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.

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

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