Belgium: Tighter regulation of top management pay
The Belgian government has published two parliamentary bills, both of which have a strong potential impact on top management pay.

The first of these seeks to put a ceiling on the total value of departure indemnities that can be paid to executive directors in listed companies. This will be the lower of two amounts - either the remuneration due for the remaining part of a contract, or between 12 and 18 months remuneration (excluding variable bonus payments) depending on years of service.

The corporate governance committee, a private Belgian foundation, issued proposed amendments earlier this year to a governance code that was first established in 2004. The committee is currently finalising the amendments to its 2009 code. Meanwhile, a government bill has been issued proposing that all listed companies include a statement on corporate governance in their annual report and provide details of compliance with the code of practice. The bill also seeks to make it compulsory for listed companies to form remuneration committees to determine all elements of remuneration for directors and members of management committees. Data of top management pay and benefits would have to be provided in a detailed remuneration report, together with the criteria used to determine variable pay elements and contractual obligations concerning termination and retirement.

Germany: Economic stimulus measures
The German government has announced a major economic stimulus package amounting to EUR 50bn over two years.

The package will include a reduction in the lowest rate of income tax from 15 percent  to 14 percent, a cut of 0.6 percent in health insurance premiums and a one-off child allowance bonus of EUR 100.

Citizens with cars older than nine years will receive a guaranteed payment of EUR 2,500 when they scrap such a car in order to buy a new 'environmentally friendly' vehicle. If they purchase a vehicle before June 30th 2009, it will be exempt from road tax for one year and this exemption will be extended to two years for cars in the lowest emission categories.

Meanwhile, in France, a plan was implemented last month to give a rebate of EUR 1,000 to drivers who scrap vehicles more than ten years old and buy a new low-emission model.

Bulgaria

The Bulgarian parliament has adopted an amendment to the Labour Code, at second reading, that gives working fathers the right to take fifteen days' paid leave from work upon the birth of their child. With the mother's consent, fathers will also be able to take up to six months' paid care leave when the child is aged between six months and one year old. These amendments came into force on 1 January 2009.

Czech Republic

From next year, HR managers in the Czech Republic employing non-EEA workers who do not have valid work permits could face up to five years' imprisonment. A new bill criminalising the employment or harbouring of illegal immigrants has now been approved by the Czech Senate and is awaiting the president's signature to give it legal effect.

EU

Greece, Hungary, Portugal and Spain have each lifted work permit restrictions on workers from Bulgaria and Romania.
Denmark, which currently imposes some restrictions, has announced that it will remove them for eight new member states on 1 May 2009. Italy plans to continue restrictions (except for certain temporary workers) until 31 December 2009. All the remaining nine EU states must lift restrictions by 31 December 2013.

Europe

On 1 January 2009, statutory minimum wage rates changed in sixteen European countries. A full list of current rates is available on the FedEE website.

France

In France, an additional social tax of 1.1 percent is payable from January 2009. This is to finance the new minimum income guarantee fund (revenu de solidarité active) that was announced in September 2008. French social taxes now amount to 12.1 percent in total. Social tax in France should not be confused with social security or income tax, both of which are paid separately.

Irish Republic

A new employment regulation order in the Irish retail grocery and allied trades sector has established new minimum wage rates from April 25th 2009 and October 25th 2009.

From April 2009, experienced adult workers will be entitled to a minimum of EUR 9.36 an hour (365.04 for a 39-hour week) and
EUR 9.59 an hour from October. For workers with posts of responsibility, the rate will rise to EUR 10.38 and 10.64 per hour respectively during the same period.

Netherlands

Works councils (WCs) in the Netherlands may soon acquire the right to speak at shareholders' meetings. The Dutch cabinet has approved a bill that will require companies to consult with WCs before submitting any important management decisions to shareholders' meetings. WCs would also be given the opportunity to voice their opinions on appointments, dismissals and remuneration of board members at such meetings before shareholders cast their votes.

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