Reform of the Posting of Workers Directive adopted: Same place, same work, same pay?

The background to the reform is the fact that, until now, it was not uncommon for workers to be posted from their home country for a limited period of time in order to carry out jobs cheaply in the destination country. Until now, however, the posting companies only had to comply with minimum standards - the prime example being the minimum wage.

Due to the very different wage and social standards in the respective EU member states, there were often differences in income and distortions of competition during postings: While local workers received collectively agreed wages and wage supplements, posted workers were left empty-handed. In addition, the costs of travel, food and accommodation were often deducted from the posted workers' wages.

This is set to change with the new Posting of Workers Directive:

• In future, posted workers will also be subject to the rules on payment of their local colleagues. This includes not only statutory regulations but also generally binding collective agreements. If special wage components such as allowances and bonuses (bad weather supplements, Christmas bonuses, etc.) are stipulated by law or collective agreements, these must also be taken into account for posted workers.

• The central point of the reform is the limitation of the posting to 12 months, with the possibility of extension to 18 months. When the time limit expires, all labor and social security regulations of the host country apply to the posted workers.

• Travel, food and accommodation costs may no longer be deducted from wages.

Conclusion: The equal treatment of posted and local workers, which at first glance appears to be justified and welcome, could in practice have a negative impact on the development of the EU internal market. Member states that have previously benefited from the posting of workers due to low wage costs could experience a significant deterioration in orders. However, this would also mean that the improvements for posted workers actually intended by the reform would disappear into thin air.