KPMG ROMANIA SRL

 | 

ALINA PREDESCU

 | 

MADALINA RACOVITAN

 | 

MEDEEA POPESCU

  |  04.08.2016

Minimum Wage Requirements in Europe and How These Affect Posted Workers

The EU has taken steps to encourage mobility of workers between member states.

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KPMG ROMANIA SRL

ALINA PREDESCU

ALINA PREDESCU

SENIOR MANAGER at KPMG ROMANIA SRL


MADALINA RACOVITAN

MADALINA RACOVITAN

PARTNER, HEAD OF PEOPLE SERVICES at KPMG ROMANIA SRL


MEDEEA POPESCU

MEDEEA POPESCU

ASSISTANT MANAGER, FISCAL CONSULTANCY at KPMG ROMANIA SRL

Free movement of workers is one of the fundamental principles of the EU, and brings many benefits. It helps companies move employees to where their skills are needed, or to gain professional experience in another country. It also makes it much easier for businesses to hire the best person for the job, without having to take nationality into consideration, at least for EU citizens. The individuals also benefit because they acquire new skills and knowledge, which can help them develop their careers, and can also gain in personal terms from broadening their cultural horizons. Even the opportunity for foreign postings can make an employer more attractive to a prospective employee. Moreover, national economies gain too, as free movement of workers makes it much easier for gaps in the labour market to be filled, and can help reduce unemployment in periods of recession if citizens can seek employment in other countries.

 

Currently, mobility within the European Union is still quite low; well below the level in other highly integrated areas like the United States, and well below the level within individual countries. Language is an obvious barrier. But it is increasing, for a number of reasons, particularly economic disparities within the European Union.


From an employer’s perspective, a number of issues need to be taken into consideration when posting workers to other member states. These situations are covered under the EU’s Posting Directive (96/71 EC), which has recently been complemented by a new enforcement directive, adopted in 2014, and which must be transposed into member states’ legislation by 18 June 2016. The latest directive does not make new rules, but is designed to improve the application of existing ones, by strengthening the rights of posted workers, making the cross border provision of services easier and combatting social dumping. The European Union also intends to clamp down on undeclared work, and within member states, tax and labour authorities have become increasingly vigilant.

 

The Directive and the recent enforcement legislation require for a set of minimum ‘hard core’ elements to be guaranteed to posted workers:


- Maximum work periods and minimum rest periods.
- Minimum paid annual holidays.
- Minimum rates of pay, including overtime rates.
- The conditions of hiring out of workers, in particular the supply of workers by temporary employment undertakings.
- Health, safety and hygiene at work.
- Protective measures with regard to the terms and conditions of employment of pregnant women or women who have recently given birth, of children and of young people.
- Equality of treatment between men and women, and other provisions.  

 

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