Work/Life: international employment news update

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Issue 89

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

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Take Eat Easy: criminal conviction of the former founder for concealed work

In 2018, "Take Eat Easy" was the first platform affected by a judgment of the French Labour Court requalifying services agreements signed with delivery riders into employment contracts.

In November 2023, the platform's founder Adrian Roose, prosecuted before the Criminal Court of Paris, was given a nine-month suspended prison sentence for concealed work with a related fine of EUR 30,000. He was also ordered to pay almost EUR 68,000 to French social security bodies for social contributions due in 2015 and 2016 (in addition to some symbolic damages due to the delivery riders effected – in the range of EUR 1,000 to EUR 4,000). A five-year ban on directing, administering, managing or controlling a company was also imposed on Roose, who has decided to appeal the decision.

German Cabinet approves cuts to Parental Allowance

Despite significant social protest, the German Cabinet has approved Finance Minister Christian Lindner's (FDP) draft Budget Financing Act, which includes cuts in Parental Allowance for around 5% of parents-to-be from 1 January 2024. Only parents and single parents who earn a taxable income of less than EUR 150,000 in the calendar year before the birth of their child will be entitled to Parental Allowance. The previous thresholds for cut-off of Parental Allowance were EUR 300,000 for couples and EUR 250,000 for single parents.

For parents whose children are born up to an including 31 December 2023, the current regulations will apply.

Employers should assess the likely impact on employees – in particular, high-earning expectant parents – as well as actively communicating changes and providing a point of contact with whom worried staff can voice concerns. It is recommended that employers consider compensating affected employees for loss of Parental Allowance, in a bid to promote work/life balance and retain top talent.

Pay rises in the Netherlands hit a 7.1% high, but employers deem it unsustainable

The Netherlands is enjoying historic rises in pay, with an average 7.1% increase this year. But Dutch employers are serving a reality check, warning workers that continued wage growth is unsustainable against a backdrop of financial uncertainty that spans many companies and sectors.

The Dutch private sector in particular is grappling with challenges, including the snowballing prospect of an aging population and the need to improve sustainability goals. Employers also report decreased investment opportunities and stagnant labour productivity. Pay negotiations with employers' federation VNO-NCW and entrepreneurs' organisation MKB are ongoing.

UK government alters holiday pay for 5 million irregular workers

The UK government is implementing changes to holiday rights for 5 million workers. Rather than getting full holiday rights at the start of the year, some part-time and irregular workers will have to amass such rights throughout the year. The government has posited the change will help simplify legislation. Shadow minister for employment rights Justin Madders lamented the move as a "rebuff" to Labour's attempts to protect paid holidays, though party officials could not confirm the changes would be undone if Labour won office.

The government has estimated the change will save employers between GBP50 million and GBP248 million annually.

Nationwide amends all-week work-from-anywhere policy

UK building society Nationwide has partially retracted a post-Covid policy which permitted staff to "work from anywhere". The hybrid work-friendly policy was introduced in the wake of the pandemic, with 13,000 staff members able to work where they pleased, in one of the most flexible policies adopted by UK employers. The building society had said it wanted to put "employees in control of where they work from". However, it was recently announced that staff must be in the office for at least 40% of their contract – two days a week for full-time employees. Enforcement of the policy will not come until 1 April 2024, to allow time for lifestyle changes to be implemented.

New UK sexual harassment law places preventative duty on employers

The Worker Protection (Amendment of the Equality Act 2010) Act 2023 received royal assent at the end of November 2023, marking the dawn of a heightened responsibility on companies to enforce sexual harassment laws.

Much of the onus for enforcing sexual harassment laws has historically fallen on the person being harassed: to initiate redress and to prove the misconduct happened. The new law aims to place a duty on employers to take reasonable steps to prevent sexual harassment taking place against their employees in the course of their employment. It invites more proactivity on behalf of the employers, extending beyond policy implementation, training and thorough investigations to pre-emptive measures like risk analysis and a post-incident focus on accountability.

The gender pay gap in the Netherlands is reducing

The Netherlands is making progress in its bid to close the gender wage gap: last year saw a decrease in the income discrepancy between men and women, Statistics Netherlands (CBS) reports. Nonetheless, men remained higher paid than women, particularly in the private sector, where they were 16.4% better compensated than women (down from 17.3% in 2020). The difference was less pronounced for government employees: men earned on average 5.1% more than women (down from 6.7% in 2020).

US companies ratchet up bereavement leave

Household name employers in the US are increasing the days of bereavement leave offered to staff in the wake of the pandemic. The average period offered to grieving employees is currently five days, but some firms are offering up to 30 days to mourn loved ones. Among those expanding their bereavement leave policies are Johnson & Johnson, Goldman Sachs and JPMorgan Chase.

The policy shift at Johnson & Johnson was home-grown, with executive Tom Barklage successfully lobbying for a sixfold extension in bereavement leave, from 5 days to 30, at the company after tragically and unexpectedly losing his own 17-year-old son.