Which objective(s) does the Commission pursue?

The proposal aimed at simplifying application and enforcement of the existing legal framework, while small and medium-sized enterprises are expected to benefit from better enforcement, level playing field and fairer competition.

The proposal included the following elements:

• Make the information on the terms and conditions of employment generally available in a "clear, comprehensive and easily accessible way" and in several languages;

• Codification of existing case law by providing an exhaustive list of national control measures that Member States may impose on posting businesses, including for instance, a list of documents that service providers can be required to keep at the work place;

• Requirement that inspections should primarily be based on regularly drawn up risk assessments, thus making inspections more effective and reducing costs for companies in non-risk sectors;

• Introduction of a limited system of joint and several liabilities in subcontracting chains in the construction sector. In order to reduce the possible impact on businesses, in particular SMEs, companies who had undertaken due diligence should not be held liable.

The proposal included obligations for Member States to:

• provide information requested by another Member State in the context of administrative cooperation within short deadlines (24 hours or at the latest within 2 weeks);

• ensure that the procedures and formalities relating to the posting of workers can be completed easily by undertakings, at a distance and by electronic means to limit the administrative burden on companies.

The aim of the proposal was to ensure more effective protection of workers, increased legal certainty and transparency for service providers thus facilitating cross-border service provision and building up confidence in the Single Market.

Estimated savings and benefits

Savings are linked to the lower risk of judicial disputes thanks to clearer rules on control measures and shorter time for dispute resolutions due to new tools for administrative coordination and exchange of information. Given data limitations, savings to business could not be quantified.

Outcome of Legislative Procedure

The adopted Directive contains a balanced package of measures guaranteeing a better protection of posted workers and a more transparent and predictable legal framework for service providers. This will clarify and simplify procedures and ensure a better level playing field from which all SMEs will benefit.

Estimated savings and benefits

In comparison to the original Commission proposal, the final text of the Directive agreed by the co-legislator contains a number of modifications increasing administrative burden on companies and imposing a number of new obligations on public authorities.

Costs / reductions of savings of these modifications have not been quantified.

Implementation reported by Member States

All Member States have transposed the Directive.

Estimated savings and benefits

The facilitation of administrative cooperation between the Member States through the use of the Internal Market Information system (IMI) is one of the new mechanisms introduced by the Enforcement Directive.

Member States' authorities are expected to exchange information about posting companies and workers with a view to fighting frauds and abuses and to assisting each other in the execution of possible sanctions.

Data on the use of IMI are available up to 2022 and it shows that the number of requests dealing with the posting of workers processed through IMI was on the rise from 430 (Q4 of 2014) to 1500 (Q1 of 2019) and has stabilized around 1300 quarterly since.

With an average answering speed of 45 days, the use of IMI is diminishing administrative transaction costs and improving administrative cooperation. Increasing familiarity of national authorities with the system is expected to further improve the performance and thus the level and outcomes of cross-country cooperation.

As regards the aspect of information to workers and companies about their rights and obligations in cross-border cooperation, a success story of the Enforcement Directive is promoting the set-up of national single websites on posting. While Member States are setting up their national website, the Commission is centralising information on the Europa webpages in order to facilitate access by users.

The end result will be transparency and better information about the rights and obligations of workers and companies to be respected in each Member State in situations of cross-border service provision.

On 25 September 2019 the Commission adopted a report on the application and implementation of the Enforcement Directive¹. The report concludes that the transposition of the Enforcement Directive by all Member States has improved the enforcement of the Posting of Workers Directive in the Member States, in particular through administrative cooperation through the Internal Market Information System. By introducing administrative requirements and control measures Member States are in a better position to monitor compliance with the rules and ensure that the rights of posted workers are guaranteed².

¹ COM/2019/426 final: Report from the Commission to the European Parliament, the Council and the European Economic and Social Committee on the application and implementation of Directive 2014/67/EU of the European Parliament and of the Council of 15 May 2014 on the enforcement of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services and amending Regulation (EU) 1024/2012 on administrative co-operation through the Internal Market Information System ('the IMI Regulation'). 

² SWD/2019/337 final:  Commission Staff Working Document accompanying the document Report from the Commission to the European Parliament, the Council and the European Economic and Social Committee on the application and implementation of Directive 2014/67/EU of the European Parliament and of the Council of 15 May 2014 on the enforcement of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services and amending Regulation (EU) No 1024/2012 on administrative cooperation through the Internal Market Information System (‘the IMI Regulation’).