Ireland adopts EU regulations for posted workers

IMPACT – MEDIUM

What is the change? Irish officials have signed the European Union (Posting of Workers) Regulations 2016 into national law, creating new notification requirements for companies posting workers in Ireland and increased rights for workers to file claims against employers.

What does the change mean? Companies are now required to notify Ireland’s Workplace Relations Commission when posting workers to Ireland. Posted workers may benefit from changes to how the commission will handle claims of unfair employment, including changes aimed at holding contractors responsible, in some cases, if subcontractors do not follow wage laws.

• Implementation time frame: The changes took effect July 27.
• Who is affected: Employers posting workers to Ireland; contractors and subcontractors employing posted workers in Ireland.
• Business impact: The changes add to the administrative requirements of EU companies posting workers to Ireland.
• Next steps: Affected employers should familiarize themselves with the new regulations to make sure they do not run afoul of them.

Background: The recently adopted regulations build on past regulations to protect posted workers (workers employed in one EU country who are sent to another EU country on a temporary basis).

Among other changes, the regulations: impose new requirements that foreign service providers notify the Workplace Relations Commission when posting workers to Ireland, hold contractors in the construction sector liable if subcontractors pay posted workers less than the applicable statutory rate, create a process whereby posted workers name both the contractor and subcontractor as respondents in claims filed with the commission, provide a “due diligence“ defense for contractors named in such claims and allow for the enforcement of cross-border penalties and fines when applicable.

BAL Analysis: The changes affect companies posting workers to Ireland and contractors and subcontractors employing posted workers in Ireland. Affected employers should be sure they are familiar with the new regulations and should contact their BAL professional with any questions about how to remain in compliance.

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