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Posting of Workers Directive

25-07-2018

Posting of workers plays an important role in the internal market, particularly in the cross-border provision of services. While the number of posted workers continues to increase significantly, problems such as unfair practices and unequal remuneration persist. In addition, the correct balance between the freedom to provide cross-border services and the social rights of workers is needed, and moreover, needs to be adapted to today's labour market situation. The targeted revision of the Posting of ...

Posting of workers plays an important role in the internal market, particularly in the cross-border provision of services. While the number of posted workers continues to increase significantly, problems such as unfair practices and unequal remuneration persist. In addition, the correct balance between the freedom to provide cross-border services and the social rights of workers is needed, and moreover, needs to be adapted to today's labour market situation. The targeted revision of the Posting of Workers Directive (96/71/EC) proposed by the Commission intended to bring changes in three main areas: the remuneration of posted workers (making it equal to that of local workers, even when subcontracting), more coherent rules on temporary agency workers, as well as long-term posting. The agreement reached in trilogue negotiations states that long-term posting (with labour law provisions of the host country to be applied) starts after 12 months (with a possible extension of six months). The overall amount of remuneration received by a posted worker must meet the level of remuneration in the host Member State (without the reimbursement of the worker's expenses) which must be published on a single national website. Host Member States can accord to posted workers the coverage of representative collective agreements in all sectors, and they must protect them against fraudulent posting. The Parliament approved the text on 29 May 2018, the act was adopted by the Council on 21 June 2018 and the final act was signed on 28 June 2018. Member States have until 30 July 2020 to transpose the measures of the directive and apply them in their national law. Sixth edition. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure.

Enhancement of social legislation in road transport I (Driving time)

15-05-2017

Regulation 561/2006 lays down rules applicable to driving times, breaks and rest periods for drivers engaged in the carriage of goods and passengers by road. Various resources show that presently there are several challenges linked with the implementation of the regulation. These include diverging enforcement practice applied across the different EU Member States, clarity of the text of the regulation, broad discretion of the Member States and various exemptions allowed by the regulation. These challenges ...

Regulation 561/2006 lays down rules applicable to driving times, breaks and rest periods for drivers engaged in the carriage of goods and passengers by road. Various resources show that presently there are several challenges linked with the implementation of the regulation. These include diverging enforcement practice applied across the different EU Member States, clarity of the text of the regulation, broad discretion of the Member States and various exemptions allowed by the regulation. These challenges influence harmonisation of road transport, as well as legal certainty, and they limit the fulfilment of the regulation's goal. The European Parliament has called on the European Commission to update Regulation 561/2006 to respond to these challenges. Similarly, the European Economic and Social Committee has recommended that the existing legislation is updated. Furthermore, representatives of various stakeholder groups have voiced requests to update this piece of EU legislation. Finally, the European Commission itself has expressed willingness to revise the regulation as part of the enhancement of the social legislation in road transport. It is expected that the European Commission will submit this proposal in the second quarter of 2017.

Understanding social dumping in the European Union

21-03-2017

Although a recurring term in discussions related to working mobility, wages and the social security of workers, social dumping has neither a generally accepted definition, nor easily definable limits. It is rather a set of practices on an international, national or inter-corporate level, aimed at gaining an advantage over competitors, which could have important negative consequences on economic processes and workers’ social security. Examples include actions taken by actors from 'low wage' Member ...

Although a recurring term in discussions related to working mobility, wages and the social security of workers, social dumping has neither a generally accepted definition, nor easily definable limits. It is rather a set of practices on an international, national or inter-corporate level, aimed at gaining an advantage over competitors, which could have important negative consequences on economic processes and workers’ social security. Examples include actions taken by actors from 'low wage' Member States to gain market advantage over actors from Member States with higher pay and social standards; multinational companies from 'high wage' countries searching for ways to avoid legal constraints by employing subcontractors from low-wage countries; and companies engaging cheaper and more vulnerable temporary and agency workers, or relocating production to lower wage and less regulated locations. Social dumping takes different forms in different sectors. Suppressing social dumping is a component of different regulations on working mobility, undeclared work, and the status of transport workers. However, as the legislative competence of the European Union is limited in the labour law domain, soft law and social dialogue are also used to tackle the phenomenon. Several cases before the Court of Justice of the EU (such as the Viking and the Laval cases) show that the applicable EU rules can only be effective if adequate implementation and enforcement by the Member States is guaranteed. In September 2016, the European Parliament adopted an own-initiative resolution on social dumping, calling for a number of actions to reinforce controls, close regulatory gaps, revise working conditions and promote social convergence.

Coordination of social security systems

01-02-2017

The complex system of EU rules on social security coordination needs to comply with various challenges and national circumstances. These challenges include uneven and inadequate application, the lack of transparency and lack of understanding of the existing rules, and an uncertainty about the position of cross-border workers and the benefits applicable to them. Another outstanding challenge is the most recent jurisprudence of the Court of Justice of the European Union that clarifies several important ...

The complex system of EU rules on social security coordination needs to comply with various challenges and national circumstances. These challenges include uneven and inadequate application, the lack of transparency and lack of understanding of the existing rules, and an uncertainty about the position of cross-border workers and the benefits applicable to them. Another outstanding challenge is the most recent jurisprudence of the Court of Justice of the European Union that clarifies several important rules applicable to the relation between Member States and provision of benefits to the EU citizens. The European Parliament has called on the European Commission on several occasions to update the existing legislation on the coordination of social security systems so that it would react to these challenges. Similarly, the European Economic and Social Committee has recommended that the existing legislation be updated. Furthermore, the representatives of various stakeholder groups have voiced similar requests. In December 2016, the European Commission submitted a long awaited proposal amending Regulation 883/2004 and Regulation 987/2009 dealing with the coordination of social security systems. The proposal concentrates on changes linked to a broad spectrum of issues and benefits, mainly long-term care benefits, unemployment benefits, social benefits and family benefits. This proposal provides the opportunity for improvements to be made to the currently applicable rules.

Posting of Workers Directive – Current Situation and Challenges

30-06-2016

This study, commissioned by the European Parliament’s Policy Department for Economic and Scientific Policy at the request of the Committee on Employment and Social Affairs, provides an overview of the Posting of Workers Directive, focussing on the current situation and major patterns regarding the posting of workers in the EU, major problems and challenges, and how these patterns have translated political, as well as jurisdictive, debates and proposals to improve the regulation of this specific form ...

This study, commissioned by the European Parliament’s Policy Department for Economic and Scientific Policy at the request of the Committee on Employment and Social Affairs, provides an overview of the Posting of Workers Directive, focussing on the current situation and major patterns regarding the posting of workers in the EU, major problems and challenges, and how these patterns have translated political, as well as jurisdictive, debates and proposals to improve the regulation of this specific form of employment and service provision. With the Commission’s view on the proposal published on 8 March 2016, to revise the Directive, the study aims to provide the EMPL Committee with an assessment of the proposal in light of both the key challenges addressed and the previous resolutions and requests made by the European Parliament.

Awtur estern

Eckhard Voss (Wilke Maack GmbH, Hamburg, Getmany), Michele Faioli (Tor Vergata University, Rome, Italy) and Jean-Philippe Lhernould (University of Poitiers, France)

TTIP and Labour Standards

14-06-2016

The Transatlantic Trade and Investment Partnership (TTIP) will follow EU and US recent trade policy practice to include labour provisions. These could limit the risk that liberalisation results in social dumping and promote upward change. This Policy Department A study concludes that the EU could take a precautionary stance and employ various instruments that increase the chances that TTIP will have positive social consequences. TTIP may combine the strengths of the EU and US approaches to labour ...

The Transatlantic Trade and Investment Partnership (TTIP) will follow EU and US recent trade policy practice to include labour provisions. These could limit the risk that liberalisation results in social dumping and promote upward change. This Policy Department A study concludes that the EU could take a precautionary stance and employ various instruments that increase the chances that TTIP will have positive social consequences. TTIP may combine the strengths of the EU and US approaches to labour provisions, while improving their weaknesses. More analysis of the social consequences of liberalisation and labour provisions might be stimulated and strong flanking measures at the EU and national level be foreseen.

Awtur estern

Jan Orbie, Ferdi de Ville and Lore van den Putte

Revision of the Posting of Workers Directive

02-06-2016

Overall, the Commission has attempted to provide information as clearly and transparently as possible in the IA based on external expertise and wide consultation. Nonetheless, the limited availability of data suggests that the qualitative and quantitative evidence used to support the problem definition and the assessment of impacts might require further exploration. Moreover, the IA would have benefited from a clearer explanation on the interaction with, and impact on, the Enforcement Directive. ...

Overall, the Commission has attempted to provide information as clearly and transparently as possible in the IA based on external expertise and wide consultation. Nonetheless, the limited availability of data suggests that the qualitative and quantitative evidence used to support the problem definition and the assessment of impacts might require further exploration. Moreover, the IA would have benefited from a clearer explanation on the interaction with, and impact on, the Enforcement Directive. Finally, the IA could have better explained why EU action is necessary to solve the new problems and why Option 1 was ruled out despite broad stakeholder support.

Posting of workers (Part of the expected Labour Mobility Package): Implementation Appraisal

17-09-2015

In Annex I to its annual Work Programme 2015 (CWP 2015), the European Commission announced that it would submit the Labour Mobility Package. This implementation appraisal focuses on the second theme of the expected Labour Mobility Package – posting of workers.  This briefing is one of a series of ‘Implementation Appraisals’ on the operation of existing EU legislation in practice. Each such briefing focuses on a specific EU law which is, or will shortly be, subject to an amending proposal from the ...

In Annex I to its annual Work Programme 2015 (CWP 2015), the European Commission announced that it would submit the Labour Mobility Package. This implementation appraisal focuses on the second theme of the expected Labour Mobility Package – posting of workers.  This briefing is one of a series of ‘Implementation Appraisals’ on the operation of existing EU legislation in practice. Each such briefing focuses on a specific EU law which is, or will shortly be, subject to an amending proposal from the European Commission, intended to update the current text. Implementation Appraisals’ seek to provide succinct overviews of publicly available material on the implementation, application and effectiveness of specific EU laws, with inputs from, inter alia, the EU institutions and advisory committees, national parliaments and relevant external consultation and outreach exercises. They are provided to assist parliamentary committees in their consideration of new Commission proposals, once tabled.

Employment Conditions in the International Road Haulage Sector

16-03-2015

This document, provided by Policy Department A at the request of the Employment and Social Affaffairs Committee, analyses trends in the employment conditions of drivers in this sector. In particular, it aims to review whether the current regulatory framework including the Posting of Workers Directive is achieving the desired balance between market integration and social protection of workers, and what steps can be taken to ensure this balance in the future.

This document, provided by Policy Department A at the request of the Employment and Social Affaffairs Committee, analyses trends in the employment conditions of drivers in this sector. In particular, it aims to review whether the current regulatory framework including the Posting of Workers Directive is achieving the desired balance between market integration and social protection of workers, and what steps can be taken to ensure this balance in the future.

Awtur estern

Andrea BROUGHTON (Institute for Employment Studies), Maurizio CURTARELLI (ECORYS), Christine BERTRAM (ECORYS), Anna FOHRBECK (Institute for Employment Studies), Robin HINKS (Institute for Employment Studies) and Arianna TASSINARI (Institute for Employment Studies)

Tax policy in the EU - Issues and challenges

18-02-2015

EU tax policy is based on national tax systems which are decided by Member States and adapted to prevent national tax provisions hindering the single market and cross-border activities. Tax systems are under pressure to adapt and update as a result of budget consolidation and stimulating growth requirements. The challenges for EU tax policy include globalisation, digitalisation and tax competition, which offer greater room for avoidance, evasion and fraud – to which national and EU borders do not ...

EU tax policy is based on national tax systems which are decided by Member States and adapted to prevent national tax provisions hindering the single market and cross-border activities. Tax systems are under pressure to adapt and update as a result of budget consolidation and stimulating growth requirements. The challenges for EU tax policy include globalisation, digitalisation and tax competition, which offer greater room for avoidance, evasion and fraud – to which national and EU borders do not constitute an effective defence. Tax avoidance and fraud call for convergence, either through cooperation or coordination, to fight against behaviour detrimental to fair tax systems and which penalises growth. Convergence is being developed at EU and international level, where exchanges, sharing and tackling tax loopholes are expected to be strengthened to provide an effective answer.

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