Included in our news roundup from across Europe: Portugal revises immigration rules, modification of Romanian Labour Code gives employees a new right to claim damages against their employers, minimum wage in Slovakia to rise.

Portugal: Revision of immigration rules

Portugal's new immigration law (23/2007) came fully into force on August 3rd 2007. This establishes a single, standardised residence permit, raises the maximum fines for companies that hire illegal immigrants and introduces a facility for the issue of temporary visas to assist foreigners seeking work. In future, foreign graduates of Portugal's universities will also face less 'red tape' if they decide to take up work in Portugal after completing their studies.

The new law removes the former skill quota system and replaces it with a requirement for employers to fill vacancies with immigrant workers from outside the EEA only if they can demonstrate that the vacancies cannot be filled by workers from within the EEA or by non-EEA nationals already resident in the country.

Romania: Legal threat to labour relations balance

A modification of the Romanian Labour Code gives employees a new right to claim damages against their employers for 'financial or moral prejudice'. This means that a worker will be able to sue their employer if they believe they have been subjected to undue work pressure, disrespectful treatment or harm to their public image.

Romania's labour minister, Paul Pacuraru, is highly critical of this measure. He has pointed out that 'moral prejudice' cannot be objectively measured, and it will therefore be up to individual judges to draw their own subjective conclusions about the merits of a particular case. He is also concerned that the change could alter the climate of labour relations at a time when the country is seeking to take advantage of its new EU membership.

Spain: New obligation to keep subcontractor register

The Spanish government is drawing up an amendment to Law 43/2006 on provisions to improve the growth of employment and promotion of indefinite contracts. This will require companies to hold registers at their Spanish operations containing detailed information about subcontractors.

Currently employers are required under Article 42.2 of the law to inform employee representatives about the names of subcontractors, the purpose and duration of contracts, where they will be carried out, the number of workers involved and measures concerning their safety and health. The new requirement will permit trade unions or works councils to review the usage of subcontractors over any time period.

Other European news in brief

Bulgaria:
The Bulgarian finance minister, Plamen Oresharski, has announced that a 10 percent flat tax on all individual income will be introduced next year and that social security contributions will be reduced. This change will boost the net pay of middle and higher income groups who currently pay income tax at marginal rates of 20 percent to 24 percent. However, it will sharply reduce the net incomes of lower paid workers earning less than 450 leva (EUR 230) per month, because they will be required to pay tax for the first time.

Iinternational:
The OECD and International Organisation of Pension Supervisors (IOPS) have produced a draft framework of minimum conditions that must be met by occupational pension funds and other pension entities. It is intended that national authorities will draw on the guidelines when reviewing applications for operating licences. The guidelines may be viewed on the OECD website, and comments must be submitted by 5 October 2007.

For more information visit http://www.oecd.org/dataoecd/7/34/39018821.pdf

The Netherlands:
The Amsterdam District Court has ordered the FNV trade union to pay EUR 16 million in compensation to the former owners of an engineering company that went bankrupt as a result of a strike. This highly protracted case has involved a Supreme Court ruling and is now in its seventeenth year of litigation. The FNV plans to delay payment still further by appealing against the level of award for damages.

Portugal/ Spain:
Seventeen countries have signed a social security treaty that will provide for the mutual recognition of contributions made to state pension and disability funds. This will mean that workers from 15 Latin American countries employed in Spain and Portugal will be credited with contributions made in their home country and conversely will enjoy an unbroken period of insurance if they return to their home country after working in Portugal or Spain.

Slovakia:
Slovakia's tripartite partnership council has agreed that the minimum monthly wage will rise in October 2007 from SKK (Slovak Koruna)7,600(EUR 228.62) to SKK 8,100 (EUR 243.59). From 2009, the minimum wage will be rescheduled to be revised on 1 January each year.

FedEE news

Country ratings
FedEE has just published its 2007 country ratings. The ratings are designed to provide an objective evaluation of investment risk from a human resource perspective. They cover 27 European Union countries, plus Iceland, Norway, Switzerland and Turkey, and are based on 15 quantifiable factors.

http://www.fedee.com/countryratings.shtml

Source: The Federation of European Employers (FedEE) http://www.fedee.com

 [Copyright: FedEE Services Ltd 2007]