1. Organisation and coordination of a network on the EU
coordination of social security schemes in EU/EEA/CH
training and reporting on
European Social Security
trESS III
Relevant topics on determination of legislation
applicable in Lithuania

2. Pursuance of activities in two or more Member States
International transport section. No special rules (provisions) for
determination of legislation of applicable.
Main rule (Art. 13.1 of Regulation (EC) No 883/2004 - BR): A person who
normally pursues an activity as an employed person in two or more
Member States shall be subject to:
(a) the legislation of the Member State of residence if he/she pursues a
substantial part of his/her activity in that Member State or if he/she is
employed by various undertakings or various employers whose registered
office or place of business is in different Member States,
(b) the legislation of the Member State in which the registered office or
place of business of the undertaking or employer employing him/her is
situated, if he/she does not pursue a substantial part of his/her activities in
the Member State of residence.

3. International transport section
(Art. 14.8 of IR) To determine whether a substantial part of the
activities is pursued in a Member State, the following
indicative criteria shall betaken into account:
• (a) in the case of an employed activity, the working time
and/or the remuneration
• In the framework of an overall assessment, a share of less
than25 % in respect of the criteria mentioned above shall be
an indicator that a substantial part of the activities is not
being pursued in the relevant Member State
(Art. 14.10 of IR)
• For the determination of the applicable legislation
underparagraphs 8 and 9, the institutions concerned shall
take into account the situation projected for the following 12
calendar months.

4. International transport section
Difficulties:
How to establish whether the person concerned
meets above conditions:
• working time (what is working time? How to
measure (work schedules, vacations, work
conditions: loading the goods, obligatory time of
rest, holidays, illness, lunch brakes and etc. (how to
proof);
• remuneration (only one employer – how to estimate
this criteria).

5. Case of Lithuanian Transport Company
The context:
• retroactively issued certificates E 101 for the
company “U” employees working in international
transport sector (EU member states) (art. 14(2)(a) of
the Regulation (EEC) No 1408/71).
• competent institution other Member State asked to
withdraw these certificates stating that drivers were
actually employed with branch or permanent
representation of Lithuanian company (art. 14(2)(a)
(i) of the Regulation (EEC) No 1408/71).

6. Case of Lithuanian Transport Company
Reasons of the dispute:
Treatment of Lithuanian company “U” activity in other Member State:
• company “U” states that they never had branch or permanent
representation in other Member State.
• all drivers were employed by Lithuanian company and had valid
labour contracts. Drivers received their wages from Lithuanian
company. Social security contribution and taxes were also paid in
Lithuania.
• Lithuanian company “U” rented the parking in other Member State
where the vehicles were temporarily placed.
• during 2006-2007 substantial part of business activity was carried in
other Member State where the main profit was generated
• competent institution of other Member State establishment of the
fact that Lithuanian transport company acted as branch or permanent
representation in other Member State without formal registration
(under its legislation).

7. Appliance of Art. 13. 3 of BR
Art. 13.3 (BR):
A person who normally pursues an activity as an
employed person and an activity as a self-employed
person in different Member States shall be subject to
the legislation of the Member State in which he/she
pursues an activity as an employed person.

8. Appliance of Art. 13.3 of BR
Difficulties :
• how to establish whether the person meets above
conditions.
• persons perform activity as employed person only 1
day per months and the remuneration is about 40 Lt
(aprox. 11 Euros).
• persons are permanent residents of other Member
state (their places of residence are in other member
state and in some cases is aprox. 1000 km from
Lithuania)

9. Determination of provisional legislation under art. 16
of regulation 987/2009
Situation:
Competent institutions of Poland decide that
Lithuanian legislation should be applicable for Polish
self-employed residents who have concluded labour
contracts with enterprises registered in Lithuania.
According to the par. 3 of the art. 16 of Regulation
987/2009 this provisional determination is treated as
definitive after two months from the moment when
Lithuanian competent institution had been informed
about it.

10. Determination of provisional legislation under art. 16
of regulation 987/2009
Difficulties:
• no documents and additional information attached;
• there are many cases when requested documents
are not presented;
• it is impossible to decide if person’s work in Lithuania
conforms to legal requirements without application
and other information.

11. Thank You for Your attention
Sandra Krasauskienė
The Foreign Benefits Office
Sandra.Krasauskiene@Sodra.lt