Netherlands: Boost for older workers

The Dutch Social Affairs Minister, Henk Kamp, has tabled a draft Bill designed to make it easier to work beyond the age of 65.

Under the Bill employers will be allowed to extend temporary employment contracts for older workers beyond the current limit of two renewals. The over 65s will not be entitled to sick pay and employers will not have to take special steps to reintegrate them after sick leave. From 2013 employees will also be able to postpone their state pension for up to five years and receive a pension bonus of 6.5% for each year that they exceed the normal retirement age.

Spain: Disputes resolution procedures under the microscope

During the first half of 2011, Spain's Interconfederal Mediation and Arbitration Service (SIMA) has resolved 145 disputes involving more than 700,000 workers. The most common points of dispute were the interpretation of collective agreements and discrepancies within pay structures. The growing need for intervention by SIMA has led the employment ministry to announce that it is examining new ways to encourage both sides of industry to resolve differences through the improvement of negotiating procedures.

Growth of pensions outsourcing

Both UK and European companies are moving towards outsourcing the administration of their occupational pension schemes - according to new research from Mercer and Chatham Partners. The closure of defined benefit schemes, access to better technology, escalating costs and regulatory changes are the principle reasons driving the trend in the UK. The figures show that just under half of those asked were planning to outsource in the next three years.

EU: Uncertainty about granting of free movement rights

More than one third of European Union countries currently apply restrictions to the free movement of Bulgarian and Romanian workers. These have until the end of this year to apply to the European Commission for an extension of these controls. So far only the Netherlands and UK have announced they intend to maintain work permit requirements whilst Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg and Malta have yet to declare their hand. In August the European Commission approved Spain's request to limit free movement for Romanian workers until 31 December 2012 - due to serious disturbances in its labour market.

Netherlands: Short-term reprieve for pension funds

The Dutch central bank has given pension funds an additional year to bring their coverage ratios (CR) back to 105% before they are forced to either raise premiums or cut payouts to beneficiaries. However, funds that were given more time in 2009 to bring their CRs back on target will not be able to take advantage of this further grace period. The civil service fund dropped to a CR of 90% in Q3 2011, the Dutch healthcare sector fund has fallen to 91% whilst Industrial funds PME and PMT have plummeted to 86% and 84.3% respectively.

Germany: Voluntary code on boardroom representation

Although Norway, Spain and France have each passed laws obliging publicly listed firms to give a percentage of boardroom seats to women, there is no such law yet in place within Germany. In order to avoid legal quotas Germany's 30 DAX corporations have recently adopted a voluntary code of practice setting a target of 35% board level representation by 2020 - a substantial rise from the 3.7% female representation today.

Ireland: Intoxicants in the workplace

The Irish Health and Safety Authority (HSA) has recently published guidance on intoxicants in the workplace. There is no legal obligation for employers to test employees for intoxicants, although they do have a duty to ensure the health and safety of employees (as far as reasonably practicable). Moreover, employees do not have to submit to drug and alcohol testing unless it is provided for in their contract of employment. However, they are under an obligation to carry out their duties and to co-operate when their employer seeks to comply with health and safety legislation.

Netherlands: Tighter restrictions on expatriate tax limit

Planned restrictions on the tax treatment of expatriates now appear set to be passed by the Lower House of the Dutch parliament. This is in spite of strong opposition from several local councils and an undertaking by the finance ministry to reconsider current plans.

At present expatriates in the Netherlands are not required to pay income tax amounting to more than 30% of their total gross income. However, under a new parliamentary Bill this facility will only apply to those earning at least EUR 70,000. A new qualifying zone would also be introduced such that anyone originating from a location less than 150 km from the Dutch border would no longer qualify as an expatriate for tax purposes.

UK: Growth in collective dispute referrals

The number of collective employment disputes referred to the UK's Advisory, Conciliation and Arbitration Service (ACAS) increased by 15% between 2009-2010 and 2010-2011. The most common causes of the referred disputes were issues such as bonuses, job evaluation, grading, pensions and leave. Other issues concerned general pay claims, redundancy and trade union recognition.

Netherlands: Immediate access to tax-free savings

Dutch workers who take part in the employer's save-as-you-earn ‘spaarloon' scheme will be able to withdraw their entire savings from January 1st 2012. The tax-free savings scheme is being phased out with the government hoping that the early release of the cash will help to boost the economy. Under current rules workers may save up to EUR 613 each year tax-free. The savings remain tax-free provided that they are not drawn upon for at least four years.

Switzerland: Employers likely to set 1.5% limit

As the annual pay round gets underway in Switzerland trade unions are demanding 2-3% increases against an employers' probable upper limit of 1.5%. The head of the Swiss Employer's Association, Thomas Daum, has warned that pay rises will vary between sectors - with some exporters being unable to afford any increase in remuneration due to the over-valued franc affecting profit margins.

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