Posting of workers – new proposals BusinessEurope views Magdalena Bober 28 Sptember 2016

What is BusinessEurope? Cross-industry EU social partner representing employers 40 member federations in 34 countries Representing small, medium and large companies from different sectors of the economy

Why are rules on posting important for us? Single market brings benefits to the EU companies and citizens, Posting of workers essential for cross-border provision of services, Help addressing skills and labour gaps, Opportunity for companies to expand to new markets, Increased specialisation, Help companies to be globally competitive.

Posting of Workers Directive (96/71/EC) The core of mandatory rules of host country to be respected already covers a wide range of issues: minimum rates of pay, maximum work periods and minimum rest periods, minimum paid annual leave, health and safety at work, the conditions of hiring out workers, equal treatment between men and women According to BusinessEurope the PWD provides a good framework for cross border services provision guaranteeing fair competition and protection of posted workers – no need for change

Enforcement Directive (2014/67/EU) Aim: to improve application of the Posting Directive Content: criteria to identify genuine postings to better tackle abuses improved transparency, access to information better administrative cooperation (clarification of competences, deadline for responses) and cross- border enforcement of fines and penalties liability in subcontracting chains To be transposed by Member States by June 2016

Enforcement Directive (2014/67/EU) today 15 Member States have not yet transposed the Enforcement Directive Some of the IMI modules for communication between authorities are still not functional Single websites are still not communicated Focus should be on the application of Enforcement Directive Not only legal transposition but also adequate resources, tools and competences

Commission proposal for a revision July 2016 – Commission’s proposal for a revision of the posting directive (96/71/EC) maintained despite the “yellow card” and poor implementation of the Enforcement Directive Main changes: The term “minimum rates of pay” replaced by “remuneration” If anticipated or effective duration of a posting longer than 24 months a posted worker deemed habitually working in a host member state New rules on subcontracting Posted agency workers have to be covered by Agency Work Directive

BusinessEurope views on the proposal (1) Concerns with the adoption process – decision to revise the directive taken by the EC before considering the impact assessment, no proper consultation of social partners Concerns with the content – no added value in terms of addressing illegal practices. Only more complexity and more uncertainty. Already now 30 % of companies surveyed by the EC reported problems linked to posting (burdensome administrative requirements, paperwork, fees and registration obligations)

BusinessEurope views on the proposal (2) Focus should be on the implementation of Enforcement Directive to fight illegal practices and facilitate lawful postings Revision of the 96 rules is a start of divisive political discussion when the EU needs unity and cooperation

Magdalena Bober Social Affairs Advisor m.bober@businesseurope.eu More info Magdalena Bober Social Affairs Advisor m.bober@businesseurope.eu