On 29 May 2018, the European Parliament voted the new rules for the posting of workers within the European Union (EU). The objective of the amendments is to guarantee equal pay and equal working conditions for staff temporarily posted in another EU Member State, better protection of posted workers and fair competition.
Unlike workers who are permanently employed in another EU Member State, posted workers are subject to the legislation of the country in which they were hired rather than the legislation of the country in which they are working.
Prior to the amendments, Directive 96/71/EC of the European Parliament and of the Council of 16 December 1996 concerning the posting of workers within the framework of the provision of services guaranteed the minimum rights of posted workers, including minimum rates of pay, maximum work periods, minimum paid annual holidays and conditions for employment though temporary employment undertakings or placement agencies.
The new rules envisage that posted workers will be subject to the rules on remuneration applicable to local workers, stemming from the law or collective agreements. The principle of equal treatment is applicable also to temporary agency workers.
The maximum duration limit to postings becomes twelve months with the option to renew it by another six months. After the expiration of this term, the working conditions become subject to the rules of the host country. Travel, board and lodging costs are to be borne by the employer and they may not be deducted from the salary. The EU Member States are required to transpose the new rules in their national legislation within two years.