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BackOn Wednesday, the EU Commission presented a proposal for a Directive which shall help to improve the implementation of the so-called Posting of Workers Directive. The need for action exists because workers living in the EU, who are temporarily posted to another EU country, are frequently confronted with wage and social dumping. The aim of the Commission is to improve the cooperation of national authorities and to make the implementation of workers’ rights easier. However, the planned restriction of national Control options must be viewed with a critical eye. The 1996 Posting of Workers Directive regulates the conditions based on which companies that are registered in an EU Member State are able to post workers for the provision of services to another EU country. In respect of minimum wages, maximum working hours and health and safety at work, the provisions in the host country are supposed to apply to posted workers in the same way as they do to native workers. However, studies have shown that these provisions are frequently not met in practice. “Temporarily posting workers should be a win-win for EU labour markets and for businesses, but it cannot be used as a way to sidestep minimum social standards”, said EU Social Commissioner László Andor.
The Commission proposal will take this as a starting point and ensure the improved implementation of the current Directive. One aspect is the introduction of higher standards in respect of informing workers and businesses of their rights and obligations. Another aim of the Commission is to improve the cooperation between national competent authorities by clearer rules. The intention is to more specifically define what the term ‘posting’ means exactly to avoid the spreading of letter-box companies, which bypass employment regulations under its guise. Another objective of the Commission proposal is to enable an improvement in the enforcement of workers’ rights. Commissioner Andor wants to introduce a "joint and several liability" principle for wages and salaries in the construction industry. If, for example, a direct subcontractor fails to pay posted workers and can no longer be held accountable because of insolvency, the posted workers affected would be able to sue the main contractor at their place of work. Joint and several liability already applies in Austria and seven other Member States; the aim of the Directive is to harmonise the system within the EU.
Commission proposal restricts control powers of national authorities against undeclared work
However, effective controls are needed to protect the rights of posted workers and to combat undeclared work. And exactly here, the proposals of the Commission could be inconsistent with the aim to protect workers, as the Commission would like to restrict the powers of national authorities in respect of controlling labour conditions. Due to the fact that the proposal of the Enforcement Directive lays down certain maximum requirements for controls, Member States could be forced to abolish any additional control measures.
The proposals will continue to be the subject of further discussions; after all both the European Parliament as well as the Council of the European Union have to come to a joint decision on the proposal.
Further Information:
Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the enforcement of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services
The Commission proposal will take this as a starting point and ensure the improved implementation of the current Directive. One aspect is the introduction of higher standards in respect of informing workers and businesses of their rights and obligations. Another aim of the Commission is to improve the cooperation between national competent authorities by clearer rules. The intention is to more specifically define what the term ‘posting’ means exactly to avoid the spreading of letter-box companies, which bypass employment regulations under its guise. Another objective of the Commission proposal is to enable an improvement in the enforcement of workers’ rights. Commissioner Andor wants to introduce a "joint and several liability" principle for wages and salaries in the construction industry. If, for example, a direct subcontractor fails to pay posted workers and can no longer be held accountable because of insolvency, the posted workers affected would be able to sue the main contractor at their place of work. Joint and several liability already applies in Austria and seven other Member States; the aim of the Directive is to harmonise the system within the EU.
Commission proposal restricts control powers of national authorities against undeclared work
However, effective controls are needed to protect the rights of posted workers and to combat undeclared work. And exactly here, the proposals of the Commission could be inconsistent with the aim to protect workers, as the Commission would like to restrict the powers of national authorities in respect of controlling labour conditions. Due to the fact that the proposal of the Enforcement Directive lays down certain maximum requirements for controls, Member States could be forced to abolish any additional control measures.
The proposals will continue to be the subject of further discussions; after all both the European Parliament as well as the Council of the European Union have to come to a joint decision on the proposal.
Further Information:
Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the enforcement of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services