EU mobility package – where did it come from?
The origins of what we know today as the mobility package can be traced to two documents. We are talking about the minimum wage laws introduced in Germany and France:
MILOG, or Gesetz zur Regelung eines allgemeinen Mindestlohns
This is a law that, although passed in the German parliament, also affected Polish transport companies operating in the country of our western neighbors.
According to the provisions of the document, which came into force on January 1, 2015, any person working in Germany is entitled to receive a salary no lower than the rate set by law. As of October 2022, it is €12 per hour (a minimum of €2,016 per month with full-time employment).
There would be nothing surprising in the introduction of the minimum wage itself, but there was a provision in the MILOG law that sparked widespread discussion – the Bundestag decided that employers from other countries must also provide a German minimum wage to their personnel providing work in Germany.
The entry into force of the MILOG law changed the situation for many Polish entrepreneurs operating in the transport industry and, as it turned out, was a prelude to much more far-reaching changes.
Important!
The MILOG law is controversial not only because of the provisions themselves, but also through problems with compliance and enforcement. Courts in Germany have repeatedly issued inaccurate or contradictory rulings.
This led to situations in which Polish companies operating in the transport industry were unsure for months how to act properly, and eagerly awaited the resolution of German customs inspections carried out on Polish entrepreneurs also operating in Germany.
Loi Macron
The second of the pioneering pieces of legislation in Western Europe was the law often referred to as Loi Macron. Decree No. 2016-418 went into effect almost exactly 1.5 years after the MILOG law, on July 1, 2016.
The main premise of Loi Macron is almost identical to its German counterpart – the introduction of a minimum wage affecting French entrepreneurs equally, as well as companies from other countries that employ people working in France.
Loi Macron, in addition to designating a number of new obligations and setting penalties for non-compliance, introduced one additional burden for entrepreneurs – it required them to appoint a representative to represent the company in its dealings with authorities on the French side.
Mobility package for drivers?
The introduction of wide-ranging regulations for the transportation market throughout the European Union is intended to meet several objectives:
- Ensure safety and better working conditions for drivers,
- bring the realities of the transportation market in line with the principles of social justice,
- Act in the name of sustainable economic development,
- take care of the needs of all EU member states and level the playing field.
Have the initial assumptions been met? It’s hard to judge. However, it is important to keep in mind that although the mobility package was launched in 2020, the regulations are not expected to receive their final form until 2026 – by which time more and more changes will be gradually introduced. Those of January 2023. Are currently the most up-to-date.
Mobility package – 2020 regulations
With its entry into force, the mobility package has introduced regulations on several aspects of international drivers. They were:
- driving time,
- breaks while driving,
- returns to base,
- weekly rest.
Driving time
Strict regulations on maximum driving time per day have been loosened somewhat in 2020, but only under certain circumstances:
- working time may be extended by a maximum of one hour by the driver, when the driver was able to thus reach the base or residence to take weekly rest,
- driving time may be extended by no more than two hours (with the application of a half-hour break) if the driver can consequently reach the base or residence for a regular weekly rest.
Breaks while driving
In the context of work breaks, the mobility package introduced the possibility of taking a 45-minute rest while driving in a situation where another member of a multi-person crew is driving the vehicle.
Returns to base
According to the Mobility Package regulations, the driver’s work must be scheduled in such a way that the employee can take a regular weekly rest every four weeks at the base or place of residence. Drivers are entitled to base camp after taking two shortened weekly rests.
Weekly rest
International transport drivers are entitled to restorative rest. Under the new regulations, a driver can take two shortened weekly rest periods in a row (not less than 24 hours). The condition for taking shortened rest periods is to receive compensation in the form of a rest of equivalent duration, which the driver will use once no later than three weeks after taking the shortened rest.
What’s more, the mobility package introduced a ban on taking regular weekly rests in the cab of a vehicle – drivers are to be provided with a place to stay overnight.
Mobility package 2022 – major changes
In February and May 2022, the next phases of the mobility package went into effect. What changes have occurred in them? This time, the European Parliament took the following issues to task:
- wages for drivers posted outside their home country,
- cabotage transports,
- definition of transportation company base,
- Reporting of international transport drivers to the IMI system,
- Changes regarding the operation and functioning of tachographs,
- Vehicles over 2.5t GVW (permissible total weight).
Wages for posted workers
The changes initiated by the MILOG and Loi Macron laws mentioned in the first part of this article were not transplanted throughout the European Union until 2022.
International transport drivers should be paid for the portion of work they perform in the country at least equal to the minimum wage for transport workers in that country.
This means that Polish drivers who go with transport to Germany or Spain will be paid at least the national minimum wage in Germany, Spain or any other EU country where they provide work.
Important!
The rules on the wages of posted drivers apply to cabotage and cross trade – they do not apply to transit or bilateral transport.
Cabotage operations
Drivers performing cabotage operations must go to a base at least once every eight weeks, but it must be in the country where the company is based.
A limit has also been imposed on the number of cabotage trips that can be made by a single vehicle – currently there can be a maximum of three cabotage trips within 7 days within a single EU member state.
Important!
If an entrepreneur has several operating bases, they must collectively have the required number of parking spaces.
IMI System
Starting in 2022, companies operating in the transportation industry are required to report drivers performing cabotage and cross trade operations to the IMI system (Internal Market Information Exchange System). Drivers performing work in EU member states should carry a copy of the notification containing the QR code in case of an inspection.
Tachographs
Another element has been added to tachograph operation: international transport drivers are required to make entries in their tachographs that include the symbol of the country whose border they have just crossed. Such an entry should be made at the next stop.
Starting as early as 2023, transport companies must begin the process of replacing their current equipment with higher-generation tachographs – these will make the relevant entries automatically, without the driver’s involvement. According to the current plan for implementing the changes in the mobility package, mandatory replacement of tachographs is scheduled to begin in August 2025. We write more about these changes below.
Vehicles with GVW over 2.5 t
The 2022 set of amendments expanded the Mobility Package rules – from now on, carriers using vehicles with a GVW of more than 2.5t (rather than 3.5t as before) in their work are subject to cabotage rules. Moreover, they must obtain a license and meet the conditions of the road transportation profession.
Such a company must also financially secure the vehicles performing the transports. The amount of collateral for the first car of the fleet is €1,800. Each additional vehicle must be secured with an amount of min. EUR 900.
Mobility Package 2023 – the latest regulatory changes
While the original plans for the phased implementation of the mobility package in Europe did not include significant changes for 2023, the situation has changed somewhat. This is due to the general dynamics of change and national law – Polish regulations had to be adapted to the mobility package so that the various provisions are not mutually exclusive.
2023 will see changes in three areas regarding the mobility package. What does the regulatory update cover?
- Operating bases
- Mandatory statements
- New tachographs
- Changes in salaries
Parking bases with a minimum number of places
This change takes effect in January 2023, although it was originally scheduled to take effect as late as 2022.
The newly adopted regulations require that the operating bases be located on Polish territory. They must also be equipped to enable the business to be conducted in a continuous and organized manner. One of the requirements for operating bases is that they include a parking area, an unloading and loading area, or a maintenance and repair area.
Moreover, operating bases must have the number of parking spaces corresponding to ⅓ of the number of vehicles in the fleet, but regardless of the number of bases.
Important!
If an entrepreneur has several operating bases, they must collectively have the required number of parking spaces.
New mandatory declarations for drivers
This change is also effective from January 2023.
Transportation companies are required to submit two new statements starting in 2023. This obligation is cyclical – carriers will have to remember it every year. The deadline for both statements is March 31.
Statement of the number of people employed. The carrier should submit this statement, also taking into account employees employed as of December 31 of the year preceding the obligation to submit the information. Thus, when submitting a statement on the number of employees at the beginning of 2024, the status at the end of 2023 should be taken into account, regardless of at what point we submit the statement.
Statement of the arithmetic average number of drivers employed. It is worth noting that the form of employment is irrelevant in this statement – it should include the average number of all drivers performing transport operations in the year preceding the time of filing the statement.
Replacement of tachographs with second-generation devices
The change will be effective from August 21, 2023.
Second-generation smart tachographs must be installed in all newly registered vehicles starting in August. In time, the mandatory installation of new tachographs will also apply to older vehicles.
- In August 2023, the first stage of the changes (installation of new-generation tachographs in new vehicles) will be launched;
- In December 2024, the process of replacing analog and digital tachographs in older vehicles will begin, and mandatory storage of tachograph data for up to 56 days for inspection purposes will be implemented;
- In September 2025, second-generation tachographs are to be present in every vehicle with a GVW of more than 3.5t;
- in July 2026, the obligation to equip a vehicle with second-generation smart tachographs will also extend to vehicles with a GVW of 2.5-3.5t (provided they are used for international transport).
Changes in the salaries of international transport drivers
These changes went into effect in August 2023.
The new rules on the posting of drivers in road transport are intended to allow the laws in individual European Union countries to be brought into line with those set by the community. On August 19, 2023, the law of July 28, 2023 became effective. On the posting of drivers in road transport. The law on drivers’ working time has also been modified. The latter clarifies the issue of business travel. One of the most important provisions that has been updated is the one proclaiming that “a driver performing business tasks in international road transport is not on a business trip” within the meaning of the Labor Code.
The new entries in the Drivers’ Hours Act also introduce the concept of average wages. It is intended to establish a criterion for determining dues for professional drivers. The updated entry can be found Article 2. Item 8 of the same.
Under the new regulations, the issue of determining the tax base for drivers involved in international transportation will also change. Art. 26f para. 2 of the Law on Working Time of Drivers says that in their case the regulations issued under Art. 21 of the Law of October 13, 1998. on the social insurance system concerning employees working abroad for Polish employers.
Moreover, Art. 26g of the Law (on drivers’ working time) contains additional rules, covering those drivers whose monthly income exceeds the value of the average salary (determined in accordance with the rules cited above). In such cases, income does not count:
- an amount equivalent to 60 euros for each day of stay abroad, with the proviso that the monthly income of such persons constituting the basis for assessment of contributions, so determined, may not be lower than the amount of the average salary.
- dues representing reimbursement of the equivalent of the driver’s expenses, among others. overnight accommodation, travel to the place of commencement by means of transportation not at the employer’s disposal, necessary documented expenses or use of sanitary facilities at places of business.
For each day of stay abroad in the performance of international transport, the driver receives a uniform per diem rate of 60 euros. This is the result of a simplification, since until now the amount of per diems varied depending on which country the driver was in.
Example:
Mr. Karol performs international transportation for his employer by land. His monthly income is PLN 9200 – so it exceeds the average salary (currently it is PLN 7768.35).
To calculate the Social Security contribution base for a driver, the total amount of per diems he received while performing his duties must be subtracted from his earnings. Mr. Karol stayed abroad for 8 days, and therefore received an allowance of 480 euros. At the current exchange rate of PLN 4.29, this means that per diems converted into zlotys amount to PLN 2059.20. We subtract this amount from the driver’s monthly income:
PLN 9200 – PLN 2059.20 = PLN 7140.80. The amount obtained does not exceed the value of the average salary, which means that for the purpose of determining the tax base, it is the value of the average salary, which is currently PLN 7768.35, that is taken.
A few more important changes are worth mentioning:
- As of recently, the days of stay abroad referred to in the Law on Working Time of Drivers and the PIT Law do not include days during which the driver took vacation, unpaid leave or was on sick leave.
- If a driver stays abroad for less than 12 hours in a day, he receives a correspondingly smaller allowance – ½ of the amount when the stay is between 8 and 12 hours, ⅓ of the amount when the stay is less than 8 hours.
- Income from an employment relationship and a contract of mandate is exempt from income tax in the amount of 20 euros for each day of a driver’s stay outside the country when performing business tasks.
Mobility package – examples of penalties
The new regulations also include information on penalties and fines that are imposed on carriers and drivers who do not comply with the package’s rules. Here are some of them:
Example penalties for drivers
- Lack of entry to a new country in the tachograph – PLN 100,
- driving without a tachograph – PLN 1,000,
- weekly rest in the cabin of the vehicle – PLN 50 (the same fine will also be paid by the carrier and the transport manager).
Examples of penalties for carriers
- Lack of documentation for international carriage (lack of waybills, declaration of posting, etc.) – a penalty of PLN 3,000 will be paid by the carrier,
- carrying out carriage without the required permits or licenses – PLN 12,000,
- Making the driver’s remuneration dependent on the number of kilometers driven, the speed of delivery or the amount of cargo transported – PLN 8,000 per driver.
