Authors

Sean Nesbitt

Partner

London

Marc André Gimmy

Partner

Munich

Celine Enos

Trainee Solicitor

London

Authors

Sean Nesbitt

Partner

London

Marc André Gimmy

Partner

Munich

Celine Enos

Trainee Solicitor

London

22 August 2024

Work/Life – 9 of 111 Insights

Work/Life: international employment news update

Quick read

Issue 103

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

In this edition of Work/Life we look at:

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European Union sues Germany, Italy for alleged discrimination against mobile workers

The European Commission has initiated legal proceedings against Germany and Italy by referring them to the European Court of Justice (ECJ) for alleged discrimination in their family allowance schemes, which affects EU mobile workers. Both nations have enacted policies resulting in reduced benefits for specific worker categories. Italian regulations stipulate a minimum two-year residency for benefit eligibility, whereas German allowances are reduced for employees whose children reside in EU countries with lower costs of living. 'One of the fundamental principles of the EU is that people are treated equally without any distinction based on nationality,' the European Commission said in a statement. 'Following this basic principle, EU mobile workers who contribute in the same way to the social security system and pay the same taxes as local workers are entitled to the same social security benefits,' it said.

UK and Spain PM discuss youth mobility scheme

UK Prime Minister Keir Starmer has engaged in talks with his Spanish counterpart Pedro Sanchez about a prospective deal allowing free movement for young people between Spain and the UK. These developments come despite Labour's initial dismissal of an EU-proposed Youth Mobility Scheme, which was intended to permit individuals aged 18 to 30 from travelling across the UK and mainland Europe for living and study purposes. But following widespread public dissatisfaction related to immigration it has been reported that the UK will not seek such a deal.

CrowdStrike hit with complaint over 'unlawful' diversity-hiring initiatives

Following CrowdStrike's involvement in the July Microsoft software update malfunction that caused widespread computer outages globally, the cybersecurity firm faces a legal complaint regarding its diversity hiring practices. The conservative US advocacy group America First Legal (AFL) asserts that CrowdStrike discriminates by favouring women and minority groups when hiring and promoting staff, allegedly prioritising gender, and ethnicity over merit. AFL has lodged formal complaints with the US Equal Employment Opportunity Commission (EEOC), targeting various corporations including CrowdStrike for their diversity initiatives. Some have suggested these policies contributed to declining service quality.

10 pitfalls when dealing with diversity and inclusion under German law

Fostering diversity and inclusion is usually seen as a strategic advantage. But companies operating in Germany must navigate a complex legal landscape. From understanding the General Equal Treatment Act (AGG) to adhering to strict data protection regulations, there are critical pitfalls that could lead to significant legal and reputational risks. In our latest insight article, we explore the top 10 challenges that employers should be aware of.

UK labour laws are ‘significantly weaker' than other major economies'

British employment laws are 'significantly weaker' than those in other major economies, according to a report by the Trades Union Congress (TUC) and the University of Cambridge. The research indicates that labour laws in the UK provide only half as much protection as those in France, and are weaker than those in Germany, Italy, and Spain. The report argues that this disparity has widened since the Conservatives assumed office in 2010. The TUC is urging Prime Minister Sir Keir Starmer to reduce working hours and facilitate strike actions. Additionally, the report calls for legislation designating Sunday as the default day of rest and guaranteeing premium pay for weekend work. The TUC's proposed measures aim to enhance workers' rights by prohibiting "fire-and-rehire" practices and increasing the minimum wage.

EU's artificial intelligence law takes effect

The European Union's pioneering artificial intelligence law has officially come into effect, marking a significant step in regulating AI technology within the bloc. The Artificial Intelligence Act aims to safeguard fundamental rights while promoting investment and innovation in the AI industry. This law covers all AI products and services offered in the EU, categorising them based on risk levels. By February 2025, high-risk AI systems (such as social scoring systems, certain predictive policing methods, and emotion recognition technologies) will be banned outright. General-purpose AI models are set to be regulated by August 2025.

To ensure compliance with these regulations, the EU is establishing an AI Office. Companies failing to comply may face fines of up to 7% of their annual global revenue. The complete regulatory framework will be fully enforced by mid-2026. 'With the AI Act,' said Margrethe Vestager, European Commission Executive Vice President, 'the EU has taken an important step to ensure that AI technology uptake respects EU rules in Europe.' For a Taylor Wessing summary click here.

Bolt promises benefits to gig workers ahead of court battle with union

Estonia-based ride-hailing company Bolt has begun offering its drivers in the UK holiday pay. Additionally, Bolt guarantees these drivers the minimum wage in preparation for a court hearing next month regarding their employment status.

Sharp increase in applications to bring non-EU workers to Netherlands

Widespread staff shortages in the Netherlands have resulted in a significant rise in work permit applications from non-EU countries. The Employee Insurance Agency (UWV) received 18,800 work permit applications during the first half of 2024, compared to 20,900 throughout all of 2023. Due to this high volume of applications, UWV has struggled to meet its five-week processing deadline. Currently, businesses across the Netherlands have nearly 450,000 unfilled vacancies. 'The economy and labour market recovered quickly after the coronavirus pandemic,' stated a UWV spokesperson. 'Employers are now looking for solutions. Bringing in people from outside the EU is one of them.'

Staff contacted out of hours could get more in compensation

The UK Government's policy of giving workers the 'right to switch off' could result in significantly higher compensation awards at employment tribunals, according to a report. A new code of practice will outline expected normal working hours and when staff should reasonably expect contact from employers. According to Acas, employers who repeatedly violate this agreement may face a 25% increase in their compensation liability if deemed an aggravating factor in a broader claim. The specific form of this right is still under discussion, like all the new UK proposals for labour law – over the Autumn period. To keep updated click here.

Survey – Employee retention and wellbeing

We invite you to participate in our short survey designed to develop a comprehensive toolbox that highlights both Europe-wide trends (eg, Workation policies across multiple jurisdictions) and country-specific differences (eg, financial benefits during parental leave). This approach aims to enhance the understanding of employee retention & wellbeing and to equip companies with the insights needed to attract and retain talent effectively.

In this series