What is a posted worker?
A ‘posted worker’ is an employee or agency worker who is temporarily sent by an employer from one European Economic Area (EEA) country (and Switzerland) to another.
What is the Posted Workers Directive?
The Posted Workers Directive was originally passed by the European Union in 1996, with a major revision (2018/957/EU) adopted in 2018. It has been in force since 20 July 2020.
The goal of the Directive is to ensure that posted workers are granted the same working conditions as local employees. In addition, the Directive places a significant administrative and compliance burden on employers, including prior notification of new postings and the tracking of international postings.
According to the Directive, employers who send employees (or agency workers) from one EU country to another must follow the employment rules that apply to the local workers of the host country, including:
- Maximum work periods and minimum rest periods
- Minimum paid annual holidays
- The minimum rates of pay (including overtime)
- Accommodation conditions
- Allowances/expenses
- Health and safety at work
- Protection for pregnant women and after birth
- Equal treatment for men and women and other rules to prevent discrimination
- Hiring out agency workers
For example, if the country where an employee is posted has a longer period of paid annual holiday, an employer must give posted workers that higher allowance.
What are the PWD’s compliance requirements for employers?
The Posted Workers Directive creates a significant compliance burden for employers in the EU that regularly send employees to other EU countries. Each time an employee is posted, the employer is required to comply with the following:
Ensuring that local employment rules are met
Local labour laws across the EU differ considerably. It is possible that the employment contracts of posted workers will need to be revised to accommodate certain local provisions. Employers must review the minimum wage requirements, paid holiday provisions, family leave entitlements, collective bargaining agreements and more to ensure that the posted worker’s contract fulfils all of these obligations.
Tracking compliance for audit purposes
Employers are required to keep records of all posted workers, the duration of their stay and local employment terms. In addition, employers are required to inform posted workers, in writing, on:
- The duration of the employment abroad
- The currency to be used for remuneration
- The benefits/terms of employment
Reporting
Nearly all EU countries require that the employer report the presence of the posted worker, usually before the posting commences or shortly afterward. This report usually includes:
- The identity of the employer
- The number of posted workers
- The employers’ contact person
- The anticipated duration, including start and end dates
- The address of the workplace
- The nature of the work that the posted worker will be doing
The precise reports and reporting destination differ between countries.
What about short business trips?
Workers who are temporarily sent to work in another member state but do not provide services there are not posted workers. This is the case for most business trips, conferences, meetings, etc.
In addition, some member states have excluded short trips from some of the requirements of the Directive.
Are there differences between member states?
The Directive leaves the precise reporting requirements up to each member state. Further, employment terms such as minimum wage and legal hours differ between the states. A country-by-country guide can be found here.
Reporting requirements by country
The following chart details the differences in reporting requirements and reporting medium across Europe.
Where can I find more information about PWD?
The EU provides a lot of information on the Posted Workers Directive, including:
How can VinciWorks help you comply with the Posted Workers Directive?
VinciWorks’ compliance platform, Omnitrack, is an excellent tool for complying with all aspects of the Posted Workers Directive. Using Omnitrack, a company can:
- Track all posted workers and compliance with local laws
- Produce ready-made reports on posted workers for submission to national authorities
- Create reminders for key dates
Omnitrack can leverage APIs from travel agencies and HR systems to automate much of the process. A built-in decision-tree can help employers determine which posted workers are affected by the directive and what information is needed to comply.
If you would like to know more about Omnitrack and the Posted Workers Directive, fill in the form below.
