Crackdown on anti-dumping regulations within the EU. The maximum duration of transnational posting stops at 12 months, extendable by another six months. During this period, the worker must be paid contributions in his or her home country; while the pay (wage discipline) is that of the host country. This was stipulated in the directive finally approved by the EU parliament on May 29, 2018. The word now passes to individual countries, which will have two years to transpose the rules after the directive comes into force.
EU transnational posting: new limits 2018 , and a needed reform. Differences in labor costs across EU countries have fostered posted labor but have also led to a growth in fraudulent practices, resulting in exploitative situations for posted workers with the additional negative consequence of unfair competition to local businesses.
What’s new. Crucial point of the reform is to ensure that the posted workers are treated according to the same rules by which local workers are treated. Local rules are established as appropriate by industry agreements or national laws. Under the new rules, the employer must cover travel, administrative and accommodation expenses instead of deducting them from the worker’s salary. Posted work can last up to a maximum of 12 months with the possibility of extending the stay by an additional six months, and once the maximum period is exceeded, the rules of the country where the work is performed apply. Temporary employment agencies must guarantee posted workers the same conditions that apply to temporary workers hired in the country where the work is performed. The new rules also apply to the transportation sector once the sectoral regulations come into force.
Existing rules. The reform will update the current rules that are based on the 1996 EU directive and establish a set of minimum conditions for the protection enjoyed by posted workers (minimum rates, maximum duration, etc.).