Commission v Germany (Freedom to provide services) [2006] EUECJ C-490/04 (14 December 2006)

Commission v Germany (Freedom to provide services) [2006] EUECJ C-490/04 (14 December 2006)

Paragraph 1(3) and Paragraph 3(2) of the AEntG infringe Article 49 EC because they impose unjustified and discriminatory burdens on undertakings established in other Member States posting workers to Germany, either by requiring contributions to the German paid-leave fund even where equivalent protection exists in...

Source-derived case information.

Citation
[2006] EUECJ C-490/04
Parties
Applicant: Commission of the European Communities; Respondent: Federal Republic of Germany; Intervener: French Republic
Jurisdiction
European Union
Procedural Posture
Action for Failure to Fulfil Obligations (article 226 Ec) / Opinion of Advocate General Prior to Judgment
Outcome
Partial success for the Commission; two of three pleas upheld.
Legal Topics
Freedom to Provide Services, Posting of Workers, Discrimination Based on Establishment, Paid Leave Fund Contributions, Translation of Employment Documents, Notification Obligations for Temporary Employment Agencies
European Union Law Labour Law Freedom to Provide Services Posting of Workers Discrimination Based on Establishment Paid Leave Fund Contributions Translation of Employment Documents Notification Obligations for Temporary Employment Agencies

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Parties

Commission of the European Communities

Applicant

Federal Republic of Germany

Respondent

French Republic

Intervener

Procedural Posture

Action for Failure to Fulfil Obligations (article 226 Ec) / Opinion of Advocate General Prior to Judgment

  1. 1 Whether German law requiring foreign undertakings posting workers to Germany to contribute to the paid-leave fund, translate documents, and notify each posting violates Article 49 EC (freedom to provide services)

Ratio Decidendi

Paragraph 1(3) and Paragraph 3(2) of the AEntG infringe Article 49 EC because they impose unjustified and discriminatory burdens on undertakings established in other Member States posting workers to Germany, either by requiring contributions to the German paid-leave fund even where equivalent protection exists in the home state, or by imposing notification obligations only on foreign temporary employment agencies. However, the requirement to translate certain employment documents into German (Paragraph 2(3) AEntG) is justified and proportionate for effective monitoring and protection of workers, and is compatible with Article 49 EC.

Court Disposition

Partial success for the Commission; two of three pleas upheld.

Orders

  • Declare that Germany failed to fulfil its obligations under Article 49 EC by requiring foreign undertakings to contribute to the paid-leave fund and by imposing notification obligations on foreign temporary employment agencies.
  • Dismiss the remainder of the action (requirement to translate documents upheld).