Further Harmonisation of the Working Conditions of Posted EU Foreigners With German Regulations Is Coming!

A draft law affects companies based in other EU countries that send their employees to Germany to process orders. The EU directive on the posting of workers stipulates that the working conditions of posted EU foreigners should be brought into line with German working conditions. This directive will now be implemented in German law. This should protect domestic companies from competitive disadvantages.

The most important thing first: If the working conditions are regulated in generally binding collective agreements valid throughout Germany, they will in future also apply to posted employees – in all sectors. Up to now this has only applied to the construction industry. Only for long-distance lorry drivers the planned regulations will not apply. The road transport sector is excluded from the changes.

Core contents – What will be new?

• The new law will no longer only ensure that minimum wages are maintained, but will apply to all elements of remuneration.
• In addition, posted employees* will in future receive dirty-work and hazard allowances as well as Christmas and holiday bonuses.
• Co-payments made by the employer for travel, accommodation and subsistence costs may not be included in the minimum wage.
• If the posted employees are sent on domestic business trips, the employer will pay the travel costs.

Now the Bundestag and Bundesrat must approve the draft. The new regulations are to apply from 30 July 2020.

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