Posted worker rules implemented

IMPACT – MEDIUM

What is the change? Spain has implemented the EU directive on posted workers that covers requirements for companies assigning or seconding foreign workers to Spain.

What does the change mean? The new law imposes certain changes to Spain’s existing “Communication of Transfer” rules that have been in place since 1999.  

• Implementation time frame: May 29.
• Visas/permits affected: Secondments and temporary assignments.
• Who is affected: Foreign companies posting workers to Spain and Spanish entities hosting them.   
• Business impact: Companies will have additional documentary and notice requirements for posted workers.
• Next steps: Companies posting workers to Spain should appoint a representative to file the notice with Spanish authorities and a liaison in Spain to fulfill the requirements and retain documents.

Background: The EU Directive 2014/67 on enforcement of posted workers was adopted in 2014 and gave EU member countries two years to implement it. The directive requires certain notifications and retention of documents for workers posted temporarily in an EU country.

The Spanish law, Act 45/1999, transposes the EU directive rules into Spain’s national laws. Among the changes, the law will require the following:

• Spain will introduce an electronic filing system for companies to file notice of the posted worker (“communication of transfer”). Procedures of the central electronic registry will be established within six months.
• The communication of transfer must include the name and contact information of the person or legal entity in Spain representing the foreign company in making the communication of transfer, and the name and contact information of the foreign company’s representative in Spain responsible for maintaining documents and completing other procedures for posted workers.
• Documents related to the posted worker must be retained and translated into Spanish, including the employment contract and other documents evidencing work conditions, payslips, work hour logs, and the work permit for third-country nationals.

BAL Analysis: Spanish authorities have begun implementing the communication of transfer rules that have been on the books since 1999 but not fully enforced until recently, and companies are subject to penalties for non-compliance. Further details on changes brought by the implementation of the EU directive are expected to be released soon.

This alert has been provided by the BAL U.S. Practice group and our network provider located in Spain. For additional information, please contact BerryApplemanLeiden@bal.com.

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