A posted worker is an employee who is sent to a Member State of the European Union* to perform a service for a limited time, without fully integrating into the host country labor market.

*Similar rules apply in countries belonging to the European Free Trade Association (EFTA).

The Posted Workers Directive (PWD) sets requirements and conditions for employers when sending their employees to a Member State of the European Union* for a limited time to perform a service. The PWD was originally introduced by the European Commission to ensure a duty of care in terms of equal employment conditions and fair play on the European market to avoid ”social dumping.” This continues to be revised introducing more guidelines for local countries to interpret and adopt.

*Similar rules apply in countries belonging to the European Free Trade Association (EFTA).

• Multiple parties: including service providers, service recipients and employees.
• Organizations from all economic sectors and industries: it is not limited to construction or transportation industries only.
• All postings regardless of duration, though some local exemptions apply. Each country interpreted the European Union guidelines differently and implemented different sets of exemptions to the obligation to notify the authorities. Exemptions can be based on the nature of the activity performed abroad or days of work in the host country.

As of June 2022, all EU Member States have transposed the latest PWD on equal pay for equal work. As organizations resume international travel there has been heightened attention toward compliance. Despite the good intentions of the directive, many organizations are questioning to what extent the posted worker processes are necessary in relation to the burden placed on the employer. The European Commission is exploring opportunities to offer a common format for Posted Workers Notification (PWN) submission which Member States could opt in to.

A new directive has also come into play in August 2022 which stipulates that employers must inform their workers of the essential aspects and conditions of the posting.

Assess: Each country has interpreted the PWD differently and may have different exemptions. The first step is to determine if the activity performed will trigger a requirement to notify the host country authorities.

Notify: Once a requirement is determined, employers are obliged to notify the host country authorities via the local country website or offline process.

Appoint: As part of the PWN, it is required to name liaison persons and legal representatives.

Pay: Equal pay for equal work is a guiding principle of the latest PWD, proof of which may be requested in the event of an audit.

Record: Alongside the notification process, the employer needs to keep a timely record of the work performed and conditions granted to the posted employees — for example employment contracts, timesheets and payslips — in case of an audit.