Explanatory note

These Regulations implement provisions of Directive 2014/67/EU of the European Parliament and the Council on the enforcement of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services and amending Regulation (EU) No 1024/2012 on administrative cooperation through the Internal Market Information System (“the Directive”).

Part 1 of the Regulations specifies that the Regulations come into force on 18 June 2016 and extend to Northern Ireland only.

Part 2 of the Regulations relates to posted workers in the construction sector and subcontracting liability. This concerns arrangements where the posted worker's employer is the direct subcontractor of a contractor. Regulation 5 provides that any sums deducted by the employer from the worker's wages up to the value of the national minimum wage may be treated as deducted by the contractor for as long as those sums remain unpaid to the worker. Regulation 5 introduces a right for the worker to make a complaint to an industrial tribunal against a contractor if the worker's employer has deducted sums from the worker's wages as described in regulation 4. Regulation 6 concerns compensation that the worker might be entitled to.

Part 3 of the Regulations implements Chapter 6 of the Directive. Competent authorities in other Member States can request that the United Kingdom authorities enforce financial administrative penalties and fines against service providers established in the United Kingdom. Regulation 8 allows those penalties and fines to be enforced by the Enforcement of Judgements Office in Northern Ireland on behalf of the requesting authority. Regulation 9 makes provision for an information gateway to allow Her Majesty's Revenue and Customs to provide information in accordance with the United Kingdom's obligations under the Directive to reply to reasoned requests for information made by a competent authority in a Member State other than the United Kingdom.

A transposition note and an impact assessment of the effect that these Regulations will have on the costs to business and the voluntary sector are attached to the Explanatory Memorandum which is available alongside the instrument onwww.legislation.gov.uk