Authors

Sean Nesbitt

Partner

London

Marc André Gimmy

Partner

Munich

Emma Sims

Trainee Solicitor

London

Authors

Sean Nesbitt

Partner

London

Marc André Gimmy

Partner

Munich

Emma Sims

Trainee Solicitor

London

30 November 2023

Work/Life – 9 of 96 Insights

Work/Life: international employment news update

Quick read

Issue 88

Welcome to the latest edition of our international employment news update.

(you may require a subscription to view some of these articles).

Q&A on the German “Future Financing Act”

On Friday, 17 November 2023, the German Bundestag passed the so-called Future Financing Act (Zukunftsfinanzierungsgesetz,"ZuFinG"). The law significantly strengthens the opportunities for employee equity participation and simplifies access to capital markets.

What is going to change, what might remain - our VC, employment law and tax experts provide initial answers to the most pressing questions within their new insight article.

UK minimum wage will increase by over £1 from April 2024

Minimum wage, known formally as the National Living Wage, will increase from £10.42 an hour for those aged 23 and over to £11.44 an hour – with the threshold for eligibility dropping to those aged 21 and over (whose current minimum wage is £10.18 an hour).

The wage boost equates to £1,800 a year for those aged 23 and over, while 21-year-olds will see an effective £2,300 annual pay increase. Those aged 18-20 will see a separate National Minimum Wage increase, from £7.49 to £8.60 an hour, while apprentices' minimum pay will increase by over 20%, jumping from £5.28 to £6.40 an hour.

Dutch parliamentary election result could curtail the labour market

The big winners in the Netherlands' parliamentary election – Geert Wilders' Party for Freedom (PVV) with 37 seats and the New Social Contract (NSC) with 20 – are causing concern among the some of the country's immigrant communities, business organisations and universities.

Both parties advocate limiting the number of asylum seekers, migrant workers and international students entering the Netherlands. The PVV in particular wants to reintroduce a work permit for all labour migrants. Multiple groups are wary of the impact this could have on the labour landscape in the Netherlands.

Dutch pension law is too inward facing, rules the ECJ

The European Court of Justice (ECJ) has declared that the Netherlands' pension law is not compliant with EU agreements regarding the free movement of workers and capital. In a ruling published by the Sixth Chamber of the ECJ in Luxembourg, Dutch pension law was deemed to insufficiently permit people to move their pensions to other countries in Europe. It marks the conclusion of a years-long lawsuit initially filed by the European Commission.

At present in the Netherlands, strict conditions must be met to allow nationally accrued pensions to be transferred to foreign pensions providers, precluding many from pensions mobility. The ECJ's ruling necessitates legislative amendments.

Deliveroo riders are not in an "employment relationship", rules UK Supreme Court

The UK Supreme Court has ruled in favour of Deliveroo in a landmark case brought by the Independent Workers Union of Great Britain (IWUGB). The union lobbied for collective bargaining rights for riders, but the Supreme Court ruled that riders did not meet the definition of workers in an employment relationship as they did not, for example, work specified hours and were free to reject jobs and undertake work with rival platforms. "[T]hese features are fundamentally inconsistent with any notion of an employment relationship," the court provided. As a consequence, riders are not entitled to union membership.

Deliveroo called the decision a "positive judgment" for riders, noting that "thousands apply each week to work with Deliveroo because they want to be able to decide for themselves when, where and whether to work."

Two thirds of people in the UK are willing to join class action lawsuits

Proclivity towards class action lawsuits is on the rise in the UK, with a recent survey finding that 64% of people would join a class action case if they believed a company had broken the law. Nor did this number significantly deplete when workers were asked about their own companies, with 63% willing to join class actions against their employers if they discovered the latter had broken the law in a way that impacted them – up 14% on the previous year.

The statistic comes amid growing public awareness of litigation funders and their ability to lower hitherto insurmountable barriers to entry. Employers should note the reputational risks of such action, which is being viewed as a viable way of holding big tech companies to account.

Cruise giant in hot water over potential fire and rehire plans

Carnival UK, which owns P&O Cruises and Curnard, has agreed not to fire and rehire staff members after notifying authorities of a potential plan to let go of and re-engage 919 fleet workers. The retraction reflects a tide of public opinion against controversial fire-and-rehire schemes, which carry increasing levels of reputational risk.

The cruise ship company had not tabled redundancies but had informed the UK Insolvency Service via an HR1 form of the potential for "dismissal and re-engagement" if staff failed to agree to changes in the terms of their contracts. After resistance from the Nautilus union, which warned staff could lose up to 20% of their pay, both parties issued a joint statement that: "Nautilus International and Carnival UK are able to confirm, following joint discussions held this afternoon, that both parties are committed to engaging in a meaningful consultation in finding a way forward following the start of consultation on proposed contractual changes for 919 maritime individuals." Carnival has withdrawn the HR1 form.

Foreign residents in Slovakia double in a decade – with sectoral implications for the labour market

Over the last ten years, the number of foreign residents in Slovakia has nearly doubled, reaching a significant figure of approximately 100,000 individuals now holding permanent or temporary residence permits. Among these foreign residents, the largest number of immigrants come from neighbouring countries Ukraine, Czech Republic, Hungary, and Poland. As far as their position on the labour market is concerned, they work predominantly as specialists in administrative, support and business activities, sales associates, teachers, and drivers. This demographic shift highlights the growing and diverse impact of foreign residents across various sectors of the Slovak economy.

Hungary to tighten rules on employment migration for non-EU citizens

The new immigration act in Hungary intends to increase immigration control, citing concerns over mass migration of unqualified workers. The legislation prioritises job opportunities for Hungarian citizens and limits the parameters of eligibility for residency, including duration of stay. The residency of guest workers may no longer become indefinite, and the government proposes to get rid of automatic extensions and family reunification visas.

Number of freelancers in Poland is up 8% from last year

There are currently 330,000 freelancers operating in Poland, which is 8% more than in 2022, a recent report has found. The study entitled “Freelancing in Poland 2023” shows that almost half of the independent professionals are aged 26-35, live in large urban hubs, and for almost 60% of the those surveyed, freelancing provides an additional source of income.

Freelancers most often choose to work from home (90% of those surveyed), and working on assignments usually takes them less than four hours a day (48.5%). According to the research, freelancing in Poland is popular among both men and women.

Chinese automotive company plans HUF 39 billion investment

Chinese automotive industry company Zhejiang Shuanghuan Driveline will set up a HUF 39 billion (approximately EUR 103m) plant for electric vehicle components in eastern Hungary, supplying Tesla, Volvo and Scania, the Minister of Foreign Affairs and Trade Peter Szijjarto announced earlier this month. The move will establish the company as a market leader in the production of gears and shafts for electric motors in Europe, Szijjarto said.