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IMPACT – MEDIUM
What is the change? The European Commission has proposed changes to its rules on posted workers, aiming to ensure that they generally have the same wage and employment protections as local workers in EU member countries.
What does the change mean? Under the proposed changes, posted workers would be covered by the same pay rules and collective bargaining agreements (where applicable) as local workers. The rules on pay would be extended to cover temporary agency workers in host countries. Workers posted for more than 24 months would be protected by the host country’s labor laws.
Background: For EU officials, the freedom to post workers across Europe is one of the cornerstones of the EU’s “single market” concept. Discrepancies in pay and job protections from country to country, however, prompted the commission to propose changes to the current rules on posted workers. The changes focus on three areas: remuneration (pay), temporary agency workers and long-term posting.
BAL Analysis: The changes are designed to root out “social dumping,” i.e., the practice of using cheaper labor than employers are normally permitted to use. If implemented, the changes would force companies to review their pay rates and employment protections for workers posted in other EU countries.
This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
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