Employees can be seconded within the Netherlands as well as over borders. In Europe, the European Directive (EU) 2018/957 applies to the secondment of employees. These European regulations are not yet in force in Germany but will apply there from 1 August 2020. In this case, secondment does not only concern an employment agency supplying manpower but also to all cases involving the temporary placement of employees in another member state to provide services. The German Federal Ministry of Social Affairs and Employment has announced the points on which the German legislation will be amended. These points are discussed briefly below.
Salary
Employees who are seconded to Germany will not only be entitled to a minimum wage, but also to other legal regulations that relate to salary. This will also apply if the regulations are recorded in a binding German Collective Labour Agreement (CLA).
Expenses
Seconded employees will be able to apply German regulations with respect to reimbursement of expenses they incur in Germany. In the future, the reimbursement of expenses will no longer be considered as remuneration. The same will apply to secondment allowances.
Wider application of German law
Employees who are seconded for a longer time (twelve or eighteen months) will also be confronted with a wider application of certain German legislation. For instance, the German working hours law will apply in full and the same will apply to CLA provisions that are declared generally binding.
Further information?
The German customs office will explain the German regulations relating to secondment in more detail. In addition, it is proposed that all CLAs that apply to German seconded employees should also apply to all seconded employees.
The trade unions
The German Federal Ministry for Employment and Social Affairs is also arranging regulations authorizing trade unions to support seconded employees in exercising their rights. The German trade unions will also be authorized to refer a legal procedure to the courts on behalf of a seconded employee, without the relevant employee being a member of that trade union.
Regulations
The German Ministry for Employment and Social Affairs is currently drawing up draft legislation. After this, the German Parliament must agree to this. We need to await the draft legislation and see how the German Parliament responds to this. Like the other European member states, Germany still has a year to adapt its regulations to the European directive.
Of course, we will keep you informed of any changes that arise!
Do you have any questions? Or do you need some advice? Please feel free to contact one of our lawyers! We will be delighted to assist.