16 January 2025
Work/Life – 1 of 111 Insights
Welcome to the latest edition of our international employment news update.
In this edition we look at:
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McDonald's UK faces something of a crisis as over 700 current and former employees, many under 20, join a group legal action alleging widespread harassment and discrimination. The lawsuit, led by Leigh Day, implicates more than 450 restaurants across the country. Despite previous pledges to address issues, workers report ongoing sexual abuse and harassment. The Equality and Human Rights Commission (EHRC) has received 300 harassment reports and is intensifying its scrutiny of the fast-food giant. Alistair Macrow, McDonald's UK CEO, described the allegations as "abhorrent" and said that 29 employees have been dismissed over sexual harassment claims in the past year. As the controversy unfolds, McDonald's faces pressure to demonstrate meaningful change in its workplace culture and protection of its young workforce. The company gave evidence to a Parliamentary Committee on 7 January 2025.
MPs have urged the London Stock Exchange to implement checks on firms seeking to list, following Shein's refusal to answer 'basic questions' about its supply chain. Liam Byrne, chair of the Business and Trade Committee, expressed concern over the lack of responses from Shein's lawyer regarding the use of cotton from China's Xinjiang region, where forced labour allegations persist. The fast-fashion retailer, valued at GBP50 billion, has filed initial paperwork for a UK listing but faces scrutiny over its supply chain practices. During a committee hearing, Shein's representative repeatedly declined to address questions about product sourcing and potential UK listing plans, prompting accusations of "wilful ignorance" from MPs. The controversy highlights ongoing concerns about labour practices and transparency in the fast-fashion industry, particularly regarding companies with ties to regions associated with human rights abuses.
Volkswagen's management is set to implement significant pay cuts totalling over EUR300 million by 2030. The pay cuts will affect Volkswagen's board members more substantially compared to other executives and the general workforce.
This decision signals critical shifts for employers and HR professionals:
For more detailed insights into German employment law changes in 2025, you can register for the our webinar on 22 January 2025.
Approximately 700 drivers from UK private hire taxi firm Addison Lee could receive substantial backdated compensation for holiday pay and loss of earnings, following an Employment Tribunal ruling. The tribunal classified the drivers as workers, rejecting Addison Lee's assertion that they were self-employed independent contractors.
The case has a history dating back to 2017 when three drivers were initially classified as workers. Despite attempts to appeal, the decision was upheld, mirroring a similar 2021 Supreme Court ruling regarding Uber drivers and most other driver status cases eg Bolt (more information here). The ruling also allows claims to be backdated more than two years, potentially resulting in significant compensation for the affected drivers.
Some 21,000 self-employed individuals closed their businesses in December 2024, representing a significant 54% increase compared to the same period last year, as reported by the Dutch Chamber of Commerce (KVK). The KVK attributes this spike to the new law against false self-employment, which came into effect on 1 January 2025. Under this legislation, employers who engage self-employed individuals for work that should be performed by permanent employees may now face a supplementary assessment on their social security contributions. Although the Tax Authority has not yet begun fining violators of the new law, the prospect of supplementary assessments is already causing uncertainty in the labour market.
On 2 January 2025, Organic Law 1/2025 was published in the Official State Gazette (BOE), introducing important reforms in the procedural-labour field. The purpose of this reform is to improve the efficiency of the judicial system and will enter into force on 3 April 2025. The following novelties are highlighted:
Reforms in the Administration of Justice: one-person courts are eliminated, and magistrates' courts are transformed into judicial offices. Pre-trial mediation and conciliation are promoted.
The Women on Boards Directive (dated 23 November 2022) aims for a more balanced gender representation among the boards of listed companies across all EU Member States, notably with a target of 40% of the underrepresented gender among non-executive directors and 33% among all directors.
The directive was made French law by an ordinance dated 15 October 2024. It reiterates existing provisions of French law in favour of gender equity in the boards of directors and supervisory boards. French law already requires at least 40% of board members of each gender in listed companies or companies with net revenue or a total balance sheet of at least EUR50 million and an average workforce of at least 250. The ordinance strengthens the current rules as they now also concern employee representative directors and commercial companies in which the French State holds a stake.
In a last-minute move, Slovakia like France, has adopted a new law implementing the European Union Directive 2022/2381. Key measures introduced by the law include, among others, requiring listed companies to maintain transparency in the selection of candidates for director positions, ensuring that vacancy notices for such roles are formulated in a neutral and inclusive manner, or setting clear qualification requirements. This marks a significant change for Slovakia, which previously had no national legislation addressing gender representation in leadership positions.
On 25 December 2024, the provisions of Chapter 4 of the Act on the Protection of Whistleblowers, dated 14 June 2024, regarding external reporting will come into effect. The new law allows whistleblowers to report violations of law to the ombudsman or a public authority in addition to internal reporting and public disclosure. This new option provides greater flexibility for whistleblowers, especially when they fear retaliation within their own organisation.
As we enter 2025, the landscape of remote and hybrid work continues to evolve, with conflicting trends emerging across different sectors and regions. While some major corporations are pushing for a return to full-time office presence, others are embracing more flexible arrangements, reflecting a complex and nuanced approach to work in the post-pandemic era.
Many large companies are implementing stricter office attendance policies:
However, these policies often clash with employee preferences:
The transition to hybrid work models presents several challenges with companies experimenting with new office perks, such as on-site childcare and meal preparation, to entice workers back. Employers must also consider reasonable adjustments for employees with disabilities when mandating office attendance.
Join our upcoming webinar, 'Remote Work Around the World #1', taking place on 21 January 2025 which will explore the critical strategies for successfully managing location-independent work. This is an essential opportunity for HR professionals, managers, and employees seeking to enhance their understanding of remote work dynamics in 2025.
16 January 2025
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Issue 39
24 September 2021
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1 July 2021
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17 June 2021
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3 June 2021
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20 May 2021
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22 April 2021
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8 April 2021
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25 March 2021
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10 March 2021
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24 February 2021
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11 February 2021
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27 January 2021
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14 January 2021
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17 December 2020
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3 December 2020
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19 November 2020
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4 November 2020
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23 October 2020
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8 October 2020
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24 September 2020
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10 September 2020
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6 August 2020
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16 July 2020
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25 June 2020
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11 June 2020
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30 April 2020
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25 March 2020
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27 January 2020
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13 February 2020
Issue 1
27 February 2020
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by Shireen Shaikh and Ryan Lysycia