A selection of the latest European HR news from the Federation of European Employers (FedEE).

Country reports on labour inspection services
Because national labour administrations are organised in such differing ways, employers are often uncertain about the functions and powers of labour inspectors in countries where they operate. For this reason the International Labour Organisation has just published a special report which includes comprehensive descriptions of inspection services in 20 European countries. A Guide to Selected Labour Inspection Systems. ILO. 2011 (9789221246985 (ISBN). Available as a free pdf download from http://tinyurl.com/3qt72dj

Belgium: Modest tax-free severance allowance
From January 1st 2012 income received in Belgium during notice periods or by way of "in lieu of notice" payments will be free of tax up to the first EUR 425. From 2014 this allowance will be doubled. To qualify, the terminated contract must be for an indefinite period and the termination must be at the initiative of the employer. No allowances will be given for terminations carried out during probationary periods.

Netherlands: Tax burden to rise for higher income groups
The Dutch government will publish its 2012 budget proposals on 20 September 2011. These are likely to include measures to increase the tax burden on higher income groups. The threshold for the top band of income tax will probably be lowered to bring an increasing number of professionals and middle managers into the 52 percent marginal income tax bracket. Funding directed towards the flat-rate child benefit payable to all parents (irrespective of income) could well be reduced and funding switched to the means tested child budget. The current subsidy for the cost of childcare will also no doubt be made dependent on income level.

Germany: Employers may require attendance at language courses
Germany's Federal Labour Court has recently held that an employer's request that an employee attend a course to acquire the language skills necessary to perform their duties does not constitute discrimination on the grounds of ethnicity. This would be the case even if the employer insisted that the employee take the course outside working hours and at the employee's own expense.

France: Mutual settlements becoming preferred option
Official statistics show that the use of mutual agreement termination procedures in France were up by more than 30 percent during the last year, whilst the number of redundancies was down by almost 50 percent during the same period. Compromise deals are clearly the preferred option instead of declaring a redundancy during economically difficult periods.

Ireland: Pay freeze the norm for small businesses
A quarterly pay survey from the Irish Small Firms Association has revealed that the majority of small businesses in Ireland have frozen pay rates this year, with many planning to continue to do so during 2012. The review found that three quarters of those who took part froze pay rates in 2011, with 69 percent intending to do so again next year. Pay increases that were implemented were usually linked to productivity and innovation. Only 13 percent of respondents said that they had increased basic pay so far this year - the average rise being 2.5 percent.
European Commission: Globalisation fund doubles its impact

According to a report by the European Commission, 23,700 workers dismissed due to economic crisis and structural changes in world trade patterns were assisted by the European Globalisation Adjustment Fund last year. That represents more than double the number assisted in 2009. The fund paid out EUR  83.5 million to nine member states in order to help the national authorities support dismissed workers in finding new job opportunities.

Spain: Labour market restriction approved
The European Commission has approved a request from the Spanish government to restrict access by Romanian workers to its labour market. The restriction will apply across all sectors and regions until December 31st 2012, but will not affect those Romanians who are already working in Spain.

Netherlands: Men hit hardest by labour market trends
According to new statistics published by the Dutch National Statistics Office (CBS) males aged 25 to 45 have been most severely affected by the economic downturn. The number of unemployed men in this age category has risen from 46,000 three years ago to 90,000 today. This is partly due to a decline in the industrial, construction, farming and business services sectors that traditionally employ more men than women. Conversely, there has been growth in areas that traditionally employ a high proportion of women--such as the health and care sectors.

Russia: Rise in number of non-EU workers
The number of Ukrainian, Belorusian and Russian workers employed by Polish companies has doubled since last year. This marked increase is due to the continued exodus of Polish workers to countries such as Germany and the UK and the drive to fill unskilled and semiskilled positions by lower cost workers - particularly in agriculture and the construction sector.

Italy: Company boardroom quotas
The Italian parliament has passed new legislation aimed at closing the gender gap in company boardrooms. Once the law comes into force (on a date yet to be announced), companies will have a year to comply with the requirement that 20 percent of new members of boards of directors and boards of auditors in listed companies will have to be women. From 2015, companies will have to comply with a higher quota of at least 33 percent. Organisations that do not comply with the quotas could face fines of up to EUR 1m.

Switzerland, Georgia: Double taxation agreement
The double taxation agreement between Switzerland and Georgia has entered into force. The provisions of the agreement will apply to the capital and income taxes withheld at source on contributions credited (or paid out) on or after January 1st 2012,

Portugal: Labour market reforms by end of 2011
Labour reforms demanded by the European Commission, European Central Bank and International Monetary Fund are currently being finalised by the Portuguese government.

Some of the most important reforms must be in place by the end of 2011. These include:
* Changes to the unemployment benefits system, which will have a maximum duration of 18 months.
* A reduction in severance payments. Firstly, for new contracts, and in the case of open-ended contracts compensation will be reduced from 30 to 10 days per year of service. Separate rules will exist for fixed-term contracts which will also result in a reduction in payments compared to the current method of calculation.
* The establishment of a new justification for dismissal - where specifically agreed objectives are not met by the employee.

Additionally, the requirements that employers will have to fulfil before they can adopt short-time working will be simplified and minimised.


© Copyright: FedEE Services Ltd 2011