Posted worker

The EU Posted Workers Directive remains one of the most critical compliance requirements for companies operating across European borders. It is also one of the most frequently misunderstood. National authorities are increasing their scrutiny, and penalties for non-compliance are severe. Understanding when and how to report posted workers has never been more important.

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What is the Posted Workers Directive (PWD)?

The Posted Workers Directive is an EU directive 2018/957 that governs working conditions for employees temporarily assigned to provide services in another member state.

When a company sends an employee abroad to perform work, that employee becomes a "posted worker."

This applies whether the work is for internal projects or external clients. Posted workers are subject to the destination country's minimum employment standards.

The directive was developed alongside the EU's single market integration. It addresses wage disparities and competitive distortions that emerged as cross-border service provision increased. The goal is straightforward: ensure that posted workers receive at least the minimum standards of the host country while protecting local labor markets from unfair competition.

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How EU and EFTA countries implement the Posted Workers Directive (PWD)? 

The EU directive provides the framework. However, each member state has implemented its own national legislation and reporting systems:

• Germany: Worker Posting Act (Arbeitnehmerentsendegesetz) and Evidence Act (Nachweisgesetz)
• France: SIPSI portal system (Système d'Information sur les Prestations de Service Internationales)
• Austria: Wage and Social Dumping Combat Act (Lohn- und Sozialdumping-Bekämpfungsgesetz) with notification requirements to the Federal Ministry of Labour and Economy‍
• Netherlands: Posted workers notification system through postedworkers.nl portal, where Dutch clients must verify that foreign service providers have properly reported their workers

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EFTA and EEA implementation

Norway, Iceland, and Liechtenstein are EEA members. They are required to implement the Posted Workers Directive alongside EU member states.

Switzerland is not bound by the EU directive. However, it has developed its own comprehensive notification and wage protection requirements under bilateral agreements with the EU. These include 8-day advance notification requirements and strict minimum wage compliance obligations.

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When do you have to register your employees as posted workers?

The key trigger for posted worker obligations is "service provision." This concept often causes confusion. Each country has interpreted the Posted Workers Directive differently. They have implemented different sets of exemptions to the obligation to notify the authorities. Exemptions can be based on the nature of the activity performed abroad or days of work in the host country.

The directive applies when employees provide services in the host country. This applies regardless of whether those services are:

• Paid or unpaid
• Provided to internal company operations or external clients
• Short-term or long-term

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Activities that typically require posted worker reporting

• Installing equipment or software at client sites
• Providing training or consultancy services to external clients
• Performing maintenance or repair work under service contracts
• Conducting on-site audits or assessments for clients
• Speaking at conferences or events (in most jurisdictions)

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Activities generally exempt from posted worker reporting (varies by country)

• Attending internal company meetings
• Participating in trade shows as visitors
• Attending training as recipients
• Tourism or personal travel

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The key is to determine the nature of work activities performed in the destination country. The critical test is whether there's a "service recipient" who benefits from the employee's work. If someone perceives value from the employee's activities, it likely constitutes service provision. Country-specific exemptions and thresholds vary significantly, so always check local requirements.

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Do posted worker registration requirements differ by country?

Yes, eligible countries have implemented varying thresholds and exemptions for the posted worker registrations. The specific details require careful verification. For example:

• Austria provides a high earner exemption: employees who receive a monthly gross remuneration of >EUR 8000 are fully exempted from the posted worker rules. Postings and secondments of high earners to Austria are generally excluded from the provisions of the Act. The protective purpose of minimum wage requirements is deemed unnecessary for high earners.
• Spain has an 8-day exemption: unless the undertaking is a temporary employment undertaking, there is no need to notify the posting if the duration is not greater than eight days.
• Denmark has particularly strict enforcement, with police authority to block site access for non-compliant companies.

The variation in thresholds reflects different policy priorities. Some countries focus on duration-based exemptions (Spain's 8 days), while others focus on salary-based exemptions (Austria's high earner threshold). Enforcement approaches and penalties vary significantly across jurisdictions.

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How do workation and remote work arrangements affect posted worker requirements?

The rise of remote work, also known as workations, has created new complexities. Employees on a workation typically don't provide local services, since location independence is the main point of the trip. However, some countries take a different approach.

For example, Belgium's Limosa portal requires reporting based on duration of activity rather than strict service provision criteria. The key takeaway is that workation arrangements require careful country-by-country analysis. Traditional "service provision" frameworks may not clearly address location-independent remote work scenarios.

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What posted worker standards must companies observe?

Posted workers must receive at least the host country's minimum standards in several areas.

Core posted worker requirements

• Minimum wage and equal pay (companies from high-wage countries like Germany, Switzerland, and Austria must still comply with local notification and wage documentation requirements)
• Working and rest periods (France's legal standard is 35 hours per week, while Germany's standard full-time workweek is usually 40 hours, creating different compliance baselines for posted workers)
• Vacation entitlements
• Health and safety standards
• Accommodation standards for company-provided housing
• Expense regulations

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Industry-specific obligations

• Collective bargaining agreements
• Construction site permits
• Additional safety certifications
• Sector-specific reporting requirements

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Companies from countries with high labor standards cannot assume automatic compliance. Posted worker notifications, local wage documentation, and host country working time rules apply regardless of home country standards. A German company posting workers to France must observe French working time regulations, while a French company posting to Germany must follow German standards.

Posting requirements exist independently of comparative wage levels. They ensure transparency and enforce local labor market protections, regardless of whether the sending country has higher or lower standards.

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How is posted worker registration enforced?

Many companies question whether non-compliance can be detected by the host country. Actually, it is not a question of "whether", but "when", because enforcement mechanisms have become increasingly sophisticated:

• Invoice trails: Most services generate invoices, creating paper trails that authorities can cross-reference
• Digital tracking: Countries like Austria, Switzerland, and Hungary use digital toll systems, providing precise entry/exit data
• Customer reporting: In some jurisdictions, service recipients must confirm proper notifications before accepting services
• Hotel and accommodation reporting: administration of accommodation providers often report foreign workers to authorities

The enforcement landscape combines multiple data sources and cross-verification mechanisms. Countries have sophisticated methods for detecting non-compliance. The digital infrastructure for tracking cross-border movement has expanded significantly in recent years.

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What are the consequences of not registering a posted worker?

The penalties for failing to report posted workers extend beyond simple fines:

• Customer notification: In Austria and other countries, inspection results are shared with the service recipient, leading to potential reputation damages
• Work cessation: Failure to comply with the mandatory notification about posting prior to the commencement of work can lead to penalties. These include fines, ceasing of working activities, reputational damage and more. As an example, Danish authorities can block site access for non-compliant workers
• A1 certificate issues: Missing social security documentation compounds violations
• Reputation damage: Non-compliance affects future business relationships with informed clients

Posted worker violations create cascading consequences. They affect not just the posting company but also service recipients. This makes compliance a shared business imperative. The penalties are designed to ensure both employers and clients take responsibility for worker protection standards.

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Do you need to register posted workers for trips beyond the EU?

The Posted Workers Directive specifically covers EU/EEA assignments. However, similar principles apply globally:

• Non-EU to EU: Generally require work visas and permits rather than just posting notifications. Non-EU companies typically cannot use the simplified posting notification procedures available to EU/EEA employers. They must instead navigate full immigration processes including work permits, residence permits, and visa requirements for their workers to provide services in EU countries.
• Switzerland: Switzerland requires notification for EU/EFTA posted workers but has separate visa-based systems for non-EU nationals.

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If posting notification requirements apply to a service, similar work visa requirements often apply for non-EU service providers in the same context. However, the specific requirements vary significantly by country and bilateral agreements. Countries like Germany actually have some of the strictest posting requirements globally, implementing sector-specific obligations that go beyond basic EU standards.