III‑  Rulemaking‑ Public Policy
•35 hour week since 2000
–Includes subsidies to employers who create more jobs
–Limits on hours apply to managers as well
–Limit on annual overtime of 180 hours
•5 weeks vacation
•11 paid holidays
•Retirement at age 60
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Rulemaking‑ Public Policy
   Very high level of Government mandated benefits ‑ Tends to limit scope of bargaining

35 hour week since 2000
   Has to be implemented by collective bargaining agreements
   Unions actually objected to the 35-hour law since it allowed employers to introduce more flexible working hours and it involved a temporary pay freeze for many workers
   Employers fiercely opposed to 35 hours and have lobbied hard to rescind it
   Law has already been amended to reduce its impact on small employers with fewer than 20 employees
   Government has also proposed letting the parties agree to longer hours in collective bargaining

Limits on hours apply to managers as well
   Labor inspectorate raids employers looking for managers working extra hours without adequate records or overtime pay

Limit on annual overtime of 180 hours
   Government is hoping to raise this to 220 in 2005

11 paid holidays
   More holiday and vacation time than any country in course but Germany
   Overall second lowest annual hours of work in the course after Germany

Retirement at age 60
   Has created real pension problems for government which is looking for ways to reduce costs