European societies – L5
4 Posting workers in the EU: A different kind of labour
mobility
Posting = temporarily going somewhere else to work (different country)
4.1 Posted workers in the EU: basic concepts
4.1.1 The EU internal market: four freedoms
1) Free movement of goods
2) Free movement of capital
3) Free movement of persons
4) Free movement of services
Free movement of persons (recap)
Individual mobility
EU citizens can move and reside freely in another Member State
Right to search for work and take up employment
No work permit or visa required
Can bring family members
Equal treatment
Same access to jobs
Same social security and tax right
Same working conditions and wages
Free movement of services
Firm-driven mobility
A company provides a service in another Member State
The company sends its own employees abroad
Workers are posted temporarily to deliver that service
Different from migration
Workers remain employed in the sending country
No integration into the host labour market
Social security remains in the home country
4.1.2 What is a posted worker?
A posted worker is an employee who is sent by their employer to another
EU Member State temporarily to provide a service
Example: A Polish construction company wins a contract in Belgium and
sends its workers to carry out the work there
The rise of posting in the EU
Posting exists since the 1960s (free movement of services)
1
, European societies – L5
But remained limited for decades
Sharp increase after 2004 EU enlargement
How does the posting policy work in practice?
Slide 9
Taxes are payed in the sending country
- Employer will pay Polish contributions and taxes
- Receiving countries will have minimum wage standards
o People working from Polen, will get minimum wage from Belgium
o Need to follow Belgian rules on working time
o They will receive annual leave
4.2 Why is posting so popular?
What makes it attractive for workers or employers?
Why would firms use posting?
Social security contributions differ across EU Member States
Posted workers remain in the sending country system
Firms can benefit from lower labour costs
4.2.1 Why do firms use posting? More than just lower costs…
Labour shortages
Lack of both low-skilled and high-skilled workers
Crucial in sectors like construction, transport, and industry
Flexibility & responsiveness
Ǫuickly scale workforce up/down
o Hiring and firing someone is not that easy in Belgium
o Posting is easier, you don’t have to hire them, you add them to your
service
o If you don’t need them anymore, you can remove them
Fast recruitment via posting agencies
o You can just pick up the phone, call the posting agency and say: “I
need 7 people for two weeks”
Meet peak demand (e.g. seasonal work)
Strategic and organisational motives
Outsourcing non-core activities (cleaning, security)
o Some jobs like catering and security are things they don’t wonna
give to their own workers
o They give it to the other workers
Access to specialised services (maintenance, shutdowns)
o Very specific skillset that they don’t have in your country
HR strategies in multinationals (career mobility, knowledge transfer)
o
2
4 Posting workers in the EU: A different kind of labour
mobility
Posting = temporarily going somewhere else to work (different country)
4.1 Posted workers in the EU: basic concepts
4.1.1 The EU internal market: four freedoms
1) Free movement of goods
2) Free movement of capital
3) Free movement of persons
4) Free movement of services
Free movement of persons (recap)
Individual mobility
EU citizens can move and reside freely in another Member State
Right to search for work and take up employment
No work permit or visa required
Can bring family members
Equal treatment
Same access to jobs
Same social security and tax right
Same working conditions and wages
Free movement of services
Firm-driven mobility
A company provides a service in another Member State
The company sends its own employees abroad
Workers are posted temporarily to deliver that service
Different from migration
Workers remain employed in the sending country
No integration into the host labour market
Social security remains in the home country
4.1.2 What is a posted worker?
A posted worker is an employee who is sent by their employer to another
EU Member State temporarily to provide a service
Example: A Polish construction company wins a contract in Belgium and
sends its workers to carry out the work there
The rise of posting in the EU
Posting exists since the 1960s (free movement of services)
1
, European societies – L5
But remained limited for decades
Sharp increase after 2004 EU enlargement
How does the posting policy work in practice?
Slide 9
Taxes are payed in the sending country
- Employer will pay Polish contributions and taxes
- Receiving countries will have minimum wage standards
o People working from Polen, will get minimum wage from Belgium
o Need to follow Belgian rules on working time
o They will receive annual leave
4.2 Why is posting so popular?
What makes it attractive for workers or employers?
Why would firms use posting?
Social security contributions differ across EU Member States
Posted workers remain in the sending country system
Firms can benefit from lower labour costs
4.2.1 Why do firms use posting? More than just lower costs…
Labour shortages
Lack of both low-skilled and high-skilled workers
Crucial in sectors like construction, transport, and industry
Flexibility & responsiveness
Ǫuickly scale workforce up/down
o Hiring and firing someone is not that easy in Belgium
o Posting is easier, you don’t have to hire them, you add them to your
service
o If you don’t need them anymore, you can remove them
Fast recruitment via posting agencies
o You can just pick up the phone, call the posting agency and say: “I
need 7 people for two weeks”
Meet peak demand (e.g. seasonal work)
Strategic and organisational motives
Outsourcing non-core activities (cleaning, security)
o Some jobs like catering and security are things they don’t wonna
give to their own workers
o They give it to the other workers
Access to specialised services (maintenance, shutdowns)
o Very specific skillset that they don’t have in your country
HR strategies in multinationals (career mobility, knowledge transfer)
o
2
