Human Resource Management in an Expanding Europe

8/8/2019 Human Resource Management in an Expanding Europe

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Human resource management in an expanding Europe

Human resource management (HRM) is a fairly new concept, first given general currency

by the Harvard Business School in the early 1980s. Fifty years ago companies were still

debating whether the term 'personnel department' should replace 'employmentdepartment' and in the 1920's even the largest companies commonly operated with simply

a 'time office' and a separate 'welfare department'. This transformation of people

management activities reflects a greater emphasis on individual rather than collective

employee relations, an increase in the complexity of the employment process and thegrowth of an important strategic dimension based on the notion of 'human capital'.

In Europe, there has long been a considerable gap between the Anglo-Saxon andcontinental approaches to the way enterprises are organised and operated. Companies inthe UK and Ireland have a significantly higher proportion of managers relative to other

employees than companies in countries such as Germany, and particularly Italy.

Ratio of management to other employees

UK &

Ireland

Netherlands,

Belgium &

Greece

Other

established EU

states

Estonia &

Latvia

Other new EU

states

1:5 1:8 1:15 1:8 1:16

Sources: UNECE, ILO.

This emphasis on management positions has itself been a factor in the development of

human resource management within the British Isles. If we look at the proportion ofprofessionally qualified human resource (HR) staff compared to other employees in

medium-large companies across Europe, we find the UK has a ratio of just 1:127, while

other (EU15) states (except for Ireland and Sweden) have an average ratio of 1:2,790.Although not all members and affiliates of professional personnel/HR bodies will be in

management positions, the larger the HR department and the more sophisticated its staff,

the more HRM jobs can be expected to exist.

Ratio of professional HR staff to other employees HR/E (medium-large companies only)*

UK Ireland Sweden Poland(Kopec)

Other EU15

states

New EU

states

1:127 1:189 1:402 1:166 1:2,790 1:5,105


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Sources: Eurostat, EAPM, 2001 study by Dr J Kopec (Cracov University of Economics)* Companies employing 50+ employees. EU15 states are the 15 member states of the

European Union prior to accession on May 1 2004.

What the above figures suggest is that the ratio of HR/E is even higher in the new

member states. However, the evidence from a study of HR management in Poland byKopec (2001) found a ratio of 1:166. This study indicates that one of the reasons why the

HR/E ratio appears to be so high in many new and established EU states is becausemembership of professional bodies on the European continent is confined to senior HR

practitioners. Many HR staff, particularly in eastern Europe, are performing routine

administrative functions and do not hold professional HR qualifications.

Proportion of employees in companies employing 250+ people

Sectors EU15 states New EU states

Employees in industry,

construction & services

35% 34%

Source: Eurostat

One other factor that might have explained the apparent paucity of HR professionals inthe new EU states is discounted by the figures in the above table. An organisation's

justification for operating an HR department is directly related to the number of people it

employs. However, the proportion of employees working in companies employing over250 staff is very similar in both the EU15 and new EU states.

The UK human resource management model

Even though the HRM concept is better developed in the UK than elsewhere in Europe,not all large companies operate with specialist departments or give their head of

HR/Personnel a 'Director' title.

Management of HR/personnel function in the UK (private sector only)

500-999 employees 1,000+ employees

Proportions of companies withHR/personnel directors

42% 65%

Source: Personnel Managers' Yearbook 2003/4

Neither do HR/personnel departments provide a wide range of specialist positions.Training is the only role commonly associated with 'director' status, and health and safety

is not always considered part of the HR function.

Incidence of specialist HR/personnel positions in the UK

(private sector only)

Position 500-999 employees 1,000+ employees


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Training director/manager 41% 66%

Health & safety manager 40% 47%

Payroll/wages officer 37% 35%

Recruitment manager 7% 16%Head of compensation and benefits 3% 11%

Management development manager 2% 7%

Industrial relations manager 1% 6%

Equal opportunities manager 1% 3%

Source: Personnel Managers' Yearbook 2003/4

The decline of collective bargaining accounts for the current low incidence of the

industrial relations manager, whilst equal opportunities units are generally only found in

public sector organisations.

Differences in reporting structures

There are generally two types of HRM reporting structures operating within international

companies across Europe. The first type is generally found in US-owned multinationals

where global operations are divided into regions and Europe is coupled with Africa andthe Middle East (EMEA). The head of HR for the EMEA region is normally located at

the company's largest operating site, or at a regional office in Europe.

Typical HR departmental structure: EMEA (US-owned multinational)

If the multinational enterprise is large enough, or the European business is established as

a virtually autonomous entity, the regional human resource position may be at a 'Director'

or even 'VP' level. In a typical company with a regional workforce of 1,000 staff, the

HRM would operate with one specialist professional and an HR assistant working out ofthe same office, while local personnel managers would cover the principal geographical

zones. Where the company has only a small sales or service operation, the routine HR


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activities will normally be carried out by a general administrator and payroll clerk (or

external payroll provider).

EU-owned companies tend to adopt a quite different reporting structure. Outside the UKand Ireland, the structure is frequently influenced by the existence of two-tier boards.

Although some 'high tech' companies have adopted the American practice of accordingHR board-level status in its own right, the majority of large companies incorporate

responsibility for HR into a general administrative position, often coupled with thefinance function.

Typical German personnel/HR departmental structure (EU-owned company)

The top HR job may be called the 'Personnel Manager' or the more traditional 'Personnel

Administration Manager'. Many of the company's training functions could well becontrolled by the company's national works council or directly reporting to line

management.

Most of today's indigenous private sector enterprises in new EU countries such as Poland,

Hungary and the Czech Republic were originally part of a bureaucratic state-runeconomy. When these companies were privatised, the model generally followed was the

German corporate structure with its two-tier boards.

Although the executive boards of Polish companies are more likely to include a director

purely responsible for administration than German or Austrian enterprises, it is commonpractice to retain former departmental titles for functions reporting into the board. Thus,

HR may be referred to as the labour department or the staff administration section. Most

of the activities in a traditional department are routine and passive in nature, and manyrecruitment assignments are supervised directly by line managers.

Typical Polish labour/staff administration departmental structure


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Future developments

The demands currently made upon HRM in the established EU countries differ

considerably from those made upon their counterparts in new member states such as

Poland, Hungary and the Czech Republic. In the new EU states, all functions aregenerally more subject to line management control than in the EU, and this is reflected in

the lower level of perceived autonomy amongst employees in eastern Europe. Working

practices also contrast significantly, especially in the incidence of shift work.

The number of people with a second job will always be understated in survey databecause of the prevalence of moonlighting. Workers in the new EU states value job

security and tend to stay in post much longer than workers in Western Europe. They arealso prepared to work longer hours and focus on the acquisition of foreign language skillsrather than managerial skills. This trend may change once increased economic activity

expands opportunities for promotion into managerial jobs.

Comparison between employment characteristics in EU15 and new EU states (averages)

Employment characteristic EU15 States New EU States

Employee cannot change own working methods 29% 37%

Employees working on shifts 12.1% 23%

Employees working on Sunday 6.5% 11.7%Employees with fixed-term/temporary job 10.5% 8.7%

Employees working at night 4.4% 5.4%

Employees with a second job 1.8% 5.2%

Length of time in present job 10.9 years 13.4 years


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Length of working week 38.2 hours 44.4 hours

Language training in workplace (av/yr) 4 hours 11 hours

Management training in workplace (av/yr) 12 hours 7 hours

Sources: Eurostat and EFLWC

The HRM concept remains undeveloped in many of the established EU member states

such as France and Germany. This is largely due to over-reliance on administrativeprocedures and company rules, the codetermination powers of works councils, the

prevalence of sectoral collective bargaining, and widespread union resistance to

workplace innovation. It therefore remains uncertain how far HRM methods will becomethe norm for managing personnel issues in the new member states.

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Guidance note on European HR trends

Overall labour productivity in the EU15 (the 15 non-accession countries of the EuropeanUnion) has been greater than that in either the USA or Japan over the period 1994-2003.

Gross domestic product at purchasing power standards (PPS) shows that productivity

relative to the EU15 fell by 9% in the USA and by 17% in Japan over the last decade.Over the same period, labour productivity per hour worked (again at PPS) fell by 1% in

the USA and by almost 3% in Japan relative to the EU15 .

The EU15 countries spend a higher proportion of their GDP on education than the USA

and Japan. Leading EU countries such as France (19.6%) and the UK (16.2%) have amuch higher proportion of university graduates in science and technology in the 20-29

year old population than the USA (9.6%) and Japan (12.6%).

A measure of the success of EU15 employers in maintaining labour costs in line with

productivity can be found in the fact that unit labour costs have fallen by 0.4% in realterms over the last decade. However, one policy concern that has not been resolved is the

gender pay gap. The difference between the average gross hourly earnings of men and

women in the EU15 countries has remained at 16% since 1994.

In the EU15, the proportion of adults aged 25 to 64 who receive education and trainingeach month has almost doubled since figures first became available in 1996. Lifelong

learning is particularly strong in Scandinavia, the Netherlands and the UK. EU15

employers have also been successful in the retention of older workers, with Ireland, theNetherlands and Finland being the three best-performing countries.


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HR policies and strategies checklist

The focus for HR strategy over the last decade has been to find an ever-widening range of

methods to cut costs and improve operational performance. These tend to be carried outirrespective of the current stage of the economic cycle or a company's relative

competitive position. Options which were once regarded as either in or out of fashion arenow being assessed purely on their merits, and are being swiftly adopted if they seemlikely to succeed.

We have entered an era of corporate perfectionism in which almost anything is possible.

The prevailing aim of companies is not just to be more efficient and effective than their

business rivals, but to be so good that it will be dangerous for competitors to try toemulate their achievements.

Cost saving

Reduction of operational costs: redundancy - delayering - pay cuts and freezes -increasing variable pay as percentage of total pay - recruitment freezes -

outsourcing - removing 'deputy' posts - gain sharing.

Control of overheads: relocation to lower-cost centres - use of teleworkers -

cutting benefits - rationalising back-office functions - trimming expense budgets -

extending the working day.

Limitation of future liabilities: changing from defined benefit to definedcontribution pension schemes - removing incremental pay scales - curtailing

'grade creep'.

Pain sharing: board pay cuts - HQ downsizing - single status facilities - limitingtop management severance packages - outplacement counselling.

Operational flexibility

Job flexibility: job design - flexible working hours - annual hours contracts -fixed-term contracts - multiskilled work teams.

Pay and benefit flexibility: profit sharing - employee share ownership - share

options - self -service benefits.

Operational flexibility: time management - improving managerial leverage - the

24/7 workplace - use of freelance and temporary staff - suggestion schemes.

Human capital

Encouragement of lifelong learning: individual learning accounts - action

learning - elearning - cpd - mentoring.

Retention of know-how: strategy for older workers - removing age barriers -

knowledge management - developing knowledge banks.

Promotion of equal opportunities: removing glass ceiling - equality training -

equal opportunities monitoring - diversity policies - positive action.


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Promotion of health and fitness: in-house fitness centres - discounts on external

facilities - stress counselling - company sports teams - regular medicals.

Performance effectiveness

Use of performance management methods: benchmarking - processreengineering - management by objective - employee appraisal - upward feedback(360 degree feedback) - decentralization - empowerment - delegation - quality

circles - open door policies - performance incentives - supply chain management -

HR systems integration - data mining and warehousing.

Improvement of recruitment process: student sponsorship - on-line recruitment

- automated cv scanning - background checks - verification of cv data - University

ratings - personality/literacy testing - assessment centres - head-hunting -succession planning.

Reduction of absenteeism: attendance bonuses - wellness programmes -

surveillance of those on long-term absence - motivational programmes.

Prevention of fraud and theft: expense claim audits - cctv scanning -whistleblowing schemes - amnesties.

Further important elements in HR management are 'softer' policy concerns and personnel

administration, together with legal compliance and the avoidance of litigation. Increased

board visibility and accountability have become areas of concern following recentexposures of corporate irregularities such as the Enron affair. Data privacy and security

are also becoming more significant issues and are making the application of HR policies

a much more complex task.

Corporate culture

Family-friendly workplace: work/life balance - childcare - eldercare - parental

leave - emergency leave - term time working - job sharing - flexible workingarrangements - sabbaticals.

Corporate governance: annual social and environmental reports - remuneration

committees - independent reviews - visibility and accountability of corporateboards.

Localisation: support for local events - service contracts with SME's -

replacement of expatriates with local employees - environmental improvementschemes.

Employee welfare: hospital visits - disability counselling - company social

functions - attendance at funerals - long service awards - flowers on birth ofemployee's children - car-sharing initiatives - season ticket loans.

Legal and ethical compliance

Safety: statutory obligations - codes of conduct - safety training - jointcommittees - safety signs - emergency procedures - alcohol and drugs testing.


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Employment: statutory obligations - custom and practice - codes of conduct -

disability quotas - collective agreements - works councils - European work

councils.

Privacy and security: codes of practice - data security standards(ISMS) -

international transfers of personal data - email monitoring - subject access

procedures. Personnel accounting: tax compliance - payroll procedures - IAS 19

Community: corporate social responsibility (CSR) - work experience - student

exchanges - sponsorship.

An introduction to European labour law

Overview

Legal systems across continental Europe are largely founded on Roman Law and

Germanic customary law. These have been highly influential in shaping national codes

and have given rise to legal frameworks that rely less on case law and 'precedent' than thecommon law jurisdictions operating in Britain and the USA.

The first comprehensive legal codifications during the modern era appeared in France

during the nineteenth century (Napoleonic Law), and in the newly unified state of

Germany in 1900 in the form of the the German Civil Code (BGB). It is important to notethat certain principles contained in the BGB are implicit elements in many other national

codes today. These include the right to individual autonomy, the role of the law to redress

the vulnerability of a weaker party in a commercial relationship (i.e. the employee) andthe concept of 'unjustified enrichment'.

European Union Law

The European Union (EU) has legal personality in its own right. It may enter intocontracts and defend its legal interests without intervention from any of the member

states.

The treaty that underpins the EU is primarily concerned with the economic relationship

between states. From the outset, however, there has been a social dimension in the treaty.This was placed there by the founding fathers as a 'quid pro quo' for the wealth-

generating benefits of the EU (EEC) for the corporate sector. The basic social right was

the freedom of movement of labour. Every EU national is entitled to take up and pursueemployment in the territory of another member state under the same conditions as the


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nationals of the host state (EU Treaty Art 1 and Regulation 1612/68). A host state may

only exclude an individual where there is evidence that their personal conduct poses a

present threat to public order. They may, however, impose conditions relating tolinguistic competence where this is directly relevant to their employment (ECJ case

reference C-397/87).

Since 1969 (Strauder v City of Ulm) a 'de facto' body of general human rights principles

has been introduced by the European Court of Justice (ECJ) to avoid clashes withnational constutional rights when making their decisions. More recently, the EU treaty

has also incorporated the European Convention for the Protection of Human Rights and

Fundamental Freedoms (the Convention).

Several fundamental rights have been recognised in ECJ case law - the right to a fairhearing (C-98/79), freedom of expression (C-260/89) and the right to privacy (C-118/75).

However, when the ECJ has strayed from the Convention, problems have sometimes

arisen. For instance, in a UK case concerning client confidentiality (C-55/790), the Court

interpreted rights by reference to UK law and thereby inadvertently turned their rulinginto a precedent for other member states. In several other well-publicised cases, the ECJ

has also been willing to question constitutional rights when they have been opposed tobasic economic freedoms contained in the EU treaty.

Direct Effect

This is an important phenomenon that gives individuals the power to claim rights

conferred directly by EU treaties, regulations, decisions and directives (after their

effective date) even if their member states have failed to introduce them into domesticlaw (Frankovitch case) or have not implemented them correctly (Factortame case). These

rights may be claimed by an individual in relation to the state and related public bodies(vertical direct effect), or in relation to another individual (horizontal direct effect)

because they are also subject to the same overarching framework of EU rules. However,the ECJ has been reluctant to rule in favour of horizontal direct effect in the application

of directives.

Indirect Effect

This requires the domestic court of an EU member state to interpret all national laws in

the light of directives, even if the law in question was not based on the directive (Von

Colson C-14/83 and Harz C-79/83). The Von Colson principle is constrained, however,

from being applied where an interpretation would 'run counter to the legitimateexpectation of individuals' in a member state by distorting the words of a national statute

(C-80/86). It is irrelevant whether a national statute was enacted before or after adirective came into force (Marleasing C-106/89).

The changing role of the ECJ and its growing body of case law has forced continental

legal systems to break away from their tendency to codify all human activities in order to

deal with every legal contingency. Complex ECJ rulings and the operation of


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direct/indirect effect procedures are forcing the courts and legal practitioners to operate

more flexibly and think laterally about issues that confront them.

Issues and Questions

What difference would a legal system based on Roman Law have upon day to dayhuman resource management, compared to one based primarily on CommonLaw?

How might the 'direct' and 'indirect' rules affect the conduct of human resource

management? How well are you aware of the potential differences that currentlyexist between national and EU legal requirements?

Why do the labour law systems of EU member states appear to differ so

significantly, despite the increasing pressures towards harmonisation from theEuropean Union over the last four decades?

Article 85 (1) of the EU treaty prohibits 'all agreements between undertakings,

decisions by associations of undertakings and concerted practices which may

affect trade between member states, and which have as their object or effect theprevention, restriction or distortion of competition within the common market'.

How might EU competition rules apply to European trade union negotiating

guidelines, or transnational collective agreements?

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National labour laws

http://www.fedee.com/natlaw.html

Each European country operates a distinct system of labour legislation and judicial

enforcement. This is often closely linked to the process of collective bargaining and

social partner consultation arrangements. Set out below are brief introductions to theframework of labour laws in a number of European countries followed by examples of

primary legislation in English.

FedEE members have access to a more comprehensive range of labour laws through thecountry law guidesavailable in themembers' area of the website.

Austria

Belgium

Iceland

Ireland

Spain

Sweden
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Denmark

Finland

France

Germany

Italy

Luxembourg

The Netherlands

Norway

Switzerland

United Kingdom

Other countries

Austria

Austrian employment law is based on a clear distinction between blue and white collar

workers. A comprehensive system of collective agreements are in place and workers areobliged to belong to their local chamber of employees which provides them with free

legal advice. Special courts exist to handle labour issues and there is a general ban on

dispute resolution through arbitration.

Austrian EWC Law 1996

Basic law on the rights of nationals 1867(pdf)

Protection of personal data 1999 (pdf)

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Belgium

Belgium is a federal state divided into three main semi-autonomous regions - Flanders(Flemish speaking), Wallonia (French and German speaking) and Brussels (mixed

linguistic communities). All competence for making employment laws lies with the

federal parliament, although enforcement of these laws is primarily through locally-administered labour courts. Collective bargaining is the key mechanism by which labour

standards are established and maintained. A multi-industry agreement that creates a

formal framework for all collective agreements is concluded every two years. A plethoraof industry agreements exist and many are extended by royal decree to become generally

binding to all employers in a particular sector or geographical area.

Belgian EWC Collective Agreement 1996

New law on worker participation 2002 (review) (pdf)

Consolidated data protection law(pdf)

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Denmark
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Collective agreements determine most of the terms and conditions enjoyed by Danish

workers. Employment laws have traditionally existed to provide a framework for

collective bargaining and to reinforce the application of resulting agreements. There has,however, been a marked swing away from dependence upon social partner arrangements

and towards the direct application of statutory requirements in the employment field.

Danish EWC Act 1996

The Employers' and Salaried Employees' (Legal Relationship) (Consolidation) Act

Consolidation Act on Equal Treatment of Men and Women

Danish Consolidation Act on Benefits in the event of Illness or Childbirth (2001)

Danish Consolidation Act on Social Pensions (2004)

Danish Consolidated Act on Protection against the Consequences of Industrial Injuries(pdf)

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Finland

In this highly unionised country, terms and conditions are laid down within both aframework of progressive employment laws and a rolling two-yearly incomes policy

agreement. All new laws are subject to extensive consultations with the social partners

and collective agreements become generally effective in their sectors if deemed

appropriate by a tripartite committee.

EWC Law 1996

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France

The Labour Code (Code du Travail) is the primary basis for labour law. Sitting astride thecode is a large body of legally enforceable rights introduced through collective and works

agreements (rglement intrieur). Most employment contracts are for an open term

(contrats dure indtermine) and a major legal distinction exists between 'cadres' (topmanagers) and 'employs' (lower grade staff).

French Labour Code

French EWC Law 1996

The Civil Code
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New Code of Civil Procedure

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Germany

German employment law is not consolidated into a single labour code. It is based instead

on the service contract provisions of the German Civil Code and a plethora of individualstatutes. Collective agreements have full legal status and collective labour law is one of

the few areas where judicial precedent has helped to develop a systematic body of rights.

Protection of working mothers in Germany (pdf)

German health and safety law(pdf)

Occupational accident insurance (pdf)

Promotion of additional provision for old age (pdf)

The Works Constitution Act(pdf)

Federal Data Protection Act

Equal Opportunities Act

Hours of Work Act

European Works Councils (pdf)

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Iceland

Although not a member of the European Union, Iceland is a signatory of the European

Economic Area (EEA) agreement and therefore incorporates all EU employment andsocial directives into its national laws. This is the most highly unionised country in

Europe and trade unions hold a great deal of political power. Special permission must be

obtained from the Ministry of Social Affairs before redundancies involving four or more

employees can take place. Extensive consultations must also take place with the tradeunions to discover if an alternative to labour shedding can be found. Sex equality is a

serious issue, both in labour relations and under Icelandic law. The same salaries must be

paid for work of equal value.

Iceland Social Security Act

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http://www.legifrance.gouv.fr/html/codes_traduits/ncpcatext.htmhttp://www.fedee.com/natlaw.html#top%23tophttp://www.bmas.bund.de/BMAS/Redaktion/Pdf/Publikationen/Soziale-Sicherung-im-Ueberblick/en/soziale-sicherung-02-mutterschutz,property=pdf,bereich=bmas,sprache=de,rwb=true.pdfhttp://www.bmas.bund.de/BMAS/Redaktion/Pdf/Publikationen/Soziale-Sicherung-im-Ueberblick/en/soziale-sicherung-08-arbeitsschutz,property=pdf,bereich=bmas,sprache=de,rwb=true.pdfhttp://www.bmas.bund.de/BMAS/Redaktion/Pdf/Publikationen/Soziale-Sicherung-im-Ueberblick/en/soziale-sicherung-08-arbeitsschutz,property=pdf,bereich=bmas,sprache=de,rwb=true.pdfhttp://www.bmas.bund.de/BMAS/Redaktion/Pdf/Publikationen/Soziale-Sicherung-im-Ueberblick/en/soziale-sicherung-09-unfallversicherung,property=pdf,bereich=bmas,sprache=de,rwb=true.pdfhttp://www.bmas.bund.de/BMAS/Redaktion/Pdf/Publikationen/Soziale-Sicherung-im-Ueberblick/en/soziale-sicherung-15-foerderung-altersvorsorge,property=pdf,bereich=bmas,sprache=de,rwb=true.pdfhttp://www.bmwi.de/English/Redaktion/Pdf/__Archiv/labour-law/works-constitution-act1,property=pdf,bereich=bmwi,sprache=de,rwb=true.pdfhttp://www.bmwi.de/English/Redaktion/Pdf/__Archiv/labour-law/works-constitution-act1,property=pdf,bereich=bmwi,sprache=de,rwb=true.pdfhttp://www.datenschutz-berlin.de/recht/de/bdsg/bdsg01_eng.htmhttp://www.ilo.org/dyn/natlex/docs/WEBTEXT/39143/64941/E94DEU02.htmhttp://www.ilo.org/dyn/natlex/docs/WEBTEXT/37814/64928/E94DEU01.htmhttp://www.bmwi.de/English/Redaktion/Pdf/__Archiv/labour-law/act-on-european-works-councils,property=pdf,bereich=bmwi,sprache=de,rwb=true.pdfhttp://www.fedee.com/natlaw.html#top%23tophttp://eng.heilbrigdisraduneyti.is/laws-and-regulations/nr/35http://www.fedee.com/natlaw.html#top%23tophttp://www.legifrance.gouv.fr/html/codes_traduits/ncpcatext.htmhttp://www.fedee.com/natlaw.html#top%23tophttp://www.bmas.bund.de/BMAS/Redaktion/Pdf/Publikationen/Soziale-Sicherung-im-Ueberblick/en/soziale-sicherung-02-mutterschutz,property=pdf,bereich=bmas,sprache=de,rwb=true.pdfhttp://www.bmas.bund.de/BMAS/Redaktion/Pdf/Publikationen/Soziale-Sicherung-im-Ueberblick/en/soziale-sicherung-08-arbeitsschutz,property=pdf,bereich=bmas,sprache=de,rwb=true.pdfhttp://www.bmas.bund.de/BMAS/Redaktion/Pdf/Publikationen/Soziale-Sicherung-im-Ueberblick/en/soziale-sicherung-09-unfallversicherung,property=pdf,bereich=bmas,sprache=de,rwb=true.pdfhttp://www.bmas.bund.de/BMAS/Redaktion/Pdf/Publikationen/Soziale-Sicherung-im-Ueberblick/en/soziale-sicherung-15-foerderung-altersvorsorge,property=pdf,bereich=bmas,sprache=de,rwb=true.pdfhttp://www.bmwi.de/English/Redaktion/Pdf/__Archiv/labour-law/works-constitution-act1,property=pdf,bereich=bmwi,sprache=de,rwb=true.pdfhttp://www.datenschutz-berlin.de/recht/de/bdsg/bdsg01_eng.htmhttp://www.ilo.org/dyn/natlex/docs/WEBTEXT/39143/64941/E94DEU02.htmhttp://www.ilo.org/dyn/natlex/docs/WEBTEXT/37814/64928/E94DEU01.htmhttp://www.bmwi.de/English/Redaktion/Pdf/__Archiv/labour-law/act-on-european-works-councils,property=pdf,bereich=bmwi,sprache=de,rwb=true.pdfhttp://www.fedee.com/natlaw.html#top%23tophttp://eng.heilbrigdisraduneyti.is/laws-and-regulations/nr/35http://www.fedee.com/natlaw.html#top%23top


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Ireland

Ireland owes much of its legal system to being formerly part of the United Kingdom. The

Irish government generally adheres to EU social directives and was one of the first to

introduce an integrated non-discrimination law giving protection to a wide range of social

groups. Ongoing tripartite agreements exist to sustain growth and control price inflation.The National Labour Court may issue binding recommendations on pay and conditions in

companies where trade union recognition does not exist.

Irish EWC Law 1996

Maternity Protection Act

Ireland Social Security Legislation

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Italy

The Italian constitution recognises the central role of work in the social life of the countryand there is a strong legal framework for working conditions, the right of association and

equality of opportunity. In Italy there are many different instruments that may be used to

introduce a new legal requirement - from 'Decreto Legge' that last for only three monthsto 'Delega Legislativa' that are frequently mistaken for full legal statutes, but are actually

just blueprints for a potential law (Decreto Legislativo). On top of these parliamentary

measures are regulations (regolamento) in five different forms, ranging from 'Derecto delPresidente della Repubblica', which do not require prior authorization by a law, to

'circolare', which simply instruct civil servants how to operate.

Italian EWC Multi-Industry Agreement 1996

Protection of young workers

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Luxembourg

In this small, affluent state, collective bargaining is largely at a company level. The law

requires companies that have over 1,000 employees or are more than 25% state-owned toappoint one-third of their board from employee representatives. Despite this, the

government was reluctant to introduce the European Works Councils Directive, and has

frequently been at loggerheads with trade unions about issues such as union recognitionin the banking industry and working time arrangements in the hotel and catering sectors.

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The Netherlands

Dutch employers are required to operate within a fairly rigid system of statutory rights

and obligations. The primary source of legal rights is book seven of the Dutch Civil Code

(Burgerlijk Wetboek), which contains the tenth title laying down rules concerning the

employment contract. Some scope for varying employment terms exists through theoddly termed 'three-quarter coercive' statutory provisions. These permit derogation

through collective labour agreements. At a further remove are 'semi-coercive' provisions

where derogations may be achieved by written contractual agreements with individualemployees.

Dutch EWC Law 1997

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Norway

Norway is a signatory of the European Economic Area (EEA) agreement. It is a highly

affluent country with a strong economic reliance on offshore gas and oil. The government

operates a pact with the social partners and there is an ongoing review of workingenvironment legislation. An important aspect of labour relations is the existence of

compulsory mediation to settle disputes.

Norwegian EWC Agreement

Holidays Act 1988 (pdf)

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Spain

Because of the prolonged post-war dictatorial regime of General Franco, Spain has arelatively modern constitution and highly regulated labour market. The principal basis for

all employment relationships is the Statute of Workers. At the age of 18 a Spanish worker

may enter into a binding contract that gives them a wide range of protection includinggenerous compensation for 'objective' dismissal.

Spanish EWC Law 1997

Temporary Work Agencies Law

Spanish Statute of Workers (in Spanish)

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Sweden
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In spite of its high level of unionisation, Sweden's principal mechanism for establishing

employment standards is not collective bargaining, but the law. The last national accord

ended many years ago and collective agreements are now primarily concluded at asectoral level for rolling two to three-year periods. Unlike many of its neighbours,

Sweden does not operate a system that permits collective agreements to have general

effect within their sector.

Parental Leave Act

Equal Opportunities Act

Swedish EWC Act 1996

Working Environment Law

Ethnic Discrimination Law (pdf)

Swedish Social Security Guide

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Switzerland

The Swiss Federation consists of 23 cantons. Switzerland has achieved one of the higheststandards of living in the world and the population is generally hard-working and

staunchly law-abiding. Employment contracts are subject to the Swiss law of obligation.

About half the working population are subject to standard contracts drawn up by either

the canton governments or a professional body. It is also normal for contracts to refer tothe organisation's standard statement of employment conditions. Probationary periods

may operate for up to three months, after which dismissal is normally only lawful for

either gross misconduct or serious economic reasons. A long-standing limitation exists onSunday working, for which a special permit is required from the canton authorities.

Occupational Health Ordinance

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United Kingdom

By continental standards, the UK operates a highly liberal labour market with the

minimum of legislative intervention and administrative 'red tape'. Employment rights

have taken shape around the common law of contract and onto this central pillar havebeen bolted a number of statutory constraints in such spheres as working time, maternity,

union rights and minimum pay. The UK does not have a written constitution and its court

system has grown in a rather piecemeal way. However, specialist employment tribunals
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are empowered to hear almost all individual disputes and they are an integrated element

in the civil court structure.

Official guidance on maternity provisions (pdf)

Disability Discrimination Act 1995

Employment Rights Act 1996

Protection From Harassment Act 1997

National Minimum Wage Act 1998

Public Interest Disclosure Act 1998

Data Protection Act 1998

Employment Rights (Disputes Resolution) Act 1998

Human Rights Act 1998

The Employment Relations Act 1999

Statutory Instrument 1999 No. 3312

Statutory Instrument 1999 No. 3323

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Other country laws

Cyprus

Law on European Work Councils (law 68(1)/2002) (pdf)

Czech Republic

Articles 25d to 25l of the Labour Code(pdf)

Estonia

Employees' Representatives Act

Wages Act

Greece
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Greek EWC Presidential Decree

Pensions Regulation

Hungary

The Labour Code

Occupational Safety Act

Act XXI of 2003 on European Works Councils(pdf)

Latvia

Trade Unions Act

Law on European Works Councils 29 March 2001(pdf)

Lithuania

Trade Union Act

Employment Contract Law

Collective Agreement Law

Labour Protection Law

Malta

European Works Councils Regulations L.N. 224 of 2003 (pdf)

Poland

Collective Agreements Act

Law on European Works Councils 5 April 2002(pdf)

Portugal

Portuguese Draft EWC Law

Russian Federation

Collective Agreements Act
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Data Protection Law (extracts)

Trade Unions Act

Slovak Republic

Slovak Labour Code

Slovenia

European Works Councils Act June 2002 (pdf)

Labour turnover and labour costs across Europe

Annual percentage change (quarter/quarter)

Country/Region LT

2007 Q1

LC

2006 Q3

LC

2006 Q4

LC

2007 Q1

LC

2007 Q2

EU27 17.0 3.1 2.8 3.6 3.2

Austria 16.1 2.6 0.8 2.4 2.7

Belgium 16.1 2.5 2.1 2.1 2.7

Cyprus 14.3 5.0 5.7 6.9 7.4

Czech Republic 11.3 5.8 5.3 8.4 7.7

Denmark 33.3 3.0 2.8 3.1 3.7

Estonia 17.5 17.2 18.2 21.0 18.7

Finland 22.2 3.1 2.5 3.0 2.6

France 22.7 3.2 3.3 3.8 3.5

Germany 14.6 1.9 1.5 0.2 1.2

Hungary 9.0 9.0 11.8 9.0 11.6

Ireland 22.3 4.7 5.1 5.2 5.4

Italy 13.9 5.4e 0.7e 2.4e N/A

Latvia 24.2 23.6 27.3 32.4 31.7
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Lithuania 14.2 20.5 19.7 22.2 21.6

Luxembourg 9.4 3.0 1.3 3.7 2.9

Malta 10.6 5.1 1.7 1.4 4.4

Netherlands 5.3 1.0 2.5e 1.6e N/ANorway 17.7 4.8 5.1 4.3 N/A

Poland 14.4 7.5 6.3 10.4 11.4

Portugal 12.1 -0.8 3.1 3.5 3.9

Slovak Republic 11.8 8.3 8.6 5.9 7.9

Slovenia 16.5 3.3 9.3 4.5 5.6

Spain 26.9 3.8 4.2 3.9 3.2

Sweden 28.6 1.8 2.0 3.0 2.3

United Kingdom 14.2 4.1 3.0 6.4 4.2

Sources: Eurostat, National statistical offices and FedEE

Key:LT= Annual rate of labour turnover, LC= Annual increase (decrease) in labour

costs Q1-4= Quarterly rates

The annual rate of labour turnover is defined by FedEE as the percentage of employees

who have changed jobs within the last 12 months. This will vary significantly due to the

proportion of the working population who are on temporary or fixed-term contracts.

Labour costs are the total hourly payroll costs to employers. They include wages, salaries,employer social security contributions and taxes net of ubsidies connected to

employment.

Human Resource Management in an Expanding Europe

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