France making headway in the implementation of the Posted Workers Directive

January 9, 2015

The fight against fraudulent posting of workers has become a major challenge within the European Union (EU) with the publication of the Directive 2014/67 EU on 15 May 2015.

Background

The 1996 Posted Workers Directive (96/71/EC) entitles posted workers to statutory employment rights in the country they are sent to.  Posted workers are individuals who are employed in one EU Member State but sent by their employer to work temporarily in another Member State before returning home.

The 2014 Enforcement Directive (2014/67/EU) builds on the information exchange requirements in the 1996 Framework Directive to support cross-border enforcement between Member States and also covers monitoring and compliance.

The Posting of Workers Directive applies in three situations as set out in Article 1 (3) of the Framework Directive. In summary:

Obligations for posting workers in France

This directive was transposed in France in July 2014 with follow up regulations in April 2015.  The Macron Act (enacted in August 2015) increased the obligations applicable to companies posting employees or using employees in France, as well as the level of sanctions in case of breach of these obligations. The French Senate estimated the number of illegally posted workers in France alone at up to 300 000, in a 2013 report.

Foreign companies posting employees in France are subject to various obligations, including:

In addition, employers should note that:

Finally, one has to remember that any company entering into a service agreement for an amount higher than EUR 5 000 must ensure that its sub-contractor complies with the rules against undisclosed work, including with respect to social security coverage.

Increase of maximum applicable fines

In the case of breach of such obligations by the employer or the host company, administrative fines of EUR 2 000 per employee (EUR 4 000 in case of recurrence within one year) would apply, with a cap originally set at EUR 10 000. The Macron Act has increased this cap dramatically to EUR 500 000 – empowering the French authorities with highly valuable means of action.

Further Information

For further information or to discuss any of the issues raised, please contact Stéphanie Le Men-Tenailleau on +33 1 58 22 16 86.

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Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.

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Disclaimer
Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this newsletter. For further legal information click here.

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