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You are here: Home Employment Employment Information HR European news roundup - September 2009

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23/09/2009HR European news roundup - September 2009

HR European news roundup - September 2009 A selection of the latest European HR news from the Federation of European Employers (FedEE).

Germany: Data protection amendments come into force

A number of important amendments to Germany's Federal Data Protection Act came into force on 1 September (MAJ 2009/14). From now on companies will be required to notify the appropriate data protection authority whenever there is a comprehensive breach of sensitive, confidential, financial, customer or criminal data. For certain serious breaches it is also necessary to publish a public notice in the press.

The revised law lists a number of matters that must be included in contracts between companies and external data processors. These include the security safeguards that will be applied, subcontracting rights and the return of storage media and its disposal.

Data on employees may now only be collected for decision-making purposes connected with the establishment, maintenance or termination of an employment relationship. If an employer wishes to collect personal data because of suspicion that a criminal offence may have been (or will be) committed it is necessary to have documentary evidence to back up the suspicion and the method of detection must be both appropriate and proportionate to the nature of the possible offence. It is also likely that the courts will apply such criteria when considering the legality of certain types of employee screening activity.

The penalties for violation of the Data Protection Act have also been increased from EUR 25,000 to EUR 50,000 per violation and from EUR 250,000 to EUR 300,000 for serious violations.

The EU Council has finally agreed to authorise the implementation of EU Regulation 883/2004 on the social security coverage of migrant workers.

This measure is now expected to come into effect on the March 1st 2010 and will not only simplify, but also make more cost-efficient the current provisions relating to migrant workers (EU Regulation 1408/71).

The new regulation will extend the period of time from 12 months to 24 months that an employee who has been posted to work in another country may pay social security to their country of residence (home country) so long as their employer conducts a substantial part of their business in the sending country. Further to this, when employees work for the same employer in one or more countries in addition to their home country they will be required to spend a 'substantial' period, being at least 25 percent of their time (or salary receipts), in their home country to continue paying social security contributions to their home country.

Annex VII status under the existing regulations, which arises when an employee is subject to two social security systems at the same time, will be abolished. Employees currently subject to Annex VII rules will automatically be subject to social security on a self-employment basis in the state where their employer(s) principally operates.

The new regulation will be subject to a ten year transitional period, during which time the rules of EU Regulation 1408/71 will continue to be respected - unless an employee expressly wishes to change their social security status to comply with the new regulation [EC) N 883/2004].

Ukraine: No relaxation of entry limits

The Ukrainian government has decided to postpone the application of new rules relaxing admission requirements for foreign nationals. These would have allowed entry for citizens of 85 countries as long as they were in possession of cash or cheques to the value of EUR 1000.

Up to May 2009 most US and European citizens enjoyed visa free travel for stays of up to 3 months. To extend their stay all they needed to do was to make a quick return trip across the border. Under revised rules numerous documents are required to obtain a visa and stays are now restricted to 90 days in any 180 day period. Border checkpoints also use new IT systems to pool data so that the short-term residence limits can be applied.

Other European news in brief

Bulgaria
The Bulgarian Minister of Labour and Social Works Totyu Mladenov has retracted an earlier declaration that Bulgaria's minimum wage would be frozen for four years. He stated that the current minimum wage of 240 BGN per month (EUR 123) was not sufficient to take people above the poverty line and would therefore only be frozen for one year.

Czech Republic
Czech Statistical Office (CSU) has reported that the average gross monthly wage in the Czech Republic rose by 2.8 percent from Q2 2008 to Q2 2009. The average gross monthly wage now stands at CZK 22,992 (EUR 900).

Denmark
Danish business minister Lene Espersen has proposed that the 1904 'Shop Law' be scrapped so that Danish shops could open on Sundays. At present an amendment to the 'Shop law' allows shops to remain open for 21 Sundays per year. If accepted, the new law would allow businesses to open for 30 Sundays per year from the summer 2011, with the ending of all Sunday trading restrictions by October 2012.

Finland
The Supreme Court in Finland has decided that an employer was justified in dismissing an employee during an agreed probationary period, despite the employee having previously worked for the employer. The court ruled that the parties to an employment contract may generally agree on a probationary period in consecutive employment contracts, provided that the contracts do not immediately follow each other and that the aim of a second probationary period was not to evade employee protection rights.

France
The French National assembly has adopted at first reading a draft amendment to the labour code designed to ensure that employees of international companies who are at risk of redundancy are given the option of working for the same company in another country. In the event of such an offer the employee would be informed about the salary, terms and conditions applicable to the position. The employee would then have six days to consider the offer. If no response is forthcoming then their employer may assume that the offer has been refused.

Germany
The German Federal Labour Court has ruled that a company may exclude some employees from a general pay rise without a breach of the equal treatment principle. The employees in question were excluded from the pay rise as, unlike other employees, they had not signed a modification to their employment contract reducing their vacation leave and pay and therefore did not suffer the same detriment. The court maintained that the equal treatment principle had not been violated because all the employees had, in effect, been treated the same [Az: 5 AZR 486/08].

Netherlands
Long-term sick leave patients in the Netherlands who have been dismissed are now subject to additional rules concerning their reintegration into employment. Individuals who have been off work for two years or more may not turn down any offer of 'suitable work' if it commands at least 65% of their previous salary and is within two hours commuting distance from their home.

Sweden
A survey by the University of Lund has revealed that 6% of Swedish trade union members have given up union membership over the past two years.

This is predominantly as a result of the lower take-up of union sponsored unemployment insurance and interest in supplementary compensation schemes.

United Kingdom
The UK Employment Appeals Tribunal (EAT) has clarified the status of additional payments with regard to the National Minimum Wage (NMW). Examples by the EAT where allowances could not be included in NMW calculations included an employee being on-call, working unsociable hours, and performing special duties. In these cases any amounts paid are to be treated separately from basic wage calculations and therefore cannot contribute to an employer fulfilling minimum wage obligations.


Copyright: FedEE Services Ltd 2009

 


 


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