Mobility Package – A Revolution in the Transport Industry.

On 9 July, Members of the European Parliament voted through the Mobility Package – three legal acts introducing significant changes in regulations concerning drivers’ working conditions (especially working hours, breaks and rest periods), posting of workers, road controls, as well as the carrier profession and access to the transport market. The first part of the new regulations has been in force since 20 July, while the remaining provisions (mainly regarding posting of workers) will enter into force 18 months after the directive’s publication, i.e. in the second half of 2021.

The driver as a posted worker

The biggest and most controversial change is introduced by the so-called Posting of Workers Directive. According to its provisions, drivers will be treated as posted workers. The employer will be obliged to pay the driver the minimum wage applicable in the country where they are currently working. Often these rates are two to three times higher than in Poland, from which income tax and social security contributions will have to be paid.

Moreover, drivers will no longer be able to count on allowances, per diems or bonuses to the same extent as before, which until now were granted due to business travel and often constituted the majority of their salary. Employers did not have to pay contributions or income tax on these payments, as these obligations only concerned the basic salary. Under the new regulations, payment of per diems and allowances will be treated as payment of part of the basic salary both by the Social Insurance Institution (ZUS) and tax authorities. This will therefore entail the deduction of appropriate tax and social security contributions on those amounts.

Mandatory return and rest

The Package also introduces the obligation for every lorry to return to its base at least once every 8 weeks. Additionally, the driver should return to their home country at least once every 4 weeks. If two shortened weekly rest periods are taken consecutively without return, the carrier will have to organise the driver’s schedule so that they can return by the end of the third week. From the day the new regulations enter into force, it will also be prohibited to spend the weekend 45-hour rest period in the cab.

Exemptions

The Package provides exceptions from the application of the posting rules to drivers. In the case of bilateral transport, there will be no obligation to pay the minimum wage applicable in the country where the work is performed. Bilateral transport covers the carriage of goods from the country of the company’s registered office to another country. The regulations allow a single loading or unloading en route to the destination country and one on the way back. It is permissible to waive this option on the way to the destination and use two loadings or unloadings on the return journey. The Posting of Workers Directive will not apply to international transit, i.e. when goods are transported to another country through the territory of a third country, the employer will not have to pay the minimum wage applicable in the third country (for example, transport from Poland to France will not require paying the minimum wage applicable in Germany).

However, the amendment does not exclude transport performed within a foreign country, i.e. so-called cabotage. In this respect, a 4-day rest obligation has also been added. The new posting rules will also apply to cross-trade transport, i.e. where the carrier is not established in any of the countries where the transport is carried out.

New standard for controls

Compliance control with the standards introduced by the directive will be based on a system of intelligent tachographs. These devices will register the place and time of each border crossing, loading and unloading. This will obviously require carriers to provide the appropriate equipment. According to the new regulations, they will have time until 2023 to comply, and if using older analogue and digital models, until the end of 2024.

Controversies

The adoption of the EU regulation was opposed by some Eastern European countries, including Poland. Opponents argue that the amendment granting drivers the minimum wage applicable in the country where they currently work will complicate payroll calculations and additionally burden accounting. Furthermore, extending the scope of the basic salary to include per diems and allowances will increase the drivers’ salary base, on which employers must pay social security contributions and income tax. Employers point out that this will lead to a significant increase in employee maintenance costs and may result in smaller companies being eliminated from the market. The strict rules concerning rest periods will reduce the number of trips made, and consequently, carriers will lose additional financial benefits.

The Polish Road Transport Institute also raises environmental concerns. Empty runs are expected to increase fuel consumption and CO₂ emissions, which contradicts the EU’s efforts to reduce carbon dioxide emissions and improve air quality. Employers warn that transport efficiency will decrease, bureaucracy in the transport sector will increase, and many companies currently operating on the market will become unprofitable.