Select Committee on European Scrutiny Thirtieth Report


13 Guidance on the posting of workers

(27445)

8666/06

COM(06) 159

+ ADD 1

Commission Communication: Guidance on the posting of workers in the framework of the provision of services

Commission staff working document: report on the implementation of Directive 96/71/EC concerning the posting of workers

Legal base
Document originated4 April 2006
Deposited in Parliament28 April 2006
DepartmentTrade and Industry
Basis of considerationEM of 11 May 2006
Previous Committee ReportNone
To be discussed in CouncilNo date set
Committee's assessmentPolitically important
Committee's decisionCleared

The Posting of Workers Directive

13.1 Article 49 of the EC Treaty requires the abolition of obstacles to the freedom to provide services within the Community. The Posting of Workers Directive of 1996 applies to workers employed by an undertaking ("the posting company") established in one Member State and who are posted temporarily to another Member State ("the host State") to provide a service.[45]

13.2 The Directive requires each Member State:

  • to ensure that the posting company guarantees the posted worker any mandatory terms and conditions of employment in the host country (such as minimum paid holidays; minimum wages; and standards of health and safety at work);
  • to designate liaison offices or competent national bodies to implement the Directive;
  • to tell other Member States and the Commission the identity of the liaison offices or competent bodies;
  • to make provision for co-operation between its public authorities responsible for monitoring terms and conditions of employment and the authorities of other Member States;
  • make available information about any mandatory terms and conditions of employment;
  • to make provision for compliance with the Directive and, in particular, ensure that adequate procedures are available to workers to enforce their rights under the Directive; and
  • to transpose the Directive into national law.

The Commission's Communication

13.3 The Communication :

  • gives guidance on the application of the Directive in the light of the case law of the European Court of Justice (ECJ);
  • invites Member States to ensure that they are fulfilling their obligations under the Directive to provide information, co-operate with other Member States and enable posted workers to seek redress; and
  • sets out the further action the Commission will be taking.

13.4 In the light of the judgements of the ECJ, the Commission gives the following advice about action by Member States which is or is not compatible with the Directive:

  • It is disproportionate for a host State to require a posting company to have a representative domiciled in the host country to monitor employment conditions of the posted workers.
  • It would be acceptable to appoint one of the posted workers to act as a link between the posting company and the host State's authorities.
  • It would be disproportionate to make postings subject to systematic prior authorisation or registration by the host State.
  • It would be reasonable for the host State to demand information from the posting company about the posted workers, what service they will provide, where and for how long.
  • It would be reasonable for the host State to require documents, such as time sheets, to be kept at the workplace of the posted workers so that the host State can monitor compliance with the mandatory terms and conditions of service; and
  • The host State may not impose additional conditions on the admission of posted workers who are nationals of a third country if they are lawfully employed by an undertaking established in another Member State.

13.5 The Communication asks Member States to redouble their efforts to improve access to information about the terms and conditions which posted workers must be guaranteed. It also asks them to ensure that they have liaison offices and that the liaison offices and monitoring authorities are adequately equipped to respond to requests for information and to co-operate with the authorities in other Member States.

13.6 The Communication asks Member States to re-examine their systems for implementing and monitoring compliance with the Directive and, in particular, to ensure that there are arrangements to provide redress for deficiencies.

13.7 Finally, the Commission dictates that:

"Member States should act to ensure that the guidance provided in this Communication gives rise to concrete results as soon as possible. In order to assess progress, the Commission will adopt within twelve months a report which will examine the situation in all Member States with regard to all aspects covered by this Communication."[46]

In order to make the assessment, the Commission will invite comments from national authorities, organisations which represent employers and employees and anyone else on how they think the Directive is being implemented.

The Government's view

13.8 The Parliamentary Under-Secretary of State for Employment Relations at the Department of Trade and Industry (Jim Fitzpatrick) tells us that the Directive has been fully implemented in the UK. All UK employment law applies to workers posted here. The UK liaison office on posted workers is located in the Department of Trade and Industry. Information is provided to other Member States when requested.

13.9 The Minister adds that posted workers (just like British nationals working in the UK) may complain to an Employment Tribunal about a failure by their employer to comply with UK employment law. Compliance with the National Minimum Wage is inspected by HM Revenue and Customs and with health and safety law by the Health and Safety Executive. The Employment Agency Standards Inspectorate conducts routine inspections of agencies and investigates complaints about them.

13.10 Commenting on the Commission's requests to Member States to review their arrangements, the Minister says:

"We will not have to change our control measures, as we do not place unjustifiable or disproportionate requirements on foreign companies temporarily posting their workers to the UK.

"Although we have information in place on the web relating to the posting of workers, we will needed to review this and consider its adequacy. We will be looking at what we provide and looking at what other Member States provide and exploring ways to improve the content and accessibility of the UK information.

"Monitoring and sanctions for non-compliance with the employment rights specified by the Posted Worker Directive is [sic] identical to that available to domestic workers. The UK does not have a labour inspectorate so there are limited ways in which monitoring can take place. We will consider how we do it and explore options for any improvement required."

Conclusion

13.11 We consider this an important Communication and we draw it to the attention of the House.

13.12 We are surprised that the Commission purports to be able to instruct Member States to act on the guidance in the Communication. That is not the right way to achieve the co-operation for which the Directive calls and for which we see the need.

13.13 We look forward to scrutinising the assessment the Commission intends to produce in a year's time. Meanwhile, we are content to clear the Communication from scrutiny.





45   Directive 96/71/EC concerning the posting of workers in the framework of the provision of services: OJ No. L 18, 21.1.1997, p.1. Back

46   Commission Communication, page 11. Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2006
Prepared 2 June 2006