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Work Inspectorate to set up new special unit to combat trans-national labour fraud

Friday 16 October 2020

The Ministry of Work and Social Economy has authorised, through a Ministerial Order published on Friday in the Official State Gazette, the creation, as part of the Work and Social Security Inspectorate (Spanish acronym: ITTS), a Special Coordination Unit to Fight Trans-national Labour Fraud. This unit will coordinate all the actions carried out by the Work and Social Security Inspectorate related to labour mobility, the fight against fraud in trans-national work and undeclared work in the European Union in those cases of intra-European labour mobility when Spain is the country of origin or destination.

In addition, it will carry out other functions related to the trans-national mobility of workers, such as support for the competent units in the process of the transposition of regulations, participation in international working groups and the proposal on the scheduling of inspections in this field.

The new Special Unit, attached to the National Office to Fight ITSS Fraud, will significantly enhance coordination in the fight to ensure that employers that temporarily post workers to Spain, within the framework of the provisions of trans-national services, respect and guarantee their employment rights, whatever legislation may be applicable to their employment contracts. This unit will also foster respect for minimum working conditions for workers of Spanish companies that are posted abroad within the framework of the provision of trans-national services.

The provision of services is one of the fundamental provisions of the internal market enshrined in the Treaty on the Functioning of the European Union (TFEU) and includes the right of companies to provide services in the territory of another Member State and to temporarily post their own workers to the territory of another Member State to this end.

The rise in the provision of trans-national services within the EU has led to the increasing involvement of the European labour authorities in the regulation and control of this phenomenon. Avoiding the undesired existence of discriminatory situations between employees in a certain Member State and those employees temporarily posted to that State, and situations of unfair competition between companies that operate in the internal market has been a constant feature of the concerns by the European and Spanish authorities with jurisdiction on this matter.

Non official translation