As recession deepens across Europe, short-time working and temporary lay-offs have moved towards the top of the employment relations agenda.

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European Employment Review
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  THE EDITOR'S MESSAGE Issue 421  
  SHORT-TIME WORKING SPREADS ACROSS EUROPE

As recession deepens across Europe, short-time working and temporary lay-offs have moved towards the top of the employment relations agenda.

Total or partial cuts in working hours for a limited period can help employers adapt to falls in demand and retain skilled workers during times of difficulty. They can also provide workers with an alternative to redundancies and help keep unemployment figures down. Employers may partially compensate workers for unworked hours, with state schemes offering benefits in addition to reduced wages in most countries.

The take-up of state short-time benefits has recently soared in many countries, such as Italy and Spain, and some governments have responded to the economic downturn by reforming their schemes, for example:

  • France has increased the duration and level of benefits and extended the scheme to new groups; and

  • Germany has also increased duration, as well as cutting the costs to employers, simplifying application procedures and encouraging companies to train the workers affected.

At company level, General Motors Europe has reached an innovative Europe-wide agreement on the issue, introducing minimum standards for working time reductions to deal with production cutbacks across its operations. This includes rules on pay compensation for employees affected by hours cuts, short-time work and sabbaticals.

In this issue of European Employment Review, we continue our series of guides to national employment law, the latest of which is Germany.

XpertHR Mark Carley,
Editor,
European Employment Review

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  NEWS

EU: Commission consults on second-hand smoke at work

The European Commission launched consultations on 19 December 2008 of EU-level trade union and employers' organisations about possible action to protect workers from the risks related to exposure to environmental tobacco smoke in the workplace. The action might include EU legislation to ban smoking at work.

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International: General Motors signs European agreement on short-time work and hours cuts

In January 2009, management and the European Works Council at General Motors Europe signed a Europe-wide framework agreement laying down minimum standards for working time reductions to deal with production cutbacks.

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France: Short-time benefit scheme revised

The French Government implemented a number of changes to statutory short-time working benefit in December 2008 and January 2009, with the aim of improving the scheme’s capacity to mitigate the employment consequences of the economic downturn.

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Germany: Economic stimulus package gives priority to jobs

A major economic stimulus package, agreed by the conservative-social democrat coalition Government on 13 January 2009 and dubbed the “pact for employment and stability”, gives high priority to measures to sustain employment through the current recession, and particularly encourages employers not to make staff redundant.

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Italy: Short-time work and lay-offs doubled during 2008

Statistics published in January 2009 indicate that the use of the public fund that pays benefits to employees temporarily laid off or on short-time working because of production cutbacks nearly doubled in 2008, as the economic downturn deepened.

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Spain: Redundancies and temporary lay-offs rise sharply

The number of employees affected by redundancy and temporary lay-off procedures rose by more than 40% between January and October 2008 compared with the same period in 2007, underlining the employment impact of the deepening economic downturn.

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RELATED ARTICLES ON XPERTHR

EWCs: GM Europe and EWC sign agreement to safeguard plants

France: Short-time benefit scheme to be revised

Germany: Government extends payment of short-time benefit

Germany: Employment law amendments round-up

Spain: Automotive industry struggles to save jobs

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  FEATURES

International: G4S signs pioneering "ethical employment partnership"

The G4S security group, one of the world’s largest employers, has become the first UK-based company to sign a worldwide agreement with trade unions on employment and union rights.

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France: Draft national agreement reached on vocational training

France’s main employers’ organisations and trade union confederations reached a draft national cross-industry agreement on vocational training in January 2009, which includes measures aimed at providing training for an extra 700,000 low-skilled or unemployed workers each year.

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Germany: Employment law guide

We set out the key elements of German law as it applies to: recruitment and selection; pay and benefits; employee rights; contracts of employment; training and development; equal opportunities; employee representation; industrial relations; health and safety; and termination of employment.

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RELATED ARTICLES ON XPERTHR

International: Global agreements - state of play

International: Aker international workers' rights agreement

International: Global agreement at Securitas

France: Reform of vocational training

France: Deal reached on management of jobs and skills

France: Labour market modernisation agreement signed

France: National accord on lifelong learning and competence development

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  MORE FROM IRS...

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