New Posted Workers' Fine Arrangement Forthcoming

At a Glance

• According to a recent European Court of Justice holding, sanctions imposed in Austria on sending and receiving employers for posted worker record keeping violations are not proportionate and are therefore in violation of European Union law. As a result, the Austrian government must revise its related sanctions.
• Due to the decision, Austrian authorities can no longer apply the disproportionate sanctions for record maintenance violations, and employers who paid fines under the current sanction regime may be able to claim monetary damages from the Austrian government.

The situation

A recent European Court of Justice (EUCJ) holding will require the Austrian government to implement a new penalty scheme for employers hiring posted workers in Austria who violate record keeping requirements since the current fine and penalty scheme was found to violate the principle of proportionality under European Union law.