4 minute read 2 Feb. 2023

This guide provides practical insights into obligations and considerations for posted workers and the return to business travel in Europe.

Young woman talking on her laptop on board a train

A practical guide to EU business travel and posted worker compliance

EY Global
By EY Global

Ernst & Young Global Ltd.

4 minute read 2 Feb. 2023
Related topics Workforce
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  • Posted workers and the return to business travel in Europe (pdf)

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This guide provides practical insights into business travel obligations and considerations for employers and posted workers in Europe.

As organizations assess the future of business travel, so too are they assessing how they interact with the evolving world of increased rules and requirements. Employers have the responsibility toward their posted employees and clients to abide by varying legal requirements, while also keeping operational disruptions to a minimum. Organizations and governmental bodies are both increasing investments in digitization initiatives, meaning a digital footprint of tax, immigration and legal compliance or non-compliance can be traced and evaluated.

While addressing business travel needs, programs, and processes, it’s imperative that organizations keep the concerns of their people at the center of mind, aiming to enhance employee satisfaction and the user experience in an already burdensome business travel process.

Paired with the right technology and process, the burden can be alleviated to the extent that employees are traveling compliantly, safely, and efficiently, in a valuable experience for themselves, clients and the organization.

How EY can help

Integrated workforce mobility

Traditional long-term moves are declining in favor of a variety of business travel approaches and mobility options that better fit organizational strategy and employee needs. Supported through a frictionless, consumer-level experience, these approaches can boost compliance and speed to deployment.

Read more

  • What is a posted worker?

    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).

  • What is the EU Posted Worker Directive?

    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).

  • Who does the Posted Worker Directive affect?

    • 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.

  • What is the current directive status?

    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.

  • What do employers have to do?

    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.

  • Image description

    This interactive map provides a summary of the main obligations applicable to posted workers/business travelers in Member States of the European Union. These include details of which non-EU employers must comply with EU posted worker rules, how posted worker notification works, and required documents, among other things. 

    The data in the map above is also viewable in the pdf accessible in the link below.

Posted workers and the return to business travel in Europe

Access the full guide now for further detailed insights.

Download guide

Summary

As organizations return to travel, so too is it a return to a new world of increased rules and requirements. Employers have the responsibility toward their posted employees and clients to abide by varying local country legislation, at the same time seeking minimum disruption to operations. Paired with the right technology and process, the burden can be alleviated to the extent, where your people are traveling compliantly, safely and efficiently.

About this article

EY Global
By EY Global

Ernst & Young Global Ltd.

Related topics Workforce
Upvote