For HR, mobility, and compliance teams managing third-country talent in Europe, the enforcement landscape has shifted materially. Two parallel developments—the full activation of the EU Entry/Exit System (EES) on April 10, 2026, and the European Labour Authority’s revised Guidelines for Concerted and Joint Inspections (November 2025)—together mean that cross-border non-compliance is now significantly easier for authorities to detect and act on, in coordination, across Member States.
This is not a single new regulation, but a structural shift in how enforcement works.
Entry/Exit System: data-driven border control is now live
The EU’s Entry/Exit System (EES) became fully operational on April 10, 2026. The EES replaces manual passport stamping with electronic registration of every entry and exit by third-country nationals at Schengen external borders, capturing biometric data (facial image and fingerprints) alongside travel-document information.
The implications for short-stay compliance are direct: cumulative time spent across the Schengen Area is calculated automatically against the 90-in-180-day limit, overstays are identified by the system rather than by discretionary checks at the next crossing, and previous refusals of entry travel with the individual across the network.
A second pillar—the European Travel Information and Authorisation System (ETIAS), which will require pre-travel authorization for visa-exempt nationals—is expected to launch in Q4 2026. It will complement the EES through interagency data-sharing, meaning non-compliance flagged in the EES could lead to ETIAS refusals or affect future visa applications.
European Labour Authority: more systematic cross-border workplace inspections
The European Labour Authority (ELA) has coordinated cross-border concerted and joint inspections (CJIs) since 2021. ELA’s revised guidelines, published in November 2025, confirm ELA’s expanded operational role: providing logistical, analytical, legal, translation, and interpretation support to Member States; supplying secure data-exchange tools; and deploying ELA staff on the ground.
Two types of inspection are distinguished:
- Concerted inspections: conducted simultaneously in two or more Member States, each authority acting on its own territory.
- Joint inspections: conducted in a single Member State, with foreign inspectors physically present alongside host authorities.
Inspections may be initiated by a Member State, by ELA on its own initiative, or by social partner organizations (notably trade unions) bringing cases directly to ELA’s attention. Inspections are kept confidential from their targets, so employers will not be notified in advance.
The infringement categories cover posting of workers (including non-genuine posting and posting-declaration defects), A1 and broader social security coordination fraud, undeclared and underdeclared work, illegal employment of third-country nationals (including work without a valid permit), bogus self-employment, and labor exploitation. Over 30 different national authorities—labor and social security inspectorates, immigration, police, customs, tax, transport—participate in ELA-coordinated inspections, with priority sectors including transport, construction, agriculture, manufacturing, food production, and HORECA.
A more connected enforcement environment
EES, ELA-coordinated inspections, and the broader digitalization of national immigration processes are not formally interconnected—but the cumulative effect is significant. Border authorities can now verify travel histories with precision; labor, social security, immigration, and tax authorities increasingly share information across jurisdictions; and ELA provides a structured channel for coordinated multi-state action against cross-border fraud schemes.
The practical consequence is that fragmented, country-by-country compliance approaches are increasingly exposed.
What this means for employers
- Build compliance into your business travel program. Set clear internal processes to distinguish permitted business activity from work and to track use of Schengen allowances across the program.
- Audit posting and short-term assignment files against the points ELA inspections target: A1 certificates, posting notifications, host-country pay and labor rules, work-permit status of third-country nationals, and self-employment classifications.
- Treat compliance as cross-border by design.
This update is for informational purposes only and is not a substitute for legal or scenario-specific advice. Readers are encouraged to reach out to Newland Chase for case- or company-specific assessments
