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West Thames HR Exchange Club Meeting on October 3 rd 2001 Royal Holloway University of London. Agenda. Minutes of the Last Meeting held July 2001 and matters arising Update of Participants and Welcome to New Members Round Robin - a general update from attendees. Coffee Break. Agenda.
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West Thames HR Exchange Club Meeting on October 3rd 2001Royal Holloway University of London
Agenda • Minutes of the Last Meeting held July 2001 and matters arising • Update of Participants and Welcome to New Members • Round Robin - a general update from attendees. • Coffee Break
Agenda • Salary Movement – Review of Survey • HR in a Disaster Situation - Discussion • Country Profile - Netherlands Andrew Strathdee, CHRP • Training Update • Any Other Business - items for next meeting,
Salary levels for 2002 • Survey issued last week • Anyone wishing to participate can do so at any time by supplying data but let me know you intend to do so.
Salary levels for 2002 • Over 40 participants so far • Large and small players (Oracle, Novell, Dell, Microsoft, West Thames members • No discernable difference between size of company and size of increase • State of the business is making the decision
Salary levels for 2002 • Features of the results • Much tighter ranges than previously • Significant number of companies planning to give little or no review • Top level of increase is lower than previously and nearer to the median. • Great commonality of increases across countries, except Ireland and Eastern Europe
Salary levels for 2002 • If you want the results, input your data!
HR IN A DISASTER SITUATION May Martin and Mary Ahmad
KNOW YOUR BUILDING SECURITY • ID Swipe Cards • Lax security by employees • Signing in book • Visitors
Evacuation Procedures • What to do • Must be immediate • Communicate with employees • Fire Alarm Testing/False Alarms • New and temporary employees
Disaster Recovery • Committee of key managers/representatives • Contact information for Team • Temporary location • Back-Up Server Facilities
Communication • Who was at work today? • Contacting people at home • Contacting next of kin • Dealing with relatives/media
Counselling/Support • Review resources for employee counselling & support • Who and when • Don’t forget yourselves!
Insurance • Buildings & Contents • Business Travel/Personal Accident • Life Cover • Business Interruption
Considerations • Review & write appropriate procedures • Ensure Management support • Publish and practice emergency evacuation • Seek input from emergency services, insurers, employees • Provide feedback to employees
Country Profile The Netherlands
Setting Up an Office • Number of vehicles: • Limited Liability Company • NV and BV (BV more usual for wholly owned subs, restrictions on transferability of shares • Branch Office • Parent has unlimited liability for Branch • Partnership
Boards • Two tier structure • Managing Board • One or more Directors, MD’s appointed by shareholders • Supervisory Board • Where capital exceeds Fl 22.5m and 100 employees Supervisory board must be appointed to supervise the managing board.
Employment Status • There are no recognised employment statuses • There are minor differences between blue and white collar and Top Management (similar to UK) • Pay periods differentiate (weekly/monthly)
Recruitment • Recruitment is free of Statute • Employees (perm and temp)are recruited through • Advertising • Local Employment Office • Recruitment Agencies and Head-hunter • Cannot set medical criteria unless required by law (e.g. bus driver) • No quotas for disabled people
Forms of Contracts • EU - A written statement of the main terms of employment must be given to the employee within one month of the agreed start date of employment.(Law 196, 1997) • Formal written statements specify terms and conditions plus any CA’s which are applicable • Employees must sign to acknowledge receipt • Managers usually given separate letter
Forms of Contracts • Fixed Term • More than three fixed terms becomes open contract or if fixed contracts plus breaks exceed three years. A three month break invalidates this. • Temporary • Normal unless for less than 26 weeks, but if it goes over, fixed term rules apply • Part time • Permitted but must be fully pro-rata, no discrimination
Contents of Statement • Statement must show (EU + Ne) • Name and residence of employee and ‘er • Place of work • Job Title or description • Start date • job title • Working hours and holidays • Pensions • Notice period • Amount of pay and method/period of payment • Termination date if it is a fixed term contract • Reference to internal regulations • Any applicable collective agreements • Length of any probationary period
Collective Agreements • CA’s made between unions and employers, on industry basis • Applied as in UK
Works Councils • Exist in employers with 50 or more employees, can be lowered to 10! • Employers with 10 to 50 must hold 2 staff information meetings per year or more if 25% employees request it • Representatives must have 1 years service • Number vary from 3 to 25 depending on size of organisation • Consent of council required for a wide range of management decisions, and have right to information and to make proposals • Can propose and veto members of Supervisory Board
Probationary Periods • Probation permitted • Applies equally to both parties • Max period 2 months unless fixed term of less than two years, when one month • Longer makes entire period unenforceable • Collective agreement • Probation period in collective agreement automatically includes in contract
Employment Covenants • Confidentiality • Employees must not disclose to third parties trade or business secrets, either during employment or thereafter. • Breaches cause employer to sue • Non-Compete Clause • Non compete clauses permitted – must not prevent earning a living, and specifies duties, time and geography • If termination by employer is unfair then non compete clauses are void • Non Solicitation • Similar to Confidentiality • Penalty Clauses • Can be included for the above specifying amount
Employment Covenants • Two types of inventions, • Those developed by employees in the normal course of their employment • Belong to employer • Employee entitled to compensation unless salary contains an element for inventions • arrived at independently by the employee. • belong to the employee
Working Hours • The working week is covered by Labour Time Act • Maximum day 9 hours • Maximum week 45 hours • Maximum 520 hours over 13 weeks = 40 hours/week • Collective Agreements often 38 to 40 • Shorter hours often by taking Friday afternoon • “Occasional Overtime” may be requested up to 11 hours/day, 54 per week, 585 per quarter
Overtime Premia • Between 6.00am and 8.00pm • Premium 1.25 first 2 hours, 1.5 thereafter • Between 8.00pm and 6.00am • Premium 1.5 • Saturdays and Sundays • Premium 2.0 • Bank Holidays • Premium 3.0 • Nights • Premium 1.75
Night Work • Between 12.00 midnight and 6.00am • Break of 14 hours required before next shift • Maximum shift 8 hours • 3 – 5 nights consecutive requires 48 hour break before next period • Maximum 10 shifts in four weeks and 25 over 13 weeks
Rest periods • Rest periods specified by law • 30 minutes after 5.5 hours • 45 minutes if hours 8 or more • 11 hours out of 24 • 36 continuous hours if working 7 days • No Sunday work (Exceptions)
January 1st Easter Monday Ascension Day Queen’s Birthday (April 30th) Whit Monday Liberation Day May 5th every five years, next 2005 December 25th December 26th Public Holidays • There are some local religious holidays • Good Friday, Shrove Tuesday, Assumption (August 15th)
Holidays • Holiday is a legal right • The basic entitlement is 4 times working days in week, i.e. generally 20 • Generally 25 days • Two weeks to be taken as one period • Annual Vacation Period fixed by employer based on needs of company and employees. • Minimum periods cannot be reduced • Vacation accumulates for 6 months in illness and 12 months in military service • Untaken holiday can be carried forward for two years • Vacation premium of 8% up to three times national minimum wage
Time Off • Maternity Leave • 16 weeks on full pay, any service, starts 6 weeks before EDC • Right to return to former job • If sick after maternity leave due to it, sick pay for 1 year • Parental Leave • 13 weeks or 520 hours after 1 year service • Unpaid • Taken as half time for 6 months, but can be one block with employer agreement
Time Off • Civil duties • Elected members or civil duty (e.g. voting) are entitled to paid and paid hours off to carry out duties • Other reasons • Typically in CA’s and cover education, weddings, bereavement, marriage, illness of close relative, moving etc..usually 1 to 5 days
National Minimum Wage • There is one! • Reviewed 6 monthly • Currently for 2001 the statutory minimum wage (minimumloon) for an employee aged between 23 and 65 is NLG 2,544.10 gross per month
Pay • PAYE does operate for Tax • Compulsory Social Security deductions • Compulsory payslip for all pay transaction– must show: • Pay and voluntary deductions • Social Security deductions • Grade and scale plus collective agreement name • Holiday pay • Pay by Bank transfers or Cash
Contributions • New Tax system from 2001 • Tax and NI Combined. • Current rates • 32.35% for the first NLG 32,769; • 37.60% on the next NLG 26,751; • 42% on the next NLG 42,532; and • 52% on the excess. • Wage tax is based on progressive rate tables, derived from the above income tax rates.
Sick Pay • Sickness Benefits Act • Employer pays 70 – 100% for 1st 52 weeks, first 2 days unpaid • Can be insured, • stop loss, waiting period or self insure, depending on size • After first year State benefits 70% of daily pay up to annual maximum
Long Term Sickness • Coverage via Disablement Benefits Act (WAO) • Complex calculation based on salary, age and degree of disablement • Period of payment 6 months to 6 years, then replaced by lower benefit • Employer funded • Generally employers fund the gap between schemes, by insurance
Death • Lump sums not popular due to tax treatment • Generally State benefit paid as a monthly “pension”
Medical • Provision based on income with an annual ceiling • Contributions around 1.75% employee, 6.35% employer • Individuals earning above the ceiling take out private insurance • Large companies can have insured scheme • Charges of 20% of cast for certain services such as medicines, consultants etc
Equality and Discrimination • All kinds of discrimination forbidden by Constitution and legislation, both direct and indirect, except Age • sex; • race; • religion/philosophy; • political conviction; • sexuality; • marital status. • Personal Liability in exercising office • GOQ’s permitted
Retirement • Retirement age is 65 • Occupational schemes can go to 60 • For technical reason often set at 62, to protect early retirement benefit as this can be lost if employee is made redundant before early retirement date
Pensions • To qualify for full pension, have to reach retirement age and paid from age 15 to 65 • Pension reduced by 2% for uninsured years • State pension 70% of net minimum wage
Pensions • DB and DC schemes, with DC schemes growing • Target 70% of final pay including state scheme • Typical contributions split 2:1 Employer/ee • Range 6:3 to 10:5% • AVC permitted • Life insurance pays out as survivors pension
Termination • Notice periods
Termination • Notice – longer can be requested by employer, but must give twice employee! (3 months employee = 6 months from employer) • Notice must be given • No pay in lieu unless employee agrees • Garden leave permitted