Jurisdiction and service of process – Germany vs. other countries (e.g., the Czech Republic)

By / / 3.5-ton Tachograph and New EU Regulations

At the European Union level, inspections regarding the posting of drivers are based on the principle of territorial jurisdiction. This means that each Member State can only inspect and sanction activities carried out on its own territory. Germany cannot directly fine a company for non-compliance with posting rules in the Czech Republic, but it can forward information to the Czech authorities through European cooperation mechanisms, including IMI. Thus, the risk does not disappear, but can be transferred to the country where the activity actually took place.

In short, jurisdiction and service of process in the EU entail:

  • Fines are imposed at the local level, but complaints can be filed with other countries through European mechanisms
  • The Czech Republic can only penalize hours worked within its territory
  • There are no pan-European fines imposed by a single authority
  • German inspectors can verify the German minimum wage, the IMI declaration for Germany, and the documents required in Germany
  • German inspectors cannot calculate the Czech minimum wage and cannot enforce Czech law
  • Any discrepancies observed in Germany may be noted in the inspection report
  • Germany can send information to the Czech Republic via the IMI system
  • The Czech authorities may subsequently decide to launch their own investigation
  • The real risk arises from administrative cooperation among Member States
  • Fines are imposed at the local level, but complaints can be filed with other countries through European mechanisms

Short answer (to keep in mind)

👉 NO, German authorities CANNOT directly fine a company for failing to comply with posting rules in the Czech Republic.

👉 YES, they can trigger indirect consequences (reporting/cooperation), which may subsequently lead to an inspection and a fine in the Czech Republic.

In other words:

  • fine = applies only within its own territory ✅
  • Notification of other states = YES ✅

1. Basic Principle: Territorial Jurisdiction

In the EU, the posting system operates according to a strict principle:

Each Member State monitors and imposes sanctions ONLY on work performed within its territory.

Specifically:

  • Germany → may only pay for hours worked in Germany
  • Czech Republic → only hours worked in the Czech Republic
  • Austria → only hours worked in Austria

👉 There are no “pan-European fines” issued by a single authority.

2. Your specific scenario (analyzed step by step)

Situation:

  • Posting control in Germany
  • The inspector checks the tachograph: hours worked in the Czech Republic
  • On the flyer: There is a DE posting bonus; There is NO CZ posting bonus

What the German inspector CAN do

Please check:

  • if you paid the German statutory minimum wage for the hours worked in Germany;
  • if the IMI for Germany is correct;
  • whether the documents requested by the DE are on board.

CANNOT:

  • to calculate the Czech minimum wage;
  • to impose a fine for underpayment in the Czech Republic;
  • to apply Czech law.

3. What it actually does (and this is where the real risk lies)

Although the German inspector cannot issue you a ticket, he or she can:

🔁 1. Note the discrepancy

The report typically includes a statement such as:

“There are indications of possible non-compliance with posting obligations in other Member States.”

🔁 2. Send a notification via the IMI system

Through the EU administrative cooperation mechanism:

  • Germany informs the Czech Republic
  • Attach: tachograph records, driver data, copies of pay stubs

👉 From here on, the Czech Republic decides independently whether to initiate an investigation.

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