The European Parliament recently approved tough new rules on bonuses paid to staff within credit institutions and investment firms, which must be implemented at national level by 1 January 2011.
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. A Herbert Smith briefing on the EU proposal is available here. Details of the FSA's consultation on its plans for implementing the rules are available here
