Revised Posted Worker Directive – Are you ready?
In the current context, in which companies and employees learn to adapt to new ways of working, the revised Posted of Workers Directive (hereinafter “PWD”) introduces new obligations for employers. The first version of PWD was adopted in 1996, foremost in order to facilitate the freedom to provide services and, secondly, to ensure a base protection for posted workers.
However, after the accession to the European Union (“EU”) of states from Eastern and Central Europe, the wage differences between EU states lead to social dumping. Against this background, the revised PWD focuses on reducing the gap between the mobile and local employees, by introducing the Equal Pay for Equal Work concept and imposing employers to observe the employment conditions applicable in the host country. At the same time, as the businesses evolve and expand, the employee travelling pattern changes and multiple compliance obligations arise both for the assignees and business travelers. Thus, building and implementing the right solution is the only path to ensure cost effectiveness on compliance matters and mitigate the associated risks. These vary from one country to another, from immaterial fines to criminal charges for the employers’ representatives. At Deloitte, we have a multi-disciplinary team, including professionals from Tax and Legal, who are part of a global PWD working team, who can assist you to identify and design the appropriates solutions to comply with the new employer liabilities, while continuing to implement your business plans.
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