JUDGMENT OF THE COURT

of 28 June 2011

in Case E-12/10

EFTA Surveillance Authority v Iceland

(Failure by a Contracting Party to fulfil 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)

2011/C 336/14

In Case E-12/10, EFTA Surveillance Authority v Iceland — APPLICATION for a declaration that by maintaining in force Articles 5 and 7 of Act No 45/2007 on the rights and obligations of foreign undertakings that post workers temporarily in Iceland and on their workers’ terms and conditions of employment, Iceland has failed to fulfil its obligations arising from Article 36 of the EEA Agreement and Article 3 of the Act referred to at point 30 of Annex XVIII to the EEA Agreement, i.e. Directive 96/71/EC of the European Parliament and of the Council of 16 December 1996 concerning the posting of workers in the framework of the provision of services, as adapted to the EEA Agreement by Protocol 1 thereto, the Court, composed of Carl Baudenbacher, President, Thorgeir Örlygsson and Per Christiansen (Judge-Rapporteur), Judges, gave judgment on 28 June 2011, the operative part of which is as follows:

The Court hereby: