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Services: Liechtenstein to be brought to Court for legislation on temporary work agencies



On 28 November 2012, the EFTA Surveillance Authority decided to take Liechtenstein to the EFTA Court in a case concerning its Regulation on temporary work agencies.

According to national law, temporary work agencies established in Liechtenstein where the responsible person is resident in Liechtenstein are required to make a deposit of 50 000 Swiss francs. In comparison, undertakings where the responsible person is resident outside Liechtenstein, or undertakings established outside Liechtenstein providing cross-border temporary employment services, have to provide a deposit of 100 000 Swiss francs.

The Authority considers that the national legislation is contrary to the freedom to provide services and the freedom of establishment.

A service provider will be less attracted to provide services in Liechtenstein. In addition, there is no reason to link the amount of the deposit to the place of residence of the temporary work agency's manager.

Although, the Authority understands the necessity to control these types of activities, more appropriate and less restrictive measures could have been taken.

Liechtenstein accepted to amend its legislation, but stated that the necessary legislative amendments will not be in place before January 2014.

As Liechtenstein failed to take satisfactory measures after receiving the Authority's reasoned opinion in this case, the matter now will be brought before the EFTA Court.

For further information, please contact

Mr. Markus Schneider
Deputy Director Legal and Executive Affairs
tel. (+32)(0)2 286 1884

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