Poland & Hungary: EU Ruling Influences Posting of Workers and Services Across Region

In 2018, an EU directive determined that companies sending workers to other EU countries must comply with wage and working condition rules of the countries where they are posted. Hungary and Poland filed an objection, claiming that the directive would inhibit the free flow of workers and services across the region. The objection was based on the claim that the EU directive was based on social policy and conflicted with freedom of services.

In its ruling, the EU Court of Justice declined that objection. According to the court, the reasoning for the EU directive was the goal of promoting fair competition between local businesses and workers and those from abroad. It was not seen as a violation of freedom of services.

Takeaway: The flow of services across the EU will likely accelerate again as companies and workers become more flexible in a post-pandemic environment. In addition to addressing the conditions of workers being placed across borders, the ruling is likely to have an effect on the supply, demand and costs associated with those workers. A talent partner can help provide insight into both the regulatory implications and the impact on those costs for companies working in the region.


Coronavirus Considerations for Businesses

North America

US: Biden Administration Freezes Proposed Regulations on Worker Classification

US & Canada: Both Employees and Contractors are Among Growing Alphabet Workers Union

US: H1-B Electronic Registration Process Could Undergo Changes

US: Age Discrimination Claim Denied in Worker Performance Case


UK: AGS Launches IR35 Resource Site to Help Companies Prepare for April Countdown

UK: Points-Based Immigration System Updated

UK: Brexit Trade Deal Excludes Financial Services, With Data Sharing and Privacy Rules to Come


India: A Government-Mandated Wage Code Restructuring Could Boost Retirement Income

China: Heavier Penalties for Violating Workplace Safety Measures Being Considered

Australia: New Reform Bill Aims to Protect Workers, Define Casual Employment

This update contains general information only, and AGS is not rendering legal advice. Before making any decision or taking any action that may affect your business, you should consult qualified legal counsel. AGS shall not be responsible for any loss whatsoever sustained by any person or company who relies on this update.