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BackThe protection of more than 1.2 million posted workers within Europe was right at the top of the agenda of the meeting of Ministers of Employment and Social Policy this week. After tough negotiations, Member States were able to reach agreement and found a compromise, which shall guarantee that control measures can be carried out in future, which will help Member States to uncover illegal postings. Agreement was also reached on joint and several liability in subcontracting chains to ensure that posted workers can claim any outstanding amounts, such as wages or social security contributions, not only from their direct employers, but also from the latter’s principal.
Posted workers have to be protected against exploitation
Technically speaking, posted workers are persons, who, on behalf of their employer, work for a limited period in the territory of a EU Member State, which is not the state, where they usually work. Estimated 1.2 Million posted workers (less than 1 % of the EU population of working age) are currently employed in the EU. This option is mainly used by the construction sector (25 %), in particular by small and medium-sized companies. Until now, the 1996 Posting of Workers Directive regulated the social rights of posted workers, apart from being supposed to prevent social dumping, when companies use this freedom to provide services. However, due to the fact that time and again practical problems occurred when the Posting of Workers Directive was applied, the European Commission proposed in March 2012 an Enforcement Directive for the implementation, supervision and practical enforcement, in order to improve the 1996 Posting of Workers Directive and make its application easier. The negotiations for this Enforcement Directive to protect posted workers against exploitation have been going on for more than 18 months.
Control measures of authorities must not be restricted
The most important point of the agreement in the Council was the regulation of those control measures, which can be used by the Member States to uncover illegal postings, giving Member States the opportunity to react to new tricks by dishonest companies in future. Thus, a so-called "closed list" of control measures could be prevented. Closed lists would have limited the options of national supervisory bodies. The Council has now approved a regulation, which enables Member States to carry out effective controls and to impose sanctions. At the same time, however, due to the fact that the authorities must give prior notification of any control measures, it has been possible to maintain the legal certainty of companies. This means that Austria too can maintain her existing regulations against illegal employment or malpractice; in concrete terms the Anti-Wage and Social Dumping Act, which has already been adopted in Austria.
Joint and several liability in subcontracting chains is coming
The agreement reached on joint and several liability in subcontracting chains shall prevent that contractors, with the help of feeble sub-contractors, are undermining safety standards or cheat workers out of their wages. In addition, it has been achieved that posted workers can claim any outstanding amounts, such as wages or social security contributions, not only from their direct employers, but also from the latter’s principal, who has to assume liability. According to the decision by the Ministers, Member States may apply this principle also to other sectors or find comparable regulations to protect employees. Austria has already introduced a joint and several liability hat some time ago.
Council and EU Parliament have to reach agreement
According to the vote in the Committee of the European Parliament in June and the agreement in the Council, negotiations will soon commence between Parliament and Council. It is expected that agreement will be reached soon.
Further information:
Press release by the Lithuanian Presidency on the agreement on the Enforcement Directive for the Posting of Workers Directive
Technically speaking, posted workers are persons, who, on behalf of their employer, work for a limited period in the territory of a EU Member State, which is not the state, where they usually work. Estimated 1.2 Million posted workers (less than 1 % of the EU population of working age) are currently employed in the EU. This option is mainly used by the construction sector (25 %), in particular by small and medium-sized companies. Until now, the 1996 Posting of Workers Directive regulated the social rights of posted workers, apart from being supposed to prevent social dumping, when companies use this freedom to provide services. However, due to the fact that time and again practical problems occurred when the Posting of Workers Directive was applied, the European Commission proposed in March 2012 an Enforcement Directive for the implementation, supervision and practical enforcement, in order to improve the 1996 Posting of Workers Directive and make its application easier. The negotiations for this Enforcement Directive to protect posted workers against exploitation have been going on for more than 18 months.
Control measures of authorities must not be restricted
The most important point of the agreement in the Council was the regulation of those control measures, which can be used by the Member States to uncover illegal postings, giving Member States the opportunity to react to new tricks by dishonest companies in future. Thus, a so-called "closed list" of control measures could be prevented. Closed lists would have limited the options of national supervisory bodies. The Council has now approved a regulation, which enables Member States to carry out effective controls and to impose sanctions. At the same time, however, due to the fact that the authorities must give prior notification of any control measures, it has been possible to maintain the legal certainty of companies. This means that Austria too can maintain her existing regulations against illegal employment or malpractice; in concrete terms the Anti-Wage and Social Dumping Act, which has already been adopted in Austria.
Joint and several liability in subcontracting chains is coming
The agreement reached on joint and several liability in subcontracting chains shall prevent that contractors, with the help of feeble sub-contractors, are undermining safety standards or cheat workers out of their wages. In addition, it has been achieved that posted workers can claim any outstanding amounts, such as wages or social security contributions, not only from their direct employers, but also from the latter’s principal, who has to assume liability. According to the decision by the Ministers, Member States may apply this principle also to other sectors or find comparable regulations to protect employees. Austria has already introduced a joint and several liability hat some time ago.
Council and EU Parliament have to reach agreement
According to the vote in the Committee of the European Parliament in June and the agreement in the Council, negotiations will soon commence between Parliament and Council. It is expected that agreement will be reached soon.
Further information:
Press release by the Lithuanian Presidency on the agreement on the Enforcement Directive for the Posting of Workers Directive