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ELA Annual conference 2024 - Call for good practices

Institute of Social Security of Portugal awarded for its innovative tool in preventing social security fraud

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The European Labour Authority awarded the Institute of Social Security of Portugal for their exemplary practice ‘Determination of Legislation Applicable Application for the Posting of Workers’ in preventing social security fraud. The recognition was presented during the ELA Conference held in Brussels, on 27 June 2024.

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The Portuguese Social Security Institute has developed the Determination of Legislation Applicable (DLA). It is an application that simplifies and reduces the length of the procedure to issue the portable document A1 (PDA1) to posted workers in EU countries, EEA countries, Switzerland and the United Kingdom. The DLA application benefits the social security institutions, employers and self-employed by making the process simpler, faster and more cost-effective. At the same time, it assists inspecting authorities by ensuring better application of the legislation and prevention of errors and frauds with a set of authentication features including PDA1 validation tool.

Portugal stands as one of the countries posting the highest number of workers in the EU. Since 2016, there has been a substantial surge in the requests for the issuance of PDA1s. Such an increase was primarily triggered by two key developments. The first was the introduction of the so-called ‘Macron law’ in France, which mandated that truck drivers must possess a PDA1 while traversing through the country. The second was the release of the European Commission’s guidance note on telework 137/2023, which stipulated the issuance of a PDA1 for posted workers engaged in telework. In response, the Portuguese Social Security Institute together with the IT institute of the Ministry of Labour, Solidarity and Social Security decided to invest in and develop a digital tool named DLA to digitalize and simplify social security procedures.

Launched in 2018, the DLA application streamlined the process of issuing PDA1 into a single automatized system. This innovation significantly reduced the administrative workload and the costs for both the administration and employers, including self-employed individuals. Furthermore, it helped prevent errors through a systematic and correct application of the legislation, thereby combating fraud related to the falsification of PDA1s. The DLA application is accessible via the Social Security website and the central social security service application. 

This application is a successful example of how digital transformation and innovative tools, such as the DLA application, can assist Member States in enhancing the efficiency and sustainability of their administrative processes. At the same time, it ensures compliance to legal obligations, contributes to fraud prevention, and fosters a more robust and efficient social security system.

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Background information

The call for good practices is a recurring initiative first launched by ELA in June 2022. The purpose of the call is to exchange, disseminate and uptake good practices and knowledge collected by Member States and other stakeholders that operate at the national, regional or local level, including social security institutions, civil society and social partner organisations. Each annual call has a specified deadline for submission of good practices. Each year there is a different set of priorities.

The findings from the calls are anticipated to contribute to the effective application and enforcement of EU labour mobility law within the EU, by encouraging good practice exchange, and their potential further application by Member States.