Overview

The European Parliament recently approved tough new rules which will limit the way in which remuneration packages for staff within credit institutions and investment firms are structured.

The rules will apply in relation to bonuses paid at any time after the rules are implemented at a national level (implementation must take place by 1 January 2011 – less than six months from now), regardless of when the bonus was awarded or the contractual arrangements were entered into. Accordingly, employers who may be caught by the new rules will have to move quickly to review their existing remuneration packages, consider and propose new structures which are compliant with the new rules and engage in appropriate dialogue with affected employees about the changes.

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