This thesis guides the reader through the most important aspects of current European labour law in relation to posted workers. It starts with basic definitions and provides answers to questions of jurisdiction and applicable law. The thesis then explains in detail the framework of the provisions guaranteeing a minimum level of safeguards and other rights to workers (Directive 96/71/EC) as well as the framework of the provisions applicable with regard to social security benefits and contributions (Regulation 883/2004). It explains the true impact of judgment Sähköalojen ammattiliitto ry on the applicable minimum wage and shows possible legal advantages of using posted workers over the domestic workforce. It furthermore explains how the practically important Internal Market Information System works and shows common ways of abuse and circumvention of current legislation. It divides these ways of abuse into the categories “Undesirable Legal Posting”, ”Questionable Practices”, “Fraud and Fake Postings”, “Letterbox companies” and “Bogus self-employment”, discussing three cases.
The most recent development in the area of posted workers is Directive 2014/67/EU of the European Parliament and of the Council of 15 May 2014 on the enforcement of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services and amending Regulation (EU) No 1024/2012 on administrative cooperation through the Internal Market Information System (Enforcement Directive). The thesis explains the shortcomings of Directive 96/71/EC. It lists the novelties that the Enforcement Directive introduces and discusses their possible transposition into national law, their merits and insufficiencies. The thesis then takes a detailed look at one of these novelties, the new subcontracting liability in the construction sector. Finally, the thesis provides numbers of posted workers within the EU and specific countries, which enables the reader to put the economic impact of posted workers in perspective.
Table of Contents
1. Summary
2. Table of Contents
3. Introduction
3.1. Background
3.2. Limitations
3.3. Aim
4. Definition of a posted worker
5. Jurisdiction in regard to posted workers
6. Applicable national law in regard to posted workers
6.1. Three-step system
6.2. Summing up
7. Overview of European Legislation applicable to posted workers
8. Directive 96/71/EC on the Posting of Workers
8.1. Legal Theory
8.2. Scope of application
8.3. A “hard core” of employment conditions – the host state´s overriding mandatory provisions
8.4. Effect of Article 3 of the Posting of Workers Directive in the opposite direction
8.5. Special treatment of temporary agency workers (“hired-out workers”)
8.5.1. Overview of different ways that Directive 96/71/EC influenced national laws
8.5.2. Procedure and Notifications in regard to the Posting of Workers
9. Judgment in Sähköalojen ammattiliitto ry and other CJEU judgments regarding minimum rates of pay
9.1. Minimum wage elements
9.2. Summing up
10. Regulation (EC) No 883/2004 on the coordination of social security systems
10.1. The Article 12 exemption for posted workers and its conditions
10.1.1. 24 months maximum
10.1.2. No replacement
10.1.3. Substantial activities
10.1.4. A direct relationship
10.1.5. Coverage under the sending state´s social system
10.2. Exceptions under Article 16 of Regulation (EC) 883/2004
10.3. Procedure and Notifications in regard to Regulation (EC) 883/2004
11. The Internal Market Information System (“IMI”)
12. Possible advantages of using posted workers instead of the local workforce
13. Abuse and circumvention of European legislation regarding the Posting of Workers
13.1. A brief overview
13.2. Case reports
13.2.1. Italy
13.2.2. Belgium I
13.2.3. Belgium II (Letterbox Company)
13.3. Details in regard to letterbox companies
13.4. Specific shortcomings of the Posting of Workers Directive 96/71/EC
13.4.1. Information available
13.4.2. Information available regarding national minimum wages
13.4.3. Cooperation between Member States as well as national control and monitoring measures
13.4.4. Unclear criteria in relation to the scope of application of the Posting of Workers Directive
14. Stepping up the enforcement of EU legislation on the posting of workers with Directive 2014/67/EU (The “Enforcement Directive”)
14.1. Indicators of a genuine posting
14.2. Monitoring and compliance
14.3. Subcontracting liability in the construction sector
14.4. Enhanced administrative cooperation
14.5. Improved access to information
14.6. A detailed look at the new subcontracting liability in the construction sector
15. The number of posted workers within the European Union
16. Conclusion
17. Bibliography/Sources
17.1. Books
17.2. Journal articles
17.3. Legislation
17.3.1. Legislation of various countries
17.3.2. Legislation of the European Union
17.4. Citation of cases and connected documents
17.5. Citation of official documents and papers
17.6. Websites
- Quote paper
- Matthias Strohmayer (Author), 2015, Posting of Workers within the European Union. The Enforcement Directive 2014/67/EU and shortfalls of existing legislation, Munich, GRIN Verlag, https://www.grin.com/document/339303
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