This section leverages the Navigator to provide a clear understanding of the European Union's Posted Worker Regime, guiding you through its implications and practical application. However, due to the legislation's intricate nature, expert consultation is highly recommended to ensure compliance.
The Scope of the EU Posted Workers Regime
Checklists:
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Objectives & Concepts
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The Territorial Scope
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Worker Classification
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Work Classification
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Employer Classification
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Recipient Classification
The EU Posting of Workers Directives (PWD) establish a critical regime designed to facilitate the free movement of services within the EU/EEA/Swiss area while protecting workers' rights.
The critical first step before applying the PWD regime and identifying the specific obligations, is to determine whether a given posting falls within its scope.
Obligations of the Sending Employer
Checklists:
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Recap PWD Principles
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Prior Notification
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The Liaison Person
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Record Keeping
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Informing the Employee
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Remuneration
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Social Security
The PWD regime protects the rights and working conditions of Posted Workers through a framework of obligations sending employers must adhere to. However, this regime created complex regulatory challenges for these employers.
This step of the roadmap provides structured checklists to navigate the obligations of the sending employer.
Obligations of the Recipient
Checklists:
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Recap PWD Principles
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Verification of Notification
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Record Keeping
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Contact Person Compliance
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Labor Conditions Compliance
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Chain Liabilities
Under the Posted Workers Directive (PWD), the recipient—meaning the company or entity in the receiving (host) state that benefits from the posted worker’s services—has several legal obligations to ensure compliance. These conditions are designed to protect workers and uphold fair competition across the EU.
Special Focus: Gender Pay Equality
The Directive (EU) 2023/970 is about enforcing equal pay for equal work between men and women across the European Union by introducing pay transparency and accountability mechanisms. By 7 June 2026, EU member states must implement national laws to enforce the directive and from 2027 onward, employers with 100+ employees must begin submitting pay transparency reports.
In this section, the Navigator will keep you informed about the progress and implementation of this directive, including key compliance requirements, member state adoption timelines, and best practices for businesses.
Special Focus: EU Social Security
For temporary assignments within the EU region, a clear regulatory framework exists to ensure employees are subject to social security in only one country.
The basic rule of this framework is that an employee is subject to social security in the country where they physically perform their work activities. However, there is a significant exception for "Postings": if a posting meets all relevant conditions, the worker can continue to be subject to social security in the country of origin.
The Roadmap will take you to the Basics on EU Social Security.
Special Focus: Income Taxation & Payroll
An employee's presence abroad can have both corporate and personal income tax implications. The financial impact of (unforeseen) tax liabilities, additional costs and non-compliance damages on the company's profitability can be substantial. Add reputational and financial damage as a result of blacklisting to the equation, and the outcome is even more worrying.
In this section of the Navigator, we will take you through several tax-related issues that you should be aware of.
Special Focus: Compliance File, Audits & Chain Liabilities
Historically, the enforcement of EU posting rules has varied across Member States, but there is a growing consensus for stronger, more harmonized enforcement efforts to protect workers' rights across the EU. In this context, joint liability serves as a crucial enforcement mechanism. It holds both the direct employer (the posting company) and the contracting party (such as a main contractor or client) responsible for specific obligations towards posted workers. This ensures that even if the direct employer fails to meet its duties, the contracting party can be held accountable, providing an additional layer of protection for posted workers.
The EU Posting of Workers Toolkit
Tools:
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Videos
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Flowcharts
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Experts
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Country Specific Information
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Communities
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and more
Navigating the dynamic shifts in global workforce deployment demands on-demand access to reliable support at the point of need. This essential support is readily available within the comprehensive GM Resources Toolbox.
Key Tips for Success
1. Secure Expert Guidance
The Navigator serves as a tool for understanding the complexities of Global Mobility. While comprehensive, it cannot address every practical situation or legal nuance and must never replace official documentation or professional consultation.
Each situation requires tailored guidance based on specific circumstances. We strongly recommend consulting qualified experts in all relevant countries before making decisions. Use the Navigator as a guideline to navigate the various subjects you'll encounter and as a framework for developing questions when meeting with your advisers.
2. Maintain Vigilant Oversight
Even minor changes in international work arrangements can have significant legal and financial consequences. Protect all parties by implementing these three critical practices:
- Document all work terms and conditions comprehensively at the outset
- Monitor actual working conditions and circumstances regularly
- Respond promptly to any changes in the work arrangement.