European Directive on Minimum wage Risk of rejection. The EU Court of Justice declared the legislation “incompatible” with the EU Treaty for violating member states’ national competences in terms of wage compensation and the right of association.
Minimum wage law in balance
A recent ruling by the Court of Justice of the European Union threatens to invalidate the European Minimum Wage Directive. Attorney General, Nicholas EmilioAccepting the appeal filed by Denmark And supported by Swedenruled that the directive violates the European Treaties, as it excessively interferes with national competences in matters relating to wages and the right to association.
The issue has sparked a heated debate in the EU: if Denmark and Sweden oppose the rule, which is considered by the EU to be an unacceptable interference in matters of national competence, countries such as Belgium, Germany, Greece, Spain, France, Luxembourg e Portugal Expressed a favorable opinion supporting the importance of coordinated action at European level to ensure better working conditions. “We note with concern the opinion of the Advocate General of the EU Court,” announced the group of Socialists and Democrats in the European Parliament, which includes the Democratic Party.
EU directive
European Minimum Wage Directive, approved by the European Council and Parliament. September 2022Member States are required to take the necessary steps to comply with the new rules. November 2024. However, by December of the same year, the implementation of this directive was not uniform. According to an analysis conducted by Etuc, only 14 countries, incl Italy e Germanyhad fully implemented the Directive into its national law. Five other states, incl Francehad implemented only a portion of the provisions, while others preferred Spain, Sweden, Denmark e Polandwere at the draft law stage.
The directive, which does not include an obligation to introduce a minimum wage for those states that do not have one, nor a minimum wage level for those that require it by law. , has been criticized by the left and trade unions.
The document requires member states that already have a legal minimum wage to establish a clear and transparent mechanism for setting it and updating it periodically. In particular, the directive requires that the minimum wage be updated. At least every two years And not more than four. However, this specific reference to minimum wage ‘levels’, even if not expressed numerically, would amount to a breach of Member States’ special competence for lawyers.
The Directive also includes specific obligations for Member States that do not yet have a widely applicable statutory minimum wage. These countries need to establish a detailed plan to increase minimum wage coverage. Up to 80% of workers Within a specified time (Italy does not fall into this category, as its contractual coverage will already reach 100%).
For Member States, the Directive also provides measures to ensure effective access to the minimum wage, such as strict controls, clear information and sanctions for non-compliant employers. It is estimated that full implementation of this directive will lead to higher wage growth. 20 million European workers. Even if it is not yet an actual order, there is a high risk that the directive will eventually be revoked, because in most cases Judges of the Court of Justice of the European Union Follow the instructions given by the Attorney General.
