In his opinion released on Thursday, Advocate General Sánchez-Bordona recommends that the Hungarian and Polish action brought against the amendment of the EU Directive relating to the rights of posted workers should be dismissed. However, the Hungarian government hopes that despite this the court will annul the challenged directive, Justice Minister Judit Varga told the Hungarian news agency MTI.
In the autumn of 2018, in an action brought for annulment, Hungary – similar to Poland – challenged the amendment of the EU Directive concerning the posting of workers in the framework of the provision of services.
Right from the beginning, Hungary opposed the amendment of the Posted Workers Directive because – instead of protecting workers – its actual purpose is to drive Central and Eastern European service providers off Western European markets.
The Directive would oblige companies employing workers posted abroad to pay the remuneration applicable in the recipient Member State. According to the Advocate General’s opinion, the goal is to prevent unfair competition between undertakings, derived from the different levels of protection in the Member States.
Ms. Varga said during the proceedings, the government cited a number of legal arguments to support the fact that the protectionist amendment applicable in Member States from 30 July 2020 violates the freedom to provide services laid down in the Treaties of the European Union. The government is also disputing the new legislative act on the grounds that the extension of the rules relating to the posting of workers to the transport sector is likewise contrary to the Treaties.
The Justice Minister stressed that the outcome of the court proceedings is vital as the unnecessary or disproportionate restriction of any fundamental right by the EU legislature could lead to the erosion of the internal market. Therefore, the government sincerely hopes that despite the Advocate General’s opinion, the Court of Justice of the European Union will annul the contested directive, and will take action to protect the internal market constituting the basis of European integration, Ms. Varga said.