Are the Minimum Rates of Pay of Posted Workers in Compliance with the Social Market Economy?
Are the Minimum Rates of Pay of Posted Workers in Compliance with the Social Market Economy?

Summary/Abstract: Directive 96/71/EC of the European Parliament and of the Council of December 16, 1996 concerning the posting of workers in the framework of the provision of services aims mainly to promote the cross-border provision of services in a single market, while providing protection to posted workers and ensuring a level playing field between foreign and local competitors. Namely, art. 3 stipulates that Member States shall guarantee workers posted to their territory the terms and conditions of employment covering the minimum rates of pay, including overtime rates, which are laid down in the Member State where the work is carried out. On the other hand, the social market economy should deal with problems related to social dumping, a level playing field, the previously-mentioned fairer single market and, most importantly, equal pay for equal work. Thus, the crucial question is whether the minimum rates of pay of posted workers are in accordance with the social market economy.

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