A new Brussels-based corporate form dubbed the “28th Regime” or ‘EU Inc.’ is causing alarm among European trade unions, with Belgian labour federations at the forefront of pushback. On 23 September, the European Trade Union Confederation (ETUC), joined by Belgium’s ACV/CSC and ABVV/FGTB, staged a 5,000-strong rally outside the Council building as ministers prepared to discuss the draft regulation. EU Inc. aims to let start-ups register a company online in 48 hours and operate seamlessly across borders, bypassing the administrative maze of 27 national frameworks. Business groups say the model will turbo-charge expansion and attract foreign investment, but unions warn it creates a “regime-shopping” loophole: a software engineer physically working in Brussels could end up on Bulgarian wage scales and social-security contributions if the employer registers there. A legal analysis by the European Trade Union Institute highlights risks for globally mobile staff: weaker collective-bargaining rights, stock options replacing wages, and fast-track liquidations that could strand expatriate employees without back-pay. Belgian unions fear that, given the country’s high labour standards, local employers may feel pressured to reincorporate abroad, undermining the expat-friendly Single Permit scheme introduced in 2023. For multinational HR departments, the proposal poses a dilemma. On one hand, a pan-EU entity could simplify secondments and remote-working arrangements; on the other, uncertainty around applicable labour law complicates compliance, payroll and duty-of-care obligations. Mobility managers are advised to keep close tabs on the legislative timetable—first-reading negotiations could begin as early as October—and map scenarios for host-country versus employer-of-record obligations. Belgian authorities have not yet taken an official position, but insiders say the Federal Public Service Employment is drafting impact assessments on tax revenue and social-security leakage. Companies with large remote-worker populations in Belgium should prepare to engage in consultation rounds expected later this autumn.
Source: EUobserver
