What does joint and several liability mean for the posting companies?

Danuta Jazłowiecka

We invite you to watch a short interview with Ms. Danuta Jazłowiecka, MEP. The interview with the laureate of Labor Mobilis Award 2013 and current Vice-President of the Employment and Social Affairs Committee (EMPL) was held at the II European Labour Mobility Congress.

Marek Benio, Ph.D., Vice-President of Labour Mobility Initiative, made the following comment on the interview:

Labour mobility rate in the EU is only 3%. For further development of the EU economy, mobility is extremely important. Meanwhile, in the Western European countries we observe a tendency towards closing economic markets to workers from outside the EU.

DanutaJazłowieckastronglyrejects the claim thatposting of workersis a form of social dumping.The requirementof the minimum of conditionsof employmentof the State inwhich they aremore favorable tothe employee, doesn’t make posting a cheap labor.

Posting of workers is the safest form of employment abroad. Posted workers go to work for a short period of time, perform services that local people are not interested in, and for which there is no demand in posting country. Posted workers remain insured in the country from which they are posted, therefore there is no obligation to pay social security benefits for them in the hosting country. Thus, this form of mobility is profitable to all parties.

In eight of the EU countries joint and several liability of entrepreneurs has already been introduced either in subcontracting chains or in the entire chain of subcontractors for liabilities to the employees. Ms. Jazłowiecka explains what is subcontracting liability and what does it mean for posting companies, as well as when (sub)contractor is released from liability. The Enforcement Directive introduces subcontracting liability across the EU, but only in the construction sector and only to the direct subcontractor. At the request of Member States, subcontracting liability could be extended to other sectors, and to the entire chain of subcontractors.