European Employment Law Matrix

Transcription

1 European Employment Law Matrix June 2017 England & Wales France Germany Spain The Netherlands Belgium Italy Documentation/Formalities Are there any prescribed formalities for the format, language and execution of employment documentation? Yes. Employers must provide employees with a written statement of the particulars of their employment within two months of the start of employment. An employment contract is the most common form of documentation and will be validly executed if signed by the employee. In certain situations, an employment contract may need to be executed in the form of a Deed and specific execution formalities will apply. Fixed-term contracts, part time contracts and temporary contracts must be in writing and include mandatory provisions. Other employment contracts (ie indefinite term full time employment contracts) do not have to be in writing. However, a collective bargaining agreement may require that a written format is mandatory for all contracts and that certain provisions must be included. Employment contracts must be in French, as well as any documentation With the exception of fixed-term contracts, employment contracts do not have to be in writing. However, the employer has to provide a written statement about the essential conditions of the contract within one month of commencement of employment. There are no statutory language requirements. However, it is advisable for contracts to be in German or bilingual as otherwise employees may Yes. As a general rule, employment contracts are executed in writing though verbal contracts are also valid (although not customary). Employees are entitled to have their employment conditions established in a written contract if they request so, even if their employment has already commenced. There are certain types of contracts which must be executed in writing: part time contracts, contracts executed through temporary employment agencies, training contracts, etc. It is compulsory to have In general, there are no rules governing the form that a contract of employment must take. A contract of employment may be in writing or verbal. The employer must, however, provide certain specific information in writing, including the position, place of work, commencement date, duration of the contract, holiday entitlement, salary, notice period, working hours, pension arrangements, any restrictive covenants, a trial period and/or the applicability of a collective labour agreement. In practice, most employment contracts are in A full time, indefinite term employment contract can be in writing or verbal. Most other types of contracts must be in writing, executed and dated by the point in time performance of the employment contract begins, failing which they will be assumed to be full time indefinite term employment contracts. These include fixedterm, part time, home working employment contracts and student employment contracts which must also, contain certain specific terms. Certain clauses such Permanent employment contracts do not have to be in writing. However, it is standard practice to draw up a written contract in order to avoid future disputes about the terms of the contract. Other employment agreements (i.e. fixedterm, apprenticeship and project contract agreements) include requirements which must be in writing. The probationary period must be agreed in writing. 1

2 necessary for the employee to perform his or her duties. Certain clauses such as those covering a probationary period and non-compete must be in writing. claim that they were unable to understand the documentation that they have signed. Spanish versions of the employment contracts for registration purposes and for review in the event of conflict. writing. The requirements prescribed by law for an employment contract are an authority relationship, remuneration and personal work. These requirements constitute an employment contract even without a written statement. There are no statutory language requirements. as those covering training and noncompete must be in writing and, in certain cases, at the time performance of the employment contract begins. Employment documents must be drafted in the official administrative language of the region where the employer is located (i.e. Dutch in Flanders, French in Wallonia and German in certain municipalities along the border with Germany). Employers located in the officially bilingual capital Brussels, must draft all employment documents in Dutch for Dutch-speaking employees and in French for Frenchspeaking employees. Is there any requirement for Government registration or other civil processing of employment documentation? No. Yes. A declaration must be filed with the Administration for each hiring. No. Yes. Employers must notify Labour Authorities of each new contract and/or change of contract. Social Security authorities must also be notified of the same changes. No. No. Employers will have to register each new hire on the Dimona portal. Yes. Employers must inform the appropriate Labour Office of any new employee, at least one day before the employment starts. Is the employment contract the sole source of employer/employee rights and obligations? No. There are a number of other rights and obligations set out by statute and implied by law. Rights and obligations may also be included in No. The employment contract has limited importance. Laws, regulations and case law provide for a number of employer/employee No. Statute and case law are both important in defining the mutual rights and obligations between employer and employee. No. Statute and case law are both important in defining the mutual rights and obligations between employer and employee. Additional terms and No. There are a number of other rights and obligations set out by statute and implied by law, for instance the Constitution, the Civil Code and governmental decisions/ decrees. No. Employer/employee rights and obligations are based upon a wide variety of legal sources, going from law/statute and case law to collective labour No. Statute and case law are both important in defining the mutual rights and obligations between employer and employee. The main terms and conditions of the 2

3 an Employee Handbook (although there is no obligation to provide one) or other workplace documentation (including collective bargaining agreements). rights and obligations. In addition, rights and obligations are provided by collective bargaining agreements, company collective agreements, company s internal regulations (which are mandatory for companies which employ 20(+) employees) and by unilateral decisions of the employer or customary practices. Additional terms and conditions may be included in collective bargaining agreements, works agreements or policies. Implied terms may apply. conditions may also be included in the Workers Statute Act, collective bargaining agreements, company agreements or policies. Rights and obligations may also be included in an Employee Handbook (although there is no obligation to provide one), a collective labour agreement or other regulations. agreements, works regulations and custom. employment relationship are included in the applicable collective bargaining agreement. Is it possible to subject the employment to a probationary period? Yes. The scope and terms of any probationary period may be set out by the employer within the employment contract. Typically, probationary periods are between one and six months and they provide for termination on short notice within the period (eg one week). Some employers exclude employees from certain contractual benefits during the probationary period. Probationary periods do not affect an employee's statutory rights. Yes. Probationary periods are allowed and the terms of which must be outlined in writing. The length of trial periods is provided by statute or by the collective bargaining agreement and depends on the employee s status (being two to four months). Probationary periods can be renewed once under certain conditions. Rules applicable to termination do not apply during the probationary period and a reduced notice period applies (between 24 hours to one month, depending on the employee s length of service and on the party that terminates the contract). Yes. Probationary periods are permitted for a period of up to six months. It is common for employers to adopt the maximum period as statutory dismissal protection will only apply after six months. The employer and the employee can agree on a reduced noticed period of two weeks during the probationary period. Yes. Typically, probationary periods are between two and six months. However, the length of the probationary period can be modified by each applicable collective bargaining agreement. Termination during the probationary period will not permit the employee to claim compensation. Probationary periods do not affect an employee s statutory rights. Yes, but only if the employment contract has been entered into for a duration longer than six months. It is relatively common to include a probationary period into the employment contract. The probationary period must be the same for both parties and must be agreed between the employer and the employee in writing. The length of the probationary period depends on the length of the employment contract which: in contracts for two years or more; cannot exceed two months in contracts for six months two years; cannot exceed one month, and in fixed-term contracts not coinciding with calendar dates (ie for the duration of a project or to Probationary periods cannot be included in employment contracts that started on or after 01 January 2014, except in certain specific contracts (temporary agency workers contracts and student employment contracts). Yes. Probationary periods must be agreed in writing and expressly state the length of the trial period. The maximum limit on the length of a trial period is set by the national collective bargaining agreement. In all sectors the maximum is six months. During the probationary period no notice is required the relationship may be terminated with immediate effect in writing. 3

4 replace a sick employee); cannot exceed one month. Do non-local nationals require a work/residence permit? Possibly. EEA nationals do not currently require a work or residence permit. (However, this may be subject to change pending the outcome of the UK Government s negotiations (under Article 50) regarding the terms of its withdrawal from the EU, and the extent to which free movement of persons is preserved. It is possible that a new work permit system will be introduced for EEA Nationals. However, there will be no change until that process has been completed.) Non-EEA nationals must obtain a visa. Non-EEA or non-swiss nationals can visit the UK as business visitors for short visits of up to six months to undertake certain business activities. Possibly. EEA nationals do not require a work or residence permit. Non- EEA or non-swiss nationals can only work in France if they have work authorisation. EEA nationals do not require a work permit. Non-EEA nationals require a residence permit and (in general) the approval of the Federal Employment Agency. EEA nationals do not require a work or residence permit, but non-eea nationals must obtain work and residence permits to live and work in Spain. EEA and Swiss nationals do not require a work or residence permit. Non-EEA and non-swiss nationals require a work and/or residence permit. EEA and Swiss nationals do not require a work permit. Non-EEA and non- Swiss nationals require a residence permit (issued by the Federal Home Office) and a work permit (issued by the Flemish, Walloon or Brussels Department for Employment, whichever is relevant). EEA nationals do not require a work permit. Non-EEA nationals require a residence permit and (in general) the approval of the Immigration Labour office. Is there any mandatory employee/workplac e insurance requirement? If an employee is normally based in England, Scotland or Wales (including offshore installations or associated structures), the employer must have employers liability insurance. Certain types of Yes. The employer must pay social contributions for the employee s social insurances (i.e. health, pension scheme, unemployment, complementary pension scheme, etc). The applicable rate for contributions to be paid by the employer and the Yes. Social insurances, (i.e. health, unemployment, nursing care and pension insurances) are mandatory for employees. The employer must bear half of the costs of these types of social Yes. Social insurances are mandatory for employees. The employer must bear part of the costs of these insurances. Employees have the following social insurances: health, unemployment, sick Yes. The mandatory employee insurance schemes are based on the Unemployment Insurance Act, the Sickness Benefits Act and the Work and Income (Capacity for Work) Act. The employer is obligated to pay a contribution. Employers must have (and pay the costs of) work accident insurance. Yes. Social insurances, (i.e. health, unemployment, nursing care and pension insurances) are mandatory for employees. The employer must bear part of the costs of these types of social insurance. Part of the cost for statutory accident 4

5 employer, including many public bodies, are exempt from this duty. employee is provided by law. insurance. The cost of statutory accident insurance must be borne fully by the employer. leave, retirement pension, maternity and paternity leave, etc. insurance must be borne by the employer. Do different or specific employment protections apply to temporary / fixed-term workers? Yes. Statutes provide for certain rights relating to pay and other working conditions for agency workers and, in the case of fixed-term workers, to protection from less favourable treatment as compared with comparable permanent employees. Yes. Temporary and fixed-term workers may not suffer any unequal treatment compared to comparable permanent employees (in relation to remuneration). In addition, specific rules apply to the succession of fixed-term contracts. Furthermore, fixed-term workers are entitled to an end-of-contract indemnity (10% of their total remuneration) when their employment contract has expired and is not continued under an indefinite term contract. Fixed-term contracts can only be terminated in limited circumstances. Yes. Workers engaged for a limited term enjoy special protection. They may not be treated less favourably due to their limited term unless there are objective grounds justifying different treatment. The same principles apply to agency workers. According to the equal pay principle, they are entitled to be employed under the same employment conditions (eg remuneration) as the comparable core workforce, unless applicable collective bargaining agreements provide otherwise. No. Both have the same employment conditions. However, severance packages upon termination differ depending on the type of contract A recent EU Court Ruling, followed by a Spanish Supreme Court ruling have understood that fixedterm employment contract severance must be equal to the one paid to indefinite-term employees upon termination. Currently, these rulings clash the current regulations. There is likely to be a change in the law in the short term. Meanwhile, employers should not pay equal severance to fixed-term and indefinite-term unless litigation is raised. Yes. Due to the provisions on succession of fixed-term employment contracts, the last employment contract in a chain of fixed-term employment contracts with intervals of six months or less will automatically be converted into a contract for an indefinite period if (i) the last contract is the fourth contract in the chain, or (ii) the aggregated duration of the chain of fixed-term contracts exceeds two years. Furthermore, statutes provide for certain rights relating to terms and conditions for fixed-term workers to protect them from less favourable treatment as compared with comparable permanent employees Different rules may apply for agency workers. Yes. Employees on fixed-term contracts cannot be treated less favourably than those on indefinite term contracts, unless there are objective grounds for justifying different treatment. The law prohibits successive fixed-term contracts. In case of breach, there is a presumption that the parties are bound by an indefinite term employment contract. There are exceptions to this rule. Also, specific rules apply to the termination of fixed-term employment contracts. As a general rule, agency workers are entitled to at least the same remuneration they would have been entitled to if they had belonged to the user s permanent staff. The courts give a broad scope to what should be understood as remuneration, so that it is not limited to the employee s basic monthly salary, but also includes other forms of financial entitlements (eg extralegal benefits). Yes. Workers engaged for a limited fixed-term enjoy special protection. They may not be treated less favourably due to their fixed-term unless there are objective grounds for justifying different treatment. The same principles apply to temporary workers. According to the equal pay principle, they are entitled to be employed under the same employment conditions (eg remuneration) as the comparable core workforce, unless applicable collective bargaining agreements stipulate otherwise. 5

6 Is special permission required for the assignment of temporary workers? No. Yes. Temporary workers must be assigned by a temporary agency, who must fulfil several administrative formalities. Yes. The company must hold a special permit granted by the Federal Employment Agency. Depending on the circumstances the permit may also be required for intragroup secondments. Yes. Temporary working agencies must be duly authorised. Not when hiring temporary workers. When assigning temporary workers, different obligations apply, such as the registration with the Chamber of Commerce as a company that assigns workers. Possibly. Depending on the underlying reason for assigning agency workers, permission of the trade union delegation/works council, or in absence of one, notification to the Social Fund for Agency Workers, can be required. Informing the Social Inspection Services may also be required. Appeal procedures are in place if no agreement can be reached. Yes. Temporary work agencies must be duly authorised. Employee representation Are companies obliged to set up a European Works Council? Yes. If they meet relevant thresholds and receives valid written request. Yes. If they meet relevant thresholds and receives valid written request. Yes. If they meet relevant thresholds and receives valid written request. Yes. If they meet relevant thresholds and receives valid written request. Yes. If they meet relevant thresholds and receive a valid written request. Yes. If they meet relevant thresholds and receives valid written request. Yes. If they meet relevant thresholds and receives valid written request. Are companies obliged to have a national works council or other types of employee representatives? An undertaking with at least 50 employees in the UK may be required to set up an information and consultation agreement on economic and employment-related matters on receipt of a written request by at least 10% of the employees (subject to a minimum of 15 and a maximum of 2,500 employees). The total number of employees of the company determines whether, what type and how many employee representatives must be elected: Less than 11 employees: no employee representatives Between 11 and 50 employees: staff delegates 50 (+) employees: staff delegates, a works council and a health and safety committee. Works councils are not mandatory. Employees may establish a works council in businesses with at least five employees aged 18 or over and at least three employees eligible to be elected (eligibility: 18 years or over and at least six months of service). Unless a works council is newly established elections take place every four years. The next elections will be in No. Works councils or other types of employee representatives are not mandatory. However, employees are free to promote elections. The number and types of representatives may be different depending on the number of employees these represent. Every undertaking which employs 50 or more employees is required to establish a works council. If the employer does not comply with this obligation, all interested parties (such as employees and trade unions) may take legal action in order to ensure that the obligation is complied with. An employer employing between 10 and 50 people may establish an employees' representative body (personeelsvertegenwoordig ing) and is obligated to do so upon request of an interested party. Works councils are mandatory in undertakings with at least 100 employees. This could be reduced to 50 in the future. Undertakings with a works council whose workforce is above 50, must organise social elections to renew this works council. The social elections take place every four years. The next social elections will take place in May Undertakings with a workforce of at least 50 employees must also set up a Health Works councils are not mandatory. Employees may establish employees delegate in business units with at least 15 employees. 6

7 In companies established in various locations, a local works council should be set up in each location which have sufficient autonomy and which has a certain stability (regardless of the size of the local establishment). A central works council should also be set up at the company s head office. Under certain conditions, the different bodies of employee representatives (staff delegates, works council and health and safety committee) may be merged in a unique body called the délégation unique or regroupée If there is no representative body, an employer employing between 10 and 50 people, must give employees the opportunity to meet with him at least twice a year in a staff meeting (personeelsvergadering). and Safety Committee. Its members are elected during the social elections as well. A company could be required to set up a trade union delegation under certain conditions. What are the main rights and responsibilities of works councils? This will depend on the specific negotiated agreement and how these interact with other forms of representation within the organisation. The works council has wide powers and should be informed of and/or consulted on almost all the major economic or social decisions taken by the company. It must be periodically provided with economic and/or social information on specific subjects (economic and financial situation, strategic orientations, employment and working conditions) and must be consulted prior to any major projects (restructuring/sale/merg er, redundancy procedures, etc). The works council has far-reaching information, consultation and codetermination rights with regard to specific social (hiring, redeployment, relocation, dismissals) and economic matters (significant business changes such as mass dismissals, reorganisations etc). With regard to numerous matters the works council has the right to negotiate works Employee representatives enjoy a number of special rights (eg right to remain in the company in the event of redundancy, indemnity guarantee in the event of retaliation, mandatory grievance procedures, paid work hours to attend representation duties, etc). Whereas responsibilities, employers must generally disclose sensitive information to them. They have the right to be informed and consulted in certain scenarios, to issue The national works council has the right to give advice in respect of all important decisions concerning the undertaking. The national works council has a right of consent in relation to decisions concerning social changes in the undertaking. The works council also has significant rights to be informed. A national works council can have additional rights, by individual contract. As per 01 October 2016, a works council s consent is also required in respect of any decision concerning The works council has extensive responsibilities with respect to information (in social, economic and financial matters), consultation (all measures which could change the company s employment organisation, employment conditions or profitability, collective dismissals, closures, reorganisations), decision-making (works regulations, hiring and dismissal criteria, annual leave and public holidays, etc) and managing The works council and employees delegated have far-reaching information and consultation rights with regard to specific economic matters (significant business changes such as mass dismissals, reorganisations, transfer of business etc). There is, however, no duty to reach an agreement. With regard to numerous matters the works council has the right to negotiate agreements at company level, eg with regard to working time, remuneration, leave etc. 7

8 The works council may request information from the employer and has a right to alert the Board if it considers that the information provided is not sufficient or reveals a concerning situation. The works council receives an annual operating budget from the employer and can recruit personnel. It must be provided with a fully equipped room and the materials necessary to carry out its duties and its members must be allowed time dedicated to carry out their duties. agreements, eg with regard to working time, remuneration, leave etc. reports and so forth. pension agreements, instead of decisions in respect of pension insurance schemes only. This includes the decisions in respect of administration agreements (uitvoeringsovereenkomsten ) and administrative regulations (uitvoeringsreglementen) and more specific, when these agreements have effect on determining the premium or conditions in respect of granting supplements. Consent in respect of pension agreements is, however, not required when arrangements have been made in an applicable collective labour agreement or in the case of compulsory membership in an industry wide pension fund. social aspects (pension fund, cafeteria, sports accommodation, etc.) What are the consequences of not informing/consultin g the works council? A maximum penalty of 75,000. The works council can ask for an injunction (ie the employer can be required to provide more information). The employer may also be fined for hindrance offence of 7,500. Depending on the specific right infringed, the implementation of a project may be delayed and/or the actions taken by the employer may be held invalid. For example, failure to consult the works council on a mass collective redundancy plan may result in The works council can ask for an interim injunction or fines of up to 10,000. Significant frequent breaches can result in criminal charges. Depending on the specific right that has been breached the employer s actions may be invalid. For example, failure to obtain approval for new hires will result in the employer being prevented from employing the Administrative fines ranging from 6,250 to 187,515. Depending on the specific right that has been breached the employer s actions may be invalid (eg not disclosing or sharing information during collective layoff consultations may result in all terminations declared null and void). The works council can bring legal action, which could result in the company being forced to reverse all action taken as a result of the decision which was made without consulting the works council. Obstructing the works council s operations is a criminal offence punishable by fines ranging from 200 to 4,000. Depending on the specific decision that was taken in breach of the works council s rights, employees can claim damages and/or the decision could be declared void. Union associations are entitled to make an application to the local employment judge for an urgent injunction to stop the anti-unionist activity and prevent it occurring. Depending on the specific right that has been breached the employer s actions may be invalid. For example, failure to properly consult prior to a collective dismissal will result in the dismissals being void. 8

9 having to start the information and consultation process again (if dismissals have not been notified) or the dismissals being void (if dismissals have been notified). Failure to consult staff delegates or health and safety committees may trigger the same risks. individual. Failure to properly consult prior to a dismissal will result in the dismissal being void. Must an employer recognise or deal with a trade union? A union can acquire the statutory right to recognition if (i) at least 10% of the workers in the proposed bargaining unit are members of the union, (ii) they make a statutory request and (iii) it is shown that a majority of workers within the bargaining unit are likely to support recognition of the union. An employer can also voluntarily recognise and deal with a trade union. In companies with at least 50 employees, the employer must recognise (i.e. respect the protection provided by law) and may deal with (negotiate and conclude company collective agreement) trade union representatives appointed by a trade union, if the employee and the trade union meet several requirements (namely the trade union must be representative, the employee must be an employee representative elected with at least 10% of the votes). The trade union must inform the employer of the appointment of any trade union representative. If these conditions are not satisfied by the trade union, a trade union representative can also be appointed. They would have no right to negotiate company Trade unions have various rights, with regard to the individual business if they have at least one member in such business. For example, a union representative may enter premises to perform union related tasks. Additionally, the union can eg call an employee meeting to elect the electoral board for works council elections. With regard to collective bargaining agreements employers only have to deal with a trade union if they are a member of an employers' association of the relevant industry sector. There are two levels of recognition: (i) union delegates and (ii) company employee s representatives. Employers must generally recognise or deal with the company employee s representatives (workers council or delegates for companies with less than 50 employees). However, trade union delegates present within the company (if any) have the right to receive the same level of information as the works council members. Trade union delegates have the right to be heard before any action is taken against employees and, in particular, against their own union members. An employer can recognise a union voluntarily or the union can acquire recognition or admission to collective labour agreement negotiations, if it is shown that the majority of employees are likely to support recognition of the union. Yes. Employers must deal with a recognised trade union. Yes. If employees delegate and/or trade unions are appointed. 9

10 collective agreements. What rights do trade unions have? They conclude collective bargaining agreements and organise strike actions. They have the right to be informed and consulted in certain circumstances (collective dismissals and transfers). They represent the interests of the employees, can organise strikes, and conclude branch or company collective agreements. They have the right to be informed in certain circumstances (eg mass collective redundancy project). They represent the interests of the employees vis employers and employers' associations. They conclude collective bargaining agreements and organise strike actions. Trade unions represent the interests of the employees. They conclude collective bargaining agreements and organise strike actions. Trade unions represent the interests of the employees. They conclude collective labour agreements and can organise strike actions. They have the right to be informed and consulted in the event of collective dismissals and transfers/mergers. The trade unions conclude collective labour agreements, supervise whether social legislation and regulations are complied with and play an important role in industrial conflicts (organising strike actions, etc). They represent the interests of the employees and liaise with employers and employer associations. They conclude collective bargaining agreements and organise strike actions. Is there a representation of employees at board level? No. Yes. For companies with more than 1,000 employees in France or 5,000 employees in France or abroad. Equal representation between men and women has to be respected. Yes. But it depends on the company`s legal structure and the number of employees. No. No. No. No. Compensation and Benefits Are there any legal or regulatory constraints on the form and/or amount of remuneration? Generally no, other than the national minimum wage. Sector-specific rules should be considered, eg in the Financial Services sector. Yes. Remuneration must be paid each month. Remuneration cannot be lower than the legal minimum wage or, if more favourable, by the applicable collective bargaining agreement. Sector-specific rules should be considered, eg in the Financial Services sector. Generally no, subject to any sector-specific rules eg remuneration regulations in the Financial Services sector. The minimums set out in law and collective bargaining agreement minimums must be observed. Typically, salary is paid on a monthly basis, with two additional salary payments in December and July each year, unless otherwise provided. There are legal constraints on the amount of remuneration in the (semi) public sector. Specific rules apply for remuneration in the Financial Services sector. Yes. Remuneration is contingent on wage moderation legislation and indexation of salaries. Sectorspecific rules should be considered, eg in the Financial Services sector. Generally no - other than the minimum wage. Sector-specific rules should be considered, eg in the Financial Services sector. Is there a minimum wage? Yes. All employers are obliged to pay the National Minimum Wage and the National Living Wage, which applies to most workers working in the UK who are over compulsory school age. Yes. Employers must pay their employees the minimum wage. Exceptions may apply for certain group of workers such as interns or apprentices. The current standard Yes. The current statutory minimum wage amounts to Exceptions may apply for certain groups of workers such as trainees, apprentices and Yes. National Minimum Wage is / month for Minimum wage established in collective Yes. Statutory minimum wage starts at 2.99 gross per hour for employees aged 15, up to 9.95 gross for employees aged 23 or older (based on a 36 hourly week). Yes. Minimum wages depend on sector and are outlined in a sector-level collective labour agreement. Yes. Minimum wage is provided by the applicable collective bargaining agreement. 10

11 The National Living Wage was introduced on 01 April 2016 for all working people aged 25 and over, and is currently set at 7.50 per hour. The National Minimum Wage still applies to those under the age of 25 and the hourly rate depends on your age and whether you are an apprentice. For example, the current rate for those aged 21 to 24 is The rates change every April. minimum hourly rate is It is increased annually on 01 January. volunteers. bargaining agreement. These set out minimums depending on job categories. Minimum salary increases are periodically published for each sector. Can an employer make deductions from wages? Yes. Subject to: the deduction being required or authorised by statute or a provision in the worker's contract, or the worker having given prior written consent to the deduction. Yes. Subject to strict statutory limits. Any deductions are subject to statutory limits to ensure that the employee will be able to keep a specific minimum amount of their income. The employee s prior consent is required if it is envisaged to deduct a higher amount. Yes. Subject to: the deduction being required or authorised by statute or a provision in the worker`s contract, or the worker having given prior written consent to the deduction. Any deductions are subject to statutory limits to ensure that the employee will be able to keep a specific minimum amount of their income. Yes. Subject to: the deduction being required or authorised by statute or a provision in the worker`s contract; or the worker having given prior written consent to the deduction. Any deductions are subject to statutory limits to ensure that the employee will be able to keep a specific minimum amount of their income. Yes. Subject to: the deduction being required or authorised by statute or a provision in the worker s contract, or the worker having given prior written consent to the deduction. Any deductions are subject to statutory limits to ensure that the employee will be able to keep a specific minimum amount of their income. Yes. Subject to the deduction being required or authorised by statute. Yes. Subject to: the deduction being required or authorised by statute or a provision in the worker`s contract, or the worker having given prior written consent to the deduction. Any deductions are subject to statutory limits to ensure that the employee will be able to keep a specific minimum amount of their income. Are there any mandatory social or health or life insurance or retirement benefit requirement? There is a mandatory national insurance system, to which both employers and employees in the UK must contribute. Under this system, employees may be eligible for Yes. Employers must pay for the social insurance contributions, as well as provide a complementary private health insurance scheme, a providence scheme and contribute No benefits are required beyond those covered by social insurance contributions. Employees must however be given the option to enrol in Yes. There is a mandatory national insurance system, to which both employers and employees must contribute. Employers may also make additional There is a mandatory national insurance system, to which employers and employees must contribute. Under this system, employees may be eligible for certain state benefits, including health care and No benefits are required beyond those covered by social insurance contributions. Employers must have a work accident insurance and bear There is a mandatory national insurance system, to which both employers and employees must contribute. Under this system, employees receive unemployment allowances, statutory sick 11

12 certain state benefits including healthcare, statutory sick pay, maternity and adoption allowances and retirement benefit. Employers are obliged to enrol employees automatically in a workplace pension if they meet certain criteria. to the payment of complementary retirement scheme. a deferred salary pension insurance scheme upon their request. Contributions will be made from their salary. Other benefits like eg company pension schemes are voluntary employer benefits. If such benefits are granted, they must have to comply with the equal treatment principle. contributions to the national system, through private plans (this may be voluntary or mandatory as a result of CBA provisions). unemployment benefits. The employer is obligated to pay a contribution. Employers are not obliged to enrol employees in a pension scheme. It is, however, common practice. the cost of such insurance. Other benefits like eg company pension schemes are voluntary. If such benefits are granted, they must comply with the equal treatment principle. pay, maternity and adoption allowances and retirement benefit. Provisions of national collective bargaining agreement can require employees enrolment into mandatory pension and healthcare funds. Is there any statutory right to overtime pay? No. But this may be specified in any collective agreement or contract. In principle yes. Overtime hours must be paid at an increased rate (125% for the first eight hours and 150% afterwards, unless stated otherwise by a collective agreement. In this case, the increased rate can be lower but it must be at least equal to 110%). An exception applies if the employee is subject to a specific working time arrangement such as a lump sum annual working time counted in days or if the employee is a senior executive not subject to working time regulations. In principle yes. Unless the parties agree otherwise. Clauses excluding overtime pay will only be limited in specific circumstances, eg where the number of hours covered by the salary is limited or where the employee's remuneration is so high that they cannot reasonably expect overtime pay. Yes. Overtime must be compensated by pay (at not less than the ordinary hourly rate) or with time off. As a general rule, overtime is limited to 80 hours per year, although overtime spent to prevent or repair damages caused by natural disasters or any other extraordinary events will not be taken into consideration when calculating the maximum overtime permitted. No. It is however common that this is specified in the employment contract, policies or in a collective labour agreement. Yes. Overtime is compensated with pay (50% higher than the employee s usual remuneration and 100% higher in case of overtime on Sundays or public holidays) and compensation leave. This does not apply to certain categories of employees, eg employees working from home, sales representatives and employees holding a trust or management position. Yes. The applicable national collective bargaining agreement establishes the rate to be paid by the employer for the overtime work. Is there any obligation to provide paid sick leave? No. There is however a statutory sick pay ( SSP ) benefit that may be available to the employee. Employees who are Yes. An employee on sickness leave receives a payment from the Social Security Administration, which is often, under certain Yes. The employer must continue paying the employee's remuneration for up to six weeks. As the Yes. The Social Security System does not provide any coverage for the first three days of illness (cost usually borne by employer). Yes. During sick leave an employer must pay (at least) 70% of the employee s last earned salary for a period of 104 weeks, with a maximum of 70% of the maximum Yes. The rules depend on whether the employee is a white collar or a blue collar employee. White collar employees on Yes. Employees are entitled to paid sick leave; a portion of the salary is paid by the employer and a portion by the National Health Authority 12

13 unable to work due to illness or injury for four or more consecutive days are entitled to receive SSP, provided they meet the qualifying conditions. Employees do not receive SSP for the first three days of any sickness absence. The current weekly rate of SSP is The maximum entitlement is 28 weeks' SSP during any period of incapacity for work (or any series of linked periods). conditions, supplemented by the employer to ensure that the individual maintains all or part of their normal salary. Collective bargaining agreements can provide for more favourable provisions. In addition, the social insurance subscribed to by the company may provide for a full coverage during the leave. six week period is per sickness, it may be triggered repeatedly in one year if the employee suffers from different illnesses. Social Security system covers a determined percentage starting from the fourth day of sick leave. The applicable collective bargaining agreement may require the employer to increase to a determined percentage. daily wage ( 4, gross per month) and provided that for the first 52 weeks the employer is obliged to pay at least the statutory minimum wage. contracts longer than three months are entitled to paid leave for the first 30 days of illness. A specific regime is in place for white collar employees on contracts no longer than three months. Blue collar workers with more than one month s service are entitled to 100% paid leave for the first 7 days of illness and to 60% paid leave for the next 7 days of illness (paid by the employer). An allowance paid by the social security system is added to this. depending on the duration of the sick leave, the sector and how many times sick leave is taken in a calendar year. Collective bargaining agreements can provide for more favourable provisions Family Leave Rights For how long can employees take maternity leave? 52 weeks. Some of this leave can be transferred to the father under the shared parental leave scheme. 16 weeks: six weeks before the birth and 10 weeks after the birth, where the number of children in the household reaches one or two. It can be longer if there are three or more children in the household or in the case of multiple births. Maternity leave starts six weeks before giving birth and lasts eight to twelve weeks after birth. The leave period after birth cannot be waived. 16 weeks, plus an additional two weeks if child is disabled or in the case of a multiple birth (two weeks per additional baby). The six-week leave period immediately after birth can only be taken by the mother. Six weeks pregnancy leave and 10 weeks maternity leave. In case of multiple childbirths the pregnancy leave will be extended with four additional weeks. 15 weeks in total (or up to 19 weeks in the case of multiple births). Parental maternity leave starts at the earliest six weeks (or eight weeks in case of multiple births) and at the latest one week before the expected date of delivery. After childbirth, the remaining postnatal maternity leave starts running, ie at least another nine weeks (11 weeks in case of multiple births). Postnatal maternity leave cannot be waived. Maternity leave can be taken from two months before giving birth until three months after birth. Maternity leave can start later than two months before giving birth in order to extend the leave to be taken after the birth of the child. Maternity leave can start earlier than two months before childbirth if the work poses a danger to the health of the mother and/or the unborn child. 13

14 Maternity leave can be extended in the event of complications. It can be transferred to the father/co-parent if the mother dies or is hospitalised. For how long can employees take parental leave? Parental leave can be taken by the father and the mother for up to 18 weeks. It must be taken in full before the child is 18. This leave is unpaid. Parental leave (full absence or part-time work) can be taken by the father and the mother for one year, and is renewable until the child turns three. This leave is unpaid. Parental leave can be taken by the father and the mother for up to three years, generally to be taken before the child has reached the age of three. The employees are entitled to an extended (unpaid) leave of absence of not more than three years for the care of each child, both for biological children as well as for adoption, custody with the objective of adoption or permanent fostering. The three years maximum leave should be considered from the date of birth or, if applies, the date of the court or administrative decision. Employees in a family relationship with (a) child(ren) under eight are entitled to parental leave for every child. The maximum amount of parental leave that can be taken is a total of up to 26 times the number of contractual working hours per week for every child. This leave is unpaid. Two different parental leave regimes coexist, but cannot be cumulated. In both regimes the parent must have at least 12 months service with the employer in the 15 months prior to the request for parental leave. It must be taken before the child has reached the age of 12. Parental leave is unpaid, but the employee can receive an allowance from the Social Security Authorities. Parental leave can be taken for up to four months. The leave can be taken on a part time basis subject to certain conditions. Parental leave can be taken by the father and the mother until the child reaches the age of 12. The total amount of leave taken by both parents cannot exceed 11 months. Is there any obligation to provide paid maternity, paternity or adoption leave? Yes. Employees who are eligible for maternity leave are also entitled to receive up to 39 weeks' statutory maternity pay, provided they satisfy certain conditions. Employees entitled to take paternity leave may also be eligible for statutory paternity pay if they fulfil the necessary criteria. Yes. Employees who are eligible for maternity leave are also entitled to receive maternity benefit, from the Social Security Administration but also very often from the employer, as provided by the applicable collective bargaining agreement (which sometimes provide for conditions eg Yes. During maternity leave, employees receive a maternity benefit. This is approximately as high as the last net salary. Parental leave is unpaid and employees can receive state benefits. Yes. Employees who are eligible for maternity leave are also entitled to receive maternity benefits from the Social Security Administration. Additionally, the CBA may insist the employer must top up the public benefit up to 100% of the employees salary. Employees entitled to take paternity leave are Yes. During pregnancy, maternity or adoption leave employees are entitled to receive an allowance from the government body (the UWV) equal to their daily wage although this is subject to the maximum daily wage ( gross). Fathers are entitled to two days paid paternity leave. In addition, fathers are entitled to three days Maternity leave is entirely covered by an allowance paid for by the social security system. The employer does not have to provide paid maternity leave. Paternity leave leave/co-parent leave: the first three days of leave are paid by the employer. The Yes. During maternity leave, employees receive a maternity benefit which is approximately equal to 80% of the employee salary from the social security authority. During parental leave the employee is entitled to receive 30% of his/her salary from the social security authority. An employee who fosters 14