France: European Directive on Posted Workers enters into force

The European directive enshrines the principle of “equal pay for equal work in the same workplace”. France has been applying since Thursday 30 July the new European rules on posted workers adopted in 2018 with the principle of equal treatment.

This directive aimed to put an end to “social dumping”.

From now on, an employee posted in France by a company established abroad will benefit from the same remuneration as an employee employed by a locally established company carrying out the same tasks.

Up until now, the company simply had to respect the minimum wages.

The new text also provides for the application of the host country’s collective agreements to posted workers, who will thus be able to benefit from the same bonuses or reimbursements  of expenses as local nationals.

However, the posted worker’s social security contributions remain those of his or her country of origin, which means that the cost of a posted worker’s work may remain lower than that of a local national worker.

The Directive limits postings to 12 months, which can be extended by six months. Beyond that duration, a long-term posting status is created, under which the employee will benefit from all the rights applicable to national employees, with the exception of the provisions relating to the conclusion and termination of the employment contract.

The text also allows for new sanctions against fraud and greater transparency for chain posting, when a foreign temporary employment agency makes temporary workers available to another foreign company providing a service in France.

For more information on these articles or any other issues involving labour and employment matters in France, please contact Joël Grangé (Partner) of Flichy Grangé Avocats at grange@flichy.com or visit www.flichygrange.com.