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

 Europe: Radiation concerns focus on employee food consumption

Radioactive particles from the stricken Japanese Fukushima reactor are likely to arrive in air currents over central Europe today. However, contamination levels should be well below those that arose from the Chernobyl nuclear disaster and the main danger to employee health is likely to be from food imported from Japan.

Radioactive iodine in the sea samples around the plant are 126.7 times the allowed limit, whilst caesium is 24.8 times over the limit. Employers should therefore warn staff about recently imported seafood products from Japan and ensure that they are not being served in company canteen facilities.

Europe: Labour costs of older workers too high

According to a new report published by the OECD, the changes that have recently taken place in many European countries to delay the retirement age will not be sufficient to avoid increased future pension costs. The working population will peak around 2015, but then decline 10 percent by 2050. This will place an increased pensions funding burden on every individual in the workforce. Unit labour costs also need to fall for older workers in order for them to retain their employability and employers need to cater for an ageing workforce through flexible hours, continuing education and improved occupational health facilities.

Republic of Ireland: Unemployment reaches 17-year high

The Central Statistical Office (CSO) in the Irish Republic has revised its unemployment figures for February 2011. According to the CSO, the unemployment rate was 14.6 percent – up from its earlier reported level of 13.5 percent. Ireland now has more people out of work than at any time since 1994.

More than half of the country's 300,000 unemployed were without a job for more than a year with young men and foreign workers bearing the brunt of Ireland's economic woes. This is mainly due to the collapse of the construction and hospitality sectors and property-related financial services companies.

UK: Further immigration restrictions

The UK Home office has reduced the list of jobs where there is a national skills shortage. In effect from 1 April 2011 non-EEA migrants will no longer be allowed to work in the UK as chefs, hairdressers, estate agents or in beauty salons.

UK: New recruitment and promotion guide

The UK Equalities Office has issued a quick start guide to help employers deal with the new positive action approaches to recruitment and promotion in the Equalities Act 2010. These provisions come into force on 6 April 2011. http://tinyurl.com/6fqmlrb

Russian Federation: Launch of new state employment strategy

The Russian President, Dmitry Medvedev, has approved proposals for a new state employment policy. The new strategy to be launched early next month will include targeted measures to reduce unemployment levels, support those seeking work and improve the rights of women on maternity leave. A particular focus of the strategy will be to broaden employment opportunities for people with disabilities.

Belgium: Tax brackets rise - but tax levels still prohibitive

Income tax brackets, exemptions and deductions in Belgium are adjusted in line with inflation in January each year. This year, the tax-free personal amount has risen to EUR 6,570 per annum for those without dependent children. However, this rises to EUR 19,590 for those with four dependent children.

The tax rate for the first EUR 8,070 of annual taxable income is 25 percent, but this increases to 50 percent on taxable income above EUR 35,060. In addition, employees must pay local income tax - which can vary from 0 percent to 10 percent depending on the commune where they live - and meet their share of social security contributions. This means that a taxpayer without dependent children living in certain communes will receive only 27 cents for every euro earned above EUR 41,630 per annum.

Germany: Mandatory board quotas

The German Federal Government has organised a meeting on 30 March 2011 with the top 30 stock exchange (DAX) companies in order to discuss board level employment quotas. The government wishes to increase the number of female executives - if necessary by a legally binding quota. A recent survey has indicated that 21 out of the 30 DAX companies will reject the proposal for a mandatory quota.

Germany: Refusal to carry out normal work duties on grounds of religious belief

Germany’s Federal Labour Court has ruled that an employee was entitled to refuse to perform a specific task on religious grounds. This ruling concerns a case where a Muslim employee refused to handle alcohol whilst working in a supermarket, due to their religious beliefs The court held that if there was an alternative task that the employee could have carried out, then the employer was obliged to amend their duties. The employer would only have been able to dismiss the employee if they were unable to find any alternative tasks which the employee could have practically and realistically carried out. [2 AZR 636/09].

Netherlands: Voluntary code under the spotlight

The lower house of the Dutch parliament has given the banking industry until September 2011 to demonstrate that it is willing to comply with its sectoral code of conduct. If there is evidence of significant noncompliance by the autumn, then parliament will introduce legislation to control bankers' bonuses.

Netherlands: Reforms to the sick pay system

The Dutch Social Affairs Minister, Henk Kamp, has proposed that temporary employment agencies be held responsible for paying sick pay during an agency worker's first two weeks of absence. Kamp also wants all employees on sick leave to be obliged to accept suitable alternative work within their first year of absence or lose their sick pay entitlement.

France: Pentecost case could give rise to significant backpay claims

The Labour court in the French city of Angers is likely to refer an important employment case to the French Supreme Court (Cour de Cassation) this week.

The case concerns a driver for a subsidiary of the French supermarket chain Carrefour who lost earnings each year because he repeatedly refused to work on Pentecost Monday. Until 2004, Pentecost Monday was an official holiday in France. In 2005, the public holiday was replaced with a day of solidarity when employees' wages were donated to assist the elderly and persons with disabilities. The holiday was, however, reintroduced in 2008. But many employers continued to require blue-collar employees to work through the official holiday on normal pay rates or forfeit payments due to them should they have been granted time off for a public holiday.

If the Supreme Court rules in favour of the employee – especially on constitutional grounds - many employers in France could face significant backpay claims.

Italy: Major tax incentive for EU nationals

A new law has come into force in Italy which provides tax incentives for highly skilled Italian nationals and formerly resident nationals from other EU member states who decide to take up residence again in Italy.

To qualify for the scheme, an individual must have been born after 1 January 1969, hold a University degree and have previously been resident in Italy for at least 24 months. They must also undertake to transfer their domicile and residence to Italy within three months of recommencing employment or self-employment in Italy. Secondees of Italian companies will be excluded from the new provisions.

Those qualifying under the scheme will have their taxable income limited to 20 percent of their actual income if they are female and 30 percent if they are male. The benefit will then continue until the end of the 2013 tax year.

Portugal:  An end to unpaid internships

The Portuguese Prime Minister José Sócrates has announced a ban on unpaid internships ¬– except for attachments to law firms and architects and work experience periods of "very short duration". His government is also launching a "rehabilitation" programme for young graduates with low employability and an "export innovation" programme for young managers.

© Copyright: FedEE Services Ltd 2011