The EU Commission has launched a green paper aimed at sparking a public debate on modernising labour law.

Much of the legislation the EU has passed has focused on the traditional permanent, full-time employee/employer relationship but new types of contractual arrangement outside this blueprint are becoming increasingly common across the EU.

It’s estimated that 25 per cent of workers in the EU’s member states are employed via fixed-term contracts, part-time work, on-call and zero-hour contracts, hired through recruitment agencies or on freelance contracts.

The Commission’s green paper, ‘Modernising labour law to meet the challenges of the 21st century’, asks how legislation at EU and national level can help the job market become more flexible while maximising security for workers – the so-called ‘flexicurity’ approach.

Vladimír Špidla, EU Commissioner for Employment, Social Affairs and Equal Opportunities said: “These more flexible arrangements are vital to confronting the effects of globalisation and demographic ageing in our labour markets.

“At the same time, it is essential that workers do not lose out in this process and that their call for greater security is heard. We want an open debate on how labour law could be adapted both at EU and national levels to reflect the new reality of work in Europe.”

The green paper aims to identify key challenges in the scope of personal labour law – rather than collective – and to enable individuals as well as employers understand their rights and obligations.

There will be a four-month consultation period, ending on 31 March, the Commission then aims to produce a communication in June followed by a set of common principles by the end of 2007.

The CBI has welcomed the green paper. Susan Anderson, CBI director of human resources policy, said: “The green paper is a welcome step in the right direction because it recognises that EU labour markets need to become more flexible in order to raise employment and provide economic growth.

“In a fiercely competitive global market, business must adapt quickly to market changes and find staff with the necessary skills to compete. For employees the best employment protection comes from the security of being employable.

“However, we remain concerned that the Commission is still considering the possibility of further employment legislation. Bowing to trade union demands for restrictions on flexibility ignores the fact employees value the options that part-time work, agency work and other forms of flexible working offer.”

The green paper and consultation are available at: Modernising labour law