Changes in posting of workers

In June 2018, the EU Council approved the final version of Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 96/71 / EC concerning the posting of workers in the framework of the provision of services. The aim of the revised Directive is to facilitate the transnational provision of services, while ensuring fair competition and respect for the rights of workers employed in one Member State and posted by their employer to work temporarily in another Member State.

More specifically, the Directive aims to ensure fair wages and a level playing field for both sending and local companies in the host country, while respecting the principle of freedom to provide services.

The Ministry of Labour and Social Affairs has now submitted a draft amendment to the Labour Code and the Employment Act in connection with the transposition of this Directive.

Under the amendment, the employer will be obliged, for example, to provide the posted employee with travel expenses at least in the amount to which employees are entitled under Czech law, with the usual place of work in the Czech Republic being considered as a regular workplace for the travel expense purposes. Of course, as in the case of the other provisions, this provision applies only if these conditions are more favourable to the employees.

It is further proposed that to the seconded employee should, after 12 months, resp. 18 months, fully apply the legislative provisions of the Czech Republic, with the exception of the regulation on the creation, change and termination of employment.

It is also newly proposed that information and registration obligations are transferred to a foreign employer who sends workers to the Czech Republic. Newly, it should be the foreign employer, not the receiving employer, who informs the relevant regional branch of the Labour Office on the day of the posted employee’s commencement of work at the latest. Also the registration obligation, which had to be fulfilled by the receiving employer so far, is transferred to the foreign employer who is further obliged to keep records of these persons at their workplace.

The directive is to be transposed by 30 July 2020. I will keep you informed of further developments.