At the beginning of July 2021, the Court of Justice of the European Union delivered its judgment in a case brought by Hungarian carriers concerning the fact that, despite earlier agreements, drivers received the Hungarian minimum wage during their period of posting. The Court held that an employee of a Hungarian-based employer may validly rely on a breach of the EU directive on the posting of workers. Consequently, Hungarian carriers are entitled to the minimum wage applicable at the place of posting.
Hungarian carriers brought proceedings before a Hungarian court, arguing that during their posting in France they did not receive the French minimum wage of EUR 10.40 per hour, but only the basic wage of EUR 3.24 stipulated in their employment contracts. This was despite the fact that, in the course of their work, they held a declaration certified by a Hungarian notary and by the French Minister of Labour stating that, during the period of posting, their remuneration corresponded to the French wage applicable to the transport sector.
The Hungarian court hearing the case referred a question to the Court of Justice of the European Union as to whether Hungarian employees working for a Hungarian-based employer may legitimately rely before a Hungarian court on the infringement of rules concerning the French minimum wage.
In its judgment, the Court emphasised that the EU directive on the posting of workers must be applied to all cross-border provision of services involving the posting of workers, including road freight transport activities. On this basis, the Court further clarified that compliance with working and employment conditions, including the conditions relating to minimum rates of pay, may also be enforced by workers through legal proceedings. Accordingly, Hungarian employees may sue their Hungarian employer in Hungary in relation to infringements of French rules.
The Hungarian court also asked the Court of Justice of the European Union whether the daily allowance paid for the period of foreign posting forms part of the workers’ remuneration. The Court explained that a daily allowance constitutes an allowance specific to the posting and forms part of the minimum wage, unless it is paid as reimbursement for expenses actually incurred in connection with the posting, such as travel, accommodation and meals, or unless it corresponds to an allowance that alters the relationship between the work performed by the worker and the consideration received in return.
Do you also work on posting assignments as a carrier? Do you have doubts regarding the amount of remuneration to which you are entitled? Please feel free to contact our law firm with any questions.
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