Eliminating national borders as labour market barriers in the EU : a socio-legal analysis
2012
This paper addresses one important mechanism through which the EU tries to improve the
operation of its labour markets: the opening up of national borders for free worker movement
within the EU. Free worker movement is a fundamental EU right; but EU enlargement
begged the question of how and when to allow complete free movement to workers from
those new Member States. The EU agreed upon a transitional period of up to 7 years after
accession of eight new Middle and Eastern European States (EU-8) on May 1st, 2004. During
this transitional period Member States may apply certain restrictions on the free movement of
workers from, to and between these new Member States. By 2012, all such restrictions will
have been abolished. A similar procedure applies regarding the accession of two additional
new Member States on January 1st, 2007.
Only three of the fifteen incumbent EU Member States at the time (EU-15) chose to
immediately allow free movement from workers from the EU-8. The other twelve maintained
their work permit systems, albeit with some modifications. Since, some (e.g. Germany) have
already decided to keep such barriers in place until 2012.
The Netherlands has kept a work permit system in place up to May 1st, 2007. At that time it
abolished that system and effectively extended free worker movement to include workers
from the EU-8. This makes the Dutch case, at this point in time, an interesting case for which
to analyse the process and effects of increased free labour movement into a national labour
market.
This paper discusses the evolution of (temporary) work migration from EU-8 countries into
the Netherlands. It first addresses the flexicurity nature of EU policies towards labour market
integration and towards the inclusion of new EU countries in that process. It subsequentely
reviews the three socio-legal regimes that can currently apply to work performed for Dutch
firms Netherlands by workers from the EU-8 (which, now, is that same as that applies for
workers from the EU-15): wage employment; employment through temporary employment
agencies; and self-employment. It then discusses the development of the volume of work
performed by citizens from the EU-8 in the Netherlands, and socio-economic effects for both
the migrant workers and Dutch society and economy. It concludes with a discussion of
challenges (or the lack thereof) that this increased free movement of foreign labour caused
and causes for Dutch institutions.
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