West Thames HR Exchange Club Meeting on October 3 rd 2001 Royal Holloway University of London

1. West Thames HR Exchange Club Meeting on October 3rd 2001Royal Holloway University of London

2. 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

3. 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,

4. Salary Movements Survey 2002

5. 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.

6. 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

7. 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

8. Salary levels for 2002 • If you want the results, input your data!

9. HR IN A DISASTER SITUATION May Martin and Mary Ahmad

10. KNOW YOUR BUILDING SECURITY • ID Swipe Cards • Lax security by employees • Signing in book • Visitors

11. Evacuation Procedures • What to do • Must be immediate • Communicate with employees • Fire Alarm Testing/False Alarms • New and temporary employees

12. Disaster Recovery • Committee of key managers/representatives • Contact information for Team • Temporary location • Back-Up Server Facilities

13. Communication • Who was at work today? • Contacting people at home • Contacting next of kin • Dealing with relatives/media

14. Counselling/Support • Review resources for employee counselling & support • Who and when • Don’t forget yourselves!

15. Insurance • Buildings & Contents • Business Travel/Personal Accident • Life Cover • Business Interruption

16. Considerations • Review & write appropriate procedures • Ensure Management support • Publish and practice emergency evacuation • Seek input from emergency services, insurers, employees • Provide feedback to employees

17. Country Profile The Netherlands

18. 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

19. 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.

20. 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)

21. 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

22. 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

23. 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

24. 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

25. Collective Agreements • CA’s made between unions and employers, on industry basis • Applied as in UK

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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)

34. 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)

35. 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

36. 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

37. 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

38. 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

39. 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

40. 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.

41. 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

42. 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

43. Death • Lump sums not popular due to tax treatment • Generally State benefit paid as a monthly “pension”

44. 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

45. 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

46. 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

47. 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

48. 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

49. Termination • Notice periods

50. 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