Can a Destination Country’s Labor Law be Applicable to Employees Enjoying a “Workation”?

Abstract

This article deals with the investigates which employment law is applicable to employees during workations, according to EU law. Not surprisingly, in cross-border situations, the employee benefits of special protection. Working abroad might trigger the application of the law of the Host State, notably concerning two categories of rules: provisions that cannot be derogated from by agreement (1) and overriding mandatory provisions (2). Unfortunately, both categories are not defined by EU legislation. Provisions belonging to the first category, (mainly considered as, for instance, on minimum wage) are those of the State corresponding to the habitual place of employment. In case it is not possible to identify it, residual criteria might apply. Further, provisions belonging to the second category must always be applied by national courts, regardless of the law applicable to the employment contract. While legal scholars often disagree on categorisations and interpretations of such rules, the ECJ confirmed that this category of provisions must be interpreted strictly. The posted worker Directive defines the rules (e.g., salary), which are ‘overriding mandatory provisions’ of the Host State, applicable to posted employees. It makes sense to ask whether these would be applicable to workationers too. However, several arguments speak in favour of not equating employees enjoying workations to posted employees and there is no evidence that these rules would be considered as overriding provisions during workations. Even if a risk of application of some Host State employment law provisions exists, it appears strongly mitigated

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