Transnational posting of workers in the framework of service provision
Transnational posting of workers in the framework of service provision
Can the posting of employees within the framework of transnational service provision be carried out without the existence of a service provision contract?
Now. The employer making the secondment must have concluded a transnational service provision contract with the beneficiary of the services provided.
Does the posting of employees within the framework of transnational service provision suspend the employment relationship with the employer who ordered the posting?
Throughout the entire period of secondment, the employee will maintain their employment relationship directly with the employer who seconded them.
Who grants salary rights and vacations, and who has the obligation to pay allowances for medical leaves?
The employer who ordered the detachment.
What are the employer's obligations regarding the individual work contracts when posting employees from Romania in the context of transnational provision of services?
The employer has the obligation to establish in the content of individual employment contracts:
the duration of the work period to be performed abroad;
the currency in which the salary rights will be paid, as well as the payment methods;
benefits in cash and/or in kind related to carrying out activities abroad.
What are the obligations of companies established in a member state that post employees to the territory of Romania?
Companies established in a member state that post employees to Romania have the following obligations:
to send to the territorial labor inspectorate in whose territorial area the activity is to be carried out a declaration in Romanian regarding the posting of its own employees;
to present and make available to the labor inspectors, at their request, during the period of transnational posting, copies of the following documents: the employment contract or an equivalent document, proof of payment of the salary, attendance sheet;
the obligation to provide the above-mentioned documents for 3 years after the end of the transnational posting period, at the request of the Labor Inspectorate or the territorial labor inspectorates, within a maximum of 20 working days from the moment of receiving the request;
the obligation to provide a translation into Romanian of the above-mentioned documents;
the obligation to designate a person to liaise with the competent national authorities and to send and receive documents and/or opinions, if applicable.
What are the situations of transnational posting?
The following situations represent posting:
the posting of an employee under a service contract;
the posting of an employee to a unit or undertaking belonging to the group of undertakings (intra-group);
the making available of an employee, by a temporary work agency, to a user undertaking (AMT).
What are the employer's obligations regarding the salary rights of employees posted from Romania in the context of transnational service provision?
The employer has the obligation to grant employees from Romania, during the period of secondment, the minimum wage applicable on the territory of the member state, as defined by the law and/or practice of the member state, on the territory of which the employee is seconded.
During the period of secondment, the employee will benefit from expenses generated by the secondment - any expenses with transport, accommodation and meals, incurred for the purpose of the secondment, as well as a specific allowance for transnational secondment - an allowance intended to ensure the social protection of employees granted in order to compensate for the inconveniences caused by the secondment, which consist of the employee's removal from his usual environment.
When is the specific allowance for transnational posting considered part of the minimum wage?
The specific allowance for transnational posting is considered part of the minimum wage, to the extent that it is not granted as reimbursement for expenses generated by the posting, namely transport, accommodation and meals.
Are the specific detachment allowances granted for expenses incurred by the detachment considered part of the minimum wage?
Therefore, allowances specific to posting consist of the expenses generated by the posting, respectively the transport, accommodation and meals expenses, these should not be considered as part of the minimum wage (remuneration). If their purpose is to reimburse the expenses generated by the posting, respectively the transport, accommodation and meals expenses, these should not be considered as part of the remuneration. The employer should reimburse the posted workers for the respective expenses, in accordance with the internal law and/or with the national practices applicable to the employment relationship.
What is the role of the specific allowance for transnational posting?
The specific indemnity for transnational detachment aims to compensate for the inconveniences caused by the detachment, which consist of removing the employee from their usual environment, is considered part of the minimum wage, to the extent that it is not granted as a reimbursement of expenses generated by the detachment, respectively transport, accommodation and meals.
Can the employer grant the specific allowance for transnational posting differently based on the distance traveled and/or the quantity of goods transported in the case of transporters, seniority, profession or specialty, position held, duration of the posting period, labor productivity, or favoring certain people in the company?
The amounts granted as expenses generated by the detachment, such as transport, accommodation and meals, as well as other facilities, are amounts of money that do not represent consideration for the work performed by the employee. These amounts have a precise destination without being freely used by the employee, but only for the purpose for which they were granted.
The specific allowance for transnational posting is granted by law, not being subject to negotiation, as it is intended to ensure the social protection of employees granted in order to compensate for the inconveniences caused by the posting, which consist in removing the employee from his usual environment.
Can the employer grant the specific allowance for transnational posting in a differentiated manner depending on the country where the services are performed?
Yes. According to the law, the employer can establish that these amounts of money for expenses generated by the detachment and the specific allowance for transnational detachment can be granted according to the country where the services are provided.
What are the working conditions that an employer must respect for employees posted in the context of transnational provision of services?
Employees posted from Romania within the provision of transnational services benefit, regardless of the law applicable to the employment relationship, from the working conditions established by legal acts, administrative acts, collective agreements or arbitration awards of general application, valid in the member state, other than Romania, on whose territory the services are performed, with regard to:
the maximum duration of working time and the minimum duration of rest periods;
the minimum duration of paid annual holidays;
the minimum wage as defined in art. 2 paragraph (1) letter f), including compensation or payment for overtime;
the conditions of making employees available by temporary employment agencies;
health and safety at work;
the protective measures applicable to working conditions for pregnant women or women who have recently given birth, as well as for children and young people;
equal treatment between men and women, as well as other provisions on non-discrimination.
Who has the competence to carry out inspections and verifications regarding employers' compliance with the terms and conditions of employment of employees posted within the framework of transnational provision of services?
The competence to carry out inspections and verifications regarding the observance by employers of the clauses and conditions of employment during the transnational posting of an employee from the territory of Romania to the territory of a member state lies with the competent authorities of the state where the posting was ordered.
How are employees of a temporary work agency considered, when they are made available to a user established in a member state other than the one where the temporary work agency is established?
The salaries of temporary work agents are considered transnational postings within the framework of transnational service provision.
Can the provisions regarding posting apply to a temporary employee made available to a user company registered in the territory of a Member State other than the one where the temporary employment agency is established?
The temporary employee concludes a temporary employment contract with a temporary employment agent who makes him available to a user other than the one where the temporary employment agent is established to work for the period stipulated in the provision contract under the supervision and management of this one, the provisions regarding delegation from the Labor Code do not apply to him.
How is the transnational posting of employees recorded in the General Register of Employees?
The employer has the obligation to complete the general register of employee records with the date on which the transnational posting begins and the date on which it ends, the state in which the transnational posting is to take place, the name of the beneficiary/user to whom the posted employee will perform the activity, as well as the nature of this activity.
What is the salary that the temporary employee receives for the work performed at the user's premises?
The salary received by the temporary employee for each assignment cannot be lower than that received by the user's employee, who performs the same or similar work as the temporary employee. The basic working and employment conditions applicable to temporary workers should be at least those that would apply to workers if they were recruited by the user undertaking to occupy the same job.
What benefits does a temporary employee receive when made available to a user company registered in a Member State other than the one where the temporary employment agency is established?
He will benefit from the expenses generated by the posting - any transport, accommodation and meal expenses, incurred for the purpose of the posting, as well as a specific allowance for transnational posting - the allowance intended to ensure the social protection of employees granted in order to compensate for the inconveniences caused by the posting, which consist in the employee's removal from his usual environment.
Can a posted (or seconded) transnational employee benefit from a mobility clause if they do not have a permanent place of work?
Given that the activity performed by the employee seconded to the employer's clients with whom he has concluded service contracts is not carried out in consideration of the specifics of the work, but as a result of the service tasks unilaterally ordered by the employer, the employee cannot be assigned a mobility clause to cover an extended geographical area, such as Europe, even if he temporarily carries out his activity in another country.
Where can employees posted to Romania turn if their rights regarding working conditions have been violated, or if they have suffered losses or damages as a result of non-compliance with legal provisions?
They can address the territorial labor inspectorates and/or the competent courts in Romania or the courts in another state according to the existing international conventions regarding judicial competence and can file a complaint against their employer directly.
Can the contractor to whom the posted employee's employer is a direct subcontractor be held jointly and severally liable with the employer, or in its place, for the outstanding net salary rights related to the minimum wage granted to the posted employee?
Within subcontracting chains, the contractor to whom the posted employee's employer is a direct subcontractor may be jointly and severally liable with or in place of the latter for the outstanding net wage rights related to the minimum wage granted. The liability is limited only to the rights of the posted employee obtained under the contractual relationship between the contractor and its subcontractor.