Revised Posted Worker Directive Implemented

The situation

French authorities have implemented the Revised Posted Worker Directive, effective July 30, 2020, through a decree and practical guidance documents.

A closer look

The implementation includes the following key changes:

• Duration of home employment conditions. The revised rules reduce to 12 months the period during which a posted worker can remain under only the main French labor laws, while still applying some home country labor laws. After this period, the full French labor law applies to the posted worker, unless the home country employer requests an extension, which can be granted for up to six months.

• Six-month extension. In order to extend the time under which only the main French labor laws apply to the posted workers for up to an additional six months, employers can submit a request to the French Labor Authorities during the original 12-month period through the System on International Provision of Services (SIPSI) website. They must give a rationale for their extension request; according to the French government, acceptable examples include worksite delays due to weather and the non-delivery of required equipment.
• Main rules definition. Main rules, as applied to posted workers, cover the following areas: equal remuneration to all other employees working in the same position; occupational health and safety; accommodations; and allowances or reimbursement of expenses to cover the cost of travel, food or accommodation.
• Extension on current posted workers. Employers of posted workers whose assignments have reached 12 months prior to July 30, 2020 or will reach 12 months before August 14, 2020 must submit an extension request by August 30, 2020.

 

Impact on employers

• Actions required. Employers should review the length of employment terms of workers posted to France in order to timely apply for an extension, if required.

• Penalties. Failure to comply with the new regulations will result in a penalty of EUR 4,000 per posted worker, up to a total of EUR 500,000 per employer.
• Increased cost of posted workers. Since French labor law applies a higher standard of work conditions and remuneration for posted workers than many other European Union member states, French and home country employers should ensure that they are prepared for increased costs when sending or hosting posted workers in France.

 

Impact on posted workers

Since French labor law is more favorable to employees than many other European Union member states’ labor laws, posted workers will benefit from the earlier application of full French labor laws.

Background

• Posted worker definition. A posted worker is one that carries out business or work activities temporarily in an EU Member State other than the one they usually work. This can include those traveling to another EU Member State to work with the sending employer’s customers or clients, at a subsidiary or branch, or those hired by an employment or placement agency to carry out work for a client in another EU Member State.
• Posted Workers Directive adoption. The changes are the result of the Council of Ministers of the European Union amending the Posted Workers Directive to reduce fraud and to prevent employers from circumventing employment rules. Due to COVID-19-related delays, only a few EU countries have adopted the revised directive, including Belgium and Sweden. 
• Posted Workers Directive in France. The implementation of the Revised Posted Worker Directive is part of a broader government policy to eliminate differences in employment conditions and to prevent illegal and unauthorized work.
• Fragomen blog. For more information, see Fragomen’s recent blog on this topic.

 

Looking ahead

The French government plans to conduct additional employer audits to ensure compliance with posted worker rules and to grant authorities the right to temporarily shut down worksites if rules are violated. Furthermore, the French government is also planning to introduce laws which will prevent illegal and unauthorized work.

Fragomen in France is Fragomen France AARPI., operating as an immigration consultancy/law firm in France.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].