Work/Life: international employment news update

Briefing

Issue 101

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

In this edition of Work/Life we look at:

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Labour to create new UK employment watchdog

The new government intends to establish a Fair Work Agency authorised to impose fines, conduct workplace inspections, initiate civil proceedings, and prosecute violators. Its central objectives include safeguarding entitlements such as holiday pay, sick pay, and parental rights. The proposal will consolidate various existing regulatory bodies including the Gangmasters and Labour Abuse Authority (GLAA), the National Minimum Wage unit (NMW), and the Employment Agency Standards Inspectorate (EASI) into this new entity. For an update on new UK Labour policies join our webinar on 11 July 2024.

Paris 2024 Olympic Games: leverage for transport unions

Some unions in France view the Paris 2024 Olympic Games as an opportunity to secure additional financial resources for employees just weeks before the Games commence. The unions of SNCF, the French rail company, threatened industrial action during these events. To avoid strikes, management and most unions reached an agreement in June that grants employees a bonus of EUR95 gross per day worked throughout the Games, subject to a maximum payment of EUR1,900 per employee. Approximately 50,000 workers are expected to benefit from this incentive.

Similarly, on 26 June, several unions at ADP (the company operating Paris airport) signalled their intention to initiate a strike in July if their demands remain unmet: namely securing bonuses for all personnel on duty during the Olympics; a hiring scheme designed to address staff shortages (nearly 1,000 positions as per union figures); alongside implementing definitive actions against "the deterioration in working conditions".

Mother of two loses job offer after revealing children's ages

A mother has won a sex discrimination case against her former employer, R & F Properties QS, in London after they rescinded her job offer upon learning she was a mother of two young children. Ms. Lee resigned from her previous job to accept the position of senior marketing manager at the firm. However, during what was referred to as a "fresh interview" via Microsoft Teams, she disclosed that her children were four and nearly one. Within six days R & F Properties withdrew their offer. The London South Employment Tribunal found in favour of Ms. Lee and asserted that such inquiries about parental responsibilities would likely not have been posed to a male candidate. As compensation she was awarded GBP91,597.

Sending birthday cards could be harassment

A UK employment tribunal ruled that sending a card to an employee who had requested no birthday celebrations could constitute harassment. Kani Toure clearly communicated her wish not to have her birthday acknowledged and sought minimal contact during her sick leave. A manager at her employer repeatedly reached out and sent a birthday card. The tribunal found the repeated contact and the birthday card amounted to harassment – ignoring Toure's explicit preferences. Suffering from a pituitary gland tumour exacerbated by stress, Toure won claims of racial and disability discrimination against HMRC.

Dutch court rules that new restaurant owners should have received subsidies during pandemic

An entrepreneur who opened a restaurant in May 2020 should have been eligible for wage cost subsidies during the coronavirus pandemic, as ruled by the Administrative High Court (CRvB), one of the highest administrative courts in the Netherlands. The CRvB acknowledged that although the subsidy arrangement had to be established quickly due to immediate needs, greater attention should have been dedicated to addressing the "adverse financial implications" faced by new business owners. As the business had not generated any profits before the pandemic's outbreak, no subsidy could be calculated for them. However, given that they had employed staff, it was evident to the court that these entrepreneurs "were seriously affected" by coronavirus countermeasures. The CRvB has ordered the UWV (Employee Insurance Agency) to make another decision regarding the wage cost subsidy applications submitted by affected entrepreneurs without factoring in the date the business was established.

New Austrian law to enable teleworking

In Austria, existing statutory provisions governing home offices are set to be expanded to include external premises such as cafés, parks, and co-working spaces. This move aims to enhance the legal framework governing work performance, especially in light of the growing importance of ESG considerations. By increasing the flexibility of the place of work, there is an expectation that employees' work-life balance would significantly improve and there will be a reduction in work-related migration from rural areas into urban centres. The Social Affairs Committee has launched a labour and social law framework addressing teleworking arrangements; these new regulations are scheduled to take effect on 1 January 2025.

Supply chain liability for unpaid wages of Slovak construction subcontractors

The Slovak parliament has enacted new legislation, effective 1 August 2024, set to significantly impact companies providing construction services in Slovakia by holding them accountable for wage payments that their direct subcontractors fail to make. Affected employees can claim unpaid wages from their main contractor within six months of the due date. Contractors will not be required to pay these wages if proof exists that due diligence was conducted prior to selecting the subcontractor.

Czech immigration relaxation

From July 2024, nationals from nine non-EU countries (Australia, Japan, Canada, South Korea, New Zealand, UK, USA, Israel, and Singapore) will no longer require work permits or employment cards to work in the Czech Republic. This initiative aims to reduce administrative burdens for employers and foreign nationals seeking work. After consultation within the tripartite committee – comprised of government representatives, employers' organisations, and trade unions – the Cabinet retains the authority to revise this list of countries in response to evolving conditions in the labour market.

Data privacy pitfalls in German terminations

The importance of safeguarding employee data has intensified amid increasing digitalization, presenting substantial challenges for employers. Compliance with GDPR requirements is crucial in Germany, especially during internal investigations such as hearings for potential misconduct leading to a summary dismissal. If employees are not adequately informed about data collection and storage purposes, it can compromise the validity of the investigation. Recent court rulings have highlighted this risk of data being deemed inadmissible in employment protection litigation due to insufficient GDPR notifications. Employers must ensure they provide clear and comprehensive notices in line with Articles 13 and 14 GDPR to avoid invalidating suspicion-based terminations.

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