17th June 2016

EC investigates Loi Macron and MiLoG

On 16 June, the EC sent letters of formal notice, the first step in an infringement procedure, to France and Germany concerning their respective legislations covering minimum wage. The Loi Macron and MiLoG, respectively, oblige also road transport companies from other member states, which operate on the French and German markets, to apply French or German minimum wage to their drivers. Companies are also obliged to register with the authorities and keep records of their operations on French or German soils. The German law has been in place since 1 January 2015, the French one is set to become applicable on 1 July 2016. According to the EC, systematic application of minimum wage requirements, and the corresponding administrative burden, to road transport is disproportionate and hinders the functioning of the single market. Both countries will enter into dialogue with the Commission in order to resolve the issues. If the outcome is unsatisfactory, the EC can take both countries before the Court of Justice.

A revision of the posting of workers directive is being debated by the EP and by the Council, which is relevant to the issue. Also, the EC promised to tackle posting of workers in the road transportation sector in the future.

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Members of the American Chamber of Commerce in the Czech Republic