Skip to content The European Free Trade Association (EFTA) Court confirmed in Case E-6/25 (Saga Subsea AS v Akselsen and Granlund) that core EEA employment protections apply to petroleum activities carried out on the continental shelf of EFTA States.
Background
The case was lodged by the Supreme Court of Norway concerning workers employed by a Norwegian temporary-work agency and assigned to offshore petroleum operations on Norway’s continental shelf, and concerned claims for back payments of salary.
The ruling depended on whether Directive 2008/104/EC on temporary agency work—incorporated into the EEA Agreement—applies to such offshore activities, which take place outside the land territory of the State.
The Court’s ruling
The EFTA Court found that:
- The EEA Agreement extends to areas where an EEA State exercises sovereign rights, including the continental shelf for the purpose of exploiting natural resources.
- Directive 2008/104/EC on temporary agency work applies without geographical limitation, and therefore covers offshore petroleum operations.
- Article 126 EEA does not exclude continental shelf activities from the Agreement’s scope.
Therefore, the EFTA Court recognized that the EEA Agreement applies to petroleum activities on the continental shelf.
The Court emphasised that allowing States to exclude such activities would undermine the objective of ensuring a homogeneous European Economic Area and effective worker protection.
Legal significance
This judgment clarifies the issue regarding the territorial reach of EEA law, particularly in strategic sectors such as oil and gas.
The ruling confirms that:
- EEA law follows the exercise of jurisdiction, not strictly geographic borders ;
- Offshore industries cannot rely on territorial arguments to avoid compliance with EU/EEA labour standards :
- Worker protection directives apply equally in offshore and onshore contexts where economic activity falls within the EEA framework.
Impact
For corporates in the energy and offshore services sectors, the ruling represents a significant expansion of compliance obligations and reinforces the principle that economic activity within the EEA’s functional jurisdiction triggers the full application of its legal framework.
Energy sector compliance: Companies operating on the continental shelf must ensure full alignment with EEA labour law, including rules on temporary agency workers.
Contracting models: Offshore staffing arrangements—especially involving agency workers—may require restructuring to meet equal treatment obligations.
Regulatory risk: The decision increases scrutiny on employment practices in offshore industries, particularly in Norway and other EFTA States.
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