New draft rules to ensure that posted workers are better protected and fair competition for companies were adopted by the Employment and Social Affairs Committee with 32 votes to 8 and 13 abstentions on Monday.

The main changes agreed by MEPs concern remuneration, duration of the posting and temporary agencies.

Making pay fairer





All of the host country’s rules on remuneration, set by law or collective agreements, should apply to posted workers.

Member states should be obliged to publish all elements of their national remuneration policy, as well as information on collective agreements, on a special website.

Improving workers’ conditions

Travel and accommodation costs must be reimbursed or be part of the wage.

Hosting member states could opt to apply regional or sectorial collective agreements, instead of national ones, if they offer more favourable conditions for posted workers.

Duration

If the posting is longer than 24 months, all of the host country’s labour conditions would apply to posted workers.

24-month limit can be extended if a company needs more time to complete the service it was required to provide.

Temporary work agencies and subcontracting

To prevent “chain postings”, aimed at circumventing obligations, the new rules would also apply to posted workers sent by a temporary agency from another member state.

Member states may oblige the subcontractor to pay their posted workers the same amount as the main contractor.

International road transport

International road transport will be dealt with by sector-specific legislation, included in the Mobility Package. Until that has been adopted, and to prevent legal loopholes, the posting of workers’ directive remains applicable to road transport.

Quotes

Elisabeth Morin-Chartier (EPP, FR) said: “The agreement we have is politically clear: improve the protection of workers and ensure a level playing field for companies in the internal market. Today the Parliament has shown once again that it will always respond to national divisions with European political strength and unity. Now it is time for the Council to step forward: no one can afford to hang about while we are building up a Social Europe!”

Agnes Jongerius (S&D, NL) said: “This is an important step to create a social Europe that protects workers and makes sure there is fair competition. With this proposal we will fight inequality and take good care of workers. Collective agreements which benefit local workers must also apply to posted workers in the future. We must stop the race to the bottom in the European labour market, to reach the goal of equal pay for equal work at the same workplace.”

Next steps

The full House is expected to vote on this draft mandate to enter into informal negotiations with the Council at the next week’s plenary session. EU Ministers (Council) have yet to adopt their position.

Quick Facts

Posting occurs when services are provided across borders. Posted workers have an employment contract in their home country, but are sent by their employer temporarily to another member state to carry out a task.

The growth of the single market has led to increased wage differences, thereby creating incentives for posting. Posted workers often earn considerably less than local workers, which can lead to unfair competition between posting and domestic companies, social dumping and exploitation of posted workers.