Wed, May
56 New Articles

The Minimum Wage of the EU Country to Be Paid to Expat Employees

The Minimum Wage of the EU Country to Be Paid to Expat Employees

  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

According to a decision of the Court of Justice of the European Union made on 8 July 2021, Hungarian employees can make claims before the Hungarian courts against their Hungarian-based employer for breaching the minimum wage rules of the Member States where they are posted.

The ruling follows Hungarian lorry drivers who brought a lawsuit in a Hungarian court against their employer, who “appeared to be based in Hungary”, claiming that their wages at the time of their employment in France were not equal to the French minimum wage, but that they were paid the basic minimum wage under their Hungarian employment contract, which is about the third of the French minimum wage.

The Hungarian court asked the European Court of Justice whether Hungarian employees can rely on a breach of the French minimum wage rules in France before the Hungarian courts against their Hungarian-based employer.

In the decision, the European Court of Justice recalls that the EU Directive on the posting of workers applies to all cross-border services involving the posting of workers, including road transport, in particular the transportation of goods. Consequently, the possibility to enforce the terms and conditions of employment and working conditions under the Directive should be given to employees, including the minimum wage condition.

Based on the decision, in general, employees may sue their employer in Hungary for breaching the domestic minimum wage requirements of an EU country where they work as ex-pat employees. However, as a prerequisite, the Hungarian court must examine whether the employer has its seat or domicile in Hungary under Hungarian law.

By Rita Parkanyi, Partner, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com