Work/Life: international employment news update

Issue 67

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

Deadline for UK "bonfire" of EU retained law could be pushed back

UK Prime Minister Rishi Sunak pledged to remove thousands of EU-derived laws by the end of 2023 but this could be pushed back as far as 2026 following opposition from the House of Lords, trade unions and many UK government departments. This is due to fears that the scale of work involved in the decision to retain, revoke or reform retained EU law is too large to keep to the current deadline.

At present, the government has publicly denied any intention to extend the deadline.

Retirement age in France to increase from 62 to 64

In a pension system overhaul, French president Emmanuel Macron’s government has announced that the retirement age in France will increase from 62 to 64. This will take place by a three-month rise per year from September in order to reach the target age of 64 in 2030.

Trade union leaders have agreed to conduct a nationwide strike this month in opposition of the reform that could see a series of further strikes and protests take place.

PostNL reports settlement with two unions on new collective bargaining agreement

PostNL has reached a collective agreement with trade unions BVPP and CNV in the Netherlands. As a result, the more than 18,000 employees covered by the collective agreement, such as distribution centre workers and truck drivers, will receive pay increases of up to 9.5% and staff receiving a one-off payment of 1.5%.

Rise in industrial activism and planned anti-strike laws

The UK has faced months of industrial action across its private and public sectors as a result of demands for pay rises fuelled by the cost-of-living crisis. The number of working days lost to strikes in the UK has reached the highest in more than a decade.

It is likely that employers could sue unions and dismiss employees under planned anti-strike laws where minimum levels of services in sectors such as transport, health and education are not provided.

Employees in the Netherlands will have 3.7% more of their salary next year

Due to changes in tax regulations, employees in the Netherlands will retain 3.7% more of their salary next year. People on minimum wage will benefit even more with the net minimum wage set to increase by approximately 218 euros per month. This income increase is as a result of higher employment tax credit and a decrease in tax rates.

Portugal introduces change for temporary workers

The Portuguese government has approved new rules whereby the maximum number of renewals of fixed-term temporary contracts has been reduced from six to four. And approved for a rule that companies must integrate workers into their staff where four years of temporary assignments by companies of the same group have taken place.

UAE launches new job loss insurance scheme

The start of 2023 saw the UAE launch an unemployment insurance scheme and more than 60,000 employees have already subscribed to it. The scheme was introduced to provide financial aid to workers and professionals in the country's public and private sectors where there have been job losses. The scheme covers two categories of individuals – those whose basic wage is Dh16,000 or less and those whose base wage is more than Dh16,000.

US companies could be forced to remove non-compete clauses for workers

Two US companies in the glass-making and security industries have already been forced under the Biden administration to remove non-compete clauses for workers which limited where they could work if they left their jobs. This prohibition on employers was proposed by the Federal Trade Commission to reinforce worker protections and could cover 16%-18% of all US workers.

The ban would make it illegal for an employer to enter into a non-compete with a worker, maintain a non-compete with a worker or represent to a worker that they are subject to a non-compete.