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Súdny dvor Európskej únie·Rozsudok·10.4.1984

C-79/83

ECLI:EU:C:1984:155

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Súdny dvor Európskej únie
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61983CJ0079

JUDGMENT OF 10. 4. 1984 — CASE 79/83

a directive, the national court is Although Directive No 76/207/EEC, required to interpret its national law for the purpose of imposing a in the light of the wording and the sanction for the breach of the purpose of the directive in order to prohibition of discrimination, leaves achieve the result referred to in the the Member States free to choose third paragraph of Article 189. between the different solutions suitable for achieving its objective, it 2. Directive No 76/207/EEC does not nevertheless requires that if a Member require discrimination on grounds of State chooses to penalize breaches of sex regarding access to employment that prohibition by the award of to be made the subject of a sanction compensation, then in order to ensure by way of an obligation imposed on that it is effective and that it has a the employer who is the author of the deterrent effect, that compensation discrimination to conclude a contract must in any event be adequate in of employment with the candidate relation to the damage sustained and discriminated against. must therefore amount to more than purely nominal compensation such as, As regards sanctions for any discrimi- nation which may occur, the directive for example, the reimbursement only does not include any unconditional of the expenses incurred in connexion and sufficiently precise obligation with the application. It is for the which, in the absence of implementing national court to interpret and apply measures adopted within the pres- the legislation adopted for the cribed time-limits, may be relied on implementation of the directive in by an individual in order to obtain conformity with the requirements of specific compensation under the Community law, in so far as it is directive, where that is not provided given discretion to do so under for or permitted under national law. national law.

In Case 7 9 / 8 3

R E F E R E N C E to the C o u r t u n d e r Article 177 of the E E C T r e a t y b y the Arbeitsgericht [Labour C o u r t ] H a m b u r g for a preliminary ruling in the action pending before t h a t court between

DORIT HARZ

and

DEUTSCHE TRADAX G M B H ,

o n the interpretation of Council Directive N o 7 6 / 2 0 7 / E E C of 9 February 1976 on the implementation of the principle of equal t r e a t m e n t for m e n a n d

HARZ / DEUTSCHE TRADAX

women as regards access to employment, vocational training and promotion, and working conditions (Official Journal 1976, L 39, p. 40),

THE COURT

composed of: J. Menens de Wilmars, President, T. Koopmans, K. Bahlmann and Y. Galmot, Presidents of Chambers, P. Pescatore, Lord Mackenzie Stuart, A. O'Keeffe, G. Bosco, O. Due, U. Everling and C. Kakouris, Judges,

Advocate General: S. Rozès Registrar: H. A. Rühi, Principal Administrator

gives the following

JUDGMENT

Facts and Issues

The facts of the case, the course of the [graduate in business studies]. On 24 procedure and the observations sub- January 1981 the defendant in the main mitted in accordance with Article 20 of proceedings, Deutsche Tradax GmbH the Protocol on the Statute of the Court (hereinafter referred to as "the de- of Justice of the EEC may be fendant") inserted in the newspaper "Die summarized as follows: Welt" an advertisement for a vacant post in which it offered to economics graduates willing to work hard "a spring- board for a career in management".

1 — Facts and procedure The plaintiff applied for that post by letter dated 28 January 1981. By letter dated 3 February 1981 the manager of Deutsche Tradax GmbH returned her application papers and informed her In October 1980 the plaintiff in the main that only male applicants would be proceedings, Dorit Harz (hereinafter considered for the position. It appears referred to as "the plaintiff"), completed from the defendant's letter that the her studies in business administration and applicant's qualifications, which were qualified as a Diplomierte Kauffrau generally good, were not in doubt.

JUDGMENT OF 10. 4. 1984 — CASE 79/83

At the instigation of the plaintiff, the The defendant maintains that the ad- Leistelle "Gleichstellung der Frau", vertised post had to be filled by a male (Regional department promoting equal- applicant. Only men are employed in the ity for women) in Hamburg requested an buying and selling of agricultural raw explanation from the defendant. The materials. The defendant supplies large latter replied that it had rejected the quantities of cereals to Saudi Arabia, in plaintiff for the position advertised solely particular. The social and religious because she was a woman. structures prevailing there preclude a woman from establishing business con- tracts and maintaining existing business relationships in that country. In her application brought before the Arbeitsgericht Hamburg on 26 February 1981 the plaintiff sought, primarily, an order requiring the defendant to appoint her, in the alternative, damages in the Moreover, the reason why the plaintiff sum of D M 12 000, and, in the last alter- was not appointed was solely that she native, damages in the sum of D M 2.31. did not meet the requirements which the defendant regarded as essential for the position. That was clear from study of the job interviews conducted with the By letter dated 7 April 1981 the de- plaintiff in Hamburg on 12 May and in fendant offered to interview the plaintiff Geneva on 25 May 1981. at the defendant's premises to discuss the possibility of her employment with the defendant. That interview took place on 12 May 1981. At the defendant's invitation, the plaintiff was interviewed Finally, the defendant referred to for a post by Deutsche Tradax GmbH at Paragraph 611a (2) of the Bürgerliches the latter's European headquarters on 25 Gesetzbuch and contended that at the May 1981. Finally, by letter of 3 June most the plaintiff was entitled to claim 1981, the defendant informed the damages in the sum of D M 2.31. plaintiff that following the interviews which had been conducted in Hamburg on 12 May and in Geneva on 25 May 1981, it had decided not to recruit her for its trainee programme. The Arbeitsgericht Hamburg took the view that, in this instance, there had been discrimination in the selection procedure inasmuch as the discussions Before the Arbeitsgericht the plaintiff between the defendant and the plaintiff claimed that the defendant had com- as to the possibility of recruitment took mitted a breach of the principle of place under pressure of the proceedings nondiscrimination, and had infringed which has been initiated before that Articles 2 and 3 of Council Directive No court. For the purpose of enforcing equal 76/207/EEC of 9 February 1976 on the teatment for men and women as regards implementation of the principle of equal access to employment, the possible treatment for men and women as regards sanctions are a right to engagement or a access to employment, vocational right to damages. Damages, if awarded, training and promotion, and working should represent a financially appreciable conditions, as well as Paragraph 611a of sanction in order to ensure that the the Bürgerliches Gesetzbuch (German employers conduct themselves in con- Civil Code). formity with the law.

HARZ / DEUTSCHE TRADAX

In the view of the Arbeitsgericht, and working conditions (Official Directive No 76/207/EEC has not yet Journal 1976, L 39, p. 40) confer on a been implemented in German law and female applicant a right to a contract the equality of treatment referred to in of employment against an employer that directive can only be achieved if the who has refused to engage her on mandatory legal consequence of discrimi- account of her sex? nation in the selection of candidates for a post is restitution in respect of a 2. In the case of an affirmative reply to positive interest, that is to say, a right Question 1 does that answer apply to be engaged or, alternatively, as a only sanction, to receive substantial damages. The court also stated, however, that the (a) where the female applicant dis-

Gesetz über die Gleichbehandlung von criminated against is the best Männern und Frauen am Arbeitsplatz qualified of all the applicants, und über die Erhaltung von Ansprüchen whether male or female, or bei Betriebsübergang [Law on Equal (b) also where, although there was Treatment for Men and Women at discrimination in the selection pro- Work and the Maintenance of Rights on cedure, in the result a better Transfers of Businesses], which amended qualified male applicant was the German labour legislation to comply appointed? with the Community provisions, provides in Paragraph 611a (2) of the Bürgerliches 3. If Questions 1, 2 (a) and 2 (b) are

Gesetzbuch, as the sole penalty for answered in the negative, does it discrimination in recruitment, compen- follow, as a legal consequence, from sation for "Vertrauensschaden" [abuse the principle of equal treatment for of confidence], that is for expenses men and women as laid clown by actually incurred in reliance on the the provisions of Directive No expectation that there would be no 76/207/EEC that a financially ap- discrimination in connection with the preciable sanction is necessary, for

employment relationship. Such minimal example a right in favour of the compensation, in the present case DM female worker discriminated against 2.31, is not sufficient to ensure com- to damages to be assessed, according pliance with the Community directive, to the position in the particular case, since it will not make employers conduct in a sum not exceeding the earnings themselves in conformity with the law. which she could properly have expected to receive for the period of Consequently, the Arbeitsgericht Ham- six months, the period in which under burg stayed the proceedings and referred the law of the Federal Republic of the following questions to the Court for Germany workers may not plead a preliminary ruling: socially unjustified dismissal, and/or that the State must impose penalties

1. In an established case of discrimi- or administrative fines? nation, does the principle of equal treatment for men and women as 4. If Question 3 is answered in the af- regards access to employment con- firmative, does that answer apply only tained in Articles 1 (2), 2 (1) and 2 (3) of Council Directive No (a) where the female applicant dis- 76/207/EEC of 9 February 1976 on criminated against is the best the implementation of the principle of qualified of all the candidates, equal treatment for men and women whether male or female, or as regards access to employment, (b) also where, even though there was vocational training and promotion, discrimination in the selection

JUDGMENT OF 10. 4. 1984 — CASE 79/83

procedure, in the result a better II — R e l e v a n t p r o v i s i o n s qualified male candidate was appointed? The following provisions of Directive N o 76/207/EEC are relevant: 5. If Questions 1, 2, 3 or 4 are answered in the affirmative, are Articles 1, 2 "Article 1 and 3 of Directive N o 76/207/EEC directly applicable in the Member 1. The purpose of this directive is to put States? into effect in the Member States the principle of equal treatment for men and women as regards access to The order making the reference was employment, including promotion, lodged at the Court Registry on 3 May and to vocational training and as 1983. regards working conditions and . . . social security. This principle is hereinafter referred to as 'the In accordance with Article 20 of the principle of equal treatment'. Protocol on the Statute of the Court of Justice of the EEC, written observations were submitted by the plaintiff, re- presented by Klaus Bertelsmann and Article 2 Heide M. Pfaar, of the Hamburg Bar; by the Federal Republic of Germany, re- presented by Martin Seidel, Ministe- 1. For the purposes of the following rialrat at the Federal Ministry of provisions, the principle of equal Economic Affairs and by Manfred treatment shall mean that there shall Zuleeg, Professor of Public Law (in- be no discrimination whatsoever on cluding European Law and International grounds of sex either directly or Law) at the Johann Wolfgang Goethe indirectly by reference in particular to University of Frankfurt am Main, acting marital or family status. as Agents; by the United Kingdom, represented by J. D. Howes of the Treasury Solicitor's Department, Queen Anne's Chambers, acting as Agent, Article 3 assisted by Ian Glick, Barrister, of the Inner Temple, London; by the King- 1. Application of the principle of equal dom of the Netherlands, represented by treatment means that there shall be no E. F. Jacobs, Secretary-General of the discrimination whatsoever on grounds Netherlands Ministry of Foreign Affairs, of sex in the conditions, including acting as Agent; and by the Commission, selection criteria, for access to all jobs represented by Manfred Beschel, a or posts . . . member of its Legal Department, acting as Agent, assisted by Meinhard Hilf of the University of Bielefeld. Article 6 · Upon hearing the report of the Judge- Rapporteur and the views of the Member States shall introduce into their Advocate General, the Court decided to national legal systems such measures as open the oral procedure without any are necessary to enable all persons who preparatory inquiry. consider themselves wronged by failure

HARZ / DEUTSCHE TRADAX

to apply to them the principle of equal far as discrimination in recruitment is t r e a t m e n t . . . to pursue their claims by concerned. judicial process . . . She considers that it is clear from the wording of Paragraph 611 a (2) of the Bürgerliches Gesetzbuch that that pro- vision does not comply with Article 3 (1) Article 9 taken together with Articles 1 (1) and 2 (1) of Directive No 76/207/EEC. The 1. Member States whall put into force directive requires that compliance with the laws, regulations and adminis- the prohibition of any discrimination on trative provisions necessary in order grounds of sex be enforced by legal to comply with this directive . . . " sanctions. German law, on the other hand, provides that workers may receive (nominal) damages for the frustration of Paragraph 611a of the Bürgerliches their expectation that they will not be Gesetzbuch, which purports to im- discriminated against. plement Directive No 76/207/EEC in German law, stipulates that: In German law the legal consequences of the prohibition against discrimination do "(1) An employer must not discriminate not, therefore, depend on the breach of against a worker on grounds of sex, that prohibition but on the loss caused to in connection with an agreement or the worker in question, if he has a measure, in particular in the sustained any loss, on the ground that course of the establishment of an his expectation has been frustrated. The employment relationship . . . legislature adopted that approach because it balanced the objectives of the prohibition against discrimination against (2) If an employment relationship has the conflicting ones of the "contractual not been established because of a freedom" of the employer, a procedure breach of the prohibition of which it was not entitled to adopt. discrimination in subparagraph (1) that is attributable to the employer, he is liable to pay damages in In several areas of the employment respect of the loss incurred by the relationship, for example in the matter of worker as a result of his reliance dismissal and in respect of other on the expectation that the measures which may be taken in the establishment of the employment course of recruitment, the legislature relationship would not be precluded gave precedence to the prohibition by such a breach . . .". against discrimination. However, on the question of access to employment, the legislature opted in favour of the con- tractual freedom of the employer, which III — W r i t t e n observations sub- includes the "freedom" to discriminate. m i t t e d to t h e C o u r t Moreover, the prevailing academic view is that when an employer states at the The plaintiff maintains that Directive No outset his intention to discriminate, for 76/207/EEC has not been or has been example not to engage a woman, there insufficiently adopted in the national law is not even any recognized right to of the Federal Republic of Germany as damages in respect of the frustrated

JUDGMENT OF 10. 4. 1984 — CASE 79/83

expectation. In adding subparagraph (2) applying the directive in question, and to Paragraph 611a of the Bürgerliches points out that in any event it is Gesetzbuch, the legislature diminished inconceivable for the legal consequences the force of the prohibition of discrim- of discrimination against a woman to be ination contained in subparagraph (1) of limited to the right to reimbursement of the same paragraph. Its action in so postage costs. doing represents a considerable de- parture from the "normal" legal The plaintiff then endeavours to explain consequences provided for by German why it follows from the directive, taken

civil law. Those "normal" rules — with together with German civil law, that a the exception of Paragraph 611a (2) of right to engagement exists or alter- the Bürgerliches Gesetzbuch — go natively, if the victim of discrimination further in fact, and even allow for a does not exercise that right, the en- more flexible approach in individual titlement to damages in a sum not cases. exceeding 12 monthly salary payments. As regards discrimination in recruitment, Paragraph 611a (2) implies that a victim recognition that the worker who has of discrimination is entitled to com- been rejected as a result of discrimi- pensation only in respect of his so-called nation has a right to be engaged negative interest, with the result that in certainly corresponds to the tenor of the almost every case it is possible to claim, directive in question. Such a right, in that respect, only the reimbursement together with the consequences which of the cost of submitting an application, follow from it, is in conformity with the in other words the costs of preparing

German legal system. The general documents, of the writing paper, the principle regarding compensation, laid postage and so on. In this instance, in down by the Civil Code — with the the view of the Arbeitsgericht Hamburg, exception of Paragraph 611a (2) — the plaintiff is entitled to claim damages allows any person who has suffered of D M 2.31, and that compensation damage the right to compensation constitutes the sole legal consequence corresponding to his positive interest or,

incurred. Moreover, the victims of the in other words, compensation in kind discrimination are required to satisfy (Naturalrestitution). Paragraph 611a (2) certain conditions in order to be entitled therefore represents a departure from to that nominal compensation and those that principle. conditions are not always satisfied. The prohibition against discrimination which appears in Paragraph 611a is therefore Moreover, recognition of a right to purely formal. engagement already exists in German law in fact where the rejected candidate It is conceded that Directive No 76/207/ is the best of the candidates of both EEC, on the one hand, does not provide sexes. expressly for specific legal sanctions or consequences in the event of discrimi- nation in recruitment, but on the other A right to engagement may arise where hand, (as, moreover, the Court of Justice discrimination occurs in recruitment for has observed) Community law requires a post in the civil service (see Article 33 that effective means be made available to (2) and (3) of the Grundgesetz [Basic implement the binding objectives of Law]). There is some dispute as to the directives. exact circumstances in which a candidate male or female, may assert his or her The plaintiff lists the different methods right to be engaged in the civil service, which she considers might be used in but it is agreed that the right to

HARZ / DEUTSCHE TRADAX

engagement exists where the engagement to the Kündigungsschutzgesetz [Law of that person is the only possible lawful on Protection against Dismissal] an decision for the public authority in employer may dismiss an employee question. during the first six months of em- ployment. Even after that period, he is In any event, the right exists in so far as entitled to dismiss if that proves the post in question has not yet been necessary to meet imperative require- filled. If the post is already occupied, it is ments of management. generally thought that the victim of the discrimination is entitled, if the post concerned is that of a civil servant, either to be recruited for the next vacant post, In certain cases the engagement of the or to be paid financial compensaiton. As person may be impossible or out of the regards the post of a manual worker or a question, as for example when a post has clerical employee in the civil service, a been abolished in the meantime and person who has been discriminated when there is no comparable post. against in the selection procedure may According to the "normal" rules, the bring an action before the labour courts victim of discrimination may be given with a view to obtaining an appointment financial compensation in that case. Thus in the civil service, even if the post has Paragraph 10 of the abovementioned already been filled. In any event, the Law provides for the payment of a lump administration may be ordered to include sum not exceeding twelve monthly salary the person who has been unlawfully payments, and that provision could serve rejected in the next selection procedure as a legal model to be applied in the for a similar post. cases mentioned above.

In the private sector, the right to engagement was recognized before the The victims of discrimination who are implementing law came into force for not recognized as having a right to undertakings which hold a monopoly. engagement because a better qualified That state of affairs is based on the candidate obtained the post in question prohibition against abuse of a monopoly. are entitled not only to reimbursement of the cost of submitting an application, For other undertakings in the same but also to compensation for the non- sector, Paragraph 78 of the Betriebs- material damage caused by the verfassungsgesetz [Law on the Rep- infringement of the rights of the resentation of Employees within Under- individual [Persönlichkeitsrecht — a takings] also provides for a right to concept embracing the right to privacy engagement. and the right to the free development of the person]. That right is protected under Article 2 (1) of the Grundgesetz It cannot be claimed that a right to and may also be implied from Paragraph engagement is not feasible because it 847 of the Bürgerliches Gesetzbuch. The would compel the employer to create right to compensation for non-material and to fill a considerable number of loss is especially important where a useless posts. The employer is not female candidate is not regarded as the required to engage a rejected candidate best qualified because in the majority of on the basis of the latter's right to cases recognition of a woman's right to engagement and, at the same time, to be engaged is the exception rather than continue to employ the candidate who the rule, not because women are less well has already been engaged. According qualified, but because the procedure

JUDGMENT OF 10. 4. 1984 — CASE 79/83

which requires a woman to establish that In conclusion, the plaintiff proposes that she is better qualified entails an ex- the questions submitted by the Arbeits- tremely heavy burden of proof. gericht Hamburg should be answered as follows:

The plaintiff claims that the legislature in First question the Federal Republic of Germany has failed to take the necessary measures to Pursuant to Directive No 76/207/EEC, ensure that any laws, regulations and Member States must take the measures administrative provisions contrary to necessary to ensure that any laws, regu- the principle of equal treatment are lations and administrative proposions abolished. The provision in question, contrary to the principle of equal namely Paragraph 611a (2) of the Bür- treatment are abolished. gerliches Gesetzbuch, does not allow national courts to develop an interpret- ation of the law which is in conformity If a Member State fails to abolish a law with the Community directive, inasmuch which is incompatible with that principle, as the clear wording of the provision in although its removal would bring the question prevents them from so doing. national law into conformity with the The only possible solution is therefore to directive, the provision of national law is declare the provisions of law in question abolished in application of the directive. contrary to the directive and not applicable within the Member State. Paragraph 611a (2) of the Bürgerliches Since the Federal Republic of Germany Gesetzbuch constitutes an obstacle to the has not adequately implemented Di- application of the directive and must no rective No 76/207/EEC concerning longer be applied. Therefore the rules discrimination in recruitment, that which would have been applicable if that directive becomes directly applicable. paragraph had not been adopted apply. The possibility that there might be some discretion as to the implementation of the directive does not prevent its having There is a right to conclude an em- direct application provided that it is clear ployment contract provided that it is that the implementing law is such as to possible for the victim of the discrimi- prevent an adequate implementation in nation to be engaged. the national law. Article 3 (2) of the directive clearly states that Member Second question States are required to take the measures necessary to ensure that national pro- visions contrary to the principle of equal Only a candidate who has not been treatment are abolished, and therefore engaged on the ground of her sex may allows individuals to rely on it. The claim a right to be engaged. consequence of the direct effect of that provision of the directive is therefore that Paragraph 611a (2) of the Bürg- Third question erliches Gesetzbuch loses its effect and the effective sanctions normally imposed If it is impossible to engage a candidate under German civil law, described above, who has been discriminated against or if are applicable until the German she is not the best qualified, the sanction legislature exercises its wide discretion in to be imposed must be an appreciable a manner which conforms to the one in order to render the prohibition directive. against discrimination effective.

HARZ / DEUTSCHE TRADAX

Fourth question the German Government stresses the fact that each Member State has a margin A candidate who has been discriminated of discretion as regards the legal against and who satisfies the necessary consequences which must result from a conditions, but who cannot claim a right breach of the principle of equal to be engaged, may, in application of the treatment (third paragraph of Article 189 German legislation, claim damages not of the EEC Treaty). exceeding twelve monthly salary pay ments. The exclusion of the right to be engaged The candidates who do not satisfy the falls within the bounds of the margin of necessary conditions for engagement discretion allowed by the directive to are entitled to the reimbursement of the each Member State as to form and cost of submitting an application and methods. Community law does not compensation for the non-material require that the interests of the candidate damage which has been caused to their discrimated against override all other rights as an individual. considerations, since otherwise it would not have been necessary to include the

provision in Article 2 (4) of Directive No Fifth question 76/207/EEC, which authorizes Member States to take measures to promote equal The directive is directly applicable opportunity for men and women. inasmuch as the German national provision, which is contrary to it and which excludes the application of the The appointment of the person preferred normal legal consequences obtaining in by the employer cannot be annulled since civil law, is void. that would entail the frustration of that person's legitimate expectations. The Federal Republic of Germany refers Moreover, the creation of a new post or to the observations which it submitted in even of several posts goes beyond the Case 14/83, von Colson and Kamann ν scope of the prohibition of discrimi Land Nordrhein-Westfalen, in which it natory treatment and represents a positive measure which cannot be emphasizes that the draft law was imposed on the potential employer. notified to the Commission prior to the Finally, even if the discrimination is adoption of the Law and that the revealed before the post is occupied, an Commission did not raise any objection employer cannot be compelled to engage in connection with the provision which is someone. made therein regarding the consequences of discrimination in relation to access to

employment. Moreover, in its reasoned In addition, the German Government opinion of 29 October 1982 the maintains that if the Court should Commission does not suggest that the consider that more serious legal Law constitutes an infringement against consequences are necessary in order to Directive No 76/207/EEC in that impose the principle of equal treatment respect. In addition, the new legislation effectively, the national courts must first goes further than previous laws, in be asked to exhaust the possibilities particular inasmuch as it is now provided by the national legal system.

In established that all potential and actual its view, it is possible for the German employers are bound by it. courts to elaborate from the general context of private law adequate solutions Whilst it is aware of the need for which satisfy both the principle of equal effective implementation of the directive, treatment and the interests of all parties.

JUDGMENT OF 10. 4. 1984 — CASE 79/83

Among the measures which would be phasizes that a directive which has not effective with a view to enforcing the been implemented cannot impose ob- principle of equal treatment, the Bür- ligations on individuals to whom it is not gerliches Gesetzbuch provides for the addressed. right to damages.

Furthermore, the legal consequence of It states, in addition, that if the directive discrimination should be proportionate. impliedly requires national courts to Thus an appreciable legal consequence is order employers to engage candidates sufficient to enforce the principle of who have been discriminated against, equal treatment. Moreover, a right to such an implied requirement does not damages should exist only if the have direct effect inasmuch as it is candidate discriminated against was neither clear nor unambiguous, and its better qualified than the others to carry operation is dependent upon further out the duties in question; it should not action taken by national authorities. exist where the candidates' qualifications Similarly, Article 6 cannot have direct were equal. effect since it expressly requires Member States to introduce unspecified measures. As regards the problem ot the errects ot Directive No 76/207/EEC, the German The Kingdom of the Netherlands con- Government considers that, in the siders that in cases of discrimination the national sphere, the scope of the victim has no right to be engaged. On directive's legal effects is to be the other hand, it takes the view that determined by reference to the existing various solutions are possible. Thus, in case-law of the Court. certain circumstances the employer might be ordered to pay damages. The The United Kingdom likewise refers to Netherlands Government considers, in its observations in Case 14/83, in which any event, that an order to pay a purely it observes that it is for Member States to nominal sum cannot satisfy the re- choose and introduce the measures they quirement that the person discriminated consider appropriate to ensure the against must be able to rely on his rights fulfilment of their obligations under the under the directive. directive and that the Federal Republic of Germany has done so. Moreover, the Netherlands Government Article 6 of the directive is silent as to emphasizes, with reference to the fourth the measures Member States should question, that it is not possible to suggest adopt. The United Kingdom therefore that the candidate has a right to be finds the suggestion that there is some recruited if she is "the best qualified" implied and exclusive requirement as subparagraph (a) of that question startling. presupposes. The choice of the "best qualified" candidate depends on a The questions posed in the abovemen- certain number of factors which cannot tioned case and the commentaries upon be assessed from an objective point of them themselves demonstrate clearly the view. According to the Netherlands considerable difficulty the Court would Government, subparagraph (a) of the face if it tried to legislate for Member fourth question must therefore be States in those matters. answered in the negative and subpara- graph (b) in the affirmative. A victim As regards the applicability of the of discrimination in the course of a directive, the United Kingdom em- selection procedure must have a remedy

HARZ / DEUTSCHE TRADAX

against that discrimination, but that principle which underlies any directive, remedy must not prejudge the final that the implementation must produce outcome of the procedure. effective results.

The Commission first examines at some As the first question must clearly be length the relevant provisions of answered in the negative, it is not Community law and German law. necessary, even in the alternative, to However, it states that it does not wish express a view on the second question. to deal with the question of the extent to which German law may help the plaintiff The third question is based on in this instance in her action, if it is not recognition of the fact that the German necessary to do so. rule according to which compensation is awarded only in respect of "Vertrau- The Commission takes the view that it is ensschaden" is ineffective. The question not possible to infer from Directive No is intended to encourage the Court to 76/207/EEC a right to be offered a post. acknowledge the possible existence of an That follows, in the first place, from the implied right to financial compensatoli in wording of the directive, which does not respect of a positive material interest. provide for such a sanction. In particular, Article 6 merely provides for a purely In that regard, the Commission concedes formal remedy, without establishing any that neither the wording nor the back- substantive right. ground of the directive provides precise support for any argument in that context Nor is the background of the directive and that not all the Member States have any more conclusive. Neither in the provided for a civil penalty in the form statement of the grounds of the proposal of a right to compensation. for a directive nor in the deliberations of the European Parliament, or those of the Nevertheless, the Commission considers Economic and Social Committee, were that the national legislature must take the possible sanctions considered in any into account certain general principles. detail. Thus, Article 3 (1) of the directive Moreover, the reactions of the Member contains a substantive obligation which is States evinced in their implementing laws extremely clear. In relation to access to reveal a wide variety of sanctions. Only employment no discrimination what- in Italian law are the courts "entitled to soever on grounds of sex is permitted. order the termination or the rescission According to Article 6 of the directive, of a discrimination in respect of an moreover, the person seeking em- appointment". The caution of the ployment must have, to that extent, a Member States is attributable to the right corresponding to the abovemen- existence of the conflicting principle of tioned obligation, when he is the the contractual freedom of the employer. "victim" of a breach of that obligation by the employer. In those circumstances, Article 6 implies the existence of "rights" Finally, it is in keeping with the purpose which the person concerned may rely on of Directive No 76/207/EEC for it to before the courts. It is true that neither leave to Member States the choice and Article 6 nor any other provision of the the determination of the sanctions (third directive specifies the form that those paragraph of Article 189 of the EEC "rights" must take in order to comply Treaty). However, that principle applies with the requirements of Community only in conjunction with the general law. Nevertheless, the rights accorded to

JUDGMENT OF 10. 4. 1984 — CASE 79/83

candidates who have been discriminated Indeed, whilst the Court recognizes that against must be of such a nature as to directives may be relied upon as against a evince an effective implementation of the Member State or its institutions and objectives of the directive. That means authorities it has never, as yet, that the legal consequences of a breach acknowledged the existence of an effect of the principle of equal treatment must in respect of third parties (except as not, in any event, be so derisory that an regards the possible effect of certain employer may ignore them in deciding provisions of the Treaty, such as Article whether to accept or reject an ap- 119).

The Commission emphasizes that plication. since publication of directives is not mandatory there can be no question, in a State upholding the rule of law, of The principle according to which the recognizing the existence of obligations implementation of the directive must be for individuals derived from directives. effective requires that those rights must Although Directive No 76/207/EEC be such as to represent for the candidate, concerns the same basic principle of whose rights have been infringed, ap- equal treatment as that contained in propriate compensation and for the Article 119 of the Treaty, the fact employer, a means of pressure to be remains that the directive is based on taken seriously, which encourages him to Article 235 of the Treaty, which is less respect the principle of equal treatment. specific in that respect. A national provision which, where that candidate's right to equal treatment has been infringed, restricts a candidate's In the Commission's view, in reply to the entitlement to compensation to the questions submitted by the Arbeitsgericht reimbursement of the costs which he had the Court should state as follows : incurred in making his application does not comply with the requirements of

1. Council Directive No 76/207/EEC of Community law, which are intended to 9 February 1976 on the implemen- ensure the effective implementation of tation of the principle of equal the aims of the directive. treatment for men and women as regard access to employment, As the Commission takes the view that vocational training and promotion, the third question should be answered and working conditions does not in the negative, it considers that it is require that discrimination on unnecessary to reply to the fourth. grounds of sex in access to employment be sanctioned by obligating the employer responsible As regards the fifth question, the for the discrimination to conclude a question of the "direct applicability" of contract of employment with the Directive No 76/207/EEC does not candidate who has been discriminated arise, in view of the fact that no clear against. sanction may be inferred from that

directive. If, nevertheless, the Court were to consider that the inapplicability of the 2. Directive No 76/207/EEC requires restriction on compensation contained in Member States to adopt within the Paragraph 611 a (2) of the Bürgerliches prescribed periods legislation which, Gesetzbuch opened the way to a right to in the event of a breach of the a wider, more general compensation for principle of equal treatment enshrined the plaintiff, other problems regarding in the directive, accords the candidate the direct applicability of the directive discriminated against rights which he would arise. may rely on before the courts and

HARZ / DEUTSCHE TRADAX

which, by their nature and by their employment inasmuch as it excludes the scope, are sufficient to ensure that the application of the general provisions of principle is respected by employers. civil law governing compensation and 3. National legislation which restricts the limits their right to compensation solely rights of a candidate discriminated to the amount payable in respect of against to reimbursement of the costs Vertrauensschaden. incurred by him in relation to the The German Government replied that submission of his application does that paragraph did not limit the right to not satisfy the requirements of compensation and did not exclude the Community law, according to which application of the general provisions the aims set out in the governing compensation. On the con- abovementioned directive must be ef­ trary, it established, on its own and in fectively implemented in the national conjunction with Paragraph 823 (2) of legislation. the Bürgerliches Gesetzbuch, specific grounds for obtaining compensation.

IV — Questions put to the V — Oral procedure G o v e r n m e n t of t h e F e d e r a l R e p u b l i c of G e r m a n y The plaintiff in the main action represented by K. Bertelsmann, assisted In Case 14/83, von Colson and Kamann by H. M. Pfarr, the Government of ν Land Nordrhein-Westfalen, the Court the Federal Republic of Germany, requested the German Government to represented by M. Seidel and the reply in writing to a question on the Commission, represented by M. Beschel, extent to which the adoption of assisted by M. Hilf, presented oral Paragraph 611a of the Bürgerliches argument at the sitting on 13 December Gesetzbuch may be regarded as having 1983. reduced the right to compensation for The Advocate General delivered her women who have been victims of opinion at the sitting on 31 January discrimination in relation to access to 1984.

Decision

1 By o r d e r of 5 July 1982, which was received at the C o u r t on 3 M a y 1983, the Arbeitsgericht [Labour C o u r t ] H a m b u r g referred to the C o u r t for a p r e - liminary ruling p u r s u a n t to Article 177 of the E E C T r e a t y several questions o n the interpretation of Council Directive N o 7 6 / 2 0 7 / E E C of 9 February 1976 on the implementation of the principle of equal treatment for men and w o m e n as regards access to employment, vocational training and p r o m o t i o n , and w o r k i n g conditions (Official Journal 1976, L 39, p. 40).

JUDGMENT OF 10. 4. 1984 — CASE 79/83

2 Those questions were raised in the course of proceedings between Dorit Harz, a graduate in business studies, and Deutsche Tradax GmbH. It appears from the grounds of the order for reference that the Arbeitsgericht considers that the defendant undertaking practised sex discrimination in the recruitment procedure commenced by it in which Mrs Harz was a candidate.

3 In the Arbeitsgericht'sview, under German law, the only sanction for discrimination in a recruitment procedure is compensation for "Vertrau- ensschaden", namely the loss incurred by candidates who are victims of discrimination as a result of their belief that there would be no discrimination in the establishment of the employment relationship. Such compensation is provided for in Paragraph 611a (2) of the Bürgerliches Gesetzbuch.

4 Under that provision, in the event of discrimination regarding access to employment, the employer is liable for "damages in respect of the loss incurred by the worker as a result of his reliance on the expectation that the establishment of the employment relationship would not be precluded by such a breach [of the principle of equal treatment]". That provision purports to implement Council Directive N o 76/207.

5 Consequently the Arbeitsgericht found that, under German law, it could order the payment only of minimal compensation, of D M 2.31 in the case in point, in respect of expenses incurred by Mrs Harz in relation to her application. It considered that such compensation was not sufficient to ensure compliance with the Community directive, since it would not serve to ensure that employers conduct themselves in conformity with the law.

6 In order to determine the rules of Community law applicable in the event of discrimination regarding access to employment, the Arbeitsgericht referred the following questions to the Court of Justice :

1. In an established case of discrimination, does the principle of equal treatment for men and women as regards access to employment contained in Articles 1 (2), 2 (1) and 2 (3) of Council Directive No 76/207/EEC of 9 February 1976 on the implementation of the principle of equal treatment for men and women as regards access to employment, vocational training

HARZ / DEUTSCHE TRADAX

and promotion, and working conditions (Official Journal 1976, L 39, p. 40) confer on a female applicant a right to a contract of employment against an employer who has refused to engage her on account of her sex?

2. In the case of an affirmative reply to Question 1 does that answer apply only (a) where the female applicant discriminated against is the best qualified of all the appalicants, whether male or female, or (b) also where, although there was discrimination in the selection procedure, in the result a better qualified male applicant was appointed?

3. If Questions 1, 2(a) and 2(b) are answered in the negative, does it follow, as a legal consequence, from the principle of equal treatment fői­ men and women as laid down by the provisions of Directive N o 76/207/EEC that a financially appreciable sanction is necessary, for example a right in favour of the female worker discriminated against to damages to be assessed, according to the position in the particular case, in a sum not exceeding the earnings which she could properly have expected to receive for the period of six months, the period in which under the law of the Federal Republic of Germany workers may not plead socially unjustified dismissal, and/or that the State must impose penalties or administrative fines?

4. If Question 3 is answered in the affirmative, does that answer apply only (a) where the female applicant discriminated against is the best qualified of all the candidates, whether male or female, or (b) also where, even though there was discrimination in the selction procedure, in the result a better qualified male candidate was appointed?

5. if Questions 1, 2, 3 or 4 are answered in the affirmative, are Articles 1, 2 and 3 of Directive N o 76/207/EEC directly applicable in the Member States?

7 Those questions are intended primarily to establish whether Directive No 76/207 requires Member States to lay down legal consequences or specific sanctions in the event of discrimination regarding access to employment (Questions 1 to 4) and whether individuals may, where appropriate, rely on the provisions of the directive before the national courts where the directive has not been transposed into the national legal order within the periods prescribed. (Question 5).

JUDGMENT OF 10. 4. 1984 — CASE 79/83

(a) Question 1

8 In its first question the Arbeitsgericht asks essentially whether Directive N o 76/207 requires discrimination on grounds of sex in the matter of access to employment to be penalized by an obligation, imposed on an employer who is guilty of discrimination, to conclude a contract of employment with the candidate who was the victim of discrimination.

9 According to the Arbeitsgericht the sanctions which may be envisaged in order to enforce the principle of equal treatment for men and women regarding access to employment are an automatic right to be given a post or a right to damages, which in German law are classified as compensation for a "positive interest" [Ersatz des positiven Interesses]. The Arbeitsgericht considers that Directive No 76/207 has not yet been transposed into German law inasmuch as the sanction provided for in Paragraph 611a (2) of the Bürgerliches Gesetzbuch is not, in its view, sufficent in that respect.

10 According to the plaintiff in the main action, by restricting the right to compensation solely to "Vertrauensschaden", Paragraph 611a (2) of the Bürgerliches Gesetzbuch excluded the possibilities of compensation afforded by the general rules of law. Directive N o 76/207 requires Member States to introduce appropriate measures with a view to avoiding discrimination in the future. It should, therefore, at least be accepted that Paragraph 611a (2) must be left out of account. The result of that would be that the employer would be required to conclude a contract of employment with the candidate discriminated against or, if that proves impossible or out of the question in the particular case, at least to pay him appreciable damages.

1 1 The Government of the Federal Republic of Germany is aware of the need for an effective transposition of the directive but stresses the fact that, under the third paragraph of Article 189 of the EEC Treaty, each Member State has a margin of discretion as regards the legal consequences which must result from a breach of the principle of equal treatment. The German Government submits, moreover, that it is possible for the German courts to work out, on the basis of private national law and in conformity with the substance of the directive, adequate solutions which satisfy both the principle of equal treatment and the interests of all the parties. Finally an appreciable legal consequence is in its view sufficient to ensure compliance with the

HARZ / DEUTSCHE TRADAX

principle of equal treatment and that consequence should follow only if the victim of discrimination was better qualified for the post than the other can- didates; it should not apply where the candidates' qualifications were equal.

12 The Netherlands Government takes the view that the directive does not require a specific sanction, for example by giving victims of discrimination the automatic right to be offered a post. On the other hand, an order requiring the employer to pay a purely nominal sum does not satisfy the requirement that the person discriminated against must be able to rely on his rights under the directive.

1 3 The United Kingdom is also of the opinion that it is for Member States to choose the measures which they consider appropriate to ensure the fulfilment of their obligations under the directive. The directive gives no indication as to the measures which Member States should adopt and the questions referred to the Court themselves clearly illustrate the difficulties encountered in laying down appropriate measures.

1 4 The Commission considers that although the directive is intended to leave to Member States the choice and the determination of the sanctions, nevertheless the transposition of the directive must produce effective results. The principle of the effective transposition of the directive requires that the sanctions must be of such a nature as to constitute, for the candidate discrimi- nated against, appropriate compensation and, for the employer, a means of pressure which it would be unwise to disregard and which would prompt him to respect the principle of equal treatment. A national measure which provides for compensation only for losses actually incurred through reliance on an expectation ("Vertrauensschaden") is not sufficient to ensure compliance with that principle.

15 According to the third paragraph of Article 189: "A directive shall be binding, as to the result to be achieved, upon each Member State to which it is addressed, but shall leave to the national authorities the choice of form and methods". Although that provision leaves Member States free to choose the ways and means of ensuring that the directive is implemented, that freedom does not affect the obligation, imposed on all the Member States to which the directive is addressed, to adopt, within the framework of their national legal systems, all the measures necessaiy to ensure that the directive is fully effective, in accordance with the objective which it pursues.

JUDGMENT OF 10. 4. 1984 — CASE 79/83

16 It is therefore necessary to examine Directive N o 76/207 in order to determine whether it requires Member States to provide for specific legal consequences or sanctions in respect of a breach of the principle of equal treatment regarding access to employment.

17 The object of that directive is to implement in the Member States the principle of equal treatment for men and women, in particular by giving male and female workers real equality of opportunity as regards access to employment. With that end in view. Article 2 defines the principle of equal treatment and its limits, while Article 3(1) sets out the scope of the principle specifically as regards access to employment. Article 3 (2) (a) provides that Member States are to take the measures necessary to ensure that any laws, regulations and administrative provisions contrary to the principle of equal treatment are abolished.

18 Article 6 requires Member States to introduce into their national legal systems such measures as are necessary to enable all persons who consider themselves wronged by discrimination "to pursue their claims by judicial process". It follows from that provision that Member States are required to adopt measures which are sufficiently effective to achieve the objective of the directive and to ensure that those measures may in fact be relied on before the national courts by the persons concerned. Such measures may include, for example, provisions requiring the employer to offer a post to the candidate discriminated against or giving the candidate adequate financial compensation, reinforced where necessary by a system of fines. However the directive does not prescribe a specific sanction; it leaves Member States free to choose between the different solutions suitable for achieving its objective.

19 The reply to the first question should therefore be that Directive N o 76/207 does not require discrimination on grounds of sex regarding access to employment to be made the subject of a sanction by way of an obligation imposed upon the employer who is the author of the discrimination to conclude a contract of employment with the candidate discriminated against.

HARZ / DEUTSCHE TRADAX

(b) Q u e s t i o n 2

20 It is not necessary to answer the second question, since it is put only on the supposition that an employer is required to offer a post to the candidate discriminated against.

(c) Q u e s t i o n s 3, 4 and 5

21 In its third and fourth questions the Arbeitsgericht essentially asks whether it is possible to infer from the directive that a financially appreciable sanction is necessary. The fifth question asks whether the directive, as properly interpreted, may be relied on before national courts by persons who have suffered injury.

22 In that respect it must be remarked that it is impossible to establish real equality of opportunity without an appropriate system of sanctions. That follows not only from the actual purpose of the directive but more specifically from Article 6 thereof which, by granting applicants for a post who have been discriminated against recourse to the courts, acknowledges that those candidates have rights of which they may avail themselves before the courts.

23 Although, as has been stated in the reply to the first question, full implementation of the directive does not require a specific form of sanction for breach of the prohibition of discrimination, it does entail that that sanction be such as to guarantee real and effective judicial protection. Moreover it must also have a real deterrent effect on the employer. It follows that where a Member State chooses to penalize the breach of the prohibition of discrimination by the award of compensation, that compensation must in any event be adequate in relation to the damage sustained.

24 In consequence national provisions limiting the right to compensation of persons who have been discriminated against as regards access to employment to a purely nominal amount, such as for example the rembursement of expenses incurred in connexion with their application, would not satisfy the requirements of an effective transposition of the directive.

JUDGMENT OF 10. 4. 1984 — CASE 79/83

25 The nature of the sanctions provided for in the Federal Republic of Germany in respect of discrimination regarding access to employment and in particular the question whether the rule in Paragraph 611a (2) of the Bürgerliches Gesetzbuch excludes the possibility of compensation on the basis of the general rules of law were the subject of lengthy discussion before the Court. The German Government maintained in the oral procedure that that provision did not necessarily exclude the application of general rules of law regarding compensation. It is for the national court alone to rule on that question concerning the interpretation of its national law.

26 However, the Member States' obligation arising from a directive to achieve the result envisaged by the directive and their duty under Article 5 of the Treaty to take all appropriate measures, whether general or particular, to ensure the fulfilment of that obligation, is binding on all the authorities of Member States including, for matters within their jurisdiction, the courts. It follows that, in applying national law and in particular the provisions of a national law specifically introduced in order to implement Directive N o 76/207, the national court is required to interpret its national law in the light of the wording and the purpose of the directive in order to achieve the result referred to in the third paragraph of Article 189.

27 O n the other h a n d , as the above considerations show, the directive does n o t include any unconditional and sufficiently precise obligation as regards sanctions for discrimination which, in the absence of implementing measures a d o p t e d in g o o d time, m a y be relied o n by individuals in o r d e r to obtain specific compensation u n d e r the directive, w h e r e that is n o t provided for or permitted u n d e r national law.

28 It should, however, be pointed out to the national court that although Directive N o 76/207/EEC, for the purpose of imposing a sanction for the breach of the prohibition of discrimination, leaves the Member States free to choose between the different solutions suitable for achieving its objective, it nevertheless requires that if a Member State chooses to penalize breaches of that prohibition by the award of compensation, then in order to ensure that it is effective and that it has a deterrent effect, that compensation must in any event be adequate in relation to the damage sustained and must therefore amount to more than purely nominal compensation such as, for example, the

HARZ / DEUTSCHE TRADAX

reimbursement only of the expenses incurred in connection with the application. It is for the national court to interpret and apply the legislation adopted for the implementation of the directive in conformity with the requirements of Community law, in so far as it is given discretion to do so under national law.

Costs

29 The costs incurred by the Governments of the Federal Republic of Germany and the Netherlands, by the United Kingdom and by the Commission of the European Communities, which have submitted observations to the Court, are not recoverable. As the proceedings are, in so far as the parties to the main action are concerned, in the nature of a step in the proceedings pending before the national court, the decision on costs is a matter for that court.

On those grounds,

THE COURT

in answer to the questions referred to it by the Arbeitsgericht Hamburg by order of 5 July 1982, hereby rules:

1. Directive No 76/207/EEC does not require discrimination on grounds of sex regarding access to employment to be made the subject of a sanction by way of an obligation imposed on the employer who is the author of the discrimination to conclude a contract of employment with the candidate discriminated against.

2. As regards sanctions for any discrimination which may occur, the directive does not include any unconditional and sufficiently precise obligation which, in the absence of implementing measures adopted within the prescribed time-limits, may be relied on by an individual in order to obtain specific compensation under the directive, where that is not provided for or permitted under national law.

OPINION OF MRS ROZÈS — CASE 79/83

3. Although Directive No 76/207/EEC, for the purpose of imposing a sanction for the breach of the prohibition of discrimination, leaves the Member States free to choose between the different solutions suitable for achieving its objective, it nevertheless requires that if a Member State chooses to penalize breaches of that prohibition by the award of compensation, then in order to ensure that it is effective and that it has a deterrent effect, that compensation must in any event be adequate in relation to the damage sustained and must therefore amount to more than purely nominal compensation such as, for example, the reimbursement only of the expenses incurred in connection with the application. It is for the national court to interpret and apply the legislation adopted for the implementation of the directive in conformity with the requirements of Community law, in so far as it is given discretion to do so under national law.

Mertens de Wilmars Koopmans Bahlmann

Galmot Pescatore Mackenzie Stuart O'Keeffe

Bosco Due Everling Kakouris

Delivered in open court in Luxembourg on 10 April 1984.

P. Heim J. Mertens de Wilmars Registrar President

O P I N I O N OF MRS ADVOCATE GENERAL ROZÈS

(see Case 14/83, p. 1911)

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