Labor office audits increase amid new reporting rules for posted workers

IMPACT – MEDIUM

What is the change? French labor offices are increasing audits at the same time they are imposing new reporting requirements on French companies that are hosting workers transferred from EU employers.

What does the change mean? Companies that host transferred workers from EU employers must log the arrival of the workers in their personnel register and provide accommodations that meet legal standards.

• Implementation timeframe: Immediate.
• Visas/permits affected: Not applicable.
• Who is affected: The new reporting requirements apply to French companies that host workers transferred from EU companies and for EU companies that transfer employees to France.
• Impact on processing times: None.
• Business impact: The requirements add anew administrative procedure for businesses.
• Next steps: Companies should make sure they are complying with the new requirements and review internal procedures to put the mandatory record keeping in place.

Background: The new rules stem from an EU directive on posted workers, which EU countries must implement by June 2016.

Under the new rules, when an EU employer posts an employee to work at a host site in France, the host company must register the employee in its personnel register and make sure that the accommodations provided to the employee meet legal standards.

The EU employers that post workers to France have their own reporting requirements that have not changed: They must file a “prior detachment declaration” with the appropriate labor inspection office at least two working days before the worker arrives in France.

BAL Analysis: Companies should be cognizant of the new rules for host companies and should also be aware that French labor offices have an online database of noncompliant companies and are stepping up audits. Companies found to be out of compliance with these rules may be fined up to €2,000 per employee (€4,000 per employee for repeat offenders).

This alert has been provided by the BAL Global Practice group and our network provider located in France. For additional information, please contact your BAL attorney.

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