The Posting of Workers Directive (PWD), introduced in the European Union (EU) in 1996, is an important piece of legislation with two objectives: protect the employment rights of employees working temporarily in another European country and prevent unfair competition between businesses in lower- and higher-cost European territories.
Over the past two years, proposed - and potentially far-reaching - amendments to this Directive have been working through the European legislative process. The most striking would limit the length of time an employee can be treated as a posted worker to 12 months, with a potential six-month extension, following which almost all of the employment rights available to local employees in the host location would become applicable to the mobile employee.
On 11 April, the Permanent Representatives Committee, composed of ambassadors from every EU country, voted in favour of the draft legislation. The European Parliament is now expected to finalise it, probably in June, following which there will be a two-year implementation period before the rules start to apply.
The attached Insight highlights the considerable changes that are likely to apply to mobile employees within Europe in just over two years' time as a consequence of the amendments to the PWD, as well as the challenges these may present to employers.
For a deeper discussion of how these issues might affect your business, please contact your PwC Global Mobility Services engagement team or the following professionals: