The European Council adopted an amendment to the Posting of Workers Directive on 21 June 2018. The purpose of the revised Directive was to ensure fair competition for companies and better protection for workers who have been sent by their employers to perform services in another EU Member State on a temporary basis. Under the new regime, all of the host country’s remuneration rules should apply to posted workers, so that the posted workers could get equal pay for equal work in the same place.
The Hungarian Government submitted an action to the Court of Justice of the European Union on 3 October 2018 for the annulment of the modification of the Posting of Workers Directive. According to the Hungarian Government, the modification has detrimental impact on the enterprises in the region. It argues that the modification constitutes disproportionate restriction on the freedom to provide services which is one of the EU’s four fundamental freedoms. Therefore, the modification would significantly reduce EU’s competitiveness. Further, the Hungarian Government considers it unacceptable that the modification would extend the application of the Directive to the transport sector. The Government highlighted that Poland also submitted an annulment action against the modification of the Directive.
The EU Member States have to adopt the implementation provisions in their national laws until 30 July 2020 at the latest. However, the Hungarian Government expressed its hope that the Court of Justice of the European Union will annul the modification of the Directive before this date.
By Rita Parkanyi, Partner, KCG Partners Law Firm
