Council Regulation (EC, Euratom) No 723/2004 of 22 March 2004 amending the Staff Regulations of officials of the European Communities and the Conditions of Employment of other servants of the European Communities

Council Regulation (EC, Euratom) No 723/2004

of 22 March 2004

amending the Staff Regulations of officials of the European Communities and the Conditions of Employment of other servants of the European Communities

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 283 thereof,

Having regard to the Protocol on the Privileges and Immunities of the European Communities, and in particular Article 13 thereof,

Having regard to the proposal from the Commission, submitted following consultations with the Staff Regulations Committee,(1)

Having regard to the Opinion of the European Parliament,(2)

Having regard to the Opinion of the Court of Justice,(3)

Having regard to the Opinion of the Court of Auditors,(4)

Whereas:

(1) Since the initial adoption of the Staff Regulations and Conditions of Employment in 1962, substantial advances and innovations in society have occurred. Those advances and innovations should be reflected in the regulatory framework applicable to the European civil service in order to meet the changing needs of the institutions and their staff, whilst respecting a Community administrative culture and tradition based on the principle of service to the citizen.

(2) The Community should thus be equipped with a high-quality European public administration, so as to enable it to perform its tasks to the highest possible standard in accordance with the Treaties and to meet the challenges, both internal and external, that it will face in the future.

(3) Consequently, it is necessary to provide a framework for the recruitment by the Community of high calibre staff in terms of productivity and integrity, drawn on the widest possible geographical basis from among citizens of the Member States, and enable such staff to carry out their duties under conditions which ensure that the service functions as smoothly as possible.

(4) A broader aim should be to ensure that human resources are managed as effectively as possible in a European civil service characterised by competence, independence, loyalty, impartiality and permanence, as well as by cultural and linguistic diversity.

(5) It is appropriate to ensure that there is a single European civil service and to apply common rules to all institutions and agencies working on behalf of the Community. The availability of a single set of Staff Regulations should provide a useful tool for enhancing cooperation between the institutions and agencies on staff policy, in the interests of the smooth running of the Community and the efficient use of human resources.

(6) Agencies should be included within the scope of the rules relating to staff, in order to safeguard the harmonious application of the rules and in particular to ensure staff mobility.

(7) Compliance should be observed with the principle of non-discrimination as enshrined in the EC Treaty, which thus necessitates the further development of a staff policy ensuring equal opportunities for all, regardless of sex, physical capacity, age, racial or ethnic identity, sexual orientation and marital status.

(8) Officials in a non-marital relationship recognised by a Member State as a stable partnership who do not have legal access to marriage should be granted the same range of benefits as married couples.

(9) Express reference should be made to measures of a social nature and to working conditions which meet appropriate health and safety standards; such measures are intended to help reconcile work and private life, to promote equality of opportunity, as well as to protect the health and safety of the individual.

(10) There is a clear need to strengthen the principle of career development based on merit, establishing a closer link between performance and remuneration by providing greater incentives for good performance through structural changes to the careers system, whilst ensuring equivalence of average career profiles between the new and the old structures, in keeping with the establishment plan and budgetary discipline.

(11) Modernising the careers system calls for greater recognition of officials' professional experience and of the principle of life-long learning. Accordingly it is desirable to replace the existing staff categories and to regrade staff in the new administrators' (AD) and assistants' (AST) function groups, and also to facilitate progress from a lower to a higher group by means of a new certification mechanism.

(12) The need has arisen to devise a system of ensuring the equivalence of average career profiles which, when viewed as a whole, will offset fairly and reasonably, first, the increase in the total number of grades and, second, the reduction in the number of steps in each grade.

(13) In order to preserve the multilingual character of the institutions, greater emphasis should, for the purposes of recruitment and promotion, be laid on linguistic proficiency and the ability to work in a third Community language.

(14) Impartiality is a fundamental principle of public service which is recognised by the Charter of Fundamental Rights of the European Union(5). It is therefore vital to clarify the obligations of officials in situations where there is an actual or potential conflict of interest, both before and after leaving the service.

(15) An improved legal framework should be set up to address issues of psychological and sexual harassment, and to that end clear and appropriate definitions should be formulated.

(16) Since the right of freedom of expression is enshrined in the Charter of Fundamental Rights, it is appropriate to provide for this basic right of officials, and to set reasonable limits to its exercise. At the same time, clear rules are required to govern the publication of matters connected with the work of the Community, wherever its legitimate interests may be at risk.

(17) A new legal framework and guarantees should be provided for the legal protection of officials who report possible illegal activity or conduct which constitutes a serious failure to comply with the obligations of Community officials within the service to certain clearly defined persons or bodies.

(18) It is appropriate to rationalise more consistently the way in which disciplinary proceedings are opened and conducted. There should also be greater stability in the membership of Disciplinary Boards and the rules regarding the suspension of officials should be amended.

(19) Procedures for monitoring absence and for the submission of medical certificates should be clarified.

(20) It is necessary to introduce a new legal framework to provide a comprehensive procedure for dealing with cases of professional incompetence which safeguards the right of defence of the officials concerned. Cases of officials who are unable to attain the expected standard of performance within a reasonable time should be dealt with within this new legal framework.

(21) Provision should be made for the introduction of flexible working arrangements covering in particular, and subject to certain conditions, the right to work part time, to take advantage of job sharing arrangements and to obtain extended leave on personal grounds. Similarly, it is appropriate to introduce provisions on family-related leave and, more particularly, the right to more flexible maternity leave, paternity leave, adoption and parental leave as well as leave in case of serious illness of a family member.

(22) In the interest of guaranteeing that the purchasing power of Community officials develops in parallel with that of national civil servants in central government of the Member States, it is essential to preserve the principle of a multi-annual adjustment mechanism for pay, known as "the Method", by extending its application until 31 December 2012 with a review after four years for consistency with budgetary discipline.

(23) The advantages for officials of a multi-annual pay adjustment system should be balanced by the introduction of a special levy to reflect the costs of social policy, improved working conditions and the European Schools. Such special levy should increase by annual steps and apply to all officials for the same period as the system itself.

(24) As the costs of the correction coefficients applied to transfers of parts of salary to other Member States have become disproportionate, transfers with correction coefficients should be limited to a lesser proportion of salary and to cases where the transfer is necessary to allow the official to meet expenses resulting from legal obligations to family members in other Member States.

(25) The criterion for former officials to continue to be covered by the Joint Sickness Insurance Scheme has proved uncertain in its application and should therefore be simplified.

(26) The various allowances should be rationalised, through an overhaul of some allowances and the discontinuation of others, in order to make the administrative rules simpler and more transparent. The reimbursement of travel and mission expenses should thus be brought more closely into line with the real cost, and the administration should be simplified. The education allowance should likewise be aligned more closely, in future, on actual expenditure.

(27) The system of family allowances needs to be reformed so as to bring about improvements for families and in particular so as to address the problems of parents with young children.

(28) Since pensions are expressed as a proportion of a final salary, it is appropriate to ensure that in future pay and pensions are adapted in parallel while safeguarding the actuarial basis of the scheme and maintaining the respective shares of contributions borne by the official and the employer and the principle that pensions are a charge on the Community budget. That objective requires the creation of a mechanism for ensuring the short and long-term actuarial balance of the scheme.

(29) Demographic changes and the changing age structure of the population concerned are imposing ever-increasing burdens upon the Community pension scheme and require that the pension age be increased and the annual rate of accrual of pension rights be reduced, subject however to transitional measures for officials already in service.

(30) Deepened integration of the European Union and the free choice of pensioners of their place of residence within the European Union has made the system of correction coefficients for pensions obsolete. This system has also created monitoring problems as regards the place of residence of pensioners which should be overcome. This system should therefore be abolished with an appropriate transition for pensioners and officials recruited before the entry into force of this Regulation.

(31) The conditions underlying the current provisions on invalidity pensions and survivor's pensions have changed since they were first adopted and should therefore be updated and simplified.

(32) The rules of severance grant should be amended to take into account Community rules on portability of pension rights. This should be achieved by correcting a number of inconsistencies and introducing greater flexibility.

(33) The rules on the flexible retirement arrangements should take the interests of both officials and the institutions into account and consider the budgetary consequences. The measures involved should depend on the request of the official and be accompanied by appropriate financial conditions; the use of this facility should be reported to the budgetary authority. This provision should be intended to facilitate personnel management in particular in the smaller institutions. A realistic choice in favour of early retirement before reaching pensionable age is dependant on health insurance and family allowances being maintained. However, those measures should be balanced by raising the minimum age to 55 and introducing the option of working beyond the current retirement age.

(34) The conditions of employment covering overall level of pay and pensions for officials and other servants, remain at a level which attracts and retains the best applicants from all the Member States in an independent and permanent European civil service.

(35) The provisions applicable to officials in the scientific and technical services and to officials serving in third countries should be adapted, clarified and brought into line with the general provisions.

(36) A new category of non-permanent staff needs to be established, namely that of contract staff. Such staff, whose responsibilities are of a more limited nature, will generally be required to work under the supervision of officials or temporary staff. They will be employed inter alia with a view to eventually replacing auxiliaries and Category D officials in the institutions, Commission Offices and Representations, Delegations and Agencies and also in executive agencies and other bodies created by a specific legal act. The rights and obligations of such contract staff should be defined by analogy with those of temporary servants, particularly as regards social security, allowances and working conditions.

(37) Provision should be made for transitional arrangements to enable the new rules and measures to be applied gradually, whilst respecting the acquired rights of the staff in the framework of the Community system before the entering into force of these amendments to the Staff Regulations and taking account of their legitimate expectations.

(38) The measures, in particular career modernisation measures and financial measures, have been accepted as a whole by the organisations representing staff consulted within the framework of the Consultation Committee established by the Council Decision of 23 June 1981.

(39) The Staff Regulations of officials of the European Communities and the Conditions of Employment of other servants of the European Communities, laid down in Regulation (EEC, Euratom, ECSC) No 259/68(6), as last amended by Regulation (EC, Euratom) No 2182/2003(7), should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

The Staff Regulations of officials of the European Communities and the Conditions of Employment of other servants of the European Communities are hereby amended as set out in Annex I, as regards the Staff Regulations of officials, and in Annex II, as regards the Conditions of Employment of other servants.

Article 2

This Regulation shall enter into force on 1 May 2004.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 22 March 2004.

For the Council

The President

B. Cowen

(1) OJ C 291 E, 26.11.2002, p. 33.

(2) OJ C 62 E, 11.3.2004, p. 160.

(3) Opinion of 18.2.2004 (not yet published in the Official Journal).

(4) OJ C 75, 24.3.2004, p. 1.

(5) OJ C 364, 18.12.2000, p. 1.

(6) OJ L 56, 4.3.1968, p. 1.

(7) OJ L 327, 16.12.2003, p. 3.

ANNEX I

AMENDMENTS TO THE STAFF REGULATIONS OF OFFICIALS OF THE EUROPEAN COMMUNITIES

The Staff Regulations of officials of the European Communities are amended as follows:

1) Articles 1 and 1a are replaced by the following:

"Article 1

These Staff Regulations shall apply to officials of the Communities."

"Article 1a

2) the following Articles are inserted:

"Article 1b

Save as otherwise provided in these Staff Regulations,

(a) the European Economic and Social Committee,

(b) the Committee of the Regions,

(c) the European Ombudsman, and

(d) the European Data Protection Supervisor

shall, for the purposes of these Staff Regulations, be treated as institutions of the Communities."

"Article 1c

Any reference in these Staff Regulations to a person of the male sex shall be deemed also to constitute a reference to a person of the female sex, and vice-versa, unless the context clearly indicates otherwise.";

3) the former Article 1a becomes Article 1d and is amended as follows:

(a) paragraph 1 is replaced by the following:

"1. In the application of these Staff Regulations, any discrimination based on any ground such as sex, race, colour, ethnic or social origin, genetic features, language, religion or belief, political or any other opinion, membership of a national minority, property, birth, disability, age, or sexual orientation shall be prohibited.

For the purposes of these Staff Regulations, non-marital partnerships shall be treated as marriage provided that all the conditions listed in Article 1(2)(c) of Annex VII are fulfilled.";

(b) in paragraph 2 the following phrase is inserted after "women in working life":

", which shall be an essential element to be considered in the implementation of all aspects of these Staff Regulations,";

(c) the following paragraphs are added:

"4. For the purposes of paragraph 1, a person has a disability if he has a physical or mental impairment that is, or is likely to be, permanent. The impairment shall be determined according to the procedure set out in Article 33.

A person with a disability meets the conditions laid down in Article 28(e) if he can perform the essential functions of the job when reasonable accommodation is made.

'Reasonable accommodation', in relation to the essential functions of the job, shall mean appropriate measures, where needed, to enable a person with a disability to have access to, participate in, or advance in employment, or to undergo training, unless such measures would impose a disproportionate burden on the employer.

4) the following Article is inserted:

"Article 1e

5) Article 2 is amended as follows:

(a) the existing first paragraph is numbered and becomes paragraph 1;

(b) the second and third paragraphs are deleted;

(c) the following paragraph is added:

"2. However, one or more institutions may entrust to any one of them or to an inter-institutional body the exercise of some or all of the powers conferred on the Appointing Authority other than decisions relating to appointments, promotions or transfers of officials.";

6) in Article 4 the third paragraph shall be replaced by the following:"If the vacancy cannot be filled by transfer, appointment to a post in accordance with Article 45a or promotion, it shall be notified to the staff of the other institutions, and/or an internal competition shall be organised.";

7) Articles 5, 6 and 7 are replaced by the following:

"Article 5

(a) in function group AST:

(i) a level of post-secondary education attested by a diploma, or

(ii) a level of secondary education attested by a diploma giving access to post-secondary education, and appropriate professional experience of at least three years, or

(iii) where justified in the interests of the service, professional training or professional experience of an equivalent level.

(b) in function group AD for grades 5 and 6:

(i) a level of education which corresponds to completed university studies of at least three years attested by a diploma, or

(ii) where justified in the interest of the service, professional training of an equivalent level.

(c) in function group AD for grades 7 to 16:

(i) a level of education which corresponds to completed university studies attested by a diploma when the normal period of university education is four years or more, or

(ii) a level of education which corresponds to completed university studies attested by a diploma and appropriate professional experience of at least one year when the normal period of university education is at least three years, or

(iii) where justified in the interests of the service, professional training of an equivalent level.

Article 6

The Council shall decide in accordance with Article 283 of the EC Treaty.

"Article 7

An official may apply for a transfer within his institution.

The duration of a temporary posting shall not exceed one year, except where, directly or indirectly, the posting is to replace an official who is seconded to another post in the interests of the service, called up for military service or absent on protracted sick leave.";

8) Article 9 is amended as follows:

(a) in paragraph 1, point (a), the following indent is inserted after the third indent:

"- one or more Joint Advisory Committees on professional incompetence, as appropriate for the number of officials at the places of employment;";

(b) in paragraph 2, the second subparagraph is replaced by the following:"The staff of the institution shall be notified of the list of members of these bodies.";

(c) paragraph 5 is replaced by the following:

"5. The opinion of the Reports Committee shall be sought:

(a) on action following completion of probationary service; and

(b) on the selection of staff to be affected by any reduction in the establishment.

It may be instructed by the Appointing Authority to ensure that the periodic reports on staff members are made in a uniform manner within the institution.";

(d) the following paragraph is added:

"6. The opinion of the Joint Advisory Committee on professional incompetence shall be sought for the application of Article 51.";

9) Article 10 is replaced by the following:

"Article 10

A Staff Regulations Committee shall be set up consisting of representatives of the institutions of the Communities and an equal number of representatives of their Staff Committees. The procedure for appointing members of the Staff Regulations Committee shall be decided by common accord of the institutions. The agencies shall be jointly represented in accordance with rules to be fixed by agreement between them and the Commission.

The Committee shall be consulted by the Commission on all proposals to revise the Staff Regulations; it shall deliver its opinion within the time set by the Commission. In addition to the functions conferred upon the Committee by these Staff Regulations, it may put forward suggestions for revising the Staff Regulations. The Committee shall meet at the request of its Chairman, an institution or the staff committee of an institution.

Minutes of the meetings of the Committee shall be communicated to the appropriate bodies.";

10) the following Articles are added to Title I:

"Article 10b

The trade unions and staff associations referred to in Article 24b shall act in the general interest of the staff, without prejudice to the statutory powers of the staff committees.

The Commission proposals referred to in Article 10 may be the subject of consultations by representative trade unions and staff associations.

Article 10c

Each institution may conclude agreements concerning its staff with its representative trade unions and staff associations. Such agreements may not entail amendment of the Staff Regulations or any budgetary commitments, nor may they affect the working of the institution concerned. The representative trade unions and staff associations which are signatories shall operate in each institution subject to the statutory powers of the staff committee.";

11) the following sentence is added to the first paragraph of Article 11:

"He shall carry out the duties assigned to him objectively, impartially and in keeping with his duty of loyalty to the Communities.";

12) the following Article is inserted after Article 11:

"Article 11a

13) Article 12 is replaced by the following:

"Article 12

An official shall refrain from any action or behaviour which might reflect adversely upon his position.";

14) the following Articles are inserted:

"Article 12a

Article 12b

15) In Article 13, in the second sentence, the words "continue in his post, be transferred to another post or be required to resign" are replaced by "continue in his post or be transferred to another post.";

16) Article 14 is deleted;

17) Article 15 is replaced by the following:

"Article 15

(a) should be required to apply for leave on personal grounds, or

(b) should be granted annual leave, or

(c) may be authorised to discharge his duties on a part-time basis, or

(d) may continue to discharge his duties as before.

18) Article 16 is replaced by the following:

"Article 16

An official shall, after leaving the service, continue to be bound by the duty to behave with integrity and discretion as regards the acceptance of certain appointments or benefits.

Officials intending to engage in an occupational activity, whether gainful or not, within two years of leaving the service shall inform their institution thereof. If that activity is related to the work carried out by the official during the last three years of service and could lead to a conflict with the legitimate interests of the institution, the Appointing Authority may, having regard to the interests of the service, either forbid him from undertaking it or give its approval subject to any conditions it thinks fit. The institution shall, after consulting the Joint Committee, notify its decision within 30 working days of being so informed. If no such notification has been made by the end of that period, this shall be deemed to constitute implicit acceptance.";

19) Article 17 is replaced by the following:

"Article 17

20) the following Article is inserted:

"Article 17a

Where the Appointing Authority is able to demonstrate that the matter is liable seriously to prejudice the legitimate interests of the Communities, the Appointing Authority shall inform the official of its decision in writing within 30 working days of receipt of the information. If no such decision is notified within the specified period, the Appointing Authority shall be deemed to have had no objections.";

21) Article 18 is replaced by the following:

"Article 18

22) in Article 20 the following sentence is added:

"The official shall notify the Appointing Authority of his address and inform it immediately of any change of address.";

23) in Article 21 the third paragraph is deleted;

24) the following Article is inserted:

"Article 21a

25) the following Articles are inserted:

"Article 22a

Information mentioned in the first subparagraph shall be given in writing.

This paragraph shall also apply in the event of serious failure to comply with a similar obligation on the part of a Member of an institution or any other person in the service of or carrying out work for an institution.

Article 22b

(a) the official honestly and reasonably believes that the information disclosed, and any allegation contained in it, are substantially true; and

(b) the official has previously disclosed the same information to OLAF or to his own institution and has allowed OLAF or that institution the period of time set by the Office or the institution, given the complexity of the case, to take appropriate action. The official shall be duly informed of that period of time within 60 days.

26) in Article 23, the words "grade A 1 to A 4" are replaced by "grade AD 12 to AD 16";

27) Articles 24 and 24a are amended as follows:

(a) in Article 24 the third and fourth paragraphs become new Article 24a;

(b) in new Article 24a, in the new first paragraph the word "It" is replaced by "The Communities";

28) the existing Article 24a becomes Article 24b;

29) Article 25 is amended as follows:

(a) the first paragraph is replaced by the following:"Officials may submit requests concerning issues covered by these Staff Regulations to the Appointing Authority of their institution.";

(b) the third paragraph shall be replaced by the following:"Specific decisions regarding appointment, establishment, promotion, transfer, determination of administrative status and termination of service of an official shall be published in the institution to which the official belongs. The publication shall be accessible to all staff for an appropriate period of time.";

30) Article 26 is amended as follows:

(a) in the third paragraph, the following is added after the word "letter": "to the last address communicated by the official.";

(b) the fourth paragraph is replaced by the following:"An official's personal file shall contain no reference to his political, trade union, philosophical or religious activities and views, or to his racial or ethnic origin or sexual orientation.

The preceding paragraph shall not however prohibit the insertion in the file of administrative acts and documents known to the official which are necessary for the application of these Staff Regulations.";

(c) in the existing sixth paragraph the words "and to take copies of them" are inserted after "in his file";

(d) in the existing seventh paragraph, first sentence, the words "or on a secure electronic medium" are inserted after "administration";

(e) at the end of the existing seventh paragraph, the words "before the Court" are deleted;

31) the following Article is added to Title II:

"Article 26a

Officials shall have the right to acquaint themselves with their medical files, in accordance with arrangements to be laid down by the institutions.";

32) the second paragraph of Article 27 is deleted;

33) Article 29 is replaced by the following:

"Article 29

(a) whether the post can be filled by:

(i) transfer, or

(ii) appointment in accordance with Article 45a, or

(iii) promotion

within the institution;

(b) whether requests for transfer have been received from officials of the same grade in other institutions, and/or whether to hold a competition internal to the institution, which shall be open only to officials and temporary staff as defined in Article 2 of the Conditions of Employment of other servants of the European Communities;

and then follow the procedure for competitions on the basis either of qualifications or of tests, or of both qualifications and tests. Annex III lays down the competition procedure.

The procedure may likewise be followed for the purpose of constituting a reserve for future recruitment.

These competitions will be open only to members of the temporary staff of that institution engaged in accordance with Article 2(c) of the Conditions of Employment of other Servants of the European Communities. The institutions shall require as minimum qualifications for these competitions at least ten years of service as a temporary servant and having been recruited as a temporary servant on the basis of a selection procedure which ensured the application of the same standards as for the selection of officials in conformity with Article 12(4) of the Conditions of Employment of other servants. By derogation from paragraph (1)(a) of this Article, the Appointing Authority of the institution that engaged the temporary servant shall, before filling a vacant post in that institution, consider transfers of officials within the institution in parallel with successful candidates from these internal competitions.

34) Article 31 is replaced by the following:

"Article 31

(a) the objective of recruiting officials of the highest standard as defined in Article 27;

(b) the quality of the professional experience required.

To address specific needs of the institutions, labour market conditions prevailing in the Community may also be taken into account when recruiting officials.

35) in Article 32, the second paragraph is replaced by:"The Appointing Authority may allow additional seniority up to a maximum of 24 months to take account of his professional experience. General implementing provisions shall be adopted to give effect to this Article.";

36) the first subparagraph of Article 34(1) is replaced by the following:"Officials shall serve a nine-month probationary period before they can be established.";

37) in Article 35 the following point (f) is added:

"(f) parental leave or family leave";

38) Article 37 is amended as follows:

(a) in the first paragraph, point (a) the second indent is replaced by the following:

"- to assist temporarily a person holding an office provided for in the Treaties or the elected President of one of the institutions or organs of the Communities, or one of the political groups in the European Parliament or the Committee of the Regions, or a group in the European Economic and Social Committee.";

(b) the following paragraph is added after the final paragraph:"Any official in active employment or on leave on personal grounds may apply for, or be offered, secondment in the interests of the service. Once the official is seconded, the leave on personal grounds shall be terminated.";

39) Article 39 is amended as follows:

(a) in point (d), second subparagraph, the words "the invalidity or the survivor's pension" are replaced by "the invalidity allowance or survivor's pension";

(b) point (e) becomes point (f) and the words "category or service" are replaced by "function group";

(c) the following new point is inserted:

"(e) during the period of secondment, the official shall retain his right to advancement to a higher step;";

40) Article 40 is amended as follows:

(a) Paragraph 2 is replaced by the following:

"2. Without prejudice to the provisions of Article 15, the duration of such leave shall not exceed one year. Leave may be extended for further periods.

Extensions may be for periods not exceeding one year. The total length of leave on personal grounds may not exceed 15 years in the course of the official's entire career.

If, however, an official applies for such leave in order to be able:

(i) to bring up a child considered as a dependant of the official within the meaning of Article 2(2) of Annex VII and who suffers from a serious mental or physical handicap recognised by the medical officer of the institution and who requires constant care or supervision; or

(ii) to follow his spouse, the latter also being an official or other servant of the Communities required in the course of his duties to establish his habitual residence at such a distance from the place of employment of the applicant official that the establishment of their conjugal home in such a place would inconvenience the applicant official in the performance of his duties,

the leave may be extended without limits, provided that, at the time of each extension, the conditions which warranted the grant of the leave continue to be fulfilled.";

(b) in paragraph 3, second subparagraph, the first sentence is replaced by the following:"However, an official who is not engaged in a gainful activity may, not later than one month following that in which the leave on personal grounds begins, apply to continue to be covered in accordance with those articles, provided that he bears half the cost of the contributions required to cover the risks referred to in Articles 72(1) and 73(1) for the first year of the leave on personal grounds and the full cost during the remainder of such leave. Cover in accordance with Article 73 shall be available only if cover has been obtained in accordance with Article 72. The contributions shall be calculated by reference to the official's last basic salary.";

(c) in paragraph 4, point (d), where they occur, the words "category or service" are replaced by "function group" and the words "or placed on secondment" are inserted after "effectively reinstated";

41) Article 41(3) is amended as follows:

(a) in the second subparagraph, the words "category or service" are replaced by "function group";

(b) the sixth, seventh, eighth and ninth subparagraphs are replaced by the following subparagraphs:"No correction coefficient shall be applicable to the allowance.

However, the allowance and the total remuneration last received, as referred to in the fourth subparagraph of this Article, shall be subject to the weighting referred to in the first subparagraph of Article 3(5) of Annex XI, at the rate fixed for the Member State where the recipient proves he has his residence, provided that Member State was the recipient's last place of employment. In such cases, if the currency of the Member State is not the euro, this allowance is calculated on the basis of the exchange rates provided for in Article 63 of these Staff Regulations.";

42) a new Section and Articles are inserted in Chapter 2 of Title III as follows:

"Section 6

Parental or family leave

Article 42a

An official shall be entitled to up to six months of parental leave without basic salary for every child, to be taken during the first twelve years after the birth or adoption of the child. The duration of the leave may be doubled for single parents recognised under general implementing provisions adopted by the institutions. The minimum leave taken at any one time shall not be less than one month.

During parental leave, the official's membership of the social security scheme shall continue; the acquisition of pension rights, dependent child allowance and education allowance shall be maintained. The official shall retain his post, and continue to be entitled to advancement to a higher step or promotion in grade. The leave may be taken as full-time or half-time leave. Where parental leave is taken in the form of half-time leave, the maximum period provided for in the first paragraph shall be doubled. During parental leave, the official shall be entitled to an allowance of EUR 798,77 per month or 50 % of such sum if on half-time leave but may not engage in any other gainful employment. The full contribution to the social security scheme provided for in Articles 72 and 73 shall be borne by the institution and calculated on the basis of the basic salary of the official. However, in the case of half-time leave this provision shall apply only to the difference between the full basic salary and the proportionally reduced basic salary. For the part of the basic salary actually received, the official's contribution shall be calculated by using the same percentages as if he were in full-time employment.

The allowance shall be EUR 1065,02 per month, or 50 % of such sum if the official is on half-time leave, for the single parents referred to in the first paragraph and during the first three months of parental leave where such leave is taken by the father during maternity leave or by either parent immediately after maternity leave or during or immediately after adoption leave. The amounts mentioned in this Article shall be adapted in line with remuneration.

Article 42b

In the case of medically certified serious illness or disability of an official's spouse, relative in the ascending line, relative in the descending line, brother or sister, the official shall be entitled to a period of family leave without basic salary. The total period of such leave shall not exceed nine months over the official's entire career.

The second paragraph of Article 42a shall apply.";

43) Article 43 is replaced by the following:

"Article 43

The ability, efficiency and conduct in the service of each official shall be the subject of a periodical report made at least once every two years as provided for by each institution in accordance with Article 110. Each institution shall lay down provisions conferring the right to lodge an appeal within the reporting procedure, which has to be exercised before lodging a complaint as referred to in Article 90(2).

As of grade 4, for officials in function group AST, the report may also contain an opinion as to whether, on the basis of performance, he has the potential to carry out an administrator's function.

The report shall be communicated to the official. He shall be entitled to make any comments thereon which he considers relevant.";

44) in Article 44 the following paragraph is added:"If an official is appointed head of unit, director or director-general in the same grade, and provided that he has performed his new duties satisfactorily during the first nine months, he shall retroactively benefit from advancement by one step in that grade at the time the appointment comes into effect. This advancement shall lead to an increase in his basic monthly salary corresponding to the percentage between the first and the second step in each grade. If the increase is less or if the official at that time is already in the last step of his grade, he shall receive an increase in basic salary ensuring the increase between the first and second step until his next promotion comes into effect.";

45) Articles 45 and 46 are replaced by the following:

"Article 45

Article 45a

(a) he has been selected in accordance with the procedure laid down in paragraph 2 of this Article to take part in a compulsory training programme as set out in point (b) of this paragraph,

(b) he has completed a training programme defined by the Appointing Authority comprising a set of compulsory training modules, and

(c) he is on the list drawn up by the Appointing Authority of candidates who have passed an oral and written examination demonstrating that he has successfully taken part in the training programme mentioned under point (b) of this paragraph. The contents of this examination shall be determined in accordance with Article 7(2)(c) of Annex III.

This committee may hear officials who have applied to take part in the aforesaid training programme, and representatives of the Appointing Authority. It shall, by a majority vote, deliver a reasoned opinion on the draft list proposed by the Appointing Authority. The Appointing Authority shall adopt the list of officials who are entitled to take part in the aforesaid training programme.

Article 46

An official appointed to a higher grade in accordance with Article 45 shall be placed in the initial step in that grade. However, officials in grades AD 9 to AD 13 carrying out the duties of head of unit who are appointed to a higher grade in accordance with Article 45 shall be placed in the second step of the new grade. The same arrangement shall apply to any official:

(a) who upon promotion is appointed director or director-general, or

(b) who is director or director-general and to whom the last sentence of the second paragraph of Article 44 applies.";

46) in Article 48, the third paragraph is replaced by the following:"Resignation shall take effect on the date specified by the Appointing Authority; that date shall not be more than three months after the date proposed by the official in his letter of resignation in the case of officials in function group AD, and not more than one month in the case of officials in function group AST.";

47) in the first paragraph of Article 49, the expression "13," is deleted.

48) Article 50 is amended as follows:

(a) in the first paragraph the words "An official holding a post in grades A 1 or A 2" are replaced by "A senior official as defined in Article 29(2)";

(b) in the third paragraph, the words "in his category or service" are deleted;

(c) the fifth paragraph is replaced by the following paragraphs:"The person concerned shall be required to provide on request written proof and to notify his or her institution of any factor that may affect entitlement to the benefit.

The allowance shall not be subject to a correction coefficient.

Article 45 , third, fourth and fifth paragraphs, of Annex VIII shall apply by analogy.";

49) The title of Section 4, "Dismissal for incompetence", is replaced by "Procedures for dealing with incompetence";

50) Article 51 is replaced by the following:

"Article 51

The Appointing Authority shall take a decision within two months of receipt of the Joint Advisory Committee's opinion, after hearing the official. The decision shall be substantiated. It shall indicate the date on which it takes effect.

The allowance shall not be paid if the official resigns after the start of the procedure referred to in paragraphs 1, 2 and 3 or if he is entitled to the immediate payment of a full pension. If he is entitled to unemployment benefit under a national unemployment scheme, the amount of that benefit shall be deducted from the above allowance.

(a) three months where the official has completed less than five years' service at the date on which the dismissal decision is taken;

(b) six months where the official has completed at least five years' service but less than ten;

(c) nine months where the official has completed at least 10 years' service but less than 20;

(d) 12 months where the official has completed over 20 years' service.

51) Article 52 is replaced by the following:

"Article 52

Without prejudice to the provisions of Article 50, an official shall be retired:

(a) either automatically on the last day of the month in which he reaches the age of 65, or

(b) at his own request on the last day of the month in respect of which the request was submitted where he is at least 63 years of age or where he is between 55 and 63 years of age and satisfies the requirements for immediate payment of a pension in accordance with Article 9 of Annex VIII. The second sentence of the second paragraph of Article 48 shall apply by analogy.

However, on an exceptional basis, an official may at his own request and only in the case where the Appointing Authority considers it justified in the interest of the service, carry on working until the age of 67 in which case he shall be retired automatically on the last day of the month in which he reaches that age";

52) In Article 54, the words "career bracket or the next higher bracket" are replaced by "grade or the next higher grade";

53) Article 55a is replaced by the following:

"Article 55a

The Appointing Authority may grant such authorisation if this is compatible with the interests of the service.

(a) to care for a child under 9 years of age,

(b) to care for a child aged between 9 and 12, if the reduction in working time is no more than 20 % of normal working time,

(c) to care for a seriously ill or disabled spouse, relative in the ascending line, relative in the descending line, brother or sister,

(d) to take part in further training, or

(e) as of the age of 55 during the last five years before retirement.

Where part-time is requested in order to take part in further training, or as of the age of 55, the Appointing Authority may refuse authorisation or postpone its date of effect only in exceptional circumstances and for overriding service-related reasons.

Where such entitlement to authorisation is exercised to care for a seriously ill or disabled spouse, relative in the ascending line, relative in the descending line, brother or sister, or to take part in further training, the total of all such periods shall not exceed five years over the official's career.

54) the following Article is inserted:

"Article 55b

An official may request authorisation to work half-time in the form of job-sharing in a post identified by the Appointing Authority as appropriate for that purpose. The authorisation to work half-time by job-sharing shall not be limited in time. It may, however, be withdrawn by the Appointing Authority in the interests of the service giving the official six months' notice. Likewise, the Appointing Authority may, on application of the official concerned and giving at least six months' notice, withdraw the authorisation. In this case, the official may be transferred to a different post.

Article 59a and, except for the third sentence of paragraph 2, Article 3 of Annex IVa shall apply.

The Appointing Authority may lay down detailed rules for the application of this Article.";

55) Article 56 is amended as follows:

(a) in the second paragraph, "Categories A and B and in the Language Service" is replaced by "function group AD, and in function group AST 5 to 11.";

(b) in the third paragraph, "Categories C and D" is replaced by "grade AST 1 to AST 4";

56) the following Article is inserted:

"Article 56c

Special allowances may be granted to certain officials to compensate for particularly arduous working conditions.

The Council shall, on a proposal from the Commission presented after consulting the Staff Regulations Committee, determine the categories of beneficiaries, and the rates and conditions of such special allowances.";

57) Article 58 is replaced by the following:

"Article 58

Pregnant women shall, in addition to the leave provided for in Article 57, be entitled on production of a medical certificate to twenty weeks of leave. The leave shall start not earlier than six weeks before the expected date of confinement shown in the certificate and end not earlier than 14 weeks after the date of confinement. In the case of multiple or premature birth or the birth of a handicapped child, the duration shall be of 24 weeks. Premature birth for the purposes of this provision is a birth taking place before the end of the 34th week of pregnancy.";

58) Article 59 is replaced by the following: