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

Denmark: Improvement in leave and severance terms
A new industry-sector collective agreement has been concluded between the Confederation of Danish Industry and the trade union CO-industri.

The two-year deal runs until 1 March 2012 and will affect the pay, terms and conditions of 276,000 employees. It provides for increases in minimum hourly wage rates of DKK 1.10 (EUR 0.15) in the first year and DKK 1.75 in the second year. This represents increases of 1.1 percent and 1.7 percent respectively.

As in many Scandinavian agreements the devil is in the detail. Employees will benefit from an additional two weeks parental leave (one week for each parent). Severance payments are also to be enhanced from 1 May 2010.

In future, redundant workers with at least three years service will receive a payment for the first month after their notice expires equal to the difference between their subsistence welfare payment and original salary, minus 15 percent. After six years service this allowance will be doubled and after eight years service it will be trebled.

Night shift workers will, in future, be offered health checks every two years. Furthermore, provided a local agreement is in place all shift workers will be able to save up to 40 percent of their shift premia and allowances in a 'free choice wage account' which can be used to pay for extra holidays.

Both sides of industry have also agreed to incorporate the terms of the Equal Pay Act into the national accord and to establish a special board to deal with violations of equal pay principles.

EEA: Changes in the treatment of trans-national employees
Companies based in European Economic Area (EEA) countries that send their employees to work in other EEA countries need to prepare for new social security regulations on the posting of workers that come into force on 1 May 2010.

The new rules, introduced through regulation 883/04, apply to all EEA citizens covered by the social security legislation of an EEA country.

Although the principal remains that workers will pay social security in the country where they are employed, fresh provisions will be introduced for those that regularly work in two or more states.

* In future, it will be entirely up to the authorities in the country where an employee is resident to determine which country's social security legislation will apply.

* It is no longer sufficient for an employee (other than a "posted worker") to work only one day a month in their home country to retain the right to pay their social security there. In future, employees must work at least 25 percent of their time in their home country in order to remain within its social security jurisdiction.

* Workers temporarily sent to work in another EEA country will now be covered by the social security system in their home state for up to 24 months (previously 12 months). A facility to extend this period for up to five years remains unchanged.

* If a worker is employed in one country and self-employed in another they will automatically be covered by the social security regime of the country where they are employed.

* A transitional period will exist for workers already covered by previous regulations (EC 1408/71). They will only come under the latest regulations if their circumstances change or they make a request to be covered by the new rules.

It will also be much easier, under Regulation 883/04, for the authorities in one EEA country to serve claims for arrears on employers in another EEA country.

EU: Parents gain new right to four months leave
The EU Employment and Social Affairs Council has approved a proposal extending parental leave rights from three to four months. The new Directive (which replaces Directive 96/36/EC) also requires that at least one of the four months may not be transferred to the other parent. Employers must also give serious consideration to a request for a temporary change in working hours made by an employee returning to work after parental leave.

This measure transposes a framework agreement concluded by a number of EU employers' groups and the ETUC in June 2009. The new rights apply to all workers, including those on fixed-term contracts and temporary work agency contracts.

However, EU member states remain free to decide whether the leave is paid or unpaid.

Member states now have two years to incorporate the changes into national legislation.

OTHER EUROPEAN NEWS IN BRIEF

Belgium:
The Brussels Labour Court has found that a non-compete clause does not have to be restricted to activities that are identical to the tasks previously carried out. It may cover activities that are similar in nature.

EU:
Concerted lobbying by employers groups and reservations by a number of national governments has led the European Parliament to postpone its final vote on new maternity and paternity leave rights until 18 May 2010. This is to allow an independent study to be carried out on the likely impact of 20 weeks maternity leave and two weeks paternity leave on each of the 27 EU member states.

Europe / Global:
According to a report published earlier this month by the World Economic Forum, just under five percent of CEO positions in 600 of the world's largest companies are held by women. The European countries with the highest proportion of female CEOs are Finland (13 percent), Norway (12 percent), Turkey (12 percent) and Italy (11 percent).

France:
New rights have been introduced to allow anyone affected by a French law to challenge it before the Conseil Constitutionnel. Hitherto constitutional judges have largely scrutinised laws on their own initiative and they have only been accessible to senior politicians. Now, if a law has not been previously scrutinised by the Conseil - however well established - a challenge may be made. However, the request must be submitted by a practicing lawyer, supported by a judge and approved the Cour de Cassation, France's highest court, before the constitutional judges will be asked to investigate.

Luxembourg:
Since 16 January 2010 all private sector employers in Luxembourg have been legally obliged to comply with the 2009 national collective agreement on bullying and violence at work. This gives employees a comprehensive body of protection (including against third parties) through an obligation on companies to establish a clear policy framework and written procedures on how such acts will be dealt with.

Companies must also ensure that victims and witnesses are given adequate protection and not subject to retaliation.

Malta:
A sample survey among Malta's manufacturing enterprises carried out in the fourth quarter of 2009 has revealed that, year-on-year, turnover (-1.6 percent), investment (-54.8) and employment (-5.5 percent) declined whilst wages and salaries increased by 4.1 percent.

Norway:
Hourly labour costs in Norway's oil and gas sector rose by 7.3 percent over the year to Q4 2009. Over the same period hourly labour costs rose by 3.4 percent in manufacturing and 3.5 percent in retail and wholesale trade.

Russian Federation:
According to the news agency ITAR-TASS, the Russian government intends to declare 28 July as a new public holiday to celebrate the adoption of Christianity in the tenth century AD. This official non-working day will be introduced in 2011. The Russian Duma (parliament) recently passed at second reading a bill to make 15 February another public holiday.

Slovenia:
Although absenteeism declined in Slovenia between 2000 and 2008 it rose again last year. According to the Health Insurance Institute (ZZZS), over 10 million working days were lost due to sick leave during 2009, which cost the economy EUR 900 million in lost production.

Sweden:
A district court in Sweden has ruled that the Public Employment Service discriminated against a Muslim man because he had refused to shake hands with a prospective employer.

The claimant had attended an interview for a trainee welder’s position at a company in Almhult, but greeted the female CEO by bowing with his right hand on his chest. This was because, as an active Muslim, he was not allowed to touch a women outside his family. Although the company failed the applicant on the grounds that he lacked aptitude for the job, the Public Employment Service stopped his unemployment benefits, claiming that the reason for his not securing the job was his rudeness at interview. They have now been ordered to pay the claimant SEK 60,000 (EUR 6,122) compensation.

Switzerland:
Collective agreements concluded in Switzerland during 2009 gave rise to an average overall wage and salary increase of 2.6 percent. The average increase for those on minimum rates, however, rose by 3.2 percent. Negotiated pay increases affect 24 percent of Switzerland's working population and the pay of a further 13 percent is set by reference to collectively agreed rates.

United Kingdom:
From 6 April 2010, the UK Information Commissioner will have the power to issue fines of up to GBP 500,000 (EUR 554,000) for breaches of the Data Protection Act. Companies should take particular care over the distribution of unencrypted personal data, in particular the loss of data carried in laptops and memory sticks. A number of inexpensive and lightweight solutions now exist to transport data in a secure way - with 256-bit AES hardware-based encryption or built-in fingerprint security.

Copyright: FedEE Services Ltd 2010