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

Bulgaria: annual leave must be taken in full each year

The Bulgarian parliament has voted in a number of further amendments to the Labour Code.

There is a new requirement on employees to use their annual vacation entitlement only in the year when it falls due. Exception to this rule will apply to employees who have been unable to take leave because of maternity or extended sick leave. In such a case, leave may be taken in the following year.

At the start of each year employers must draw up a vacation roster and ensure that all leave is taken. Existing vacation days already brought forward from previous years must be taken by the end of 2011 or will be lost. From 2011, however, employers will have the right to require employees to postpone vacation if there is a clear business need for them to do so.

When business activity is low employers may, in future, send full-time staff on up to sixty days of unpaid leave, provided that they keep their old jobs open for them should business activity pick up during that period.

Italy: Harmonisation of normal retirement age from 2012

The Italian Cabinet has agreed that the normal retirement age for male and female public sector workers will be equalised at 65 from 1 January 2012. Welfare Minister Maurizio Sacconi claims that "the actual impact will be very limited. Indeed, the average age of retirement of women in government is just over 62 years. So it does not mean that women should wait for 65 years to retire" as many will be able to retire early on a reduced pension.

This measure will provide annual savings of EUR 50m - rising to EUR 300m by 2016. These savings will, however, be deposited in a fund to be exclusively used for affirmative action programmes for women and improvements in state-funded kindergartens.

There are no immediate plans to extend pension harmonisation to the private sector. This is because, according to Minister Sacconi, as an employer "the government is careful to allow the reconciliation between work and time that women devote to their family".

Spain: Government rushes through labour reforms

The Spanish government has finally introduced its promised tranche of Labour reforms. This simplifies employment contracts, reduces severance payments (in some cases) to 25 days per year of service, and makes it easier for companies to establish short-time working arrangements.

A new Wage Guarantee Fund (Fogasa) is to be established to reduce the burden of severance costs to individual companies. This will top up severance payments by up to eight days per year of service.

Spain's two big unions - The UGT and CCOO - have announced that they will hold a general strike to protest against the reforms. This will not, however, take place until 29 September - an indication perhaps that they may have doubts about their ability to command widespread support at a time when unemployment is standing at 20 percent of the working population.


UK: Data protection authority powers must be strengthened

The European Commission has sent a 'reasoned opinion' to the UK government requesting that domestic laws and procedures be modified to comply with the EU Data Protection Directive (95/46/EC).

The Commission is principally concerned about the powers of the Information Commissioner's Office (ICO). Currently the ICO has no mandate to monitor whether third countries have adequate data protection laws and practices in place and is therefore sometimes unable to make an informed assessment prior to data transfers being made. It also has no right to perform random checks on people or organisations processing data to establish whether they are in legal compliance or to enforce penalties on its own authority. Moreover, UK courts do have the power to refuse the right of a data subject to have inaccurate personal data rectified or erased.

The UK government now has two months to inform the European Commission about what steps it intends to take to ensure compliance with the Directive.

Other European HR news in brief

Czech Republic
The Czech Ministry of Labour and Social Affairs has predicted that pay levels will rise between 2.1 percent and 3.1 percent this year from an average level of CZK 23,598 (EUR 913) in 2009. This is likely to increase real spending power by between 0.3 percent and 1.3 percent. The ministry also predicts pay rises of 3.9 percent to 4.9 percent next year.

Germany
Germany's Federal Labour Court has issued a ruling that ends decades of monopolistic rights to union representation and collective bargaining in German companies. The court's decision will mean that duplication and overlapping collective bargaining units may operate concurrently. It also undermines the practice of extending in-house wage deals made between a company and the union with the greatest representation to cover all workers in the same company who are performing similar jobs. [23 June 2010 - 10 AS 2/10 & 10 AS 3/10].

Germany
The official German Elena database continues to attract a great deal of criticism, particular on data protection grounds. From July 1st employers must report on all employee dismissals (DBE) and state the reasons for dismissal. Much scope exists for the recording of inaccurate date through the use of free text fields - a practice likely to be discontinued when a working group issues its recommendations later this summer.

Netherlands
The Dutch government has adopted a Bill drawn up by Social Affairs Minister Piet Hein Donner to further limit the period during which annual statutory vacation days can be saved. The Bill would reduce the time during which unused holidays can be accumulated from the present limit of five years to just eighteen months. This measure would not, however, affect an employee's right to save up contractual holidays offered in excess of the statutory minimum - if such a facility is agreed with their employer.

Portugal
The three principal employer associations in Portugal - the Associação Empresarial de Portugal (AEP), the Portuguese Industrial Association/Business Confederation (AIP-CE) and the Confederation of Portuguese Industry (CIP) - have decided to merge into one body. This move has been welcomed by the government as "a positive step for social dialogue" in the country.

Romania
Romania's Constitutional Court has ruled that the government's proposed 15 percent cut in state pensions is unconstitutional. The cut was a key element in the government's austerity programme and the court's decision could endanger the continuation of IMF loans in a country where retirees significantly outnumber those in employment. The government will now have little option but to raise VAT and income taxes.

Copyright: FedEE Services Ltd 2010