An EU Directive which has recently been implemented in Estonia aims to clarify which country’s employment laws apply when an employee is posted abroad to their employer for a temporary project.
An EU Directive which has recently been implemented in Estonia aims to clarify which country’s employment laws apply when an employee is posted abroad to their employer for a temporary project.
If the laws of the country where the work is actually being carried out applied even for short stays, a company wishing to offer its services in the whole of the EU would have to be aware of 27 different sets of rules. To counter this phenomenon, the European Court of Justice developed a balancing mechanism to determine on a case by case basis which country’s rules apply in any given situation. However, this case-by-case approach has generated legal uncertainty, which this Directive was supposed to tackle.
In order to protect workers who are sent by their employer from one EU country to carry out temporary work in another EU country, the Directive provides that a ‘hard core’ of rules of the host country (country of destination) must be observed.
This means that employers posting or sending workers should ensure that employees are granted at least the minimum working conditions in terms of working hours, remuneration, paid leave, health and safety, pregnancy and maternity protection and discrimination law. Prior to the changes, posted/temporary employees were given these entitlements only if the posting lasted over 30 days.
Other key points for employers
Provide the Estonian Labour Inspectorate with detailed information about the posting (via e-mail, no later than on the day the posted employee commences work in Estonia).
Preserve records of the posted employee’s employment contract, working hours, payslips and other documents for 7 years after the end of the posting in order to be able to prove compliance with the Act (the Labour Inspectorate may ask to see copies).
Previously, a posted employee only had the right of recourse to a court for the protection of the rights guaranteed by the Act. A posted employee can now also turn to a labour dispute committee, where proceedings are cheaper and quicker.
Comment:
The changes introduced improve the state supervision of posting and enhance the protection of posted employees.
This article was published in Taylor Vinters International Employment Law March 2017
