How will the revision of the Posted Workers Directive impact your assignments?
Updates on the latest policy developments regarding the Posted Workers Directive's revision
EU Commissioner Thyssen proposed to revise the PWD in order to ensure a level playing field between foreign and local employers in the host country. On 21 June 2018, the EU adopted a new directive revising the Posted Workers Directive of 1996.
The aim of the revision is to facilitate the free movement of services whilst ensuring fair competition and respect for the rights of posted workers. More specifically, the revision aims at ensuring fair wages and a level playing field in the host country between posting and local companies whilst also maintaining the free movement of services.
The essence of this revision is:
- The principle of “equal pay for equal work” between posted and local employees
- The full application of the host country’s mandatory labour law for assignments exceeding 12 months (extendable to 18 months on the basis of a motivated notification) with the exception of termination rules and supplementary occupational pension schemes
- The application of universally applicable collective agreements to posted workers across all sectors
- The equal treatment of temporary agency workers and local workers
While posted workers (i.e. “assignees” or “seconded workers”) and the Posted Workers Directive have always been a point of attention, they have recently become a very hot topic and extensively covered by the media. However, the information published in the press may not always be fully accurate or complete, which may lead to confusion regarding the impact for employers and employees. Through this page, Deloitte aims to fully clarify the state of affairs and share all relevant updates on the subject.
You will find an overview of the current EU Posted Workers Directive as well as an assessment of its revision.