Strategies for managing employment costs – Europe and Asia

07.08.2009

RoschierRaidla firms, together with the leading global law firm Freshfields Bruckhaus Deringer and a number of other leading law firms in Europe and Asia have prepared an overview which analyzes various employment law issues in different countries. The overview looks upon strategies for managing employment costs in 17 different countries and concentrates mainly on two fields - mass redundancies and alternatives to redundancy. The countries included in the overview are the following: Austria, Belgium, Estonia, Finland, France, Germany, Hong Kong, Italy, Japan, Latvia, Lithuania, People´s Republic of China, Russia, Spain, Sweden, The Netherlands and UK.

The main issues covered are the following:

MASS REDUNDANCIES:

• What is ‘redundancy’?
• Is an employer obliged to inform and consult with its employees?
• Who does the employer consult with?
• Timing requirements
• What does consultation mean?
• How are employees selected for redundancy?
• Redundancy/severance entitlement
• Penalties for failure to comply with information/consultation obligations

ALTERNATIVES TO REDUNDANCY:

What legal issues arise from the implementation of alternatives to redundancy?

What measures can be used?

• Can I institute a hiring freeze?
• Can I withdraw offers of employment that I have already made?
• Can I reduce my agency/temporary workforce?
• Can I delay or freeze salary increases?
• Can I freeze/cease paid overtime or cease paying overtime rates to employees?
• Can I reduce the non-cash benefits I give to employees?
• Can I change my expense reimbursement policies?
• Can I refuse to pay a bonus?
• Can I cut wages and salaries?
• Can I change pension arrangements?
• Can I ask employees to work fewer hours?
• Can I retrain or redeploy staff to other areas of the business?
• Can I put employees on sabbatical or secondments?
• Can I ask employees to retire early?
• Can I make offers to employees to resign?

The ESTONIA chapter on "Mass redundancies" can be downloaded HERE

The ESTONIA chapter on "Alternatives to redundancy" can be downloaded HERE

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