Minimum Wages as an Obstacle to the Free Provision of Services

Abstract:

This article deals with the question of the extent to which the national regulation of minimum wages is influenced by the European Community's legal order. Firstly, it analyses the case law of the European Court of Justice with regard to Article 49 of the EC Treaty, which indicates that there is an increasing tendency to restrict the ability to extend a host state’s minimum wage to foreign service providers. It then examines the Posted Workers Directive in the light of the Laval and Rüffert cases, which are seen as unexpected interpretations of the Directive and which will have an influence on the social models of some Member States. Finally, the article focuses on Croatia as a Non-Member State and its obligations, which derive from the Stabilisation and Association Agreement, regarding the Posted Workers Directive.