Authors

Sean Nesbitt

Partner

London

Marc André Gimmy

Partner

Munich

Ryan Lysycia

Trainee Solicitor

London

Authors

Sean Nesbitt

Partner

London

Marc André Gimmy

Partner

Munich

Ryan Lysycia

Trainee Solicitor

London

17 October 2024

Work/Life – 9 of 114 Insights

Work/Life - international employment news update

Briefing

Issue 106

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

In this edition we look at:

Our strategic alliance with leading Spanish law firm ECIJA means clients looking to do business in Spain, Portugal and Latin America are supported by one of the best multidisciplinary law firms in the legal sector with a well-established reputation for innovation and success. Furthermore, this alliance enriches our newsletter as ECIJA regularly contributes insightful content, broadening our insight on legal matters.

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UK government announces major revisions to workers' rights

The UK Government published its Employment Rights Bill on 10 October 2024, incorporating several commitments from Labour’s Make Work Pay manifesto. Key provisions include:

abolishing the two-year qualifying period for unfair dismissal claims and introducing statutory probationary periods, although these changes won't take effect before autumn 2026.
the right to request flexible working will be strengthened, requiring employers to justify refusals. Statutory Sick Pay (SSP) will be available from the first day of illness, with eligibility extended to all employees regardless of earnings.
family-friendly rights will also be enhanced, making paternity leave and unpaid parental leave immediate entitlements.
zero hours contract workers will gain rights to guaranteed hours and compensation for cancelled shifts.
protections against third-party sexual harassment will be expanded, and trade union access to workplaces will be improved.

Overall, the Bill appears less substantive than initially expected and has some longer timelines. We'll continue to update you on its progress.

Spanish truckers plan strikes to demand earlier retirement

Spanish truckers plan to stage a series of strikes demanding earlier retirement. Representatives from the country’s two main unions, CCOO and UGT, announced that truck drivers will walk out on 28 October, 11 November, 28 November, 29 November, 5 December, and 9 December. An indefinite strike is set to begin on 23 December if their demands are not met.

The unions are advocating for improved working conditions for drivers, including lowering the retirement age from the current 67 and securing the right to partial retirement. They argue that these changes should align with those granted to other workers facing similar risks. Diego Buenestado, UGT’s Secretary for Road and Urban Transportation, explained: "Age is a determining factor in motor skills, sensory and cognitive loss and constitutes a risk not only for the worker but also for others".

Nearly half of recruiters in the UK believe 57 is too old for employment

Research reveals that nearly half of UK recruiters consider applicants aged 57 to be too old for consideration. The study, which surveyed 750 HR departments and 4,000 workers, underscores entrenched ageism in the recruitment process. It found that two in five recruiters had been pressured by their managers to hire younger candidates, while nearly two-thirds of HR professionals admitted making assumptions about candidates based on their age.

Natalie Matalon, Chief People Officer at Totaljobs, stated: “Unconscious biases are still preventing many businesses from fully accessing this vital talent pool.” The findings also indicated that one in five candidates over 50 omits their age from CVs to avoid stereotypes. Furthermore, the study highlighted that younger candidates face age-related discrimination: one in seven individuals aged 18 to 35 reported being rejected for a role due to their youth, with two in five avoiding listing their age on CVs for fear of being perceived as too young.

Dutch worked more last year; equivalent to 17,000 additional jobs

Last year saw an increase in working hours among individuals in the Netherlands. According to Statistics Netherlands (CBS), those who worked more hours slightly outnumbered those who reduced theirs, resulting in an equivalent of 17,000 additional full-time jobs. The largest contribution came from unemployed individuals who commenced employment. The Dutch labour market remains tight due to an ageing population, prompting employers to focus on encouraging part-time workers to extend their hours. CBS found that among 528,000 part-timers wanting more hours, nearly half were students with flexible side jobs - 54% as on-call workers and 27% with fixed-hour contracts. For non-student underemployed part-timers, 14% were on-call workers and 59% had fixed-hour contracts.

Reduced need for Dutch language proficiency in job market

According to Indeed, the largest job site in the Netherlands, proficiency in Dutch is often unnecessary for many positions. The platform found that 8% of vacancies do not require applicants to speak or understand Dutch. This trend is notably prevalent in sectors such as cleaning, hospitality, and logistics. To a lesser extent, it also applies to transport and beauty and wellness industries. However, roles in personnel departments, IT helpdesks, and daycare centres still mostly require Dutch proficiency. "The Dutch labour market is particularly internationally oriented," said Stan Snijders, Director at Indeed Benelux. "In sectors like cleaning and logistics, employers are increasingly willing to hire non-Dutch speakers due to significant labour shortages."

Home Depot requires eight-hour retail shifts for corporate staff in the US

Home Depot's Chief Executive Ted Decker has notified the company's corporate employees that they must work an eight-hour shift at one of its stores every quarter. "We need to stay connected to the core of our business so we can truly understand the challenges and opportunities our store associates face every day," he wrote in a memo. A company spokesperson mentioned that it has been longstanding practice for corporate staff to spend time in stores, with this new programme being the latest initiative. It is understood that working in the store environment allows corporate employees to gain first hand experience and insights into daily operations, which is crucial for making informed decisions that affect store-level activities. Additionally, requiring these shifts reinforces Home Depot’s culture of teamwork and mutual respect across different tiers of the organisation. It demonstrates that every role is valued and integral to the company's success.

German target agreements and objectives: contractual compliance in setting targets

The establishment of targets within the framework of target agreements and objectives is a frequent issue in labor law practice. Employers who tie variable compensation models to the achievement of specific goals must ensure they implement the relevant contractual provisions correctly. In a recent decision (case reference: 10 AZR 171/23), the German Federal Labour Court ruled that an employer was liable for damages due to its failure to meet its contractual duty to negotiate a target agreement properly.

Spanish Ministry of Labour allocates EUR 7.9 million for CSR initiatives

In Spain, the announcement of subsidies for the promotion of corporate social responsibilities has launched, amounting to a total of EUR 7,943,380. The aim of this aid is to promote socially responsible enterprises and those with the capacity to generate quality employment and social justice. These subsidies will benefit a wide range of organisations, from cooperatives and worker-owned companies to insertion enterprises and special employment centers. The money will be used to reinforce training and promotion of corporate social responsibility, as well as to cover the operating costs of national associations.

TGI Fridays agrees to settle owed wages after redundancy dispute

TGI Fridays has committed to paying workers their wages owed following mass redundancies. Over 1,000 staff members lost their jobs when 35 branches of the restaurant chain closed due to a failed private equity rescue. Affected workers were informed that the company lacked funds to cover accrued holiday pay, final wages, tips, or redundancy payments. TGI Fridays has now agreed to settle these payments.

In this series