ELA published today a report concerning information provision, enforcement, social security coordination and cooperation between Member States in relation to posting of workers in the construction sector. The study, which findings are presented in the report, was conducted between October 2022 and May 2023.
The study shows that the most prevalent violations and abusive practices include the establishment of letterbox companies, non-compliance with working conditions, bogus self-employment, fraudulent PD A1 (Portable Document A1) usage and fraudulent posting of third country nationals. Labour inspectorates can inspect and sanction these violations and abusive practices, but they often lack sufficient financial and staff resources, and experience difficulties in identifying some factual elements in such posting contexts (e.g. place of registration of undertakings, number of contracts performed, whether or not the posted workers return to or are expected to resume working in the sending Member State) to properly carry out their inspection activities. Furthermore, imposition of sanctions and their effective implementation can be difficult in a cross-border situation.
The report identified several measures that could prevent non-compliance with the rules. These include the provision of social ID cards to posted workers, subcontracting chain liability schemes to make it possible to identify the actors in those chains, limitations on subcontracting and specific public procurement rules.
Please find more information here.