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Research Project
Employer/Employee Rights and Responsibilities - Employment Law Abroad
Let's now have a brief look at another issue related to employment. Some firms will have their headquarters in one country but have offices in other locations or may employ people to work for the company who may be based in other countries. In such cases, the company concerned may have to be aware of different legal requirements in different countries related to employment issues.
A selection of these issues relating to the contract of employment are reproduced below:
Germany:
- If more than 20 people are employed, a firm must have 5% of positions filled by a disabled person - firms can be fined if they do not comply.
- Works councils can be set up on demand if a firm employs up to 5 workers.
- Additional employee numbers trigger additional works council members (a works council is set up to inform and consult workers).
- If employee numbers are greater than 21, a social plan must be produced in any downsizing.
- The Working Hours Act 1994, regulates the maximum hours to be worked. In general, work may not exceed 8 hours per day.
- Workers are allowed limited time off with full pay for personal reasons - death of a close relative and sickness of a dependent child.
- There are nine public holidays per year - some German states also include others.
- Either parent of a newborn child may take leave of up to 3 years after birth (with details about rights to pay). In most cases parents are entitled to their old jobs back.
France:
- If there are more than 21 employees, a quota of 6% must be disabled.
- Over 50 employees - a compulsory profit sharing scheme must be implemented.
- Strong influence on the work environment of trade unions and works councils - the number of representatives on each is laid down according to a scale related to the number of employees.
- The Loi Aubry laws set the working week at 35 hours.
- A minimum wage applies to each hour and month worked. (In July 2002, this was set at €6.83 per hour, or €1,035.91 per month based on a 35 hour week.
- There are 11 public holidays per year.
- Parents are allowed 3 days off for weddings, funerals, births or adoption.
- Paid leave of up to 12 days can be taken for 'economic, social and trade union education'.
Sweden:
- Where employee numbers are in excess of 10, the firm has a duty to draw up an 'equality plan' to remove differences in pay and benefits based on gender.
- Where employee numbers are greater than 50, a safety committee must be created.
- Subsidies are available to promote the employment of the physically and mentally disabled.
- A job applicant or employee can demand a written justification of the reason for employing another employee.
- The Working Time Act sets weekly hours at 40.
- There is no statutory minimum wage.
- There are 13 public holidays each year.
- Employees with particular lengths of employment are allowed time off to start up their own business.
- Parents are entitled together, to 480 days maternity/paternity leave on the birth of a child.
- Employment should reflect the composition of the population in the vicinity of the workplace.
Task 7
What problems and issues might arise for firms operating with employees in different countries in Europe?
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