RUTH NIELSEN EU Labour Law DJØF PUBLISHING
EU Labour Law
Ruth Nielsen EU Labour Law DJØF Publishing Copenhagen 2013
Ruth Nielsen EU Labour Law 2. edition 2013 by DJØF Publishing Jurist- og Økonomforbundets Forlag All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the Publisher. Cover: Bo Helsted Print: Narayana Press, Gylling Binding: Jysk Bogbind, Holstebro Printed in Denmark 2013 ISBN 978-87-574-2566-6 Sold and distributed in Scandinavia by: DJØF Publishing Copenhagen, Denmark Email: forlag@djoef.dk www.djoef-forlag.dk Sold and distributed in North America by: International Specialized Book Services (ISBS) Portland, USA Email: orders@isbs.com www.isbs.com Sold in all other countries by: The Oxford Publicity Partnership Ltd Towcester, UK Email: djof@oppuk.co.uk www.oppuk.co.uk Distributed in all other countries by: Marston Book Services Abingdon, Oxon, UK Email: trade.orders@marston.co.uk www.marston.co.uk
Contents Contents Preface... 25 Chapter One. Introduction 1 Main purpose of the book... 27 1.1. From internal market law to fundamental rights/emu law... 27 1.2 From many separate legal systems to a one big system model... 29 2 Terminology: Labour Law, Welfare Rights and the Constitutionalisation of the European Social Model... 31 2.1 Labour Law... 31 2.2 Welfare Rights... 32 2.3 Constitutionalisation of the European Social Model... 33 2.3.1 The two layers of the Economic constitution of the EU... 34 2.3.2 The relationship between labour law and the economic constitution of the EU... 35 3 Theoretical and methodological approach: Critical legal positivism and legal realism... 36 3.1 Legal realism... 37 3.2 Critical legal positivism... 39 4 European legal Method Doctrine of the sources of law and their Interpretation... 40 5 Delimitations... 41 5.1 Not Inter-disciplinary... 41 5.2 Not a systematic account of specific National Legal Systems... 42 Chapter Two. Sources of EU Labour Law 1 Introduction... 43 2 Phases in the Development... 44 2.1 Before the EC/EU... 45 2.2 From Rome to Maastricht: the Community before the establishment of the European Union... 45 2.2.1 The late 1950 s and the 1960 s... 46 5
2.2.2 The 1970 s: legal activism... 46 2.2.3 The 1980 s... 47 2.3 From Maastricht until today (2013)... 50 2.3.1 From Maastricht to Amsterdam. The two tracks: UK and the 11 other EU-countries... 51 2.3.2 From Amsterdam to Lisbon... 53 2.3.3 The current post-lisbon period... 53 3 Primary EU law... 54 3.1 The Treaties... 54 3.1.1 General Values and Objectives of the EC/EU... 55 3.1.2 Specific Objectives of EU Labour Law... 56 3.1.3 The Principle of Conferral... 57 3.1.4 Expansion of EU legislative competence in matters of labour law... 59 3.1.5 Current legal bases for EU Secondary Legislation in matters of employment and labour... 59 3.1.6 Minimum harmonization or full harmonization... 62 3.1.7 From Unanimity to Qualified Majority Voting in Council... 65 3.2 Fundamental Rights, in particular Fundamental Labour and Employment Rights in the EU... 65 3.2.1 The Case Law of the CJEU on Fundamental Rights 66 3.2.2 The 1977 Joint Declaration on Fundamental Rights and the ECHR... 70 3.2.3 The Community Charter of the Fundamental Social Rights of Workers 1989... 70 3.2.4 Treaty Provisions, in particular Article 6 TEU and Article 151 TFEU... 71 3.2.5 The Charter of Fundamental Rights of the European Union (CFREU) 2000/2007... 72 3.2.6 Changes in the Legal Basis of Fundamental Rights after the Lisbon Treaty... 73 3.2.7 Substantive Content of the CFREU... 74 3.2.8 Legal Effect of Fundamental Rights internally in EU law... 75 3.2.9 Legal Effect in National Law of CFREU and other Fundamental Rights and General Principles of EU Law... 75 3.2.10 Free Movement and Fundamental Rights. The double justification test... 82 6
3.2.11 Competing Fundamental Rights... 84 3.3. General Principles... 84 3.3.1 General principle of equal treatment in labour law.. 84 3.3.2 Consultation... 85 4 Secondary EU Law... 85 4.1 Directives... 85 4.2 Social partners and Collective Agreements at EU level... 85 4.3 Recommendations... 87 5 Case law... 87 6 Soft law... 89 6.1 The Community Charter of the Fundamental Social Rights of Workers 1989... 89 6.2 Social Action programmes... 89 6.3 The Open Method of Coordination (OMC)... 90 6.4 The Lisbon Strategy... 90 6.5 The Europe 2020 Strategy... 91 6.6 The European Semester... 92 7 Scholarly Legal writing... 93 8 Public international law... 94 8.1 International doctrine of sources of law... 94 8.2 WTO... 95 8.3 ILO (International Labour Organisation)... 96 8.3.1 Tripartite structure... 96 8.3.2 Constitution: Labour is not a Commodity... 96 8.3.3 Conventions and recommendations... 97 8.3.4 Fundamental rights... 97 8.3.5 Reference to ILO law in EU labour law... 97 8.4 Council of Europe Conventions... 98 8.4.1 1ECHR (European Convention on Human Rights 1950)... 98 8.4.2 Council of Europe Social Charter 1961, amended by the Council of Europe Revised Social Charter 1996... 100 8.5 Customary international law: Labour is not a Commodity... 102 8.6 International soft law... 103 9 National Law... 104 9.1 National Law as a Source of EU Labour Law... 104 9.2 EU requirements to national law... 104 9.2.1 Horisontal Direct Effect... 104 7
9.2.2 Duty to interpret national law in conformity with EU law... 106 9.2.3 Reference to ECHR as a Source of law... 107 9.2.4 Generalisation of labour law in the field of Equality and Non- discrimination... 107 9.2.5 Double aim both economic and social... 108 9.2.6 Minimum Harmonization... 108 9.2.7 Enforcement... 108 9.3 Changes in National Doctrines of the Sources of Law: Diminishing Role of Collective Agreements and Preparatory Works... 109 9.3.1 Collective agreements... 109 9.3.2 Preparatory Works... 110 10 The relationship between International labour law, EU labour law and national labour law... 110 10.1 National law and international law: The monist and dualist approach in national law... 111 10.2 Pre-EC/EU international law obligations which are inconsistent with EU law... 113 Chapter Three. Collective Labour Law: The Right to Organise, Collective Bargaining and Industrial Action 1 Introduction... 115 2 Sources of Law... 115 2.1 National law... 115 2.2 Public International Law... 116 2.2.1 ILO Law... 116 2.2.2 Council of Europe Conventions... 117 2.3 EU law... 118 2.3.1 The Community Charter of the Fundamental Social Rights of Workers 1989... 119 2.3.2 Guidelines for the economic policies in th EMU... 121 2.3.3 CFREU... 121 2.3.4 Free movement of workers... 123 2.3.5 Case law... 123 3 Positive right of Association... 124 3.1 Rutili... 125 3.2 Vogt... 125 3.3 Moser... 126 3.4 Wilson... 127 8
4 The Negative Freedom to organise. Closed Shop Agreements... 129 4.1 British Rail... 129 4.2 Sibson... 130 4.3 Sigurjónsson... 131 4.4 Gustafsson... 132 4.5 Sørensen and Ramussen... 133 5 Collective bargaining... 136 5.1 General Characteristic... 136 5.2 Main Differences at National Level... 137 5.3 Parties to a Collective Agreement... 138 5.3.1 On the Employer Side... 138 5.3.2 Capacity of Trade Unions to Conclude Collective Agreements... 139 5.4 Obligatory and Normative Effect of Collective Agreements.. 140 5.5 Obligatory (or Contractual) Effect... 141 5.6 The Normative Effect of Collective Agreements... 142 5.6.1 Mandatory Normative Effect... 142 5.6.2 Residual Normative Effect... 142 5.7 Personal Scope of the Mandatory Effect... 143 5.7.1 Which Employers are Bound? Erga Omnes Effect.. 143 5.7.2 Towards which Employees is the Employer Bound 144 5.8 Negotiating Competence and Obligations... 144 5.9 Collective Agreements and Competition Law... 146 5.10 Collective Agreements in the Hierarchy of the Sources of Law... 147 5.11 Semi-Mandatory Statutory Legislation... 148 6 Collective Agreements at European Level... 149 6.1 Enterprise level cross-border collective agreements... 149 6.2 EU wide collective agreements... 149 6.2.1 Framework agreements as first steps to directives... 150 6.2.2 Autonomous framework agreements... 150 6.3 The UEAPME Case... 151 6.3.1 Right or Duty to Negotiate... 152 6.3.2 Representativity... 153 6.3.3 The Principle of Democracy... 154 6.4 Use of collective agreements as means to transpose directives into national law... 154 7 Industrial action... 160 7.1 Sources of law... 160 7.1.1 ILO Conventions... 160 9
7.1.2 Council of Europe Conventions... 161 7.1.3 EU law... 163 7.2 Conflicts of Interest and Conflicts of Right... 163 7.3 Peace Obligation... 164 7.4 The Right to Strike as a Fundamental Right. Monti I Regulation... 164 8 Interplay between national collective labour law and free movement... 165 8.1 Viking... 166 8.2 Laval... 167 8.2.1 Laval in its historical context the Law before Lisbon... 167 8.2.2 Facts of the Laval case... 168 8.2.3 The progress of the Laval case... 169 8.2.4 The industrial action: Blockade and sympathetic action... 170 8.2.5 Legal Problem... 171 8.2.5.1 Is collective action covered by EU law or a purely national issue?... 171 8.2.5.2 Transparency... 171 8.2.5.3 Legitimate goal... 171 8.2.5.4 EU competence... 172 8.2.5.5 Discrimination... 172 8.2.5.6 Free movement in a private law context. Direct, horizontal effect... 173 8.2.6 Debate about Laval... 173 8.2.6.1 Relevance of ILO law... 174 8.2.6.2 Ignorance of collective labour law... 175 8.2.6.3 Linguistic carelessness... 175 8.2.7 The withdrawn Proposal for a Monti II Regulation. 176 8.3 Rüffert... 177 8.4 Commission v Luxembourg... 180 8.5 Commission v Germany... 180 Chapter Four. Information, Consultation and Participation 1 Introduction... 181 2 Sources of Law... 182 2.1 Public international law and national law... 182 2.2 EU Law... 183 2.2.1 General... 183 10
2.2.2 EU-rules on Information and consultation at national level... 184 2.2.3 Information, consultation and participation at transnational level... 185 2.2.4 Traditional directives, no framework agreements between the social partners... 186 3 General Framework on Information and Consultation at national level... 186 3.1 Background to the directive... 187 3.2 The Preamble to the directive... 188 3.3 Object and principles... 188 3.4 Definitions... 189 3.4.1 Undertaking... 189 3.4.2 Establishment... 189 3.4.3 Employer... 189 3.4.4 Employee... 189 3.4.5 Employees' representatives... 189 3.4.6 Information and consultation... 189 3.5 Scope... 190 3.6 Practical arrangements for information and consultation... 192 3.7 Agreement... 192 3.8 Confidential information... 193 3.9 Protection of employees representatives... 194 3.10 Relation to other information and consultation provisions... 195 4 European Work s Councils... 196 4.1 Backgound... 196 4.2 Objective... 199 4.3 Definitions... 200 4.3.1 European Works Council (EWC)... 200 4.3.2 Controlling Undertaking... 200 4.3.3 Information... 200 4.3.4 Consultation... 201 4.4 Responsibility for the establishment of a European Works Council... 202 4.4.1 Initiative... 202 4.4.2 Groups of companies... 202 4.5 Special Negotiating Body... 204 4.6 Agreement... 205 4.7 Subsidiary Requirements... 206 4.8 Confidential information... 208 11
4.9 Spirit of cooperation... 210 4.10 Role and capacity of employee representatives... 210 4.10.1 Resources... 210 4.10.2 Training... 210 4.10.3 Spread of information... 210 4.10.4 Protection... 210 4.10.5 Balanced representation... 211 4.11 Transnational competence of EWC... 211 4.12 Links with national bodies... 211 4.13 Adaptation Clause... 212 5 Employee information, consultation and participation in a European company (SE)... 212 5.1. Establishment of SE s... 212 5.2 Employee involvement in SE Companies... 213 5.3 Aim of the Directive on employee involvement... 213 5.4 The before and after principle... 214 5.5 Definitions... 214 5.5.1 SE... 215 5.5.2 Participating companies... 215 5.5.3 Subsidiary... 215 5.5.4 Concerned subsidiary or establishment... 215 5.5.5 Employees representatives... 215 5.5.6 Representative body... 215 5.5.7 Special negotiating body... 215 5.5.8 Involvement of employees... 216 5.5.9 Information... 216 5.5.10 Consultation... 216 5.5.11 Participation... 216 5.6 Special Negotiation Body... 216 5.7 Agreement... 219 5.8 Duration of negotiations... 220 5.9 Standard rules... 220 5.10 Confidential information... 224 6 European Cooperative Society (SCE)... 224 6.1 Priority to negotiation and alternative route for some ex novo SCEs... 226 6.2 Transnational negotiation procedure... 226 6.3 Autonomy of the parties as to the content of the agreement... 228 6.4 Standard rules to be applied in the absence of an agreement.. 228 12
7 Cross-border mergers... 230 7.1 Only rules on worker participation... 231 8 The European Economic Interest Grouping (EEIG)... 234 Chapter Five. Free Movement of Workers and Union Citizens 1 Introduction... 235 2 The sources of law... 236 3 Migrant workers within the EU... 242 3.1 The Concept of Worker in regard to Article 45 TFEU... 242 3.1.1 Job seekers... 246 3.1.2 A-typical Workers... 247 3.1.3 Social Clients... 248 3.1.4 Family Members of Migrant Workers... 249 3.2 The Right to Move to and Reside in another EU-country... 250 3.2.1 Article 45(3) TFEU... 250 3.3 The Ban on Discrimination on Grounds of Nationality... 251 3.3.1 Direct Discrimination... 252 3.3.2 Indirect Discrimination... 253 3.3.3 Reverse Discrimination... 255 3.3.4 Social and tax advantages... 258 3.3.5 First time job-seekers... 259 3.3.6 Vocational training and education... 262 3.4 The public sector... 265 3.5 Restrictions to the Free Movement of Workers... 267 3.6 Ordre public (public policy, public security and public health)... 269 3.6.1 Secondary Legislation... 269 3.6.2 The Ordre Public Provisions in the Free Movement and Residence Directive... 272 3.6.3 Justification of restrictions... 273 3.6.4 Overriding Reasons of General Interest... 273 3.6.5 The principle of transparency... 274 3.7 Migrant workers and fundamental rights... 275 4 EU Citizenship... 276 4.1 Sources of law... 278 4.2 The Right to Entry and Residence in other EU Countries... 280 4.2.1 The initial period, 3-6 months... 280 4.2.2 The intermediate period... 280 4.2.3 Permanent residence after 5 years... 281 4.3 Equal Treatment... 282 13
4.4 Social security rights of union citizens... 282 5 Third country nationals... 283 5.1 Discrimination on grounds of nationality with regard to third country nationals... 284 5.2 Agreements between EU and Third Countries... 286 5.2.1 Iceland, Liechtenstein and Norway... 286 5.2.2 Switzerland... 286 5.2.3 Turkey... 286 5.2.4 Countries with no agreement... 287 5.3 Council of Europe Convention no 93 on the legal Status of Migrant Workers... 288 5.4 Long-term Residents... 288 5.4.1 Conditions for Acquiring Status as Long-term Residents... 288 5.4.2 Exclusion of A-typical Workers... 289 5.4.3 Equal Treatment... 289 5.5 Illegal immigration... 290 Chapter Six. Equality and Non-Discrimination 1 Introduction... 291 2 Sources of Law... 292 2.1 Public International Law... 292 2.1.1 ILO... 292 2.1.2 Council of Europe Conventions... 293 2.1.3 United Nation Conventions... 295 2.2 EU Law from Rome to Amsterdam... 300 2.3 After the adoption of the Amsterdam Treaty... 303 2.3.1 Gender Equality... 304 2.3.2 Ethnic discrimination... 305 2.3.3 Framework for equal treatment in employment and occupation regardless of religion or belief, age, disability and sexual orientation... 307 2.3.4 CFREU... 308 3 Basic discrimination concepts... 309 3.1 Direct Discrimination... 310 3.2 Indirect Discrimination... 311 3.3 Harassment and Sexual Harassment... 314 3.4 Instruction to Discriminate... 314 14
4 Gender Equality... 315 4.1 The concept of worker and pregnant worker in regard to gender equality... 315 4.2 Equal Pay... 315 4.2.1 The definition of pay... 317 4.2.2 Pay, pensions and social security... 317 4.2.3 Job classification systems... 319 4.2.4 Education and vocational training... 321 4.2.5 Seniority/Experience... 321 4.2.6 Part time discrimination as indirect sex discrimination... 322 4.2.7 Part time and overtime payment... 323 4.3 Equal treatment as regards access to employment, vocational training and promotion and working conditions... 324 4.3.1 Prohibition of discrimination... 324 4.3.2 Return from maternity leave... 325 4.3.3 Different Dismissal ages for men and women... 325 4.4 Pregnancy and maternity/paternity related issues... 325 4.4.1 Discrimination in the access to employment recruitment process and monitoring... 326 4.4.2 The remuneration of pregnant workers and workers on maternity leave... 328 4.4.3 Dismissals during maternity and parental leave... 329 4.4.4 Effective judicial protection... 330 4.4.5 The Parental Leave Directive... 331 4.4.6 Fixed-term contracts... 333 4.4.7 Breastfeeding etc.... 333 4.5 Mainstreaming... 333 5 Discrimination on Grounds of Religion or Belief... 334 6 Discrimination on Grounds of Age... 336 6.1 Permissible Differences under Article 6 of Directive 2000/78... 337 6.2 Retirement Ages... 337 6.3 Other Questions... 343 7 Discrimination on Grounds of Disability... 345 7.1 Concept of disability... 346 7.2 Employer s duty to Reasonable accommodation for disabled persons... 347 8 Discrimination on Grounds of Sexual Orientation... 348 15
9 General ban on discrimination in Employment and Occupation... 349 9.1 General principle of equal application of EU law. Article 20 CFREU... 349 9.2 Article 21 CFREU... 350 10 Exceptions from the Ban on Discrimination... 351 10.1 Maternity Protection... 351 10.2 Paternity and adoption leave... 351 10.3 Positive Action... 351 10.4 Genuine Occupational Qualifications... 352 11 Enforcement and Monitoring... 353 11.1 Minimum Requirements... 353 11.2 Defence of Rights... 354 11.3 Burden of Proof... 355 11.4 Victimisation... 357 11.5 Dissemination of information... 358 11.6 Social and Civil dialogue... 358 11.7 Bodies for the promotion of equal treatment... 360 11.8 Compensation or reparation... 361 11.9 Sanctions/penalties... 362 Chapter Seven. Employment Contracts and Employment Relationships 1 Introduction... 365 2 Sources of law... 365 2.1 National law... 365 2.2 Public International law... 366 2.3 EU law... 366 2.3.1 Directives... 366 2.3.2 Fundamental rights... 366 3 Choice of Law and international jurisdiction... 367 3.1 The Rome I Regulation... 367 3.2 The Rome Convention... 369 4 Posting of workers in the framework of the provision of services... 369 4.1 Scope... 369 4.2 Aim and legal basis of the posting of workers directive... 370 4.3 Posting of workers and choice of law... 371 4.4 Main Content of the Directive... 372 4.5 Statutory minimum standards... 373 4.6 Topics within the core area of Article 3(1) of the Posting of Workers Directive... 374 16
4.7 Minimum Wages... 374 4.8 Universally Applicable Collective Agreements... 375 4.9 Outside of the Core Area. Public Policy (Ordre Public)... 378 4.10 Posting of Workers and collective action... 380 4.11 ILO Convention 94 on Labour Clauses in Public Contracts... 381 Information requirements... 383 5 Employer s Obligation to inform employees of applicable working conditions... 384 5.1 Background... 384 5.2 Aim... 384 5.3 Scope... 384 5.4 Obligation to provide information... 385 5.5 Means of information... 387 5.6 Expatriate employees... 387 5.7 Minimum directive... 388 5.8 Defence of Rights... 388 6 Part Time Work... 389 6.1 Background... 389 6.2 Scope... 389 6.3 Definitions... 392 6.3.1 Part time worker... 392 6.3.2 Comparable full-time worker... 392 6.4 The principle of non-discrimination... 393 6.4.1 Prohibition against unjustified discrimination solely on grounds of part time... 393 6.4.2 Pro rata temporis... 395 6.4.3 Justification... 396 6.5 Opportunities for part-time work... 396 6.5.1 Duties of Member States and Social Partners... 396 6.5.2 Employers duties... 397 7 Fixed Term contracts... 397 7.1 Background... 397 7.1.1 The framework agreement on fixed-term work... 397 7.2 Purpose... 398 7.3 Scope... 399 7.4 Definitions... 399 7.4.1 Fixed term worker... 400 7.4.2 Comparable permanent worker... 400 7.5 Non-discrimination... 400 7.6 Measures to prevent abuse... 403 17