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Europe – European Parliament tightens up rules on posted workers

30 May 2018

After many months of tough negotiation, the European Parliament has voted through a number of amendments to the Posted Workers Directive. The revised rules aim to guarantee better protection for posted workers and fair competition for companies.

The Directive, which originally came into force in 1996 has been the cause of deep divisions between Eastern Europe and Western Europe given the influx of workers into the West from lower-waged economies. A ‘posted’ worker is an employee who is sent by their employer to carry out a service in another EU member state on a temporary basis.

Spain, Hungary and Poland have previously voiced opposition to the change, saying their citizens should be allowed to work in a wealthier state on a lower salary than a worker from the host country under the bloc’s competition rules. France, the UK and Germany said there have been complaints of unfair competition from cheaper eastern European labour, which, they said, undercuts their labour markets.

The European Parliament has endorsed the principle that workers posted temporarily to another EU country must get equal pay for equal work in the same place.

Under the revised rules, the duration of the posting has been set at a maximum of 12 months, with a possible extension of six months. Thereafter, the worker will still be able to stay on and work in the member state to which he or she is posted, but beyond this, working conditions will be subject to the host country’s labour rules.

Furthermore, all of the host country’s remuneration rules must apply to posted workers. In addition to legal provisions, member states may apply large, representative regional or sectoral collective agreements. So far, this has been done only in the construction sector.

Meanwhile, travel, board and accommodation costs must be paid by the employer and not deducted from workers’ salaries. Employers will also have to ensure that the accommodation conditions for posted workers are decent, and in line with national rules.

The new elements of the revised directive will also apply to the transport sector once the sector-specific legislation enters into force. 

Member of European Parliament and Dutch politician Agnes Jongerius, commented, “Europe chooses equal pay for equal work at the same place. And that is a major accomplishment.  Colleagues can be colleagues again, rather than competitors. This is an important step towards creating a social Europe that protects workers and stops companies from engaging in a race to the bottom.”

Member states will have two years to implement the rules into their national laws, and must put them into effect by the end of this period.

In 2016, there were 2.3 million posted workers in the EU. Posting increased by 69% between 2010 and 2016.