Report 2011 - EFTA Court

CASE E-12/10
EFTA Surveillance Authority
v
Iceland
(Failure by a Contracting Party to fulfill its obligations - Freedom to provide services
- Directive 96/71/EC - Posting of workers - Minimum rates of pay - Leave
with pay in the event of illness or accident - Insurance against accidents)
Judgment of the Court, 28 June 2011 ....................................................... 119
Report for the Hearing.............................................................................. 143
1. Article 3 (1) of Directive
96/71/EC, concerning the posting
of workers in the framework of
the provision of services, sets out
an exhaustive list of terms and
conditions of employment that host
EEA States are entitled to require
undertakings established in other
EEA States to observe when they
post workers to their territory,
including “minimum rates of pay,
including overtime rates”.
2. The concept of minimum rates
of pay is defined by the national
law and/or practice of the EEA
State to whose territory the worker
is posted. Accordingly, that content
may be freely defined by the EEA
States, in compliance with the
EEA Agreement and the general
principles of EEA law.
Summary of the Judgment
3. As Article 3(1)(c) of the
Directive is intended to limit
the possibility of the EEA
States intervening as regards pay
to matters relating to minimum
rates of pay, an entitlement to
sickness pay which is not set at a
minimum rate i.e. neither as a flat
rate of minimum compensation,
nor calculated on the basis of a
minimum wage, does not fall within
the notion of “the minimum rates
of pay”.
4. imposing an obligation on
the undertakings posting workers
to iceland to take out accident
insurance for their employees
concerns the terms and conditions
of employment. However, an
obligation to take out accident
insurance falls outside the
Case E-12/10 EFTA Surveillance xxxxxxxxxxxxxxxxxxxxxxxxx
Authority v iceland
Summary
CAse Case
e-12/10
e-xx/x
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