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

Russian Federation: Bill places tight restriction on outsourcing activities

A new bill due to be debated by the Russian Duma (Parliament) later this month places many tight restrictions on company outsourcing activities and would make it illegal for a company to pass on the task of recruiting and hiring workers to a third party.

The draft law seeks to bring employment agency staff within the scope of mainstream employment protection legislation (including redundancy payments) and make companies using outsourcing services directly responsible for pension contributions and social security contributions.

The impact of this bill will initially be limited, because only 0.2 percent of the Russian labour force is deployed as an agency worker. However, it could affect the employment of foreign workers who, as workers operating on an "invited basis" are often managed through an independent agency that secures their immigration or job posting authorisations and handles their special needs as an expatriate worker.

Russian Federation: New penalties for being a party to a bribe

Amendments to the Russian Criminal Code and Code of Administrative Offences currently being debated by the Russian Duma (Parliament) will impose heavy fines upon the parties to a bribe. The financial penalty will be up to 100 times the size of the bribe - with an upper limit of RUB 500 million ( EUR 12.6m).

Germany: Social security treatment following a wage cut

Germany's Federal Social Court (BSG) has decided that if a verbal (rather than written) agreement is reached with an employee for the continuing private use of a company car when a wage cut is made, then social security charges shall be applied in line with any income tax adjustments that may arise. This is particularly the case where an employee is subject to deferred compensation. The treatment of an employee shall be according to the "facts of the case", rather than by reference to any formal waiver or alternative arrangements concluded in writing. [Judgement of 3rd February 2010 B12 R5/09R]

EU: Opening up the EU labour market

On 1 May 2011, workers from the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia will be able to enter Austria and Germany to take up employment without a work permit. However, following a pact between the Austrian Social partners (OGB, Chamber, BAK and LKÖ) concluded last autumn, all employers operating in Austria will be required to ensure that workers from these EU member states are paid at least 1,000 a month or the minimum wage set out in an applicable collective agreement.

EU: Boosting competitiveness in the eurozone

Further details are emerging about the proposed eurozone competitiveness pact being drawn up by the French and German governments.

Key elements of the pact will be the establishment of a direct link between pension policies and demographic factors, greater harmonisation of corporation tax and the enshrinement of EU debt limits in national laws. However, Germany may be willing to make concessions on its most controversial proposal - an end to wage indexation in countries such as Belgium and Malta.

The draft pact will be discussed at the European summit on 24-25 March 2011.

Belgium: Harmonisation of blue and white collar employment terms

A new Interprofessional agreement for the period 2011-12 has been drawn up by Belgian employers and trade unions. Its most important element is a new chapter that seeks to create greater harmonisation of blue and white-collar employment terms.

Between 2012 and 2017, three successive changes will occur to increase the notice periods of blue collar workers. Blue collar workers will also be subject to a new set of job protection rights after one year of service, with a minimum notice period divided between a period that must be worked and a further period that need not be worked - but will amount to a method for calculating dismissal compensation.

From 2012, the minimum notice period for white collar workers with a gross annual salary between EUR 30,535 and 61,071 (as adjusted next year) will be three months, plus one month for each year of service. This will, however, only apply to employees entering into service from 2012 onwards. Employers will nevertheless be free to negotiate alternative contractual notice periods for those earning above this upper income limit.

France: Boardroom quotas become a reality

The French parliament has finally approved a bill requiring large companies to achieve at least 20 percent female board-level representation in the next three years and 40 percent within the next six years. Moreover, if a board has no current female member, its next appointment must be a woman. The mandatory quota applies to all companies listed on the stock exchange that employ more than 500 people or have an annual turnover of more than EUR 50m. Currently only 15 percent of boardroom positions in CAC40 companies are held by women.

© Copyright: FedEE Services Ltd 2011