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Posting of Workers Within the Construction Sector

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Posting of Workers Within the Construction Sector TILBURG UNIVERSITY LAW SCHOOL LLM LABOUR LAW AND EMPLOYMENT RELATIONS MASTER THESIS Posting of workers within the construction sector A comparative study within Belgium and The Netherlands on the protection of posted workers Robert van der Vlies St. Nr: 1259171 ANR: 875005 Supervisors: S. Rainone, LL.M, Dr. J.M.B. Cremers Date: 09-03-2018 I Table of Contents List of Abbreviations ............................................................................................................................. IV List of Figures ........................................................................................................................................ V Abstract ................................................................................................................................................. VI Chapter 1 - Introduction........................................................................................................................... 1 1.1 Introduction ................................................................................................................................... 1 1.2 Problem statement ......................................................................................................................... 3 1.3 Methodology ................................................................................................................................. 3 1.4 Research questions and structure .................................................................................................... 4 Chapter 2 – Posting within the European Single Market ........................................................................... 5 2.1 Introduction ................................................................................................................................... 5 2.2 Posting of workers within the EU ................................................................................................... 5 2.2.1 Data on posting ....................................................................................................................... 5 2.2.2 Posting from a sending and a receiving perspective ................................................................. 6 2.3 The European Single Market .......................................................................................................... 7 2.3.1 The mobility of labour within the EU ...................................................................................... 7 2.3.2 The social dimension of the European Single Market............................................................... 8 2.4 Free movement of services ............................................................................................................. 9 2.4.1 Scope of application ................................................................................................................ 9 2.5 Restrictions to the free movement of services at the national level ................................................ 10 2.5.1 Legislation ............................................................................................................................ 11 2.5.2 The role of the Court of Justice of the European Union .......................................................... 11 2.6 The legal framework on Posting at the EU level ........................................................................... 15 2.6.1 Social security law ................................................................................................................ 15 2.6.2 Tax law ................................................................................................................................. 15 2.6.3 Labour law before the enactment of the PWD ........................................................................ 16 2.7 The Posting of Workers Directive ................................................................................................ 17 2.7.1 Main aims of the Posting of Workers Directive ..................................................................... 17 2.7.2 The concept of posting within the PWD ................................................................................ 18 2.7.3 Minimum protection of the posted worker ............................................................................. 18 2.7.4 The minimum rates of pay ..................................................................................................... 20 2.7.5 Article 3 (8) PWD: absence of a system for declaring collective agreements .......................... 23 2.7.6 Protection of posted workers beyond the provisions of the PWD ........................................... 24 2.8 The Enforcement Directive .......................................................................................................... 25 2.8.1 Introduction .......................................................................................................................... 25 II 2.8.2 Content ................................................................................................................................. 25 2.8.3 Subcontracting liability ......................................................................................................... 26 2.8.4 Assessment of the ED ........................................................................................................... 28 2.9 Revision of the PWD ................................................................................................................... 28 2.10 Conclusion ................................................................................................................................. 30 Chapter 3 – Posting practices within the construction sector................................................................... 32 3.1 Introduction ................................................................................................................................. 32 3.2 The role of posting within the construction sector......................................................................... 33 3.2.1 Facts and Figures .................................................................................................................. 33 3.2.2. The labour costs driven model and the construction sector .................................................... 35 3.3 Social dumping within the construction under the scope of posting .............................................. 36 3.3.1 Introduction .......................................................................................................................... 36 3.3.2 Unfair competition within the limits of the EU framework on posting .................................... 37 3.3.3 Abusive practices of posting within the construction sector outside the limits of EU framework on posting ...................................................................................................................................... 39 3.4 Conclusion................................................................................................................................... 42 Chapter 4 – Comparison between Belgium and the Netherlands ............................................................. 43 4.1 Introduction ................................................................................................................................. 43 4.2 Posting within respective construction sectors .............................................................................. 43 4.3 Level playing field ....................................................................................................................... 45 4.3.1 Implementation of the PWD .................................................................................................. 45 4.3.2 Minimum rates of pay ........................................................................................................... 48 4.3.3 Wage gap .............................................................................................................................. 50 4.4 Monitoring and enforcement ........................................................................................................ 55 4.4.1 Juridical traditions ................................................................................................................. 55 4.4.2 Role of the Labour Inspectorate ............................................................................................. 55 4.4.3 Registration system ............................................................................................................... 57 4.4.4 Subcontracting liability ......................................................................................................... 59 4.5 Comparison ................................................................................................................................. 64 4.5.1 Scope of protection ............................................................................................................... 64 4.5.2 Monitoring and enforcement ................................................................................................. 66 Chapter 5 – Conclusion ......................................................................................................................... 68 5.1 Conclusion................................................................................................................................... 68 List of
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