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

Croatia: Labour bill aligns laws with EU directives
Significant changes to the Croatian Labour Code must take place during the lead up to full EU accession by 2011. So far the government has adopted regulations in respect to European works councils, the European Company, European cooperatives and the protection of workers in cases of employer insolvency.

Following 15 months of negotiations with employers' organisations and trade unions, the Croatian government has drafted a number of important further amendments to the Code. The Labour Bill, which has now been submitted for parliamentary debate, contains a number of key reforms:

* Replacement of the current employment book system by an electronic employment card.

* A new three-year limit for fixed-term employment contracts - regardless of whether the contract refers to the same or different jobs.

* A requirement for those on fixed-term contracts to be subject to the same working conditions as those on indefinite term contracts.

* A 40-hour working week, with a maximum of eight additional hours overtime

* A minimum statutory annual holiday period of four weeks - up from 18 days. Annual leave entitlement will also become transferable between jobs if an employment contract is terminated.

* The establishment of an institute for regulating and expanding the coverage of collective agreements.

Progress has yet to be made on the equal treatment of women and men, the prevention of discrimination against Serbian and Roma minorities and the organisation of the labour inspectorate.

European Union: Free movement rights and mobile workers
European airlines have frequently run up against pan-European labour relations problems and been exposed to the shortcomings of EU social and employment directives. Flight crews are in a good position to compare terms and conditions with those from other airlines and although the free movement of labour is a cornerstone of the EU treaty many countries - such as Belgium, France and Germany - have rigidly applied local labour laws even where staff, such as pilots, are highly mobile workers and based in another country.

In 2006 pilot unions from five European countries linked up to represent the pilots of low-cost carrier EasyJet under the umbrella of the European Cockpit Association (ECA). However, whilst the company was prepared to consult with employees at a pan-European level it was reluctant to enter into any agreements with the association and the ECA has found that there is no facility under EU law for establishing the legal status of a trans-national union structure.

In 2007 the French Conseil d'etat dismissed a claim by Easyjet and Ryanair that their cabin staff worked for the company headquarters and that time spent in French airports was purely for taking mandatory rest periods. This summer the state prosecutor in Creteil near Paris issued proceedings against Easyjet accusing them of failing to register a business in France, concealing employment and hampering staff representatives.

The latest battleground for Easyjet has been in Germany where locally employed ground staff had sought to include pilots and cabin crew in their works council. The company sought an order from a labour court declaring that a works council for flight staff could only be established through a separate collective agreement and therefore that a common works council arrangement was unlawful. The higher labour court in Berlin Brandenburg has recently overturned an order of a lower court and established the principle that local representation rights do not exist for flight staff as their activities are not locally bound. (6 TaBVGa 2284/09 LAY 30.10.09).

Switzerland: Compulsory citizenship courses
On 1 January 2010 Bern will be become the first Swiss Canton to make attendance at special courses a precondition for achieving citizenship. A further requirement will be the achievement of basic language skills in either French or German.

In Switzerland Cantons and municipalities are responsible for naturalisation procedures. This is normally achieved through interview once an applicant has been in residence for many years. Two further Cantons, Ticino and Solothurn, are likely to introduce compulsory courses next year.

United Kingdom: Inequality period depends on learning curve
The English Court of Appeal (COA) has ruled that if length of service is to be taken into account to justify differential pay levels, the length of time required must be proportional to the proficiency required for the job. The COA reversed a tribunal's decision that had simply required an employer to establish that there was a need for differential pay levels based on experience and had stated that it was not within the courts power to decide what limits should be applied.

The COA decided that if there were 'substantial doubts' surrounding unequal pay, the length of service requirement could be taken into account. They also took into account the views of the Human Rights Commission which pointed out to the court that service-related pay scales can have an adverse impact on women who are less likely than men to have unbroken employment records because of family commitments. [Wilson v HSE: Case No: A2/2009/0167].

Other European news in brief

Belgium
In Belgium certain rights of white-collar workers, such as notice periods, are fixed by statute into three remuneration bands. These are adjusted each year and from January 1st 2010 the thresholds will rise by 2 percent to EUR 30,322, EUR 36,349 and EUR 60,645 respectively.

ECJ
The European Court of Justice (ECJ) has concluded that pay in lieu of notice given to a worker who is dismissed during parental leave should be calculated on the basis of their normal salary. This salary level is that which the individual would have received had they not reduced their working hours during the parental leave period. In the court's view, if this principle did not apply workers would be discouraged from taking parental leave by means of a temporary reduction in regular working hours. [Meerts v Proost NV C-116/08].

Germany
The Labour Court in Mainz, Germany has ruled that an employer is obliged to provide sick pay when an official certificate of unfitness for work has been presented by an employee, even if the employer does not believe that the employee was genuinely ill. In the court's view an employer may only refuse sick pay if they have concrete evidence that the employee is well and fit to work. [9 Sat 156/09].

Greece
The Piraeus District Court in Greece has found that a strike action ordered by the Federation of Port Employees (OMYLE) "under the pretext of opposition" to the privatisation of the Piraeus port administration was "illegal and abusive" and ordered dockers to return to work. The principal point of dispute was a contractual arrangement allowing private companies to operate on a concessionary basis within the port. Last month Greece's top administrative court dismissed a challenge by the OMYLE to a 35-year concession won by a Chinese company to operate the port's second container terminal.

Lithuania
From next month Lithuanian employers will have to follow a new, simplified procedure when they terminate employees. An electronic submission form 2-SD will have to be completed stating the grounds for termination and the basis for calculating severance compensation. The form will be submitted over the Internet to the Social Insurance Board (Sodra) and they will inform the local labour exchange on behalf of the employer.

Netherlands
The national collective agreement (CAO) for the Dutch engineering and metal industries has frozen basic wage rates in 2010 and given workers an additional 3.5 days annual leave. Although employers may still opt for a pay rise instead of the extra leave period they will not be obliged to increase rates until 2011, when a modest rise of 1.5 percent will become due.

Portugal
A flat-rate 20 percent income tax rate has been introduced aimed at employed or self-employed expatriates entering Portugal to carry out “high-value-added” activities, of a scientific, technological, or artistic nature. To qualify individuals must not have been taxed as a resident in Portugal during the last five years. The special tax status may be continued for up to ten consecutive years during which time foreign source income will also be exempted from tax in Portugal - provided it is taxed at source. (Decree Law 249/2009).

Romania
The Romanian government has agreed to amend the Labour Code to require employers to register all employment contracts at least one day before they are due to commence. Currently registration with the labour inspectorate must take place within 20 days of an employee starting work. This change is designed to reduce illegal employment and has been put forward as a precondition for further funding by the EU, World Bank and IMF.

Slovak Republic
The national minimum wage in the Slovak Republic will rise on 1 January 2010 by 4.1 percent to EUR 307.7 a month. This increase has been against the advice of employer organisations that had pressed for the existing rate to be frozen next year.

Sweden
The Swedish Government has proposed new legislation to protect workplace privacy. The proposal aims at tightening several existing areas of privacy legislation - such as surveillance and control, access to information about criminal convictions, medical examinations, and the use of background checks. All policy changes in the privacy field would also be subject to consultation in advance with employee representatives.

 Copyright: FedEE Services Ltd 2009