The issue of posted worker rights within the European Union has continued to grow recently, and with new enforcement of EU directives, there will be an impact on business travelers and employees on short-term assignment.
According to the definition set forth by the European Commission, 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, in the context of a contract of services, an intra-group posting, or through temporary hiring agencies. Currently, the Posted Workers Directive (96/71/EC) imposes many minimum protections on each EU Member State (e.g., pay and rest periods, health, safety, hygiene, work periods, non-discriminatory measures, etc.).
Recently, a new Directive (2018/957) has been adopted and mandates that Member States are required to carry out these new regulations by July 30, 2020, including:
- Remuneration based on the host country’s regulations.
- Maximum posting is set at 12 months with a possibility of six months’ extension. After which, all of the host country’s labor laws will apply to the worker if they continue to work in the country.
- Additional compensation for travel, board, and housing costs must be paid by the employer on top of the host country’s remuneration.
In addition, The Enforcement Directive (2014/67/EU) ensures that compliance procedures are in place for posted workers in each of the respective Member States. These include specifications around job posting, notification, record retention, and a possible liaison for social partners and authorities in the EU. It is critical that affected organizations learn about each respective policy. Many non-compliance penalties exist, including fines as high as 500,000 EUR per infraction.
As mentioned, this directive is now being enforced and will directly impact short-term assignees and business travelers. Aires is equipped to assist global clients through our multitude of resources, including immigration specialists, an independent global partner network, and internal trend research. Our technology also allows for case study reporting and business traveler tracking and reporting. These tools allow for full audit capabilities to ensure compliance of affected programs.
To learn more about posted worker regulations and the ways in which Aires can help, please contact your Aires representative.