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Equal rights for agency workers covered by collective agreements

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Legal news
calendar 14 June 2024
globus Denmark

A temporary agency worker at a Spanish user company suffered a work-related injury and became permanently unable to work. The agency worker was covered by a collective agreement that provided lower compensation than if he had been a permanent employee of the user company. As the agency worker did not receive the same compensation as a permanent employee, the European Court of Justice ruled that it violated the principle of equal treatment.

An agency worker was employed as a handling operator at a Spanish company through a temporary work agency. During the assignment, the agency worker suffered a work-related injury and became permanently unable to work. The collective agreement for the permanent employees at the Spanish company would have given approximately 60,000 euros as compensation for the same work-related injury. Instead, the collective agreement at the temporary work agency, which the agency worker was covered by, gave a compensation of 10,500 euros.

The collective agreement was no excuse for unequal treatment

The European Court of Justice ruled that it violated the rules on equal treatment that agency workers were not entitled to the same work injury compensation as permanent employees of the user company. The court ruled that compensation for incapacity to work was an employment condition on par with, for example, salary, which is covered by the rules on equal treatment. It made no difference that the compensation was paid after the agency worker stopped.

IUNO’s opinion

The case could significantly impact temporary work agencies and companies that use agency workers. In the future, it will not be sufficient for a temporary work agency to be covered by a nationwide collective agreement if the agency worker is not guaranteed the same material employment conditions as the user company’s permanent employees. This applies to pay, working hours, overtime, breaks, rest periods, night work, holidays, and public holidays.

IUNO recommends that temporary work agencies and companies that use agency workers ensure that agency workers have at least the same material employment conditions as the user company’s own employees. This applies regardless of whether the temporary work agency is covered by a collective agreement.

[The European Court of Justice’s ruling of 22 February in case C-649-22]

An agency worker was employed as a handling operator at a Spanish company through a temporary work agency. During the assignment, the agency worker suffered a work-related injury and became permanently unable to work. The collective agreement for the permanent employees at the Spanish company would have given approximately 60,000 euros as compensation for the same work-related injury. Instead, the collective agreement at the temporary work agency, which the agency worker was covered by, gave a compensation of 10,500 euros.

The collective agreement was no excuse for unequal treatment

The European Court of Justice ruled that it violated the rules on equal treatment that agency workers were not entitled to the same work injury compensation as permanent employees of the user company. The court ruled that compensation for incapacity to work was an employment condition on par with, for example, salary, which is covered by the rules on equal treatment. It made no difference that the compensation was paid after the agency worker stopped.

IUNO’s opinion

The case could significantly impact temporary work agencies and companies that use agency workers. In the future, it will not be sufficient for a temporary work agency to be covered by a nationwide collective agreement if the agency worker is not guaranteed the same material employment conditions as the user company’s permanent employees. This applies to pay, working hours, overtime, breaks, rest periods, night work, holidays, and public holidays.

IUNO recommends that temporary work agencies and companies that use agency workers ensure that agency workers have at least the same material employment conditions as the user company’s own employees. This applies regardless of whether the temporary work agency is covered by a collective agreement.

[The European Court of Justice’s ruling of 22 February in case C-649-22]

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Søren

Hessellund Klausen

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Kirsten

Astrup

Managing associate (on leave)

Cecillie

Groth Henriksen

Senior associate

Rikke

Grønlund Holm

Senior associate

Johan

Gustav Dein

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Alexandra

Jensen

Legal advisor

Alma

Winsløw-Lydeking

Junior legal assistant

Anders

Etgen Reitz

Partner

Cecillie

Groth Henriksen

Senior associate

Johan

Gustav Dein

Associate

Julie

Meyer

Senior legal assistant

Kirsten

Astrup

Managing associate (on leave)

Maria

Kjærsgaard Juhl

Legal advisor

Rikke

Grønlund Holm

Senior associate

Søren

Hessellund Klausen

Partner