A proposed legal challenge that would make contractors liable to pay compensation to EU subcontractors if they undercut UK national trade rates is set for consultation…
Contractors could face compensation claims from workers of EU subcontractors if they undercut agreed UK national trade rates.
The proposed change has been put into a new directive aimed at enforcing the EU posted worker directive. This was implemented several years ago in a bid to stop local or national wage agreements from being overridden due to cheap labour coming in from other parts of the union.
Posted workers are deemed to be employees who carry out work for a limited period of time in an EU member state different from where he or she normally works. This group are not the same as migrant workers who move between member states to gain employment.
The new measures to further regulate the system have been deemed necessary after concerns were raised about failure to adhere to the rules on pay, pushing the government to consult on the matter.
The new posted workers enforcement directive also includes stricter guidelines for reporting where EU subcontractors are being used on UK jobs.
One of the documents published on the issue, ‘Implementing the Posted Workers Enforcement Directive consultation – impact assessment’, said “a new requirement for Member States to ensure that posted
workers in the construction sector can recover unpaid minimum wages from the contractor one up in the supply chain” was being discussed.
The government is now consulting on how it can introduce the plans and ensure the enforcement procedure is followed. The consultation period will end on the 24 September.
An industry consultation will now take place, led by the Department of Business, Innovation and Skills, on how to introduce the new directive.