benefit (Contributory) 2. EU procedures are followed in taking into considera:on Foreign and Na:onal Contribu:ons (aggrega:on of contribu:ons) 3. The Department pays Unemployment Benefit in accordance with the Social Security Act
134 claims Unemployment Benefit payment lasts for six months. If the person is assessment of claim, due considera:on is given to the employment record. Once the Union Ci:zen sa:sfies this criterion and the means test as laid down in the Social Security Act, the payment is issued. However, these cases are brought up for review every six months in order to check whether the Union Ci:zen is in actual fact ac:vely seeking employment.
135 Policy governing the determina<on of Policy governing the determina<on of In the case of an applica:on for Social Assistance on medical grounds, 1. the Department inves:gates: Previous Employment 4. Guided A top- up for in eligibility Social Assistance of Sickness Benefit is paid (Contributory) following a review by the Medical A top- up Board in appointed Social Assistance under the is Social paid Security following Act a (Cap review 318). by the Medical 5. Board appointed under the Social Security Act (Cap 318).
136 Policy governing the determina<on of claims. Non- Ac<ve Union Ci<zens Union Ci:zen is to meet requirements of obtaining a legal right of residence for a period exceeding three months. The individual situa:on is assessed, taking into account a range of factors. The means test as laid down in the Social Security Act (Cap 318) is applied.
137 Payments of Age Pension, Social/ Unemployment Assistance 2006: 45 ( 6 AP, 39 SA/UA beneficiaries ) 2011: 76 ( 7 AP, 69 SA/UA beneficiaries ) 2007: 50 ( 4 AP, 46 SA/UA beneficiaries ) 2012: 89 ( 9 AP, 80 SA/UA beneficiaries ) 2008: 51 ( 3 AP, 48 SA/UA beneficiaries ) 2013: 89 ( 10 AP, 79 SA/UA beneficiaries ) 2009: 61 ( 3 AP, 58 SA/UA beneficiaries ) 2014: 83 ( 10 AP, 73 SA/UA beneficiaries )
138 THANKS DIPARTIMENT TAS-SIGURTÀ SOĊJALI 38, Triq l-ordinanza, Valletta, VLT 2000, Malta Tel: Fax: web: SPIC (Social Policy Information Centre) Tel: 159
139 Legal tools and cooperation in the prevention of unwarranted consequences of the Residence Directive and the Regulations on the coordination of social security Derek Coulthard Malta, 27th May 2015 Funded by
140 Fraud and abuse for the purposes of the Residence Directive: (COM(2009)313 s 4.1 Ø Fraud deliberate deception.to obtain right to free movement and residence under EU law Ø Abuse an artificial contrivance conducted solely for the purposes of obtaining the right to free movement and residence which albeit formally observing the rules.does not comply with the purpose of these rules. Funded by
141 Fraud and abuse concerning the provisions of the Residence Directive: Ø Article 35 MS may adopt the necessary measures to refuse, terminate or withdraw any right conferred by this Directive in the case of abuse of rights or fraud, such as marriages of convenience. Any such measures shall be proportionate and subject to the procedural safeguards provided for in Articles 30 and 31. Funded by
142 Fraud in the context of Regulation 883/04 Ø Measures to tackle social security fraud arising in cases where a benefit is in payment to a person in another Member State, or social security contributions are due in a situation involving more than one Member State Ø Fraud is defined as any act or failure to act in order to obtain or receive social security benefit or to avoid obligations to pay contributions, contrary to the law of a member state (Such fraud is not in itself an abuse or fraud to free movement in the context of Art 35 of the Residence Directive) Funded by
143 What kinds of fraud are we talking about? Examples: Ø Non-report of death of pensioners living in another Member State Ø Claiming benefit while working in another MS Ø Non-report of change of residence Ø Fictitious contractual arrangements so as to avoid the payment of the correct social security contributions Funded by
144 UK Daily Mail, 25 May 2015 Woman charged over scam where hundreds of Bangladeshis (Italian nationals) flew into Britain for ONE DAY to claim benefit... costing the taxpayer millions Ø Italy-based migrants 'arrived at Stansted before interviews at Jobcentre' Ø Bangladeshis got National Insurance numbers for use on bogus pay slips Ø Fraud in east London allegedly made millions of pounds over three years Funded by
145 Officials became suspicious when up to 400 migrants all gave the same address above an Italian restaurant in east London Funded by
146 What are the challenges in cases of fraud where the person is present in another Member State: Ø The person is outside of the jurisdiction of the state paying the benefit or where contributions are due Ø Unless there are special measures concerning cooperation the authorities in the state of presence have little incentive to investigate and assist in the matter. Funded by
147 Measures to tackle fraud may be taken : Ø Between Member States on a Bilateral Basis (MoU) Ø Collectively at EU level Funded by
148 1. Bilateral measures concerning cooperation between Member States Ø An extensive and growing network of MoUs (See following slide) Funded by
149 NO FI EE SE IE UK LV NL PL LT CZ BE SK DE HU LU RO FR PT ES CH IT SI BG MT Funded by
150 2. Measures taken at EU level to tackle fraud Ø 1992 Recommendation No 15 of the Administrative Commission Ø 1999 Council of Ministers Resolution 1999/ C 125/01 Ø Administrative Commission report on Fraud and Error leading to AC Decision H5 Funded by
151 AC Decision H5 (2010) Preamble includes the statement that action to combat fraud and error is a part of the proper implementation of Regulation 883/2004 and 987/09 Main points: Ø Authorities shall cooperate in relation to combatting fraud and error Ø Annual discussion at the AC based on reports submitted by Member States covering Steps taken throughout the year to combat fraud and error Specific problems which could lead to fraud and error Details of MOUs entered into with other states for the purposes of combatting fraud and error Ø Appointment of specific point of contact (NCP) for fraud and error matters Ø Sharing of best practice in relation to non-report of death Funded by
152 Summary of annual reports 2014 Prepared by Fressco (AC 14-52) Ø Reports reveal a multitude of activities both to prevent and tackle fraud Ø As such efforts may seem highly fragmented but this does not diminish their effectiveness Ø However the diversity of solutions adds to the risks of discrepancies and the emergence of data protection and other legal issues Ø Perhaps a more common approach could contribute to the efficiency of the solutions Funded by
153 National Contact Point (NCP) Network Ø Subject of a current on-going project to improve its efficiency and effectiveness Ø Use of secure electronic platform for exchange and sharing of information Ø Some statistics on platform usage, 2 years since its introduction: Ø 181 microblogs Ø 213 documents uploaded Ø 161 discussions Ø (Platform may be extended to a wider range of usage within the AC community) Funded by
154 Conclusions Ø Free movement offers certain challenges to the fight against social security fraud Ø Active steps are currently being taken tackle this issue with the full support of the Commission Ø As always work remains to be done Funded by
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