Bez kategorii 23.05.2025

You are posting employees abroad – beware, A1 is not everything!

Despite the fact that the regulations tightening the posting regime for workers to EU countries came into force in 2020, most entrepreneurs still fail to comply with EU and host country requirements when sending employees abroad. Unaware of the relevant rules, employers often only learn of the posting obligations during inspections by foreign authorities. Unfortunately, by then it is usually too late, and the employer faces severe penalties.

Who is a posted worker?

A posted worker is considered to be an employee who is temporarily sent by their employer (or contracting party) to provide a service in another EU Member State. Importantly, from the perspective of EU law, it does not matter whether the employee is posted (receives an annex to their employment contract temporarily changing their place of work) or sent on a business trip (by employer instruction). In both cases, the individual qualifies as a posted worker.

Posting workers abroad – legal framework

Let us recall that the issues related to posting are governed by Directive 96/71/EC of the European Parliament and of the Council (as amended after 28 June 2018), as well as national implementing laws of the EU Member States. Many Polish employers still mistakenly believe that it is sufficient to provide employees with A1 certificates and pay the host country’s minimum wage. This is an error that can expose not only the business, but in some cases also its employees, to negative consequences. The situation is further complicated by the fact that consultants from Polish social security institutions (e.g. ZUS), in confirming compliance with domestic obligations, sometimes mislead employers about the requirements in the host country.

Posting workers abroad – the basics

Regardless of whether the employer needs to send employees abroad to provide services to a client, or to work in their own foreign subsidiary, they will need to comply with local employment conditions. The same applies when a foreign company uses a temporary employment agency to hire a worker from Poland.

The conditions referred to include:

minimum rest periods
maximum working hours
minimum paid annual leave
remuneration (including all mandatory components) as stipulated by national law or universally applicable collective agreements
health and safety at work
protective measures for pregnant women, women who have recently given birth, and young people (under 18)
equal treatment of men and women
conditions of accommodation in the host country, if provided by the employer
allowances or reimbursement of travel, board and lodging expenses, where required during the posting period

Meeting local employment conditions alone is not sufficient to ensure full legal compliance when posting workers. This is due to additional administrative obligations imposed on employers in connection with customs authority controls, as well as the so-called “more favourable treatment” rule.

Posting workers abroad – additional requirements

Countries to which workers are posted impose additional obligations depending on, among other things, the company’s sector (or the sector in which the posted employees work), remuneration level, or form of employment. These obligations most often include notifying the competent authorities before the posting begins and ensuring the availability and translation of relevant documentation. It is worth noting that the type and scope of these obligations vary from country to country.

Posting foreign nationals (citizens of non-EU countries) or through employment intermediaries (temporary employment agencies) is particularly formalised. In such cases, most countries require Polish employers to register with foreign commercial registers, obtain appropriate licences, and secure residence permits for their workers.

Local employment conditions – what are they?

Under the Posting of Workers Directive, a posted worker may not have less favourable employment conditions during the posting period than local workers employed in the same or similar sector. On the other hand, the posted worker must be provided with the most favourable employment terms taking into account both the legal system of the sending country (Poland) and the host country (abroad). Matters are further complicated by the fact that in most Western European countries, employment conditions are not only defined by statute, but also by dozens of collective agreements, which may also apply to posted workers. A shortcut in the form of providing only the host country’s minimum wage and leave entitlement will therefore not suffice.

Posting workers abroad – ignorance of the law is no excuse

Below is an overview of the penalties provided for non-compliance with posting regulations in selected EU countries where Polish employers most frequently post workers:

Germany

Fines of up to €30,000. In the case of violations related to temporary agency work – fines of up to €500,000.

France

Fines of up to €500,000 (depending on the number of posted workers).

Netherlands

Administrative fines ranging from €750 to €8,000, which may be increased by 75% depending on the nature of the breach.

Belgium

Administrative fines: €50 to €6,000; in extreme cases, criminal liability involving 6 months to 3 years of imprisonment.

Failure to comply with regulations concerning the stay of posted non-EU workers may result in their deportation by the customs authorities of the host country.

Social security

Social security is only one of many employer obligations when posting workers, but it should not be neglected. To take advantage of the option to pay social security contributions in Poland during the posting period, the employer must apply for an A1 certificate. The A1 document confirms that the posted worker is registered in the sending country’s social security system and is exempt from paying contributions in the host country.

When applying for an A1 certificate, it is necessary to provide the start and end dates of the posting period in another EU country. The maximum duration of posting that can be declared is 24 months.

Posting workers abroad – risks

Posting workers abroad carries risks not only related to failure to meet the basic posting conditions. There are also many traps used by foreign inspection authorities, including in the areas of tax regulations or broad definitions of employment intermediation. For instance – in Germany, certain sectors in which workers are posted are automatically classified as employment intermediation, requiring Polish companies to obtain an appropriate licence before posting begins. Failure to do so may result in fines of up to €500,000. Moreover, employment intermediation-based posting to Germany is in principle allowed only for EU citizens, thereby excluding, for example, Ukrainian or Belarusian nationals. Another example is the so-called permanent establishment, which requires companies sending employees abroad to pay taxes on a portion of their profits in the host country. The popular 183-day rule is not always applicable.

Unfortunately, as with posting regulations in general, most entrepreneurs become aware of the above risks only when inspected by foreign customs, labour or tax authorities – and by then, defending the company’s interests is already highly limited.

Don’t delay – trust the experts

ATL Law advises businesses on international employee mobility, including tax and social security issues. We support companies in completing formalities related to posting workers abroad – both within and outside the EU – as well as relocations and employing posted workers within Poland. We approach each posting process individually, identifying obligations and procedures tailored to the client’s industry and business scale. We help determine applicable collective agreements, show how and where to register postings, and minimise risks in case of inspection.