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      Market Conditions Summary - GERMANY 2009                Market Conditions Summary - GERMANY
                                                          LAW


Recruitment and Contract
Probationary Period                                       3 to 6 months during which notice period is 2 weeks
Probationary Period
Extension                                                 Not possible to extend the probationary period over 6 months
                                                          4 weeks to the 15th or end of a month. After 2 years of service after age 25,
                                                          the legal notice periods are increased, as follows:
                                                          + 2 years: 1 month + 5 years: 2 months
                                                          + 8 years: 3 months +10 years: 4 months
                                                          +12 years: 5 months+15 years: 6 months,
                                                          +20 years: 7 months (each to the end of a month).
Notice Period
Fixed Term Contract
Regulations                                               3 months or less:
                                                          Age 65 to 67 - if the birth date is before 31.12.1946 we have 65 years-then is
Retirement Age                                            goes up to finally 67 for all people born after 01.01.1964

Employment Conditions


                                                          Maximum 48 hours per week, based on a working week from Monday to
Working Hours                                             Saturday
Vacation                                                  24 working days based on a 6-day working week (4 weeks vacation)
Special Leave                                             No legal directive
Birth of Child
Death of Spouse or child
Death of Father or Mother
Marriage
Marriage of a child
others
                                                          Statutory holidays: 10 - 12 days depending on state/region the company is
                                                          located in. Statutory Public Holidays in all states/regions: New Years' Day,
                                                          Good Friday, Easter Monday, Labour Day, Whit Monday, Ascension Day, Day
Public Holidays                                           of German Reunification, Christmas Day, Boxing Day.
                                                          6 weeks before and 8 weeks after confinement. The employer is obliged to
                                                          balance the benefit from the State health insurance fund to 100% of net
                                                          salary for these 14 weeks. In case of a preterm birth the maternity leave is 12
Maternity leave                                           weeks after confinement, same for multiple birth
                                                          A mother and/or father is entitled to an unpaid paternity leave of up to 3
                                                          years. The employment relationship must be continued, The mother/father is
                                                          entitled to an allowance paid by the State of Euro 67 % of his last net income
Paternity and Parental                                    per month for 1 year. Minimum 300 Euro net, maximum 1,800 Euro net per
Leave                                                     month.




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        Market Conditions Summary - GERMANY 2009                Market Conditions Summary - GERMANY
                                                            LAW

Unpaid leave

Remuneration
Bonus




Months of salary
payment

Social Coverage




                                                            It is a legal requirement for the employer to continue 100% salary for the first
                                                            6 weeks of incapacity to work due to an accident or illness. The obligation to
                                                            continue full salary payments commences with the first day of sickness.
                                                            Starting with the 7th week a cash sickness benefit becomes payable from the
Payment of salary after                                     State Health Fund in the amount of 70% of gross salary up to the earnings
accident or sickness                                        ceiling for State Health Fund purposes for a maximum of another 72 weeks.


Life insurance
Military Service




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       Market Conditions Summary - GERMANY 2009                Market Conditions Summary - GERMANY
                                                           LAW




                                                           Total contribution rate: employers part: until 30.06.2009: 19,63 %, after
                                                           01.07.2009: 19,33% of average of earnings up to a ceiling of Euro 64,800 p.a.
                                                           in West Germany and Euro 54,600 p.a. in East Germany; contributions are
                                                           paid by employer and employee on a 50:50 basis (additional 19,63/19,33%
                                                           from the employee) The employee has to pay an additional contribution for his
                                                           legal health care insurance of 0,9 %. The benefits provided by the German
                                                           old age pension insurance under Social Security ("Pension Insurance")
                                                           provides old age pensions, early retirement pensions, disability pensions,
Social Insurance                                           spouse's pensions, and children's pensions.
                                                           Early retirement is possible at age 63 (men) and age 60 (women). These
                                                           different ages will be equalized to age 62 in the next 12 years and a reduction
Early retirement                                           for each month of early retirement prior to age 65 is applied.




                                                           The Social Security pension formula results in approximately 40% of final
                                                           average gross earnings up to the earnings ceiling after 45 years of coverage
                                                           or 70% of the corresponding net income. A modified pension adjustment
                                                           formula to be applied from 2001 on will decrease today's 70% of net income
Pension                                                    to 64% (67% of re-defined net income)


                                                           The Social Security Pension Insurance is a "pay-as-you-go-system". Effective
Principle of the pension                                   01.01.2002 the State began to sponsor the voluntary accumulation of
arrangements                                               additional funded retirement income by individuals.



                                                           9.95% of salary up to ceiling of Euro 64,800 in West Germany and Euro
Contributions                                              54,600 in East Germany




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       Market Conditions Summary - GERMANY 2009                                           Market Conditions Summary - GERMANY
                                                                                      LAW




                                                                                      Contributions to the statutory accident insurance (workmen compensation)
                                                                                      are to paid 100% by the employer. Amount of contributions depend on risk
                                                                                      involved with the employees' jobs and gross annual payroll. An average
Accident Insurance                                                                    contribution rate amounts to 1.36% of the gross annual payroll

                                                                                      Membership in one of the State Health Funds is mandatory for all employees
                                                                                      with earnings up to Euro 48,600 p.a. Employees, who earn more can stay in
                                                                                      the Fund on a voluntary basis or may opt out and conclude an individual
                                                                                      health insurance contract with an insurance company. Contributions to the
                                                                                      State Health Fund varies depending on the Fund the employee has chosen.
                                                                                      The average total contribution rate amounts to until 30.06.2009: 15,5% after
                                                                                      01.07.2009: 14,9% of earnings up to Euro 48,600 p.a.. Contributions have to
                                                                                      be paid by employer and employee on a 50:50 basis and 0,9 % additional
Health Insurance                                                                      contribution for the employee.
                                                                                      Total contribution rate: 1.95% of earnings up to a limit of Euro 44,100 p.a.
                                                                                      Contributions must be paid by employer and employee on a 50:50 basis
                                                                                      (0.975% each). In case that the employee has no children, he has to pay an
Long Term Care Insurance                                                              additional contribution of 0,25 %.
                                                                                      100% of retirement pension is protected. Until age 55. An occupational
Disability Insurance                                                                  disability pays 66.7% of a total disability.
                                                                                      Between Euro 164 per month for 1 child up to Euro 195 per child for 4
Child Allowance                                                                       children and more. Child allowances are paid by the State
SOCIAL INSURANCES
Unemployment
insurance
Unemployment                                                                          2,8 % of salary to a limit of Euro 64,800 in West Germany and Euro 54,600 in
insurance (cont)                                                                      East Germany
Professional and non-
professional accident
insurance
Loss of earnings                                                                      100% of salary to be paid by law for 6 weeks. Then between 60-70% of
insurance for sickness                                                                earnings ceiling is paid from Health insurance fund
Health Insurance

Indemnities


Termination Indemnities, notice periods, severance pay                                No legal requirement
Is a termination indemnity paid whatever reason the employee leaves ?
Is a termination indeminity only required if the empoloyee is fired?




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       Market Conditions Summary - GERMANY 2009                                                  Market Conditions Summary - GERMANY
                                                                                               LAW

What are the rules about this severance pay?

Various

    If a company wants to employ staff on behalf of another company is there any special
                                    licensing required?


Is it legal to subcontract Agency’s employees through another Agency (for example – Staffing
 Company A subcontracts with Staffing Company B to place Company B’s employee at their
        customer’s site - this is legal in the US but illegal in Japan, Germany and France)




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MARKET PRACTICE




3 to 6 months


Common practice for general staff is to follow the legal
minimum requirements. Common practice for key personnel,
executives, and management is a notice period of 3 to 6
months to the end of a calendar quarter. Note that notice has
to be a full calendar month. So 1 months notice given to an
employee on 5th January means he or she will leave 28
February.


Age 65 for both sexes. Employees can elect to carry on
working to 67 with a corresponding rise in pension.




Most industries adopt a 36 to 38-hour week for general staff
(basis: 5-day week). For executives a 40 hour-week is more
common, although the actual working time generally exceeds
40 hours.
30 working days based on a 5-day working week
At least a day for each event would be normal
At least a day for each event would be normal
At least a day for each event would be normal
At least a day for each event would be normal
At least a day for each event would be normal
At least a day for each event would be normal


All follow statutory practice with various state holidays added
.e.g. Corpus Christi/Assumption (Saarland)/Prayer Day
(Saxony)

Most companies follow staturory practice. The maximum state
contribution is Euro 13 per day so the employer has to
contribute enormously.




Most companies follow statutory practice.




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MARKET PRACTICE




A 13th month payment is common practice for managerial
employees. Typical practice for general staff is 12 months pay
plus half month salary in June or July ("vacation pay") and an
additional month in November ("Christmas bonus"). Practice is
strongly influenced by trade unions. If no collective bargaining
agreement is applicable, no requirement to follow this policy
and other companies often provide 13 months salary to
general staff too.




It is feasible but not common that companies provide further
salary continuation beyond the legal 6-week period in the form
of a subsidy to the cash sickness benefit from the State Health
Fund. The subsidy amounts to the difference between 100% of
net salary and cash sickness benefit, so that 100% of net
salary is ensured for a longer period than 6 weeks. This
subsidy is especially common for executives and managerial
employees but many companies do also provide it to all
employees either because it is stipulated in the collective
bargaining agreement, if any, or on a voluntary basis. The
payment term of this subsidy sometimes depends on years of
service or status of employee (3 to 6 months for general staff,
6 to 12 months for executives)
Separate life insurance is uncommon in Germany. If death in
service benefits are provided they are typically provided as
part of the retirement benefits plan ("pension plan").




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MARKET PRACTICE


Company pension plans to supplement the benefits under the
Pension Insurance are quite widespread in Germany. These
company pension plans typically provide the same benefits as
the Pension Insurance: old age pensions, early retirement
pensions, disability pensions, pre-and post retirement
spouse's pensions, and pre- and post-retirement children's
pensions. Most company pension plans are non-contributory
for the employees. The implementation of company-financed
pension plans is absolutely voluntary for employers. Every
employee has a legal right to claim that up to 4% of his/her
cash earnings up to the Social Security Ceiling are converted
into company benefits (employee-financed plan).
Early retirement benefits from a company pension plan, if any,
become payable upon receipt of the Socal Security early
retirement pension.
 In one case a company plan added a small percentage
contribution up to the social security ceiling seen as
supplementing the SS income, and a larger one after the
social security ceiling on the basis that this is the sole
provision of post retirement income for employee salaries at
this level. An example could be: ......+ 2.5% of salaries up to
the social security limit: ........+ 9% of the next E25k on the
basis that there is no social security coverage for this level of
income but the employee still cannot spare much for his own
pension provision......+5% thereafter. Alternatively one can
simply ask an insurance company to set a pension
contribution to hit a particular target pension. The insurer then
takes the risk should the pension fund not perform as
expected.
Common market practice with regard to company pension
plans is still to provide defined benefit plans. However, mainly
driven by increasing cost and cost control concerns of
employers in Germany the trend is towards defined
contribution (orientated) plans.
A recent survey indicated that 52 % of small companies have
company pension plans in addition to the state
one.Commonly, a company pension plan, if any, is non-
contributory for the employee. However, there is a trend to
have employees participate in the cost of the plan




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MARKET PRACTICE

The statutory accident insurance only covers accident at work
or accidents on the way between home and work place.
Providing an additional accidental death and disability
insurance is common practice in Germany. Some companies
cover only exectuives. Multinational companies often cover all
employees. Typically, the insurance arrangements provides
coverage for private and work-related accidents on a 24-hour
basis worldwide.




Companies do not generally provide any additional health care
benefits. They follow statutory practice which is to pay half of
the applicable contribution rate (irrespective of whether an
employee is mandatorily covered under the State Health Fund,
voluntarily covered under the State Health Fund or privately
insured)



Companies do not provide additional benefits
100% of retirement pension is protected. Until age 55. An
occupational disability pays 66.7% of a total disability.

Companies do not provide additional benefits




Employers offer self insured program supplemening sickness
benefit to 100% of income paid for 3 to 12 months




To avoid court cases employers sometimes offer severance
pay upon termination of employment. Amount of severance
pay depends on individual situation but commonly is in the
range of 0.5 to 1.0 of monthly salary times years of service.




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MARKET PRACTICE




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                                  Market Conditions Summary - NIGERIA
                            LAW                                                                                 MARKET PRACTICE


Recruitment and Contract
Probationary Period         No Legal provision                                                                  The usual practice is 6 months
Probationary Period                                                                                             Some organizations usually extend the probation period for
Extension                   No Legal provision                                                                  another 6 months
                            Either party can terminate the contract after expiration of notice, as follows:
                            3 months or less               :One Day                                             Employees that have worked less than 6 months (typical
                            3 months but less than 2 years :One week                                            probationary period) should give a 2 weeks notice period.
                            2 years but less than 5 years :Two weeks                                            Employees that have worked more than 6 months are
                            5 years or more                 :One month                                          expected to give a notice of 4 weeks/ 1 month. People in
                                                                                                                executive level positions are expected to give a 2-3 months
Notice Period                                                                                                   notice.
Fixed Term Contract                                                                                             Usually treated like any emplyement contract as detailed
Regulations                 As per the contract agreed between both parties                                     above, no special considerations
                                                                                                                Common retirement age is 65 for men and 60 for women.
Retirement Age              No legal provision                                                                  Also for civil servants 60 years or 35 years of service.

Employment Conditions

                                                                                                                Most industries adopt 8 a.m to 5 p.m working hours from
Working Hours               As fixed by mutual agreement or collective bargaining.                              Monday to Friday
                            After 12 months continous service a worker is entitled to at least 6 days           Most companies give 20 days per year which can be taken
Vacation                    holiday.                                                                            only after the probabtion period.

                                                                                                                Casual leave can be used when there is no vacation leave left
                                                                                                                or for personal emergencies. Firms also give
Special Leave               No legal directive                                                                  examination/study leave, loss of relative/compassionate leave.
                                                                                                                A monetary token gift may be given to an employee who just
Birth of Child              No legal directive unless maternity leave below                                     had a child.
Death of Spouse or child    No legal directive                                                                  Up to 5 days which will fall under casual leave
Death of Father or Mother   No legal directive                                                                  Up to 5 days which will fall under casual leave
                                                                                                                Expected to use annual leave to attend. A monetary gift can
Marriage                    No legal directive                                                                  also be given to employees who get married
Marriage of a child         No legal directive
others                      No legal directive                                                                  Unpaid Leave of Absence
                            Statutory Public Holidays in all states/regions: New Years' Day, Good Friday,
                            Easter Monday, Workers Day,Indepedence Day,Eid Al Fitr (2 days), Eid Al             All follow statutory practice with various state holidays added
Public Holidays             Kabir (2 days),Christmas Day, Boxing Day.                                           .e.g. Democracy Day in some states

                            6 weeks before and 6 weeks after confinement. The employer is obliged to
Maternity leave             pay at least 50% of employee's salary if she has worked for at least 6 months. Most companies follow staturory practice.
Paternity and Parental
Leave                       No legal directive                                                                  5 days for paternity leave
Unpaid leave                No legal directive                                                                  Subject to management approval




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                                Market Conditions Summary - NIGERIA
                           LAW                                                                                MARKET PRACTICE


Remuneration
                                                                                                              In practice bonus is given if its contained in employment
Bonus                      No legal Directive                                                                 agreement
                                                                                                              A 13th month payment is common practice for a lot of
Months of salary                                                                                              organizations. This is billed into the remuneration package but
payment                    Employee is entitled to salary for 12 months work                                  paid in November as an extra month's salary.
                                                                                                              For pension the 7.5% will affect only the basic, transport and
                                                                                                              housing allowance of their salary (housing allowance cannot exceed
                                                                                                              150,000 i.e $1000 a year). Other components will not be affected
                                                                                                              but like I said for ethical firms these 3 components will form a
                                                                                                              substantial part of their total salary, because the other allowances
                                                                                                              allowed by law are very small amounts. In practice you will find
                                                                                                              that a lot of firms maintain illegal payroll practices because they
                                                                                                              generally feel the labour and tax laws are outdated and unrealistic
                                                                                                              so they do not fully disclose their salary to avoid taxes on all their
                           Basic, Transport Allowance and Housing Allowances form "Basic Salary"              salary hence the reason why a firm will have about 12 components,
Definition of Basic        subject to social charges. These are lumped together to form the salary            where they disclose only about half of the salary that they pay their
Salary                     subject to tax and social charges SEE COMMENT IN COLUMN F                          staff to the tax authorities.




                           A worker shall be entitled to be paid wages up to twelve working days in any
                           one calendar year. Organisations should purchase workman compensation
                           insurance which covers Permanent partial incapacity, Permanent total
                           incapacity, Temporary incapacity, Fatal accidents, where death results. For
                           accidents, where the worker is completely incapicitated compensation
                           payable shall be a sum total of 54 months earnings. Where permanent partial        Differs from company to company but once a staff has passed
                           incapacity results fron the injury, the amount payable shall be based on the %     the probationary period, they are usually paid for at least 1
                           of incapacity as prescribed by medical assessor. Full salary for first 6 months.   month full pay. Subsequent months pay are dependent on
Payment of salary after    Half salary salary for the next 3 months.1/4 of monthly salary for the next 15     length of service. Also policies apply to cover full and partial
accident or sickness       months.                                                                            incapacitation.
                           Employers shall maintain life insurance policy in favour of the employee for a
Life insurance             minimum of three times the annual total emolument of the employee.                 Follow statutory practice
                           No millitary service but there is a compulsory 1 year national service for
Military Service           people who graduate under the age of 30 years                                      Follow statutory practice
Social Insurance           Defunct and currently being reformed                                               No common practice
                           Early retirement is possible if a man has served for 35 years and a woman for
Early retirement           30years.                                                                           Usually found in oil companies but not in most firms
Pension                    Pension is accessible from age 55
Principle of the pension   It involves a joint contribution between the employee and employer which
arrangements               must be 15%of employees salary,and its usually paid after retirement               Statutory practice is followed by most firms.
                                                                                                              Statutory practice is usually follwed by most firms but some
Contributions              Minimun of 7.5% of contribution by both employee and employer                      employers contribute more than the minimum 7.5%




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                                             Market Conditions Summary - NIGERIA
                                       LAW                                                                         MARKET PRACTICE

                                       Organisations are required to purchase 'workman compensation' insurance
Accident Insurance                     to cover incapacitation or injury at work                                   Follow statutory practice
                                       Defunct and currently being reformed: An employer who has a minimum of      Outsources to Health Management organisation and included
Health Insurance                       10 (ten employees) must register them to contribute to the scheme.          in benefits package
National Housing Fund                  2.5% of basic salary as an employer contribution.
Long Term Care Insurance
                                       As per workman compensation act
Disability Insurance
Child Allowance                        As per tax laws                                                             Companies do not provide additional benefits
SOCIAL INSURANCES
Unemployment
insurance                              No Legal Provision
Unemployment
insurance (cont)                       No Legal Provision
Professional and non-
professional accident
insurance
Loss of earnings
insurance for sickness
                                                                                                                   Outsource to Health Management organisation and included
Health Insurance                       As above                                                                    in benefits package.

Indemnities
                                                                                                                   If the employee is fired, there is no general statutory
                                                                                                                   severance pay, although there is provision in the law for the
                                                                                                                   Minister of Labour to enact regulations providing for severance
                                                                                                                   pay to redundant workers. Market practice depends on the
                                                                                                                   HR policies and vary from firm to firm. From experience, fired
                                                                                                                   employees are usually paid to the amount in lieu of their notice
                                                                                                                   period because they are usually fired with immediate effect so
                                                                                                                   they are paid to compensate for the notice period they should
                                                                                                                   have been given e.g. 1 month's pay for people who should
                                                                                                                   have been given 1 month notice. International, large and the
                                                                                                                   civil service organisation's usually offer severance packages
                                                                                                                   but this is as stipulated in their policies manual or collective
                                                                                                                   bargaining agreements. Civil service and more reputable
                                                                                                                   firms also pay what is termed 'Gratuity' again included in their
                                                                                                                   HR policies manual. It is not appropriate to regard gratuity and
                                                                                                                   severance as "market practice" if considering medium and
                                                                                                                   smaller firms because majority of them do not offer such
                                                                                                                   packages but where it is offered it is usually calculated as 10%
                                                                                                                   of basic pay times number of years served.

Termination Indemnities, notice periods, No legal requirement
                                         severance pay
Is a termination indemnity paid whatever reason the employee leaves ?



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                                                Market Conditions Summary - NIGERIA
                                          LAW                                                                       MARKET PRACTICE

Is a termination indeminity only required if the empoloyee is fired?
What are the rules about this severance pay?

Various
  If a company wants to employ staff on
 behalf of another company is there any
         special licensing required?      Yes
    Is it legal to subcontract Agency’s
 employees through another Agency (for
      example – Staffing Company A
 subcontracts with Staffing Company B to Yes




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