Essential Insights for US employers and employees working temporarily in the EU
When a US employer sends an employee to work in an EU member state for a limited time, this is called the posting of workers in the EU context. To be classified as posting, the worker must deliver services to a service recipient in the host country. Posting can occur in the context of a contract of services, as an intra-group posting or through a temporary work agency.
The EU has made rules to achieve more balanced internal market by regulating which country鈥檚 聽conditions of employment for posted worker apply during a posting. The objective of the rules is to make sure that posted workers are provided the same protection as local workers in the same position. These rules are outlined in the European Directive for Posted Workers (PWD).
In addition to PWD, the EU has also set administrative requirements to companies that post workers and which include mandatory filing of notification about posting in the host country prior to commencement of work. 聽This is often referred to as PWD-registration of posted workers.聽 Appointing聽 a聽 contact聽 person聽 in聽 the聽 host聽 country聽 is聽 part聽 of the聽 registration聽 process聽 for聽 the聽 posting company.聽 Additionally,聽 the聽 posting聽 company must provide聽 several聽 documents聽 to聽 be聽 stored聽 in聽 the聽 host聽 country,聽 including聽 the聽 Certificate聽 of Coverage (CoC) for聽 social security, the聽 employment聽 contract,聽 pay slips,聽 and working聽 time records.聽 These rules are outlined in the European Directive on Enforcement of Directive for Posted Workers (ED).
More than half of the 聽EU-27 member states have extended the duty to notify about posted workers to companies established outside the EU, incl. the US.
Failure to comply聽 with the mandatory notification about posting prior to the commencement of work (PWD-registration) 聽can lead to penalties, including fines, ceasing of working activities, reputational damage and more. 聽
These rules are meant to balance out competition between foreign and local service providers and to ensure protection of posted workers compared to the local workers.
Prior notification is mandatory:
Prior notification doesn't apply:
Why does this matter to me?
More than half of the 聽EU-27 member states have extended the duty to notify about posted workers to companies established outside the EU, incl. the US.
Failure to comply聽 with the mandatory notification about posting prior to the commencement of work (PWD-registration) 聽can lead to penalties, including fines, ceasing of working activities, reputational damage and more. 聽
These rules are meant to balance out competition between foreign and local service providers and to ensure protection of posted workers compared to the local workers.
How do I become compliant?
Prior notification is mandatory:
Prior notification doesn't apply:
The 乐鱼（Leyu）体育官网 LLP US-based team is equipped with the resources and subject-matter knowledge who can guide you through the complexities of prior notifications for posted workers. Our services include:
Essential Insights for US employers and employees working temporarily in the EU
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