Blog post -
Stamping out fraud in hiring practices across Europe
Reports in the media of workers hired from other European Union countries undercutting the pay and conditions of local workers have stirred controversy over many years. While EU companies are allowed to ‘post’ their employees temporarily to another Member State, some companies abuse the rules on posting to hire workers on much lower wages and to avoid paying higher local social security contributions.
Such publicity has pushed the problem of fraudulent contracting of work higher up the to-do lists of European policymakers.
In this blog article, Research Manager Isabella Biletta looks at fraudulent practices in the contracting of work across the EU. Such practices involve the abuse of legitimate employment relationships with the aim of sidestepping labour and social regulations and with the effect of undermining workers’ rights and fair competition in business. The article is based on several years of Eurofound research on the subject.