The European Parliament has been a driving force in legislating on freedom of movement of people and services. Since 2004, it has been raising the issue of the need to improve the Posting of Workers Directive (PWD).

During the negotiations on the revision of the PWD, Parliament specifically pushed for ‘equal pay for equal work’ and for Member States to be able to apply regional, sectoral or industry agreements. In addition, it sought to enable Member States, by means of a review clause, to place foreign undertakings under the same national obligations in the event of sub-contracting. It has also successfully brought about a two-year transposition and application period for the directive.