Our regular human resources management news roundup from across Europe from the Federation of European Employers (FedEE). Includes: Denmark: New bill on restrictive clauses, ECJ/France: No powers to rule on CNE, EU: ETUC fears the right to strike undermined.

Denmark: New bill on restrictive clauses

The Danish minister of employment has recently published a proposal making it unlawful for companies to maintain secret no-hire agreements and giving employees the right to compensation of at least 50% of their salary if they are prevented from gaining employment due to such restrictive clauses.

Section 18 of the Salaried Employees Act already provides such a level of compensation for employees subject to non-compete and non-solicitation clauses in their individual employment contracts. It also limits restrictive clauses to one year after termination. However, at the moment, no compensation is provided if employees are prevented from taking up employment opportunities because of covert no-hire or other employment cooperation agreements between companies.

Last Summer, following criticism from both sides of industry, the Danish employment ministry withdrew an earlier bill laying down new rights for employees restricted by such agreements. However, the need for regulation in this field was underlined by a decision of the Danish Industrial Court last September. The court found that a temporary work agency's contract with clients excessively restricted employment opportunities for the agency's employees and therefore violated Denmark's general agreement. Although the court ruling has imposed some, limitation on employers, its jurisdiction is limited to members' of employers organisations that are signatories to the general agreement or that voluntarily apply its terms. For this reason, the government proposes to use the new law to extend protection to all employees who are subject to no-hire agreements.

ECJ/France: No powers to rule on CNE

French employers will be relieved to learn that an attempt by a French court in Beauvais to challenge the legal legitimacy of the CNE contract has been rejected by the European Court of Justice (ECJ). The ECJ stated that it had no powers to rule the submission, even though it was made by reference to Articles 30/33 of the Charter of Fundamental Rights of the European Union and Articles 24/27 of the European Social Charter.

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