BSI Analysis: European Union Likely to Implement New Labor Law Impacting Workers Posted Abroad Despite Opposition From Some Member States
The European Union is likely to implement a new labor law impacting workers posted abroad despite opposition from some EU member states, including Poland, Hungary, and Spain. BSI assesses that workers from these countries are often desired since they provide a cheaper labor source for companies in wealthier EU countries. Additionally, these workers may be motivated to seek employment abroad to avoid poor working conditions in their home countries. For instance, BSI assesses that workers in Poland frequently suffer from unpaid wages and expectations to work overtime above legal imitations. Additionally, employees in the manufacturing industries in these countries are at high risk of workplace injury or death, often due to poor equipment and safety facilities.
The proposed law, which the EU informally approved earlier this month, mandates that workers posted abroad must receive wages and social benefits according to the laws of their host country after working for 18 months in that country. French officials initially proposed the law in an effort to ensure that posted workers receive equal salaries to domestic workers. European member states that approve the reform argue that the current rules undercut their labor markets, increasing the difficulty of securing jobs for their domestic workforces. However, EU members that oppose the proposal have expressed concerns that the new regulations may hamper their citizens’ competitiveness in the labor market, and contend that the new law is in contravention of EU competition rules. The European Union will formally vote on the proposed labor reform in April, and member states will have two years to implement the new laws pending their approval.