6 July 2018

EUROPEAN UNION: Posted Workers Directive strengthened

The proposed reform of the Posted Workers Directive in May 2018 has finally been adopted by the European Union’s Council of Ministers.

The purpose of the reform was to reduce differences in employment conditions between posted and host country workers, for example ensuring that salaries conform, no matter the nationality of the posted worker.

The EU Posted Workers Directive was originally implemented in 1996 and aimed to stop EU nationals being sent to another EU member state for work and receiving less rights than the local employees there, essentially aiming to stop the local market being undercut and applying universal standards within the EU.

It did come under criticism for not being effective enough, so an enforcement directive was implemented in 2014 and thereafter in May 2018 the reform was introduced. 

Although the Posted Workers Directive is mainly concerned with employment law, it does also include immigration aspects that should be observed; notifications of EU posted workers need to be sent and in case of non-compliance, proportionate fines should be levied.


How does this affect the client?

Employers who utilise posted workers within the EU should be aware of the tightening of rules and the potential impact it could have for both them and the relevant employees, especially with regards to employee remuneration which will now have to conform to the market for everyone despite nationality. Further, in order to remain compliant, employers should review their processes and also submit timely notifications.






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