Key Employment Terms and Conditions in Europe The ... · Austria Belgium Czech Rep Denmark France...

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Issues Austria Belgium Czech Rep Denmark France Germany Hungary Ireland Italy Netherlands Poland Spain Sweden Switzerland UK Probationary period 3 months for apprentices Other employees: 1 month (different regulations in collective agreements possible). 1 to 6 or 12 months for white collar workers, 7 to 14 days for blue collar workers. Commonly used; maximum 3 months. Commonly used; typically 3 months. Fixed in the individual contract or CBA; commonly used; the period generally ranges from 1 week to 6 months. Commonly used; typically 3 to 6 months. Commonly used; 30 days; may agree shorter or longer period, but maximum 3 months. Commonly used. Typically 6 months, can be extended but should not exceed 12 months, including any notice period. Commonly used. Maximum 6 months; applicable National Collective Labour Agreement (‘NCLA’) fixes limits with specific reference to the level of the employee. Commonly used; 1 (fixed-term contract) to 2 (indefinite term) months maximum in writing; if violated, clause unenforceable and non-existent. Commonly used; maximum 3 months. Commonly used; statutory maximum 6 months for degree-holding employees and 2 months for other employees. CBA may establish different limits. Commonly used, maximum 6 months. Up to 3 months. Without deviating provision the first month of the employment relationship is deemed to be the probation period. Notice period during probation: 7 days. Commonly used; typically 3 to 6 months. Salary - minimum wage? No general statutory minimum wage; however, different regulations in CBAs and Minimum Wage Scales. Minimum salary wages are determined at the level of the Joint Labour Committee that is competent for the company. Tables of wages are enacted at the level of each sector of industry. General statutory minimum in 2008 is approximately €316/month (ie €1.90/hour). The minimum salary rates differ depending on the skills and qualifications required, up to €640/ month. No statutory minimum wage. Minimum wages are however found in most collective agreements. Since 1 January 2010 the applicable rate is €8.86 per hour (gross). No statutory minimum wage, but in some sectors (eg building, commercial contract cleaning, postal delivery) trade union agreement pay rates may be mandatory minimum for all. Statutory minimum wage by Government regulation. There is a national minimum wage of €8.65 per hour. In addition, some sectors (eg catering, construction) have higher mandatory pay rates. The applicable NCLA provides a minimum wage. Gross statutory minimum wage per day as of 1 January 2009: Age 23 €63,75 Age 22 €54,18 Age 21 €46,22 Age 20 €39,21 Age 19 €33,47 Statutory minimum wage; the level increases from time to time. In 2010 it is PLN 1,317 per month. Statutory minimum wage 2010: €633.30/month, €21.11/day. CBA provides the minimum wage for each professional category, group or level. No statutory minimum wage, but in some sectors the trade unions might have negotiated minimum wages for special groups in collective bargaining agreements. None, unless a collective agreement exists. Statutory minimum wage from 01/10/10: age 16+17: £3.64/hour • age 18-21: £4.92/hour age 22+: £5.93/hour Typical additional benefit (1) Company car (2) mobile phone, (3) meal vouchers, (4) bonuses, (5) Christmas gifts, (6) rarely: company pension and share options, additional insurances. (1) Variable pay (2) Company car, mobile phone, internet (3) Group insurance (health, pension), especially for more senior employees (4) Meal vouchers. (1) Variable pay (2) Company phone and car (3) Subsidised meal vouchers (4) Contributions to private pension or life insurance. (1) Pension contributions (2) Computer (3) Free telephone (4) Bonus, and more. (1) Tips in certain professions (2) Meals, accommodation, clothing, cars and related benefits (subsidised water, heating, electricity etc) (3) Various bonuses. (1) Variable pay (2) Company car (3) Maybe pension or contribution to private pension or savings scheme. (1) Variable pay (2) Company car (3) Mobile phone (4) Pension or contribution to private pension or savings scheme (5) Internet subscription for home (6) Season ticket for public transport. (1) Pension (either a company contributory scheme or the employee can contribute a portion of salary to a personal retirement savings plan) (2) Company car for senior employees (3) Bonus scheme (4) Health insurance, life insurance. (1) Canteen allowance (2) Variable pay (3) Company car (4) Pension or contribution to private pension or savings scheme. (1) Variable pay (bonuses stock option plans) (2) Contribution to occupational health scheme (3) Mobile phone (4) Income saving schemes or life course provisions (5) Company car. (1) Bonuses (2) Company car (3) Company mobile phone (4) Private medical insurance (5) Life insurance. (1) Variable pay (2) Company car (3) Pension plan (4) Health insurance. (1) Bonus and commission (2) Contributions to private pension (3) Life insurance (4) Health insurance (5) Company car (6) Membership in fitness club (1) Variable pay (2) Company phone and car (3) Subsidised meal vouchers (4) Contributions to private pension or life insurance (1) Performance related pay (2) Stock options (3) Pension (4) Life insurance (5) Private medical insurance (6) Permanent health insurance. Working hour limits Standard working hours 8 hours per day and 40 hours per week (CBAs may provide otherwise). Possible increases up to 10 hours per day and 50 hours per week or even more (CBA may provide otherwise). Rest breaks after 6 hours. Fixed work schedule: principle: 8 h/day and 39 h/week reductions and increases possible, absolute maximum limit: 12 h/day and 50 h/week (continuous work) or 8 h/day and 56 h/week (recovery of an accident and urgent repairs to machinery). Variable work schedule: hours fixed on an annual basis or by CBA. Night work and work on Sundays and bank holidays is in principle prohibited. Maximum of 40 hours generally averaged over 26 weeks (up to 52 weeks in a collective agreement): maximum overtime work of 8 hours per week averaged over 26 weeks (up to 52 weeks in a collective agreement); daily rest: 12 consecutive hours per 24 day; Weekly rest: 35 consecutive hours per seven days; rest break if working 6 hours (4.5 hours for young workers). A maximum of 48 working hours (including overtime) for each 7 day period averaged over 4 months. Daily rest period of 11 consecutive hours per 24 hours and one weekly day of rest, following a daily rest period. A break at the latest after 6 working hours. Special rules for night work. Often further regulated in CBAs. (1) Limit on daily working time: 8 hours with a maximum of 10 hours. (2) Limits on weekly working time: The legal working time is 35 hours per week. It cannot exceed 44 hours per week during a consecutive period of 12 weeks. (The weekly working time cannot exceed 48 hours). 8 hours/day up to 10 hours/day if average over 24 weeks does not exceed 8 hours/day; no individual opt out; daily rest: 11 hours; Sunday work generally prohibited with certain exceptions; rest breaks after 6 hours work, note: (1) special rules for young workers and night work (2) some variations by collective agreement possible. 8 hours a day, or 40 hours per week; by agreement up to 12 hours/day or 60 hours/week for employees (a) working on-call duty; (b) who are close relatives of the employer or the owner: rest breaks after 6 hours and after each additional 3 hour period daily rest: 11 hours 2 rest days/week, one of which must fall on a Sunday work on Sundays allowed only in certain circumstances or businesses special rules for working time cycle, collective agreements, health care sector, performing and creative arts, young. Max. of 48 hours generally averaged over 4 months; daily rest period of 11 consecutive hours per 24 hours; a weekly rest period of 24 consecutive hours per 7 days, following a daily rest period: a) 15 minute break if working 4.5 hours; and b) 30 minute break if working 6 hours which includes the 15 minute break referred to in a). Typically 40 hours/week on 5 days; daily rest 11 hours; Sunday work generally prohibited with certain productive exceptions; rest breaks after 6 hours work; note: (1) special rules for young workers, night work, pregnant women and heavy work (2) applicable NCLA may provide specific rules Maximum 12 hours/day and 60 hours/ week; maximum average 55 hours/ week within period of 4 weeks and 48 hours/week in 16 weeks; maximum night shift 10 hours, complicated additional rules re. night shifts; rest breaks after 5.5 hours; Sunday work generally prohibited with certain exceptions. 8 hours per day and an average of 40 hours within the adopted reference period; maximum 48 hours weekly working time, including overtime, on average; no individual opt out; granted rest periods; Sunday work generally prohibited with certain exceptions; special rules for night work, young workers, pregnant employees and parents of small children and disabled employees. 40 hours/week on annual average; minimum rest period between working days 12 hours. Maximum 9 hours per day 15 minutes rest break after 6 hours work. Weekly rest:1.5 days which will in principle be Sunday and Saturday afternoon or Monday morning. CBA may set out different rules. Maximum 48 hours for each 7 day period generally averaged over 4 months; rest period of 11 consecutive hours per 24 hours; rest period of 36 consecutive hours per 7 days. Break at the latest after 5 hours work. Special rules for night work. Some variations by collective agreement possible. Maximum 45 hours per week (employees in industrial organisations/ office and technical staff/sales personnel in retail businesses). Maximum 50 hours per week for all other employees. Maximum working hours may be exceeded by 2 hours maximum per day and 170/140 hours per year. Breaks mandatory; rest break of generally 11 hours minimum. Night time work (8pm to 6 am) subject to special approval. Restrictions not applicable for example for senior management, public administration, public transport services, navigation, agriculture, private households roles. 48 hours/week over 17 week average –individual opt out possible; daily rest: 11 hours; weekly rest: 24 hours; rest breaks after 6 hours work, note: (1) special rules for young workers and night work (2) some variations by collective or workforce agreement possible; employer needs to keep records. Annual holiday entitlement Up to 25 years of service: 30 days including Saturdays (5 weeks): after 25 years of service: 36 days including Saturdays (6 weeks). (other regulation for atypical employment contracts; possible extensions in CBAs). 20 days based on 5 day working week; 10 bank holidays in addition. Statutory minimum 4 weeks, ie 20 working days; bank holidays in addition. Statutory entitlement: 25 days. However, most employees get 5 days extra holiday. An employee has a legal entitlement to 2.5 days’ paid leave per working month and 30 days’ annual holiday. However, it should be noted that the CBA provides more favourable terms regarding holiday entitlement. 24 days based on 6 day working week (20 days); bank holidays in addition; usually enhanced in contract. In addition to public holidays: Statutory holiday: 20 working days increased based on age by 1 day each time from ages 25, 28, 31, 33, 35, 37,39, 41, 43, 51 to maximum 30 days; –extra holiday entitlement may apply for certain categories of employees or be stipulated by collective agreement or the employment contract. 4 working weeks paid leave; 9 public holidays. Minimum period provided for by law is 4 weeks plus bank holidays (12 days). NCLAs provide more favourable provisions. At least 4 times the number of working days/hours in a week; often more by individual or collective agreement; bank holidays in addition. In addition to public holidays: 20 days; increase to 26 days after 10 years service; some education periods count as employment. Special rules for the first holiday. 30 calendar days; applicable CBA may establish longer periods. 25 working days in addition to bank holidays. 20 days; 25 days for young employees up to the age of 20 years. Additional approx. 10 days national and local holidays. 28 days. There are 8 bank holidays but no entitlement to take them as paid holiday –refer to the contract. Sick pay entitlement Up to 5 years: 6 weeks full, 4 weeks half pay Up to 15 years: 8 weeks full, 4 weeks half pay Up to 25 years: 10 weeks full, 4 weeks half pay thereafter: 12 weeks full, 4 weeks half pay (additional entitlements in case of repeated sickness absences and in case of industrial accidents and diseases) White collar employees: 1 month’s full pay. Blue collar employees: 7 days full salary and following 7 days 60% of salary (+ an extra indemnity during the following 16 days). After this period of 1 month the social security may intervene. No entitlement to sick pay for the first 3 days of sickness. Days 4–14; the employer to pay sick pay to the value of 60% of average reduced earnings. Thereafter, sick pay paid by the Social Security Insurance Authority. Salaried employees have a statutory right to pay. Others have right to sick pay. Total sick pay may amount to 90% of the employee’s gross pay for 30 days, and 60% for the next 30 days (these figures represent the social security sick pay together with the complementary payment that may be paid by the employer). 6 weeks full pay in each case of sickness absence (unless absences due to same underlying ailment). 15 days of sick leave per calendar year paid by the employer at 70 %. Otherwise state sick pay. No entitlement to statutory sick pay. Some sectors (eg construction, catering) may have mandatory terms. Rules in each NCLA; usually 180 days with pay. Executives: 12 months with pay. Statutory maternity leave: 16 weeks on full pay up to a maximum of €186,65 gross per day (Oct 2010). Statutory paternity leave: 2 days delivery leave to be taken within 4 weeks of the birth (full pay paid by employer). Unpaid parental leave is available until child’s 8th birthday, the maximum number of hours’ parental leave is calculated by multiplying the average weekly working hours by 13. 33 days (14 days for employees within 4 years of retirement) paid by the employer, the Social Security Agency pays afterwards; sick pay at 80% of employee’s monthly remuneration,except if due to pregnancy or accident at work (100%). Statutory sick pay by the Spanish Social Security in cases of common illnesses from the 16th day of absence; employer pays sick pay from the 4th to the 15th day of absence inclusive. Level: 60% of the basis for contribution to the Social Security up to the 20th day of illness and 75% of that from the 21st day. In case of professional illnesses or accidents the Social Security pays back 75% of the said basis from the day after the occurrence. CBAs often provide for employer top up. No payment for the first day of sickness. Days 2 – 14 of sickness the employer pays in full. Day 15 onwards sick payment is provided through the National Social Security System. In first year of employment: 3 weeks; thereafter for an adequately extended period of time (e.g. according to recommendation of “Berner Skala” followed by some Cantonal Courts: 2nd year for 4 weeks, 3rd and 4th year for 9 weeks, 5th to 9th year for 13 weeks, etc.). No sick pay required if employer provides for adequate insurance solution for the benefit of the employee. Statutory sick pay from 4th day of absence: £79.15/week; contractual enhancements common. Family friendly rights (maternity, paternity, parental leave) Expecting mothers have to be released from duties 8 weeks prior to the expected delivery until 8 weeks thereafter (12 weeks in case of premature birth, multiple birth or Caesarian). Maternity leave/Paternity leave: Until 2nd birthday (mothers and fathers may both take leave, however not at the same time). Possibility for part-time until the 7th birthday of the child. Maternity leave: 15 weeks paid by health insurance (compulsory: 1 week before birth, 9 weeks after birth). Paternity leave: 3 days at full pay and 7 days paid by health insurance. Parental leave: (certain conditions regarding the child and the parent have to be fulfilled): 3 months (whether or not with payment by the National Employment Service (RVA). Not dealt with in contracts; statutory: maternity leave: 28 weeks parental leave following the maternity leave or by the father: up to 3 years (with payment through the state social insurance system). Maternity Leave: minimum 4 weeks prior to birth + 14 weeks after. Pay during that time depends on collective agreements and individual contract, but right to maternity allowance as a minimum. Paternity leave: 2 weeks. Common to receive full pay, but subject to individual contract or CBAs. Parental leave 32 weeks - right to allowance during this period has to be shared between mother and father. Maternity leave: from 6 weeks before to 10 weeks after the date of the birth. However, the maternity leave can be extended for certain reasons. An employee who adopts a child has the same employment rights as an employee who has given birth naturally (of course the age of the adopted child may affect the employee’s rights). Paternity leave: 11 days. Not dealt with in contracts; statutory: maternity leave: 14 weeks at full pay; paternity leave: none express but father can take day of birth off at full pay; parental leave: 3 years unpaid. Not dealt with in contracts. Statutory paid maternity leave: 24 weeks (4 before birth, 20 after plus balance of 4 weeks if untaken) at 70% of daily average salary paid by the State. Statutory unpaid leave: (1) to care for a child at home until child is 3, or 10 where employee receive an allowance due to child’s serious illness or disability (2) in the event of child’s illness, to provide home care until child is 12 (upper time limits apply per year and per child) (3) for nursing or home case of a close relative, maximum 2 years. Statutory paternity leave: 5 working days with some pay. Maternity leave: 26 weeks and 16 weeks without State Benefit. Many employers pay salary although no statutory entitlement. Parental leave: up to 14 weeks unpaid (in general after 12 months’ service). Paternity leave: No statutory right. Force majeure leave in case of emergency illness of dependant (paid leave but limited to 3 days in 12 month period or 5 days in 36 months). Adoptive leave: 24 weeks with and 16 weeks without State Benefit Carer’s leave up to 104 weeks to care for a dependant (unpaid). Not dealt with in contracts; statutory maternity leave: 5 months (2 before and 3 after birth of child) at full pay. Mother entitled to additional leave up to a total of 6 months up to age 8 of the child (not at full salary). This additional leave may be taken by the father. Statutory maternity leave: 16 weeks on full pay, maximum €186,65 gross per day (Oct 2010); statutory paid paternity leave: 3 days; statutory unpaid parental leave: by way of reduction of working hours, not complete leave. 13 weeks of the employee’s normal working time, maximum hours leave per week half of the weekly working hours. Not dealt with in contracts. Statutory: maternity leave in weeks – 20 (one child) 31 (twins), 33 (triplets), 35 (quadruplets), 37 (quintuplets) full pay as state benefit. From 2010 additional maternity leave (upon request) increasing up to 6 weeks (single birth) or 8 weeks (multiple birth) in 2013 on full pay by social security. Paternity leave – father can use the rest of maternity leave, if mother has used at least 14 weeks. 1 week paternity leave (2 weeks as of 2011) to child’s 1st birthday on full pay by social security. Parental leave – 3 years unpaid (age conditions apply), up to 3 months may be used simultaneously by both parents. Not dealt with in contract. Statutory: maternity leave - 16 weeks. Paternity leave - 13 days + 2. Parental leave: max 3 years unpaid leave. CBA may include specific provisions. (1) Maternity leave 7 weeks before and 7 weeks after estimated time of birth. (2) Right to complete leave for caring for the child until the child is 18 months or thereafter if the parent receives payment from National Social Security. (3) Right to shortening of working hours. (4) Right to leave of absence from work when child is ill. Economic compensation is given with 80% of SGI (Swe: sjukpenninggrundande inkomst) for 390 days and a right to minor payment is given for additional 90 days. Maternity leave: minimum 14 weeks after birth. 14 weeks paid by maternity insurance at 80% of insured monthly salary (subject to a cap). Paternity leave: Voluntary at the discretion of employer. But the employer has to provide free hours/ days for important family occasions; for example the birth of a child. Usually dealt with in policies; statutory maternity leave: 6 months OML + 6 months AML of which 6 weeks @ 90% of full pay, 33 weeks @ £124.88/week; paternity leave: 2 weeks @ £124.88/ week; parental leave: 13 weeks unpaid; adoption leave: 6 months OAL +6 months AAL of which 6 weeks @ 90% of full pay, 33 weeks @ £124.88/ week. Minimum notice periods Employer: In year 1 and 2 - 6 weeks, in years 3 to 5 - 2 months, in years 6 to 15 – 3 months, in years 16 to 25 – 4 months and from year 26 onwards 5 months (different regulations in CBAs and to some extent in employment contracts possible). Employees: 4 weeks (different regulations in CBAs and to some extent in employment contracts possible). Blue Collar workers: 2 or 4 weeks (different regulations in CBAs and to some extent in employment contracts possible). White collar workers. Notice by employer: employees earning< €30,322/year: 3 months for every 5 year period. €30,322 +: parties must agree reasonable notice period, minimum 3 months for every 5 years. €60,645 +: by agreement. Notice by employee: employees earning< €30,322/year: 50% of 3 months per 5 year period, maximum 3 months. €30,322 +: parties must agree reasonable notice period, maximum 4.5 or 6 months no minimum. Notice during probationary period: 7 days. Blue collar workers. Unless otherwise agreed upon at sector level: Notice by employer: • first 6 months: 28 day • 6 months - 5 years: 35 days • 5-10 years: 42 days • 10 - 15 years: 56 days 20 years+: 112 days. Notice by employee: < 20 years: 14 days 20 + years: 28 days. Notice during probationary period: 7 days only for serious cause, days 8 - 14: may be terminated at any time. Statutory minimum notice for either party: 2 months. May be prolonged in the contract but must always be the same length for both parties. Salaried employees: Notice by employee: 1 month. Notice by employer: up to 5 months: 1 month up to 2 years and 9 months: 3 months up to 5 years and 8 months: 4 months up to 8 years and 7 months: 5 months 8 years and 7 months or more: 6 months. Others: regulated by collective or individual agreement. Notice by the employee: French law only allows a minimum notice period to specific professions (nurses and journalists both have 1 month). Other professions’ notice periods are set out in the CBA or employment contract. Notice period by the employer: less than 6 months of service: 1 month or less between 6 months to 2 years: 1 month over 2 years’ length of service: 2 months. Notice by employer: up to 2 years: 4 weeks to 15th or last day of month; further increases based on years of service with expiry date always at month end: up to 2 years: 1 month 5 years: 2 months 8 years: 3 months 10 years: 4 months 12 years: 5 months 15 years: 6 months 20 years: 7 months if probationary period up to 6 months: 1 week. Notice by employee: 4 weeks to 15th or last day of month; probationary period up to 6 months: 1 week; notice period for employee must not be longer than notice period for employer! Notice by either party: Minimum 30 days and maximum 1 year. The 30 day notice period is increased: (a) by 5 days after 3 years (b) by 15 days after 5 years (c) by 20 days after 8 years (d) by 25 days after 10 years (e) by 30 days after 15 years (f) by 40 days after 18 years (g) by 60 days after 20 years of service. Notice of employer: up to 13 weeks: no notice between 13 weeks up to 2 years: 1 week between 2 and 5 years service: 2 weeks between 5 and 10 years service: 4 weeks between 10 and 15 years service: 6 weeks more than 15 years service: 8 weeks. Notice by employee: 1 week’s notice. If contract stipulates longer for either employer or employee that takes precedence. Strictly ruled by NCLA, depends both on level and seniority of the employee. Each NCLA has its own provision. Executives’ notice period can last 12 months. Notice by employer: contract<5 years: 1 month; 5–10 years: 2 months; 10–15 years: 3 months; >15 years: 4 months; dismissal on summary notice and during probationary period: 0; Notice by employee: 1 month; under certain conditions, deviations (extension or reduction) by individual or collective agreement are possible. Please note: Dutch law requires a permit from the Labour Office or permission from the Court before termination by the employer. In addition, a statutory prohibition of dismissal may apply, eg illness, pregnancy etc. Depending on the type of contract. Permanent (depending on length of service): up to 6 months –2 weeks, 6 months up to 3 years –1 month, 3 years and above –3 months. Fixed term above 6 months (if stipulated) –2 weeks. Probationary period (depending on length of probationary period) –3 days, 1 week or 2 weeks. Notice of employer: not required unless in an objective dismissal –15 days; Senior Management agreement – minimum 3 months, although this may be agreed up to 6 months. Notice by employee: usually 15 days agreed although CBA may modify this. Both the employer and the employee are entitled to a notice period of at least one month. The employee is furthermore entitled to an increased notice period, based on years of service with the employer: >2 <4 years: 2 months >4 <6 years: 3 months >6 <8 years: 4 months >8 <10 years: 5 months >10 years: 6 months. Statutory notice period by employer or employee: During probationary period of the first 1-3 months (as specified in the employment agreement): 7 days; during 1st year of service: 1 month to the end of a calendar month; during 2nd to 9th year of service: 2 months to the end of a calendar month; as of 10th year of service: 3 months to the end of a calendar month. Form: In writing or oral, no justification required, unless requested by the employee. Notice by employer: 1st month: 0; up to 2 years: 1 week; thereafter: 1 week for each year of service up to maximum 12 weeks. Notice by employee: 1st month: 0; thereafter: 1 week. Collective agreements Very common, apply to almost all employment relationships. Companies - may be bound by collective bargaining agreements: (1) entered into at national level in the NAR (2) entered into within their joint committee (sector level) (3) entered into at company level. CBAs always have to be entered into with so called representative trade unions. Widely applied especially within larger companies; apply if any of the following: (1) collective agreement declared universally applicable by the minister for the stipulated branch of industry (2) the employer is a member of a contracting employers’ organisation that concluded collective agreement (3) company trade union is a member of a trade union organisation that concluded collective agreement (4) direct agreement between employer and trade union. Very common. They are applicable if: (1) employer is a member of an Employers’ Organisation that has entered into collective agreements; or (2) employer enters into agreement directly with Employees’ Organisation. CBAs widely applied at different levels (company, branch, industry). Widely applied; apply if any of the following: (1) trade union agreement declared universally applicable by minister (2) employer is member of contracting employers’ organisation and employee member of contracting TU (3) direct agreement with trade union (4) by reference in the contract. Mostly applied in bigger or former state owned businesses; no automatic application: may be concluded by an employer, an employers’ organisation or several employers, and by a trade union or several trade unions. neither party shall reject a proposal for negotiations for the conclusion of a collective agreement. No mandatory trade union recognition. More common in traditional industries or in public sector. If applied in the company they are mandatory; if not applied, they are considered a benchmark for assessing the fairness of any contractual provision. Common in large industries or for large companies; negotiated between trade unions and employers or employers’ organisations; binding for: (1) employer who is party to CA or member of contracting employers’ organisation (2) other employers when CA has been declared generally binding by minister. Not very common in private sector; except in undertakings which were previously State owned. May be negotiated only with trade unions. All employment relationships governed by a Collective Bargaining Agreement depending upon the activity of the sector. The contract of employment must refer to the applicable CBA. Commonly used. Applies if the following: (1) employer member of Employers’ Association (2) direct agreement with trade union (3) by reference in employment contract but only in respect of terms and conditions of employment. Common in certain sectors, employer is bound if any of the following applies (1) Collective agreements declared universally applicable by responsible federal or cantonal authority; (2) employer is member of contracting employers’ organisation and employee member of contracting employees’ association; (3) direct agreement with employees’ association; (4) by reference in the contract. Only if employer recognised trade union. Confidentiality Commonly used. Commonly used. Commonly used in managerial employment contracts. Commonly used, fairly generic clauses. Commonly used. (1) implied duty during employment (2) express clauses common. Commonly used; fairly generic clauses based on statutory provision. Commonly used; fairly generic clauses; based on statutory provision. Commonly used; fairly generic clauses. Even if ruled by law commonly used; fairly generic clauses. Commonly used; fairly generic clauses. Commonly used; fairly generic clauses. Commonly used; fairly generic clauses. Statutory confidentiality applies during and after employment. Common use of further confidentiality clauses in the individual employment contracts. Commonly used; fairly generic clauses. Local language requirement No, but employee must understand the contract (in case of doubt highly recommended). Contract must be in French Dutch or German. In Brussels may only be in French or Dutch. No, but the employee must understand the contract. In addition, a Czech translation is required by the social insurance authorities. No. The employment contract must be written in French. No, but if foreign language is used the employer has to make sure that the employee understands what is stipulated in that foreign language. Not regulated by law but employee must understand the contract and authorities also ask for contract in Hungarian therefore it is advisable. Not regulated by law but employee must understand the contract. No, but employee must understand. No, but employee must understand contract. Yes, employment contract and the employment related documentation must be in Polish. No, but employee must understand the contract. No, but employee must understand the contract. No, but employee must understand contract. No, but employee must understand contract. Key Employment Terms and Conditions in Europe The information you need for each country www.eversheds.com This information is intended as a guide only. Whilst the information it contains is believed to be correct, it is not a substitute for appropriate legal advice. Eversheds LLP can take no responsibility for actions taken based on the information contained in this pack. ©EVERSHEDS LLP. Eversheds LLP is a limited liability partnership Age 18 €29,01 Age 17 €25,18 Age 16 €21,99 Age 15 €19,12

Transcript of Key Employment Terms and Conditions in Europe The ... · Austria Belgium Czech Rep Denmark France...

Page 1: Key Employment Terms and Conditions in Europe The ... · Austria Belgium Czech Rep Denmark France Germany Hungary Ireland Italy Netherlands Poland Spain Sweden Switzerland UK Probationary

IssuesAustria Belgium Czech Rep Denmark France Germany Hungary Ireland Italy Netherlands

Poland Spain Sweden Switzerland UK

Probationary period

3 months for apprenticesOther employees: 1 month (different regulations in collective agreements possible).

1 to 6 or 12 months for white collar workers, 7 to 14 days for blue collar workers.

Commonly used; maximum 3 months. Commonly used; typically 3 months. Fixed in the individual contract or CBA; commonly used; the period generally ranges from 1 week to 6 months.

Commonly used; typically 3 to 6 months.

Commonly used; 30 days; may agree shorter or longer period, but maximum 3 months.

Commonly used. Typically 6 months, can be extended but should not exceed 12 months, including any notice period.

Commonly used. Maximum 6 months; applicable National Collective Labour Agreement (‘NCLA’) fixes limits with specific reference to the level of the employee.

Commonly used; 1 (fixed-term contract) to 2 (indefinite term) months maximum in writing; if violated, clause unenforceable and non-existent.

Commonly used; maximum 3 months. Commonly used; statutory maximum 6 months for degree-holding employees and 2 months for other employees. CBA may establish different limits.

Commonly used, maximum 6 months. Up to 3 months. Without deviating provision the first month of the employment relationship is deemed to be the probation period.Notice period during probation: 7 days.

Commonly used; typically 3 to 6 months.

Salary - minimum wage?

No general statutory minimum wage; however, different regulations in CBAs and Minimum Wage Scales.

Minimum salary wages are determined at the level of the Joint Labour Committee that is competent for the company. Tables of wages are enacted at the level of each sector of industry.

General statutory minimum in 2008 is approximately €316/month (ie €1.90/hour). The minimum salary rates differ depending on the skills and qualifications required, up to €640/month.

No statutory minimum wage. Minimum wages are however found in most collective agreements.

Since 1 January 2010 the applicable rate is €8.86 per hour (gross).

No statutory minimum wage, but in some sectors (eg building, commercial contract cleaning, postal delivery) trade union agreement pay rates may be mandatory minimum for all.

Statutory minimum wage by Government regulation.

There is a national minimum wage of €8.65 per hour. In addition, some sectors (eg catering, construction) have higher mandatory pay rates.

The applicable NCLA provides a minimum wage.

Gross statutory minimum wage per day as of 1 January 2009: Age 23 €63,75Age 22 €54,18Age 21 €46,22Age 20 €39,21Age 19 €33,47

Statutory minimum wage; the level increases from time to time. In 2010 it is PLN 1,317 per month.

Statutory minimum wage 2010: €633.30/month, €21.11/day. CBA provides the minimum wage for each professional category, group or level.

No statutory minimum wage, but in some sectors the trade unions might have negotiated minimum wages for special groups in collective bargaining agreements.

None, unless a collective agreement exists.

Statutory minimum wage from 01/10/10:• age 16+17: £3.64/hour• age 18-21: £4.92/hour• age 22+: £5.93/hour

Typical additional benefit

(1) Company car (2) mobile phone, (3) meal vouchers,(4) bonuses,(5) Christmas gifts,(6) rarely: company pension and share options, additional insurances.

(1) Variable pay(2) Company car, mobile phone,

internet(3) Group insurance (health, pension),

especially for more senior employees

(4) Meal vouchers.

(1) Variable pay(2) Company phone and car(3) Subsidised meal vouchers(4) Contributions to private pension or

life insurance.

(1) Pension contributions(2) Computer(3) Free telephone(4) Bonus, and more.

(1) Tips in certain professions(2) Meals, accommodation, clothing,

cars and related benefits (subsidised water, heating, electricity etc)

(3) Various bonuses.

(1) Variable pay(2) Company car(3) Maybe pension or contribution to

private pension or savings scheme.

(1) Variable pay(2) Company car(3) Mobile phone(4) Pension or contribution to private

pension or savings scheme(5) Internet subscription for home(6) Season ticket for public transport.

(1) Pension (either a company contributory scheme or the employee can contribute a portion of salary to a personal retirement savings plan)

(2) Company car for senior employees(3) Bonus scheme(4) Health insurance, life insurance.

(1) Canteen allowance(2) Variable pay(3) Company car(4) Pension or contribution to private

pension or savings scheme.

(1) Variable pay (bonuses stock option plans)

(2) Contribution to occupational health scheme

(3) Mobile phone(4) Income saving schemes or life

course provisions(5) Company car.

(1) Bonuses(2) Company car(3) Company mobile phone(4) Private medical insurance(5) Life insurance.

(1) Variable pay(2) Company car(3) Pension plan(4) Health insurance.

(1) Bonus and commission(2) Contributions to private pension(3) Life insurance(4) Health insurance(5) Company car(6) Membership in fitness club

(1) Variable pay(2) Company phone and car(3) Subsidised meal vouchers(4) Contributions to private pension or life insurance

(1) Performance related pay(2) Stock options(3) Pension(4) Life insurance(5) Private medical insurance(6) Permanent health insurance.

Working hour limits

Standard working hours 8 hours per day and 40 hours per week (CBAs may provide otherwise).Possible increases up to 10 hours per day and 50 hours per week or even more (CBA may provide otherwise).Rest breaks after 6 hours.

Fixed work schedule:• principle: 8 h/day and 39 h/week• reductions and increases possible,

absolute maximum limit: 12 h/day and 50 h/week (continuous work) or 8 h/day and 56 h/week (recovery of an accident and urgent repairs to machinery).

Variable work schedule: hours fixed on an annual basis or by CBA.Night work and work on Sundays and bank holidays is in principle prohibited.

Maximum of 40 hours generally averaged over 26 weeks (up to 52 weeks in a collective agreement): maximum overtime work of 8 hours per week averaged over 26 weeks (up to 52 weeks in a collective agreement); daily rest: 12 consecutive hours per 24 day; Weekly rest: 35 consecutive hours per seven days; rest break if working 6 hours (4.5 hours for young workers).

A maximum of 48 working hours (including overtime) for each 7 day period averaged over 4 months. Daily rest period of 11 consecutive hours per 24 hours and one weekly day of rest, following a daily rest period.A break at the latest after 6 working hours.Special rules for night work.Often further regulated in CBAs.

(1) Limit on daily working time: 8 hours with a maximum of 10 hours.

(2) Limits on weekly working time: The legal working time is 35 hours per week. It cannot exceed 44 hours per week during a consecutive period of 12 weeks. (The weekly working time cannot exceed 48 hours).

8 hours/day up to 10 hours/day if average over 24 weeks does not exceed 8 hours/day; no individual opt out; daily rest: 11 hours; Sunday work generally prohibited with certain exceptions; rest breaks after 6 hours work, note:(1) special rules for young workers

and night work(2) some variations by collective

agreement possible.

8 hours a day, or 40 hours per week; by agreement up to 12 hours/day or 60 hours/week for employees (a) working on-call duty; (b) who are close relatives of the employer or the owner:• rest breaks after 6 hours and after

each additional 3 hour period• daily rest: 11 hours• 2 rest days/week, one of which must

fall on a Sunday• work on Sundays allowed only in

certain circumstances or businesses• special rules for working time cycle,

collective agreements, health care sector, performing and creative arts, young.

Max. of 48 hours generally averaged over 4 months; daily rest period of 11 consecutive hours per 24 hours; a weekly rest period of 24 consecutive hours per 7 days, following a daily rest period:a) 15 minute break if working 4.5

hours; andb) 30 minute break if working 6 hours

which includes the 15 minute break referred to in a).

Typically 40 hours/week on 5 days; daily rest 11 hours; Sunday work generally prohibited with certain productive exceptions; rest breaks after 6 hours work; note:(1) special rules for young workers,

night work, pregnant women and heavy work

(2) applicable NCLA may provide specific rules

Maximum 12 hours/day and 60 hours/week; maximum average 55 hours/week within period of 4 weeks and 48 hours/week in 16 weeks; maximum night shift 10 hours, complicated additional rules re. night shifts; rest breaks after 5.5 hours; Sunday work generally prohibited with certain exceptions.

8 hours per day and an average of 40 hours within the adopted reference period; maximum 48 hours weekly working time, including overtime, on average; no individual opt out; granted rest periods; Sunday work generally prohibited with certain exceptions; special rules for night work, young workers, pregnant employees and parents of small children and disabled employees.

40 hours/week on annual average; minimum rest period between working days 12 hours.Maximum 9 hours per day 15 minutes rest break after 6 hours work. Weekly rest:1.5 days which will in principle be Sunday and Saturday afternoon or Monday morning.CBA may set out different rules.

Maximum 48 hours for each 7 day period generally averaged over 4 months; rest period of 11 consecutive hours per 24 hours; rest period of 36 consecutive hours per 7 days.Break at the latest after 5 hours work.Special rules for night work.Some variations by collective agreement possible.

Maximum 45 hours per week (employees in industrial organisations/office and technical staff/sales personnel in retail businesses). Maximum 50 hours per week for all other employees. Maximum working hours may be exceeded by 2 hours maximum per day and 170/140 hours per year.Breaks mandatory; rest break of generally 11 hours minimum.Night time work (8pm to 6 am) subject to special approval.Restrictions not applicable for example for senior management, public administration, public transport services, navigation, agriculture, private households roles.

48 hours/week over 17 week average –individual opt out possible; daily rest: 11 hours; weekly rest: 24 hours; rest breaks after 6 hours work, note: (1) special rules for young workers

and night work(2) some variations by collective or

workforce agreement possible; employer needs to keep records.

Annual holiday entitlement

Up to 25 years of service: 30 days including Saturdays (5 weeks): after 25 years of service: 36 days including Saturdays (6 weeks).(other regulation for atypical employment contracts; possible extensions in CBAs).

20 days based on 5 day working week; 10 bank holidays in addition.

Statutory minimum 4 weeks, ie 20 working days; bank holidays in addition.

Statutory entitlement: 25 days. However, most employees get 5 days extra holiday.

An employee has a legal entitlement to 2.5 days’ paid leave per working month and 30 days’ annual holiday. However, it should be noted that the CBA provides more favourable terms regarding holiday entitlement.

24 days based on 6 day working week (20 days); bank holidays in addition; usually enhanced in contract.

In addition to public holidays: Statutory holiday: 20 working days increased based on age by 1 day each time from ages 25, 28, 31, 33, 35, 37,39, 41, 43, 51 to maximum 30 days; –extra holiday entitlement may apply for certain categories of employees or be stipulated by collective agreement or the employment contract.

4 working weeks paid leave; 9 public holidays.

Minimum period provided for by law is 4 weeks plus bank holidays (12 days). NCLAs provide more favourable provisions.

At least 4 times the number of working days/hours in a week; often more by individual or collective agreement; bank holidays in addition.

In addition to public holidays: 20 days; increase to 26 days after 10 years service; some education periods count as employment. Special rules for the first holiday.

30 calendar days; applicable CBA may establish longer periods.

25 working days in addition to bank holidays.

20 days; 25 days for young employees up to the age of 20 years.Additional approx. 10 days national and local holidays.

28 days. There are 8 bank holidays but no entitlement to take them as paid holiday –refer to the contract.

Sick pay entitlement

• Up to 5 years: 6 weeks full, 4 weeks half pay

• Up to 15 years: 8 weeks full, 4 weeks half pay

• Up to 25 years: 10 weeks full, 4 weeks half pay

• thereafter: 12 weeks full, 4 weeks half pay

(additional entitlements in case of repeated sickness absences and in case of industrial accidents and diseases)

White collar employees: 1 month’s full pay.Blue collar employees: 7 days full salary and following 7 days 60% of salary (+ an extra indemnity during the following 16 days).After this period of 1 month the social security may intervene.

No entitlement to sick pay for the first 3 days of sickness. Days 4–14; the employer to pay sick pay to the value of 60% of average reduced earnings.Thereafter, sick pay paid by the Social Security Insurance Authority.

Salaried employees have a statutory right to pay. Others have right to sick pay.

Total sick pay may amount to 90% of the employee’s gross pay for 30 days, and 60% for the next 30 days (these figures represent the social security sick pay together with the complementary payment that may be paid by the employer).

6 weeks full pay in each case of sickness absence (unless absences due to same underlying ailment).

15 days of sick leave per calendar year paid by the employer at 70 %. Otherwise state sick pay.

No entitlement to statutory sick pay.Some sectors (eg construction, catering) may have mandatory terms.

Rules in each NCLA; usually 180 days with pay. Executives: 12 months with pay.

Statutory maternity leave: 16 weeks on full pay up to a maximum of €186,65 gross per day (Oct 2010). Statutory paternity leave: 2 days delivery leave to be taken within 4 weeks of the birth (full pay paid by employer). Unpaid parental leave is available until child’s 8th birthday, the maximum number of hours’ parental leave is calculated by multiplying the average weekly working hours by 13.

33 days (14 days for employees within 4 years of retirement) paid by the employer, the Social Security Agency pays afterwards; sick pay at 80% of employee’s monthly remuneration,except if due to pregnancy or accident at work (100%).

Statutory sick pay by the Spanish Social Security in cases of common illnesses from the 16th day of absence; employer pays sick pay from the 4th to the 15th day of absence inclusive. Level: 60% of the basis for contribution to the Social Security up to the 20th day of illness and 75% of that from the 21st day. In case of professional illnesses or accidents the Social Security pays back 75% of the said basis from the day after the occurrence. CBAs often provide for employer top up.

No payment for the first day of sickness. Days 2 – 14 of sickness the employer pays in full. Day 15 onwards sick payment is provided through the National Social Security System.

In first year of employment: 3 weeks; thereafter for an adequately extended period of time (e.g. according to recommendation of “Berner Skala” followed by some Cantonal Courts: 2nd year for 4 weeks, 3rd and 4th year for 9 weeks, 5th to 9th year for 13 weeks, etc.).No sick pay required if employer provides for adequate insurance solution for the benefit of the employee.

Statutory sick pay from 4th day of absence: £79.15/week; contractual enhancements common.

Family friendly rights (maternity,

paternity, parental leave)

Expecting mothers have to be released from duties 8 weeks prior to the expected delivery until 8 weeks thereafter (12 weeks in case of premature birth, multiple birth or Caesarian).Maternity leave/Paternity leave: Until 2nd birthday (mothers and fathers may both take leave, however not at the same time).Possibility for part-time until the 7th birthday of the child.

Maternity leave: 15 weeks paid by health insurance (compulsory: 1 week before birth, 9 weeks after birth).Paternity leave: 3 days at full pay and 7 days paid by health insurance.Parental leave: (certain conditions regarding the child and the parent have to be fulfilled): 3 months (whether or not with payment by the National Employment Service (RVA).

Not dealt with in contracts; statutory:• maternity leave: 28 weeks• parental leave following the

maternity leave or by the father: up to 3 years (with payment through the state social insurance system).

Maternity Leave: minimum 4 weeks prior to birth + 14 weeks after. Pay during that time depends on collective agreements and individual contract, but right to maternity allowance as a minimum.Paternity leave: 2 weeks. Common to receive full pay, but subject to individual contract or CBAs.Parental leave 32 weeks - right to allowance during this period has to be shared between mother and father.

Maternity leave: from 6 weeks before to 10 weeks after the date of the birth. However, the maternity leave can be extended for certain reasons.An employee who adopts a child has the same employment rights as an employee who has given birth naturally (of course the age of the adopted child may affect the employee’s rights). Paternity leave: 11 days.

Not dealt with in contracts; statutory: maternity leave: 14 weeks at full pay; paternity leave: none express but father can take day of birth off at full pay; parental leave: 3 years unpaid.

Not dealt with in contracts. Statutory paid maternity leave: 24 weeks (4 before birth, 20 after plus balance of 4 weeks if untaken) at 70% of daily average salary paid by the State. Statutory unpaid leave: (1) to care for a child at home until

child is 3, or 10 where employee receive an allowance due to child’s serious illness or disability

(2) in the event of child’s illness, to provide home care until child is 12 (upper time limits apply per year and per child)

(3) for nursing or home case of a close relative, maximum 2 years.

Statutory paternity leave: 5 working days with some pay.

Maternity leave: 26 weeks and 16 weeks without State Benefit. Many employers pay salary although no statutory entitlement. Parental leave: up to 14 weeks unpaid (in general after 12 months’ service). Paternity leave: No statutory right. Force majeure leave in case of emergency illness of dependant (paid leave but limited to 3 days in 12 month period or 5 days in 36 months). Adoptive leave: 24 weeks with and 16 weeks without State BenefitCarer’s leave up to 104 weeks to care for a dependant (unpaid).

Not dealt with in contracts; statutory maternity leave: 5 months (2 before and 3 after birth of child) at full pay. Mother entitled to additional leave up to a total of 6 months up to age 8 of the child (not at full salary). This additional leave may be taken by the father.

Statutory maternity leave: 16 weeks on full pay, maximum €186,65 gross per day (Oct 2010); statutory paid paternity leave: 3 days; statutory unpaid parental leave: by way of reduction of working hours, not complete leave. 13 weeks of the employee’s normal working time, maximum hours leave per week half of the weekly working hours.

Not dealt with in contracts. Statutory: maternity leave in weeks – 20 (one child) 31 (twins), 33 (triplets), 35 (quadruplets), 37 (quintuplets) full pay as state benefit. From 2010 additional maternity leave (upon request) increasing up to 6 weeks (single birth) or 8 weeks (multiple birth) in 2013 on full pay by social security.Paternity leave – father can use the rest of maternity leave, if mother has used at least 14 weeks. 1 week paternity leave (2 weeks as of 2011) to child’s 1st birthday on full pay by social security. Parental leave – 3 years unpaid (age conditions apply), up to 3 months may be used simultaneously by both parents.

Not dealt with in contract.

Statutory: maternity leave - 16 weeks.

Paternity leave - 13 days + 2.

Parental leave: max 3 years unpaid leave.

CBA may include specific provisions.

(1) Maternity leave 7 weeks before and 7 weeks after estimated time of birth.

(2) Right to complete leave for caring for the child until the child is 18 months or thereafter if the parent receives payment from National Social Security.

(3) Right to shortening of working hours.

(4) Right to leave of absence from work when child is ill.

Economic compensation is given with 80% of SGI (Swe: sjukpenninggrundande inkomst) for 390 days and a right to minor payment is given for additional 90 days.

Maternity leave: minimum 14 weeks after birth.14 weeks paid by maternity insurance at 80% of insured monthly salary (subject to a cap).Paternity leave: Voluntary at the discretion of employer. But the employer has to provide free hours/days for important family occasions; for example the birth of a child.

Usually dealt with in policies; statutory maternity leave: 6 months OML + 6 months AML of which 6 weeks @ 90% of full pay, 33 weeks @ £124.88/week; paternity leave: 2 weeks @ £124.88/week; parental leave: 13 weeks unpaid; adoption leave: 6 months OAL +6 months AAL of which 6 weeks @ 90% of full pay, 33 weeks @ £124.88/week.

Minimum notice periods

Employer: In year 1 and 2 - 6 weeks, in years 3 to 5 - 2 months, in years 6 to 15 – 3 months, in years 16 to 25 – 4 months and from year 26 onwards 5 months (different regulations in CBAs and to some extent in employment contracts possible).Employees: 4 weeks (different regulations in CBAs and to some extent in employment contracts possible). Blue Collar workers: 2 or 4 weeks (different regulations in CBAs and to some extent in employment contracts possible).

White collar workers. Notice by employer: employees earning< €30,322/year: 3 months for every 5 year period. €30,322 +: parties must agree reasonable notice period, minimum 3 months for every 5 years. €60,645 +: by agreement.Notice by employee: employees earning< €30,322/year: 50% of 3 months per 5 year period, maximum 3 months. €30,322 +: parties must agree reasonable notice period, maximum 4.5 or 6 months no minimum. Notice during probationary period: 7 days.Blue collar workers. Unless otherwise agreed upon at sector level:Notice by employer:• first 6 months: 28 day• 6 months - 5 years: 35 days• 5-10 years: 42 days• 10 - 15 years: 56 days• 20 years+: 112 days. Notice by employee:• < 20 years: 14 days• 20 + years: 28 days.Notice during probationary period:7 days only for serious cause, days 8 - 14: may be terminated at any time.

Statutory minimum notice for either party: 2 months.May be prolonged in the contract but must always be the same length for both parties.

Salaried employees: Notice by employee: 1 month. Notice by employer:• up to 5 months: 1 month• up to 2 years and 9 months: 3

months• up to 5 years and 8 months: 4

months• up to 8 years and 7 months: 5

months• 8 years and 7 months or more: 6

months.Others: regulated by collective or individual agreement.

Notice by the employee: French law only allows a minimum notice period to specific professions (nurses and journalists both have 1 month). Other professions’ notice periods are set out in the CBA or employment contract.Notice period by the employer:• less than 6 months of service: 1

month or less• between 6 months to 2 years: 1

month• over 2 years’ length of service: 2

months.

Notice by employer: up to 2 years: 4 weeks to 15th or last day of month; further increases based on years of service with expiry date always at month end:• up to 2 years: 1 month• 5 years: 2 months• 8 years: 3 months• 10 years: 4 months• 12 years: 5 months• 15 years: 6 months• 20 years: 7 months• if probationary period up to 6

months: 1 week.Notice by employee: 4 weeks to 15th or last day of month; probationary period up to 6 months: 1 week; notice period for employee must not be longer than notice period for employer!

Notice by either party: Minimum 30 days and maximum 1 year. The 30 day notice period is increased: (a) by 5 days after 3 years(b) by 15 days after 5 years(c) by 20 days after 8 years(d) by 25 days after 10 years(e) by 30 days after 15 years(f) by 40 days after 18 years(g) by 60 days after 20 years of

service.

Notice of employer:• up to 13 weeks: no notice• between 13 weeks up to 2 years:

1 week• between 2 and 5 years service:

2 weeks• between 5 and 10 years service:

4 weeks• between 10 and 15 years service:

6 weeks• more than 15 years service: 8

weeks.Notice by employee: 1 week’s notice.If contract stipulates longer for either employer or employee that takes precedence.

Strictly ruled by NCLA, depends both on level and seniority of the employee. Each NCLA has its own provision. Executives’ notice period can last 12 months.

Notice by employer: contract<5 years: 1 month; 5–10 years: 2 months; 10–15 years: 3 months; >15 years: 4 months; dismissal on summary notice and during probationary period: 0; Notice by employee: 1 month; under certain conditions, deviations (extension or reduction) by individual or collective agreement are possible.Please note: Dutch law requires a permit from the Labour Office or permission from the Court before termination by the employer. In addition, a statutory prohibition of dismissal may apply, eg illness, pregnancy etc.

Depending on the type of contract.Permanent (depending on length of service): up to 6 months –2 weeks, 6 months up to 3 years –1 month, 3 years and above –3 months. Fixed term above 6 months (if stipulated) –2 weeks. Probationary period (depending on length of probationary period) –3 days, 1 week or 2 weeks.

Notice of employer: not required unless in an objective dismissal –15 days; Senior Management agreement – minimum 3 months, although this may be agreed up to 6 months.Notice by employee: usually 15 days agreed although CBA may modify this.

Both the employer and the employee are entitled to a notice period of at least one month. The employee is furthermore entitled to an increased notice period, based on years of service with the employer:>2 <4 years: 2 months>4 <6 years: 3 months>6 <8 years: 4 months>8 <10 years: 5 months>10 years: 6 months.

Statutory notice period by employer or employee: During probationary period of the first 1-3 months (as specified in the employment agreement): 7 days; during 1st year of service: 1 month to the end of a calendar month; during 2nd to 9th year of service: 2 months to the end of a calendar month; as of 10th year of service: 3 months to the end of a calendar month. Form: In writing or oral, no justification required, unless requested by the employee.

Notice by employer: 1st month: 0; up to 2 years: 1 week; thereafter: 1 week for each year of service up to maximum 12 weeks. Notice by employee: 1st month: 0; thereafter: 1 week.

Collective agreements

Very common, apply to almost all employment relationships.

Companies - may be bound by collective bargaining agreements:(1) entered into at national level in the

NAR(2) entered into within their joint

committee (sector level)(3) entered into at company level.CBAs always have to be entered into with so called representative trade unions.

Widely applied especially within larger companies; apply if any of the following:(1) collective agreement declared

universally applicable by the minister for the stipulated branch of industry

(2) the employer is a member of a contracting employers’ organisation that concluded collective agreement

(3) company trade union is a member of a trade union organisation that concluded collective agreement

(4) direct agreement between employer and trade union.

Very common. They are applicable if:(1) employer is a member of an

Employers’ Organisation that has entered into collective agreements; or

(2) employer enters into agreement directly with Employees’ Organisation.

CBAs widely applied at different levels (company, branch, industry).

Widely applied; apply if any of the following:(1) trade union agreement declared

universally applicable by minister(2) employer is member of contracting

employers’ organisation and employee member of contracting TU

(3) direct agreement with trade union(4) by reference in the contract.

Mostly applied in bigger or former state owned businesses; no automatic application:• may be concluded by an employer,

an employers’ organisation or several employers, and by a trade union or several trade unions.

• neither party shall reject a proposal for negotiations for the conclusion of a collective agreement.

No mandatory trade union recognition.More common in traditional industries or in public sector.

If applied in the company they are mandatory; if not applied, they are considered a benchmark for assessing the fairness of any contractual provision.

Common in large industries or for large companies; negotiated between trade unions and employers or employers’ organisations; binding for:(1) employer who is party to CA or

member of contracting employers’ organisation

(2) other employers when CA has been declared generally binding by minister.

Not very common in private sector; except in undertakings which were previously State owned. May be negotiated only with trade unions.

All employment relationships governed by a Collective Bargaining Agreement depending upon the activity of the sector. The contract of employment must refer to the applicable CBA.

Commonly used. Applies if the following: (1) employer member of Employers’

Association (2) direct agreement with trade union(3) by reference in employment

contract but only in respect of terms and conditions of employment.

Common in certain sectors, employer is bound if any of the following applies (1) Collective agreements declared

universally applicable by responsible federal or cantonal authority;

(2) employer is member of contracting employers’ organisation and employee member of contracting employees’ association;

(3) direct agreement with employees’ association;

(4) by reference in the contract.

Only if employer recognised trade union.

ConfidentialityCommonly used. Commonly used. Commonly used in managerial

employment contracts.Commonly used, fairly generic clauses. Commonly used. (1) implied duty during employment

(2) express clauses common.Commonly used; fairly generic clauses based on statutory provision.

Commonly used; fairly generic clauses; based on statutory provision.

Commonly used; fairly generic clauses. Even if ruled by law commonly used; fairly generic clauses.

Commonly used; fairly generic clauses. Commonly used; fairly generic clauses. Commonly used; fairly generic clauses. Statutory confidentiality applies during and after employment. Common use of further confidentiality clauses in the individual employment contracts.

Commonly used; fairly generic clauses.

Local language requirement

No, but employee must understand the contract (in case of doubt highly recommended).

Contract must be in French Dutch or German. In Brussels may only be in French or Dutch.

No, but the employee must understand the contract. In addition, a Czech translation is required by the social insurance authorities.

No. The employment contract must be written in French.

No, but if foreign language is used the employer has to make sure that the employee understands what is stipulated in that foreign language.

Not regulated by law but employee must understand the contract and authorities also ask for contract in Hungarian therefore it is advisable.

Not regulated by law but employee must understand the contract.

No, but employee must understand. No, but employee must understand contract.

Yes, employment contract and the employment related documentation must be in Polish.

No, but employee must understand the contract.

No, but employee must understand the contract.

No, but employee must understand contract.

No, but employee must understand contract.

Key Employment Terms and Conditions in Europe The information you need for each country

www.eversheds.comThis information is intended as a guide only. Whilst the information it contains is believed to be correct, it is not a substitute for appropriate legal advice. Eversheds

LLP can take no responsibility for actions taken based on the information contained in this pack. ©EVERSHEDS LLP. Eversheds LLP is a limited liability partnership

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