Posted Workers in the EEA
Are you compliant?
CIBTvisas offers customized solutions for companies to maintain compliance with the EEA posted worker rules from strategic advice & training to the preparation and submission of required notifications. We can also obtain supporting documents such as A1 certificates, and act as the official liaison with labour authorities where local laws permit.
Who is a Posted Worker and Why is it Important?
- A new Posted Workers Directive adopted in July 2018 will bring amendments to the existing rules in all EEA member states over the coming months.
- A Posted Worker is defined as 'a worker who, for a limited period, carries out his or her work in the territory of an EEA Member State other than the State in which he or she normally works.' EEA citizens are also considered posted workers and need to comply with the posted worker legislation.
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Employers who do not comply with the rules and obligations could face serious consequences, including:
- Increased enforcement resulting in fines
- Potential debarment from future postings
- Disruption to business plans
- Reputational risk
'Under the directive, companies that send employees to other countries within the EEA must ensure they comply with host country labour, residence, and documentation obligations. Reporting requirements are a particular concern since non-compliance might lead to enormous fines.'
- Bloomberg
We recommend companies take this opportunity to review their current compliance status and processes to ensure compliance with the Posted Worker Rules in the EEA countries where they are posting workers. Call us for a consultation.
Requirements for Posted Workers
Posted Worker Declarations
Companies sending or hosting posted workers must submit notice of the posting and details of the assignment to the local labour authority of the host member state prior to the start of the assignment and whenever a material aspect of the posting changes.
Liaisons and Employees' Representatives
Companies posting workers must appoint representatives who will liaise with the local labour authorities in the host member state.
Document Retention
Companies are also required to retain specific records regarding their posted workers. While details may differ by individual country, the documents must be retained – either in paper or electronic form – and be produced if requested by authorities for a number of years after the end of the posting, depending on the country. + Learn More
The documents that are generally required to be retained include:
- Employment Contracts and Assignment Letters;
- Time Sheets – of actual hours worked;
- Salary Slips – must show wages paid and deductions;
- Proof of Actual Payment of Wages; and
- Proof of Social Security and Health Insurance Coverage.
Social Security for Posted Workers
Where a worker is posted to work in another member state (the host member state), they are permitted to remain insured under the social security system of their Home member state, provided the posting is limited to a period of 24 months. If the posting lasts more than 24 months, the posted worker would normally have to be insured under the host member state social security system.
A1 Certificate of Coverage Forms
As an aide to coordinating social security coverage between the countries, the EEA uses an A1 (Portable Document) form. The A1 form is issued by the covering social security system, certifying that it covers the individual. For posted workers, the A1 form provides the proof that must be submitted to host country labour authorities that the posted worker is covered by social security in the sending country