Compensation for unused paid annual leave granted to temporary workers recruited through a specialised agency must be at least equal to that which would have been granted to them if they had been recruited directly by the user undertaking, the Court of Justice of the European Union ruled on Thursday 12 May (judgment C-426/20).
Two workers asked the Portuguese temporary employment agency Luso Temp to pay them holiday pay for unused paid leave for the 2 years they were employed by a company that had used its services. Luso Temp is of the opinion that the method to be applied for the calculation of the allowance is the one provided for in the Portuguese special scheme for temporary workers, which entitles the workers to a lower amount than if they had been recruited directly by the user undertaking for the same period and the same job.
The Portuguese government is of the opinion that the general national regime should apply, with a view to equal treatment of workers regardless of the nature of the contractual relationship.
The Court of Justice interpreted the Temporary Agency Work Directive (2008/104) and ruled in favour of the plaintiffs.
According to the European judge, the relevant allowance that an employer has to pay to a temporary worker is included in the notion of ‘basic working and employment conditions’ within the meaning of the European rules. The Court considers that under the principle of equal treatment, temporary workers recruited through a temporary employment agency must enjoy basic working and employment conditions at least equal to those which would apply to them if they were recruited directly by an undertaking to fill the same post.
See the judgment (in French): https://aeur.eu/f/1lf (Original version in French by Mathieu Bion)