Implementation of the EU Posted Worker Rule Revisions this summer

Shortly before the implementation deadline on July 30, 2020, the German government presented a draft to amend the German Posted Workers Act (German: Arbeitnehmer-Entsendegesetz – AEntG), which is intended to transform the requirements of the European Posted Worker Rule Revisions into national law.

The new regulation is intended to further promote equality between domestic and EU workers. The principle of “equal pay for equal work in the same region” shall apply.

To this end, the draft law provides, for example, that in the future, posted workers will be entitled not only to the statutory minimum wage but also to the collectively agreed wage resulting from generally binding collective agreements.

The same applies to Christmas and summer bonuses, allowances for particularly dirty or hazardous work, as well as payments in kind and overtime pay.

In addition, any allowances paid by the employer for travel, accommodation or alimentation expenses must no longer be deducted from the remuneration.

The draft also contains regulations concerning the requirements for accommodation provided – directly or indirectly – by the employer.

In the future, all working conditions effective in Germany will principally apply to employees from other EU countries after twelve months. Only in well-justified exceptional cases can a six-month extension be granted to employers upon request.

The road transport sector is expressly excluded from the changes, however. A further exception is to apply to workers who are only posted for a short period of time, the limit being an uninterrupted activity of no more than 14 days and a total of no more than 30 days within a 12-month period.

The draft law of May 20, 2020 (BT-Drs. 19/19371 – German version) was first discussed in the German Parliament (Bundestag) on May 29, 2020, after which it was referred to the relevant committees.

Despite strong criticism from the opposition and the trade unions, the Bundestag approved the federal government’s draft law on June 18, 2020. The Federal Council (Bundesrat) must now approve the law passed by the Bundestag so that the new regulations will apply from July 30, 2020.