The Adequate Wage Directive 2022
2022/2041 is a
European Union Directive
A directive is a legal act of the European Union that requires member states to achieve particular goals without dictating how the member states achieve those goals. A directive's goals have to be made the goals of one or more new or changed n ...
on the setting of minimum wages and collective bargaining in
EU law
European Union law is a system of Supranational union, supranational Law, laws operating within the 27 member states of the European Union (EU). It has grown over time since the 1952 founding of the European Coal and Steel Community, to promote ...
.
Contents
Article 1 states the subject matter of (1)(a) "setting adequate levels of minimum wages" and (b) wage protection "in the form of wages set out by collective agreements". It accords "full respect of the autonomy of social partners, as well as their right to negotiate and conclude collective agreements".
Article 2 sets the scope of workers with "an employment contract or employment relationship" defined by law, collective agreement or practice, considering CJEU case law.
Article 3 sets out basic definitions of minimum wages, collective agreements, bargaining and coverage.
Article 4 requires member states (1) to "aim to increase the collective bargaining coverage" and to (a) promote the building and strengthening of the capacity of the social partners to engage in collective bargaining on wage setting at sector or cross-industry level", and (b) "encourage constructive, meaningful and informed negotiations on wages among social partners". Further (2) where "collective bargaining coverage is less than 80% of the workers" with an employment contract or relationship, there should be "a framework of enabling conditions for collective bargaining", and "an action plan to promote collective bargaining" that is public and notified to the European Commission.
Article 5 requires minimum wages (1) have "criteria set to promote adequacy with the aim to achieve decent working and living conditions, social cohesion and upward convergence" defined by national law and practice and tripartite agreements and (2) national criteria should include (a)
purchasing power
Purchasing power refers to the amount of products and services available for purchase with a certain currency unit. For example, if you took one unit of cash to a store in the 1950s, you could buy more products than you could now, showing that th ...
of minimum wages and the
cost of living
The cost of living is the cost of maintaining a certain standard of living for an individual or a household. Changes in the cost of living over time can be measured in a cost-of-living index. Cost of living calculations are also used to compare t ...
(b) general level of gross wages (c) growth rate of gross wages (d)
labour productivity
Workforce productivity is the amount of goods and services that a group of workers produce in a given amount of time. It is one of several types of productivity that economists measure. Workforce productivity, often referred to as labor produc ...
developments. This should (3) use indicative reference values (4) be updated (5) rely on consultative bodies to advise authorities.
Article 6 requires member states to keep any variations of the minimum wage "to a minimum" and ensure they are "non-discriminatory, proportionate, limited in time if relevant, and objectively and reasonably justified by a legitimate aim". Member states must only allow deductions by law if "necessary, objectively justified and proportionate".
Article 7 requires social partners are involved in wage setting and updating.
Article 8 requires that member states (1) ensure controls and inspections for minimum wages are proportionate, non-discriminatory and will progressively "strengthen", (2) enforcement authorities are given guidance "to proactively target and pursue non-compliant businesses", (3) information on minimum wages is made publicly available.
Article 9 requires that under the
Public Procurement Directive
Government procurement or public procurement is undertaken by the public authorities of the European Union (EU) and its member states in order to award contracts for public works and for the purchase of goods and services in accordance with prin ...
2014/24/EU, Directive 2014/25/EU and Directive 2014/23/EU member states ensure "economic operators comply with the wages set out by collective agreements for the relevant sector and geographical area and with the statutory minimum wages where they exist".
Articles 10 to 12 require the law is monitored and data collected, ensure workers have effective right to redress and dispute resolution, and that penalties for breach are "effective, proportionate and dissuasive".
Articles 13 to 15 require member states to implement the law, inform people, and evaluate and review it.
Article 16 makes clear that member states may have more favourable provisions and may not regress in standards.
See also
*
European labour law
European labour law regulates basic transnational standards of employment and partnership at work in the European Union and countries adhering to the European Convention on Human Rights. In setting regulatory floors to competition for job-creatin ...
*
UK labour law
United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK have a minimum set of employment rights, from Acts of Parliament, Regulations, common law and equity (legal concept), equity. ...
Notes
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External links
*Proposal for a Collective Bargaining and Wage Directiv
COM/2020/682 finalDirective text
European Union directives
European Union labour law