EU Directive 2018/957 — What Changed for Companies Posting Workers?

Directive (EU) 2018/957 of 28 June 2018 fundamentally changed the rules on posting workers within the EU. For employers the key consequence is the obligation to pay posted workers the full wage applicable in the host country — not just the statutory minimum.

Background — the old 96/71/EC directive

The original 1996 directive only required that posted workers receive the host country's minimum wage. In practice many construction companies paid exactly SMIC or Mindestlohn and nothing more.

What did Directive 2018/957 change?

1. "Remuneration" instead of "minimum rates"

The key change: "minimum wage" was replaced by "remuneration" as defined by the host country's law. This means a posted worker must be paid in line with the collective agreements that apply to local workers in the same sector and region.

2. Long-term postings

Postings lasting more than 12 months (or 18 months with a justified notification) are subject to virtually all labour law provisions of the host country — except rules on forming and terminating employment contracts.

3. Temporary work agencies

The directive extends equal-treatment principles to workers posted through temporary work agencies.

4. Posting costs

Travel, accommodation, and meal costs for posted workers are borne by the employer and cannot be deducted from the worker's pay.

Practical consequences for employers

• Higher labour costs — pay must match sectoral collective agreement rates, not just the minimum wage
• Need to monitor collective agreements in the host country for the relevant sector
• Risk of fines for failing to meet wage requirements during an inspection
• Client joint liability — the host-country client can be held liable for a subcontractor's wage arrears

What to check before posting

1. Wage rates in the relevant sector for the region where workers will operate
2. Applicable collective agreements for your sector
3. Working time rules and overtime calculations
4. Workplace accident insurance requirements

Summary

Directive 2018/957 is a significant shift for employers posting workers abroad. It's not just about registration — it also means complying with the full employment law of the host country. PostingRegistry handles the paperwork so you can focus on the job.