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

Europe: Rise in unit labour costs
According to the Paris-based Organisation for Co-operation and Development (OECD) since the start of the economic crisis in the third quarter of 2008, unit labour costs (ULC) have risen by 4.6 percent, 4.5 percent, 3.7 percent and 2.3 percent, in the United Kingdom, Germany, Italy and France, respectively and have fallen by 2.4 percent in the United States and 1.8 percent in Japan.

The ULC index measures change in the ratio of total labour costs to real output. An increase in ULC indicates that growth in average employee remuneration and social charges exceeds growth in labour productivity.

Germany: Holiday entitlement following sickness absence
 The German Federal Labour Court has recently further clarified last year's ruling by the European Court of Justice (C-350/06 and C-520/06) concerning compensation for annual leave not taken due to sickness absence.

In Germany severely disabled employees are entitled to take up to five days additional leave each year, whilst collective bargaining agreements frequently provide for leave rights than exceed those laid down by the Federal Vacation Act. Does a severely disabled employee on extended sick leave have the right to claim compensation for these additional holiday entitlements?

According to the Federal Labour Court, an employee may not forfeit their right to additional leave arising from their disability. However, extra holidays arising from a collective agreement did lapse at the end of the holiday year. [BAG 9 AZR 128/09].

Italy: Clarification of maternity rights under social security rules

The Italian social security service (INPS) has clarified the rules on maternity benefits [Circular no. 62; 29/04/2010].

Mothers will be entitled to state payments during statutory maternity leave if they pay three months’ general social security contributions in the year preceding the expected date of birth or adoption. They must also contribute at least three months’ payments to a separate maternity fund in the 18 to 9 months prior to the birth or adoption.

Further INPS guidance includes:

* In the case of a premature birth, the mandatory leave not taken prior to the birth may be added to leave following the birth, and taken within seven months of the birth.

* Welfare benefits are not payable to mothers who use their parental leave to undertake a new job, and they may be required to repay any benefits and social security received.

* Medical certification submitted to the employer for maternity allowance should be from a specialist physician working for the national health service (servizio sanitario nazionale or SSN). But employers may accept, or seek formal INPS approval for, documents from other medical professionals.

* An illness related to a pregnancy of up to 180 days duration (including abortions) may be authorised through simple certification by a general medical practitioner.

Other European HR news in brief

Belarus
From June 6th 2010 trade unions in Belarus will not be entitled to carry out frequent workplace inspections. Inspections for compliance with labour laws will be limited to two-yearly intervals and must be limited in duration to three working days [Decree 240]

Estonia
The Estonian government has recently approved draft legislation to raise the age of retirement under the state pension scheme over the next 16 years. The current age of retirement is 63 for men and 60.5 for women. Women’s retirement age will rise each year until it equals that of men at age 63. The retirement age for both men and women will then increase by three months each year from 2017 until it reaches 65.

Finland
A four-year collective agreement has been reached in the Finnish food industry, following intervention by a national conciliator. The deal gives food workers an immediate increase of 0.9 percent and a further 0.6 percent in October 2010. Thereafter pay hikes will be index-related. A right to six days paternity leave has also been agreed and a special scheme established for those aged 50+ to improve their well-being at work. Although employers did not obtain the option to establish ten-hour shifts and a six-day working week flexible working may now be agreed locally in the bakery sector and a task force is to be set up in the meat processing sector to examine working time issues.

France
Although courts have often been called upon to determine whether particular health problems have arisen from exposure to asbestos, they have not been asked to consider whether compensation should be given for the mere threat of past asbestos exposure. Earlier this month the French Court of Cassation (Supreme Court) ruled that compensation was due to employees who worked ‘under constant anxiety about the risk of contracting asbestos-related illness’.  However, the company in this case was not considered to be liable for the loss of income by former employees because they had taken advantage of the state ACAATA scheme that allowed them to retire early on 65 percent of their prior average earnings [Judgement no. 939/11.05.2010.]

Germany
The German Families Minister, Kristina Schröder, has now released details of a care-leave bill to be presented to the federal Parliament this Autumn. The proposal will permit carers to work 50 percent of normal full-time hours and receive 75 percent of their salary for a period of two years, after which they would revert to full-time hours and continue to earn 75 percent of their salary until the difference is made up. Concerns have been expressed about this arrangement and it has been suggested that carers should pay a special contingency insurance in the event that they do not return to full-time hours and are therefore unable to repay the deficit built up during their care leave.

Slovakia
Over the year to March 2010 average wages in Slovakia rose 9.1 percent to EUR 791 a month. The biggest rises were in the postal service (+16.8 percent) and manufacturing (+9.7 percent).

Spain
 Spain's new austerity bill has introduced immediate public sector salary cuts ranging from 0.56 percent to 7 percent for civil servants to 15 percent for government ministers. The cuts will remain in effect until 2011.

Ukraine
The head of the Ukrainian Financial Services Commission, Vasili Volga, has announced that a bill on a new, unified retirement pension system is expected to be submitted to the Verkhovna Rada (Parliament) later this year. Currently 70 percent of Ukraine's retired population receive state pensions lower than UAH 1,000 (EUR 102) a month. Under the new system pensions will be determined solely on the basis of length of service and an employee's previous working environment. The government has rejected proposed amendments to allow Ukrainian citizens working abroad full pension rights.
 

Copyright: FedEE Services Ltd 2010