Changing Business Travel Plans: The Importance of Canceling a Posted Worker Notification to Remain Compliant

Posted Worker Notification (PWN) compliance is currently a key issue across Europe, as there has been an ongoing rise in enforcement and audits from authorities across the continent.

Given the different rules and regulations for each country, employers need to be aware of what their responsibilities are when filing a mandatory PWN, but also what they need to do in case an employee’s planned trip is cancelled.

This blog discusses the specific scenario of business travel to Spain and the requirement for Spanish PWNs. However, in general, employers should consider what obligations other European countries may impose.

Traveling to Spain for business: A case study

If you are posting a worker to Spain for eight calendar days or more, you will be required to submit a PWN to the Spanish competent authorities, which differs from region to region.

This PWN will need to be accompanied by an A1 certificate (certificate of social security coverage). These documents (and others) will need to be held on file by the employer in case of an audit by the Spanish authorities.

While PWNs are a labour law requirement and an A1/Certificate of Coverage is needed for social security compliance, we are seeing the Spanish inspection authorities conducting joint audits on these two areas. This highlights the importance of dual compliance and the need for business travellers to have all relevant documents ready to provide for visits to Spain of eight days or more.

However, even if all the documents are prepared correctly, action needs to be taken if the trip is cancelled before travel, or if the duration of the trip subsequently changes.

It is not uncommon for business travellers’ plans to change last minute and for trips to be amended or even cancelled. In such situations, employers need to understand what obligations they have regarding the PWN and documents held on file for the employee, whose travel has now changed.

In Spain, any issued PWNs must be cancelled or updated to reflect the actual travel circumstances of the employee. The employee’s record needs to be a real-time reflection of the business situation.

Typically, when the Spanish authorities audit a business, they request a myriad of documents relating to a single employee’s posting or, indeed multiple employees’ compliance.

In a recent case of inspection, the authorities requested the employee’s issued PWN, their corresponding A1 certificate, their working schedule, payslips and wire transfer receipt of salary payments, work contracts, evidence of registration of work contracts with the Spanish authorities, and many more.

In addition, they requested a series of corporate documentation, including proof of payroll registration for both the sending and host companies, certified documentation on tax and social security obligations, compliance documentation on health and safety supervision of employees, and an evacuation and emergency plan, amongst others.

Furthermore, they expanded the scope of the A1 request to all workers that had been posted to Spain by the employer during 2023, not just the specific employee file they were auditing.

The ongoing importance of compliance

This detailed request and wide scope of assessment show the clear link between PWN and social security compliance, and why businesses should consider these under the same mobility umbrella.

Given the high expectations of compliance, often the authorities give tight deadlines to provide the information and documents in response to such requests.

In the outlined example, the business was given just five working days to provide all evidence to the authorities. This shows how responsive the business must be and how such a wide variety of documents must be readily available. A further complication is added as the documents would need to be provided in the Spanish language to the authorities.

If an audit concluded there was an inaccurate PWN, or if one was not cancelled or included other erroneous information, the company could face disciplinary actions such as a financial penalty. While these are typically between €70 EUR and €750 EUR, for minor infringements or first-time offenses, they can often amount to more than €220,000 EUR for serious infringements.

Given the significant fines that can be issued, proactive compliance with the posted worker and social security rules is key to minimizing risk, as a late notification or an uncancelled PWN is considered non-compliant.

Need to know more?

For questions regarding PWNs, please contact Director Wim Cocquyt at [email protected] or Manager Harry Goldstraw at [email protected].

This blog was published on 16 January 2024, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.