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18. December 2017

SCHEDULED ALTERATIONS OF POSTING DIRECTIVE

In the posting directive dating back to 1996, certain minimum conditions concerning the employment of workers at operations abroad within the European Union are provided which have been adopted in Germany through the law on posting of workers. In March 2016 the European Commission initiated a revision of the directive with the purpose of achieving working conditions for deployed workers which match the level of the Country of deployment. The committee of the European Parliament in charge and the Council of the European Union reached a compromise in October 2017, which could lead to an updated posting directive anytime soon.

I. Status Quo

According to the currently valid posting directive, the member states must guarantee certain minimum conditions for deployed workers. Especially the local maximum working hours and minimum rest periods, (paid) minimum holiday entitlement, minimum wages, terms for temporary workers, health and safety regulations and the non-discrimination rules must be adhered to. Certain sectors of industry in Germany (especially the building sector) were ordered to use generally binding collective agreements for certain working conditions.

II. Proposal of modification by the Commission

The Commission has elaborated in their revision proposal, that for long term postings all working conditions of the country of assignment should apply after a certain duration which has been suggested with 24 months. During the posting abroad not only the minimum wages should apply, but also all generally binding wage regulations of the host state. Beyond this, the regulations should also pertain to subcontractors and the terms and conditions which local temporary employment agencies have to grant to their workers shall also apply to workers of foreign temporary employment agencies.

III. Current state after proceedings within the committee of the European Parliament and the Council

Upon negotiations within the committee of the European Parliament and the Council of the European Union, at the end of October 2017 it was announced that a compromise regarding the regulation of the reformed posting directive had been found. All working conditions of the state of deployment should now apply after only 12 months, whereby an extension to 18 months should be possible on request. The compliance of generally binding wage regulations should apply from the first day onwards. Equal treatment of foreign temporary workers and domestic temporary workers should also be introduced. However, a transitional period (publications vary between three to four years) to apply the new regulations, as well as an exception for the transport industry were included. Subsequently, all sides criticized the outcome, though it seems that all in all the compromise has met approval.

IV. Future Procedure

Following the accord between Council and the Committee of the Parliament, the full plenum of the Parliament will decide on the further execution of negotiations with the commission regarding the final contents of the reform. Afterwards, this result must be presented to the council, thus it is not yet foreseeable, when the final contents of the reformed directive can be expected and when it will be adopted.

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