The European Advocate General, Paolo Mengozzi advised the European Court of Justice that companies should respect local pay and conditions when hiring foreign workers.
The case began in 2004 when a Lithuanian company, Laval, entered the building trade, winning a string of contracts in Sweden. The company, then best known for producing cake, based its strategy on the importation of cheap Latvian labour. Laval argued that as Sweden does not have a legal minimum wage this was entirely legal.