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Posting of Workers to Provide Services in Austria and Germany

Publication at Faculty of Law |
2014

Abstract

The Posted Workers Directive represents a compromise on how to negotiate the tension between freedom and protection in an employment relationship with employees temporarily relocated to another Member State. In accordance with the Rome Convention (or the regulation Rome I) respective employment relationships are governed by the home state's laws.

However, employers relocating employees to another Member State shall obey minimum protection guaranteed within the ambit of Article 3 I of the Posted Workers Directive by the host state. Such employers shall apply working conditions more favourable to relocated employees.

This mandatory comparison that applies solely towards foreign employers makes foreign labour more expensive. Relocated employees acquire more rights than domestic employees; duties are not subject to comparison.

Such practise is not sustainable in the long-term, even if the information campaign of the Member States improves. There must be issued either a uniform set of rules governing employment relationships of relocated employees or one law system chosen that will govern respective employment relationships.