EU Labour Authority Cracks Down on Temporary Employment Agencies

• The European Labour Authority (ELA) coordinated a Week of Action targeting temporary employment agencies and other labour intermediaries across the EU.
• Inspectors from 14 Member States conducted inspections at over 100 companies suspected of non-compliance with labour mobility and social security rules.
• The focus was on compliance with minimum requirements, correct remuneration, and social contributions rules, as well as posting arrangements and substantial activity requirement.

Inspectors also examined posting arrangements, including cases where temporary employment agencies may have operated without providing local services, raising doubts about meeting the substantial activity requirement.

The European Labour Authority (ELA) coordinated a Week of Action targeting temporary employment agencies and other labour intermediaries across the EU. Inspectors from 14 Member States, including Belgium, Bulgaria, Cyprus, Czechia, Germany, Ireland, Italy, Latvia, Lithuania, Malta, Netherlands, Poland, Portugal, and Romania, conducted inspections at over 100 companies suspected of non-compliance with labour mobility and social security rules.

The selected companies were based on elevated risk factors and complaints about potentially fraudulent temporary work agencies. One case followed a previous joint inspection that identified a potentially illegally operating agency during a roadside check.

Temporary employment agencies play a significant role in intra-EU labour mobility, with up to 10% of incoming posted workers coming from these agencies in some Member States. The ELA has previously conducted concerted and joint inspections (CJIs) that have shown labour intermediaries are frequently involved in non-compliance cases. The Week of Action focused on compliance with minimum requirements for temporary employment agencies, correct remuneration, and social contributions rules.

Inspectors also examined posting arrangements, including cases where temporary employment agencies may have operated without providing local services, raising doubts about meeting the substantial activity requirement.

The Week of Action may lead to increased scrutiny and enforcement of labour intermediaries' compliance with minimum requirements, remuneration, and social contributions rules. Employers should be aware that non-compliance can expose them to liability for undeclared work or illegal employment of third-country nationals.

Lawyers should take note of the potential consequences of non-compliance and advise clients accordingly. The ELA's efforts aim to ensure labour intermediaries operate within the law, protecting workers' rights and preventing exploitation.

Lawyers should be aware that this Week of Action may lead to increased scrutiny and enforcement of labour intermediaries' compliance with minimum requirements, remuneration, and social contributions rules, potentially exposing employers to liability for undeclared work or illegal employment of third-country nationals.

Source: Original reporting via ELA