Social Agenda Issue 52 - EN

Posted workers directive revised Same pay for the same work in the same place as local workers In June 2018, the EU Council of Ministers and the European Parliament adopted a European Commission proposal reviewing the 1996 directive on the posting of workers: workers who are employed by a company established in one EU country and who are sent temporarily to carry out a service in another Member State. The main transformation has to do with the rates of pay to which posted workers are entitled. The 1996 directive only required that they be subject to the host country’s minimum rates of pay. However, since then, the EU and its single market have grown considerably and wage differences have increased. Posted workers have been reported to earn up to 50% less than local workers in some sectors and some member States. The revised directive ensures that posted workers enjoy not just the minimum wage but also all the other elements that make up remuneration in the host country. For example, allowances for bad weather, Christmas bonuses, pay increases according to seniority - so long as those elements are provided for by the law of the host country (or by collective agreements that apply universally, i.e. beyond the scope of a company). From now on, the posted workers will enjoy the same pay for the same work in the same place as local workers. This meets a requirement expressed by Commission President Jean-Claude Juncker in 2014 when, in his speech as President-elect to the European Parliament, he declared his intention to fight against social dumping. From optional to mandatory Beyond the pay issue, the 2018 revised directive brings about other improvements, often turning optional elements into mandatory ones. For example, all posted workers must enjoy the benefits of collective agreements. Up till now, this was only mandatory for workers posted in the construction sector. Long-term posted workers (beyond twelve months, extendable to eighteen months) should be covered by all the terms and conditions of employment of the host country’s labour law (but for some matters, such as protection against unfair dismissal, it is the labour law of the home Member State that applies). Delay for road transport: Until a sector-specific directive is adopted, the non-revised 1996 directive will continue to apply to road transport. LABOUR LAW © Belga Image 6 / SOC I A L AG E NDA / J U LY 2 0 1 8