The different reporting obligations in the EU member states present companies with considerable bureaucratic challenges when it comes to work assignments. How can companies deal with this?
The European Union is the most important export market for mechanical and plant engineering, with eight of the ten largest export countries being EU member states. When selling within the EU, the reporting obligations for cross-border work assignments inevitably come to the fore, as the machines sold have to be assembled, commissioned and maintained.
Strict reporting obligations for work assignments have been introduced in Europe to prevent social dumping. However, the implementation of the Enforcement Directive (Directive 2014/67/EU) on the Posting of Workers Directive varies considerably from country to country and makes it difficult for companies to ensure that EU work assignments run smoothly. Short-term service or emergency assignments in particular are made more difficult by the associated bureaucracy.
To address these challenges for the mechanical and plant engineering industry in North Rhine-Westphalia, ProduktionNRW hosted an event at ifm in Essen on September 17, 2024. The ifm group of companies develops, produces and sells sensors, controllers, software and systems for industrial automation and digitalization. The event focused on mutual exchange in order to benefit from the experiences and solutions of the other participants.
Introduction to the topic of reporting obligations in Europe
Introduction to the topic of reporting obligations in Europe
Yvonne Heidler, consultant from the VDMA Foreign Trade Department for Western Europe/EU, introduced the topic of reporting obligations for work assignments in Europe, which were introduced by the EU to prevent social dumping. In addition to this topic, the A1 certificate and the Posting of Workers Directive are also relevant for European work assignments, which were not the focus of this event.
Reporting obligations primarily affect companies that provide services in an EU member state without being based there. These obligations are monitored by the respective national authorities, some of which have introduced very complex and different reporting processes. This leads to a large number of different regulations and thus to high bureaucratic hurdles. In order to carry out a work assignment abroad, extensive documents must be submitted and local contact persons must often be appointed. Harmonizing the regulations at European level could simplify these processes considerably.
Best practice: Successful implementation of a reporting obligations process in the company
Eike-Maria Schumachers, Global Mobility HR Specialist at ifm group services gmbh, then explained how the ifm group of companies manages the reporting obligations process. For ifm, a company that operates worldwide, it is essential to be on site quickly to resolve problems with customers.
In order to fulfill the EU reporting obligations, ifm has set up a separate department within the HR department. Close coordination with the management is of central importance here, as often not everyone involved is aware of the exact requirements and consequences of a breach in the individual countries. Regular training for traveling employees also ensures that understanding of the reporting obligations is continuously promoted throughout the company.
Work assignments in Switzerland – 90 days is not enough and then what?
Anna Lechner, Account Manager Business Traveller Compliance at ICU Global Mobility Services GmbH, then shed light on the reporting obligations and approval procedures for work assignments in Switzerland. The Swiss notification procedure only allows 90 working days per company per year. If this quota is not sufficient, an additional permit for further days can be applied for. Early planning and close cooperation with the HR department, for example, are essential here in order to create the conditions for applying for the additional Swiss permit as smoothly as possible.
Checks during work assignments – are you well prepared?
In the final discussion, it was emphasized how important it is to prepare employees for possible checks during a work assignment. Companies should inform customers in advance of any additional costs that may arise as a result of reporting obligations. In the event of inspections and possible sanctions, a direct discussion with the responsible authorities can be helpful.
Overall, the event made it clear that companies that regularly carry out work assignments in the EU need to develop and maintain a well-thought-out strategy for complying with reporting obligations in order to both meet customer requirements and overcome bureaucratic hurdles.
Organizer
The event was organized by ProduktionNRW. ProduktionNRW is the cluster for mechanical engineering and production technology in North Rhine-Westphalia and is organized by VDMA NRW. ProduktionNRW sees itself as a platform for networking, informing and marketing companies, institutions and networks with each other and along the value chain. Significant parts of the services provided by ProduktionNRW are funded by the Ministry of Economic Affairs, Industry, Climate Protection and Energy of the State of North Rhine-Westphalia.