Unemployment among cross-border workers: EU Council adopts reform
October 2026
Following its adoption by the European Parliament in July, the reform of unemployment compensation rules for cross-border workers has reached a new milestone: the Council of the European Union adopted the text on 28 September 2026, paving the way for its implementation in the member states.
The reform stipulates, in particular, that unemployment benefits will now be paid by the country of last employment – subject to certain conditions – rather than by the country of residence. Member States will generally have two years to implement these new rules. Luxembourg, however, has been granted a specific five-year exemption, which may be extended to up to seven years.
The Grand Duchy nevertheless voted against the text, arguing that several provisions, notably the extension of the period for which benefits can be exported from three to six months, still pose challenges in terms of oversight and administrative cooperation.
