A step-by-step Roadmap

The EU Posting of Workers (PWD) regime is a critical framework, designed to facilitate the free movement of services in the EU/EEA/Swiss area while protecting the rights of workers who carry out  those services. To effectively navigate PWD compliance requirements, it is crucial to understand the underlying PWD principles, concepts, and intricacies of this regime. 

This initial step in the PWD Roadmap aims to refresh your understanding.

Before the posting commences, the sending employer is required to submit a notification to the competent authorities of the host Member State. This notification typically includes details such as the identity of the employer and posted worker, the start and end dates of the posting, and the services to be performed.

Employers must designate a liaison person in the Host Country to facilitate communication with local authorities. This liaison person is instrumental in ensuring compliance and transparency when workers are temporarily posted within the EU. For employers managing posted workers across borders, a well-informed liaison person is not merely a formality but a critical strategic safeguard.

Employers are obliged to keep various documents available for inspection by the host country's authorities, such as employment contracts, payslips, timesheets indicating working hours, the A1 certificate, and proof of notification and payment of wages. These records must be timely and readily accessible during the entire posting period, and even until after the posting.

Before posting workers to another EU member state, the employer must inform them about the relevant aspects of their posting. This obligation is based on the EU Transparancy Directive. 

In this step you will find an overview of details your workers need to be aware of.

The PWD regime aims to to promote fair competition and prevent wage dumping, a practice where companies exploit lower labor costs by underpaying workers sent abroad. To achieve these objectives, specific remuneration requirements have been established.

However, for employers, compliance often results in a significant increase in operational costs and necessitates a comprehensive review of their budgeting and compensation strategies.

The PWD regime does not govern the social security status of posted workers; it exclusively addresses working conditions. Social security status, conversely, is regulated separately under the EU coordination rules of Regulation 883/2004. In other words, the PWD and Regulation 883/2004 are separate but complementary frameworks. Sending employers must comply with both regimes simultaneously.

In this section, the Navigator will walk you through some points of attention regarding social security obligations for sending employers.