On your radar
Key employment issues across Europe and beyond April 2018
On your radar | April 2018 Welcome to our 5th edition of CMS On your radar
Welcome to our latest edition of our quarterly newsletter giving you access to the key international employment law developments at your fingertips.
If you want to get in touch to find out more about a development in a particular country please do speak to your usual contact within CMS or alternatively email [email protected].
The CMS employment team
2 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Belgium Development Description Effective date Impact and risk Future actions
The Belgian government is The “Cash for Car” Cash for Car: presumably Details of both measures Once the details of both trying to encourage greater measure means that the 1 January 2018, with still have to be worked out measures have been mobility by providing employee can choose to retrospective effect worked out, employers attractive alternatives to a trade in their company car should examine whether or company car. These for some extra salary, not the “Cash of Car” or the Mobility Allowance: alternatives should be cost which will be subject to a “Mobility Allowance” would ongoing neutral for both the more favourable tax indeed be a more employer and the regime. The purpose of this advantageous alternative employee. measure is to convince for their employees than employees, who already the traditional (and Approved by the federal have a company car, to polluting) company car. Parliament on 15 March give it back. 2018, the so-called “Cash for Car” measure is now in The “Mobility Allowance” is the final stage of the meant to give employers legislative process. the possibility to offer their employees some On 16 March 2018 the alternatives to a company government also reached car, such as a company an agreement on the so- bicycle or a subscription to called “Mobility public transport. A smaller Allowance”. car, combined with a bike and/or public transport, would also be possible.
3 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Bulgaria Development Description Effective date Impact and risk Future actions
Relaxation in the At a meeting of the Ongoing. The request is The changes have been The proposal is still subject procedures for employing National Council for related to Directive (EU) proposed by employer to discussion. workers from third countries Trilateral Cooperation (i.e. 2016/801, which must be representatives in order to Changes are expected in the state, the trade unions implemented no later compensate for the the Bulgarian Labour and the employers) held in than 23 May 2018. shortage of workers in Migration and Labour January 2018, business many economic sectors. Mobility Act with respect to representatives requested third-country nationals' the removal or the In contrast, the access to the labour relaxation of the representatives of the trade market. requirement that the unions claim that number of third-country deletion/reduction of the workers in certain existing requirements companies shall not exceed would lead to "social 10% of the total number of dumping." all employees.
A Consultation has opened This is the first time that Pending. The deadline for It is intended to resolve the Employers may face to discuss a draft new this type of legislation has submission of opinions duplication where additional costs for new or Ordinance on the Type and been introduced in and comments is 23 employers maintain upgraded IT systems, Requirements for Creating Bulgaria. It’s purpose is to March 2018. employee paper files and, qualified electronic and Maintaining of stipulate the terms and at the same time, have all signatures for employees Electronic Documents in conditions for moving from their HR processes and any electronic Employee Records (the employee paper files to completely automated. registered delivery service. “Ordinance”) electronic records. The Employers will not be Furthermore, due to the adoption of the Ordinance obliged to keep electronic novelty of the regulation, should reduce the employee records but will the practice of the labour administrative burden on have the option to choose control authorities may be employers between electronic or paper controversial in the files. beginning.
4 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Chile Development Description Effective date Impact and risk Future actions
Labour regulations have The aim is to increase the Came into force on 1 At least 1% of the Companies that already been updated regarding the employment of disabled April 2018 personnel in medium to have disabled employees, employment of disabled individuals in medium to However, for companies large companies, will have must register and upload individuals in companies large sized companies. to be disabled or be that have between 100 details of their disabled with over 100 employees. receiving a pension for any There are several practical and 199 employees, the workforce to an online site The new obligations type of disability. problems regarding the law will come into force created by the Labour provide that: enforceability of the new on 1st April 2019 Employers may have to Board, within six months - At least 1% of the measure with further adapt their following the enforcement workforce must be government guidance workplaces/working date. expected. disabled or should be practices to accommodate Companies that have receiving a pension for their disabled employees. between 100 and 199 disability. Disabled employees also employees, will have to - The disability must be have an additional legal comply with the law in April certified. protection against 2019. dismissal. Article 161 of the If the nature of the services - Companies that cannot Labour Code states that if of the Company does not hire disabled individuals an employee is dismissed allow the employer to hire due to the special nature due to his/her disability, the disabled staff then the of their services, should employer will have to pay Company must evaluate consider alternative compensation, in addition measures. the alternative options to any normal severance although as we have payments. Some aspects of indicated further details on the new law are not clear, this are awaited. particularly the uncertainty around how the alternative measures provision will operate.
5 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
China Development Description Effective date Impact and risk Future actions
In order to attract high-level A foreigner who is (i) an 28 November 2017 An applicant can enjoy an The new R visa policies will talent from foreign elected candidate for express service for the visa bring a number of countries, the Chinese China’s talent introduction application without paying advantages to high-talents government has adopted a program, or (ii) an any visa application fees. who need to visit China new type of visa, an R visa, individual who meets very frequently. In the past, for foreign scientists, internationally recognised An R visa holder will be granted a visa that has a they had to repeatedly technological leaders, standards of professional apply for a business visa international entrepreneurs achievements; or (iii) a validity period of 5 to 10 years with multiple entries which has limitations on the or people with extraordinary foreign professional validity period and times of abilities who are in short meeting the demand for and can stay in China for a entry. Further, if these supply and urgently needed market-oriented jobs period of up to 6 months for foreign talents intend/need for Chinese economic and encouraged by Chinese each entry. The visa to work in China later, they social development. government; (iv) an extends to their spouse and can more easily obtain innovation entrepreneurial under-aged children. By holding an R visa, the talent; (v) an excellent work permits. foreigner can enjoy a more An R visa holder can apply youth talent; or (vi) a for a work permit directly in convenient and longer stay professional talent meeting in China. China with less application other criteria as defined by documents and a shorter the Chinese government, approval period. can apply for an R visa with the Chinese embassies or consulates in the country where he/she resides by holding a so-called Confirmation Letter for High Level Talents issued by the competent Chinese Administration of Foreign Experts Affairs.
6 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Colombia Development Description Effective date Impact and risk Future actions
Measures to respond to the The Colombian Ongoing Some sectors are We recommend Colombian migration of significant Government is directly concerned about the over- employers take steps to numbers of Venezuelan concerned with the security population as well as the understand and follow nationals to Colombia. and physical well-being of over-supply of services, but labour and social security Venezuelan nationals, most concerns relate to the regulations when hiring This includes the impact on therefore relevant migratory impact of the employment Colombian industry and the foreign employees. The measures were and migratory regulations assessment of immigration challenge for Colombian implemented: when hiring new workers. employers regarding the status is required before observance of migratory • The Mobility Border Card Special attention should be the recruitment process at and employment granted for up to 6 paid to : (a) the validity of the level of the Company. months which allows the regulations. the immigration documents On the other side, there are permanent mobility of the holder; (b) the various options that across the borders and maximum time they are Venezuelan nationals living neighbouring allowed to stay in the municipalities. in Colombia may explore to country; and (c) the type of secure their immigration • The Special Permission services to be provided. status: this includes being of Permanence (PEP) Otherwise, fines and granted a PEP or a granted for up to 6 sanctions may be imposed Colombian Visa with the months and automatically by the Colombian required legal status, a extended by up to 2 authorities (Special Unit of years which allows the Migration Colombia – Migrant (M) or Resident (R) holder to work and Colombian Ministry of as set out in the Colombian access health services. Labour). migratory provisions (Resolution 6045 of 2017 and Resolution 740 of 2018).
7 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Czech Republic Development Description Effective date Impact and risk Future actions
The amendment to the Act An employee who 1 February 2018 Paternal leave is a statutory • Employers should take on Sickness Insurance • is caring for a child of entitlement granted to the introduction of introduces paternal leave whom he is a father, or employees. An employer is paternal leave into into the Czech legal therefore obliged to account as they are • takes care of a child on system. recognise the employee’s required to submit an the basis of a court absence from work. The application for paternal decision, if the child has introduction of paternal leave to the CSSA on not reached the age of 7 leave may lead to greater behalf of the employee. years absence from work of male • Training for those is entitled to one week of employees following child employees operating paternal leave and the birth. payroll schemes. financial benefit of paternal Paternity benefit is a health postnatal care. insurance benefit paid by The employee must use the Czech Social Security leave no later than 6 weeks Administration (CSSA). after the child’s birth or Therefore the employer from the day of taking the does not bear the cost of child into care. this new benefit.
8 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
France Development Description Effective date Impact and risk Future actions
Company agreements now The first block provisions As of 24 September 2017 It has to be stressed that These measures widen the prevail over industry-wide include: minimum wages; the new provisions also scope of company and nation-wide working time; fixed-term change the rules regarding bargaining agreements, agreements, except in a contracts; equality the validity of company allowing companies to limited number of cases. measures and probationary agreements as of 1 May adapt most of French This measure is part of the periods. 2018. Labour Law to their needs. French Labour Law reform The second block From now on, to be valid, a This is in line with new led by President Macron comprises the areas in company agreement will provisions allowing since September 2017. which an extended have to be signed by a company agreements to The ordinance divides industry-wide or nation- trade union which has adapt almost all rules topics subject to wide agreement can obtained the majority of the governing the functioning of negotiation into three provide that a company votes cast at the latest the new employee blocks. agreement concluded after workplace elections. representatives: the Social the industry-wide and Economic Committee The first block indicates If an agreement is signed agreement cannot include (which merges into one which provisions of by a Union that has only provisions that differ from single body the 3 employee industry-wide and nation- obtained between 30% and those of the industry-wide representatives bodies wide agreements cannot be 50% of the votes cast, the agreement, unless the formerly known as works modified by a company agreement's validity is company agreement council, staff delegates and agreement unless the subject to approval by the provides equivalent or health, safety and hygiene company agreement majority of the employees. better protection. committee). provides equivalent or During one month, better protection. In all other areas, the signatory trade unions have company agreement the option to ask for such a prevails over the industry- consultation. After the wide and nation-wide expiration of this deadline, agreements, regardless of this prerogative switches to when it was concluded. the employer.
9 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Germany Development Description Effective date Impact and risk Future actions
The Act to Strengthen The mandatory employer Sec. 1a para. 1a Company In practice, it may be Employers should Company Pensions contribution concerns all Pension Act enters into difficult to determine the familiarise themselves with (Betriebsrentenstärkungs- employers whose force on 1 January 2019; exact amount of social the changes implemented gesetz) will lead to major employees exercise A three-year transition security contributions that by the Act to Strengthen changes in the system statutory entitlement to period applies to deferred are saved, resulting in the Company Pensions in due regarding company pension deferred compensation and compensation fact that calculating the time. schemes, for example, by with regard to whom agreements concluded employer contribution may For example, internal introducing so-called "pure compensation is deferred before 1 January 2019. involve considerable effort. payroll processes must be defined-contribution by way of It has not been determined adapted to the mandatory schemes". • pension funds whether or not and to what employer contributions to The change bearing the • retirement funds or extent already promised deferred compensation. most imminent risks for employer contributions to • direct insurance. It is necessary to check employers is the deferred compensation can whether voluntary employer The employer must pay up introduction of a mandatory be deducted from the contributions are already to 15% of the deferred employer contribution statutory contribution that being paid for deferred compensation amount as within the context of will be mandatory in the compensation and whether far as he saves social deferred compensation future. they should be credited security contributions due (new Sec. 1a para. 1a Owing to the mandatory against the mandatory to the conversion into Company Pension Act, employer contribution with contribution in future. deferred compensation. Betriebsrentengesetz). regards to deferred Depending on the form of This employer contribution compensation, the the regulations, contractual does not have to be paid if legislation has further adjustments are to be compensation is deferred increased the complexity of made. by way of company pension schemes • benevolent fund or and the burden for employers. • direct pension commitment.
10 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Italy Development Description Effective date Impact and risk Future actions
New measures relating to Under Italian Law, there is The Italian National Labour This has introduced the Care should be taken over the use of camera the possibility of using Inspectorate (INL) issued opportunity of implementing time to ensure the surveillance and remote recording equipment and circular no. 5 on the 19 wider surveillance, employer’s control does not control tools. other surveillance February 2018, which including: become unlawful e.g. if it exclusively for relates to the installation - monitoring the employee stops being closely related organisational needs, for and use of audio-visual if there is a reason to the reasons and job security and for the devices (AV) and other connected to safety at information provided in the protection of company tools, in accordance with work and safeguarding of application to obtain the assets, provided that the Article 4, Law 300 of 1970 the Company property; above-mentioned employer signs a collective (Italian Worker’s Statue of authorisations. - the possibility not to agreement with the internal Rights), as most recently indicate the exact Where an inspection Trade Union amended by the Italian position and number of reveals a conflict between Representatives or seeks Legislative Decree No. 151 the cameras installed; the use of surveillance in the authorisation from the of 2015. practice and the declared - traceability of access to Labour Inspectors’ Office. employer’s organisational the recorded images for 6 In case of tools used by the and production needs, the months; worker for performing their employer may be duties (e.g. PCs, tablets, - installation of cameras in sanctioned with a fine. smartphones) there is no external areas (where need for prior authorisation there is no working to use the information and activity) and activation of data collected for “all biometric recognition for purposes relating to the safety reasons, without employment relationship” any prior authorisation. (including grievance procedures).
11 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Monaco Development Description Effective date Impact and risk Future actions
Recognition of the offence Law n°1.457, 12th 12 December 2017 The employer must take Employers will need to of harassment in the December 2017 appropriate measures to ensure that management workplace establishes a specific prevent such acts. and their staff are aware of these protections, and to offence for harassment in In firms employing more consider the the workplace. than 10 employees there implementation of It is defined as knowingly must be nomination of an preventives measures. submitting (and by any employee as being the means possible), in a work point of contact to collect relationship a person to the alerts/complaints of the repeated actions or other employees. omissions which have the Criminal sanctions: six object or effect of months to two years of degrading their working imprisonment and/ or a fine conditions, affecting the of 18 000€ to 90 000 €. person’s dignity or resulting It is possible we will see an in an alteration of his/her increase in litigation on physical or mental health. these grounds, and/or settlements.
12 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Netherlands Development Description Effective date Impact and risk Future actions
A recent case broadens the An employer cannot The relevant legislation An employer must ensure Care must now be taken to scope of the obligations on terminate the employment has applied since 1 July that in cases where there consider alternative roles of an employee if there is employers to reassign an 2015, with case law in are vacancies or a suitable within a group prior to scope to reassign them to a employee to a suitable 2017/2018 position held by flexible terminating employment. position suitable position, taking into staff, employees holding a (herplaatsingsplicht) before account any additional permanent position can termination of employment. training needs, including claim such a position. Due any positions within group to case law an employer An employer that is part of companies. an international group must offer international should offer suitable A suitable position is a positions as well. positions outside of the position held by a Oddly enough the Netherlands as well temporary worker and other employee is not obliged to types of flexible staff which accept the position outside can be terminated by the of the Netherlands. The company easily. It may also employer can face be a vacancy. payment of damages if no Courts have ruled in favour such offer has been made. of employees who claimed The court can also order a position outside of the the employer to offer the Netherlands which the suitable position (usually employer had failed to domestic) or it can decide offer. not to terminate the employment.
13 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Peru Development Description Effective date Impact and risk Future actions
A law has been passed This measure has been Came into effect 28 Employers will be required to Every company should prohibiting pay enacted by means of Law December 2017. invest resources in designing immediately begin to discrimination between 30709 and its regulations However, employers have and implementing the review its organisational men and women. approved by the D.S. 002- until the end of 2018 to categorisation of jobs within structure in order to Employers must ensure 2018-TR. implement the measures. their organisation, clearly implement job that remuneration schemes Employers are required to The Labour Authority will defining the functions to be categorisation, determine do not lead to categorise jobs according only start monitoring performed, the salary bands salary bands, develop a discrimination. to objective criteria, based compliance on 1 January and establishing a salary salary policy and inform all on the tasks to be 2019. policy that does not create its employees under its Any wage gap must be situations of discrimination. management. Employers justified by criteria such as performed, the skills required to perform them Employers must also design have until the end of 2018 performance, collective to comply. bargaining, shortage of and the job profile. Workers job category charts in skilled labour available for a should be informed about accordance with the given position, cost of the implemented salary directives issued by the living, work experience, policy and the criteria of Labour Authority and academic or educational performance evaluation or communicate them to profile, performance, any other kind of evaluation workers. workplace, etc. which relates to their Non-compliance with this wages. obligation shall be sanctioned by the Labour Authority with fines. Employers are also subject to legal action by workers who consider they have been discriminated against.
14 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Poland Development Description Effective date Impact and risk Future actions
Trade ban on Sunday. The new legislation has 1 March 2018 Numerous companies Companies from the trade introduced restrictions on decided to extend their sector, where working on a trading on Sunday. As of working hours, in particular Sunday was a regular March 2018 shops can on Fridays or Saturdays. occurrence, must check open on two Sundays a In such cases, employers whether they fall within one month (the first and the last must ensure that they of the exclusions to the one). As of 2019 this ban follow the applicable rights trade limitations. If not, they will extend to three regarding uninterrupted cannot continue to open Sundays a month and daily rest periods. their businesses for trade starting from 2020 - shops purposes on most will be open only on seven Employers who breach the Sundays. It may also be Sundays during a year. trading restrictions may necessary to change the face a fine of up to 100,000 management strategy (e.g. According to the new PLN. regulations, some in order to provide categories of businesses consumers with fresh and are excluded - e.g. flower good-quality products). shops, bakeries, post offices, pharmacies, gas stations, gift shops, shops located in the same building as train stations, bus stations and airports, duty-free stores. An individual entrepreneur can decide to keep his shop open, provided that he works there himself.
15 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Portugal Development Description Effective date Impact and risk Future actions
Amendments to the law Restricts and clarifies the 20 March 2018 The employee’s right to This regime strongly limits relating to the transfer of economic unit concept. oppose the transfer in his companies’ freedom to undertakings, including The employee now has the employment contract in the contract by making it changes which strengthen right to oppose the transfer event of a transfer means difficult for companies to employee rights to a new role in the event of his contract remains with avoid the protections a transfer Transfers may the transferor. around the transfer of only take place 7 working The transfer can now be undertakings, by days after the agreement or considered as a just cause strengthening the control the end of the consultation in a dismissal in which mechanisms from the period with the employees case the employee will be employees' representatives representatives (breach of entitled to compensation. and the department of the Ministry responsible for this provision is a serious The transferring labour matters, who now administrative offence); employees maintain all the plays a significant role in The measure reinforces the acquired rights within the the negotiations. framework of penalties employment contract arising from non- granted by the previous compliance with the CBA. transfer of undertaking’s The transferor shall be legal regime. jointly liable for the costs Strengthens the obligation arising from the to provide information employment contract, the before the competent purported breach or department of the ministry termination, as well as the responsible for the social debts, due until the employment area. transfer date, during the two subsequent years (as of the transfer date).
16 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Romania Development Description Effective date Impact and risk Future actions
Fines for certain Under Romanian 5 February 2018 Among the misdemeanours Based on this more relaxed employment-related Government Decision No. listed in the Government approach by the misconduct avoided if a 33/2018, fines were Decision are the following - authorities, companies remedy plan is decreased to a written Failure by a TUPE should focus on complying implemented warning for more than 70 transferor, respectively with applicable legislation, misdemeanours, including transferee, to notify its and remedies plan terms, a number of employment employees’ representatives given that: related crimes, if a remedy (or its employees) of a - If upon a second plan is implemented upon TUPE transfer of inspection the remedy an authority inspection, employees; plan was not with an obligation on the - Failure by a TUPE accomplished, the offender to meet the terms transferor, to notify the offender will receive a of the plan, within up to 90 transferee, about the fine, and calendar days from rights and obligations - Offenders who receive a inspection date. that will be transferred written warning in under a TUPE transfer of conjunction with a employees; remedy plan but commit - Failure by an employer to a similar misdemeanour inform and consult with within 3 years from the its employees’ date of the written representatives on any warning, will no longer be significant changes in able to benefit from such relation to the employer’s remedy plan treatment. activity or workforce (such as a share deal transaction occurred at employer level).
17 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Singapore Development Description Effective date Impact and risk Future actions
The Singapore Manpower The changes will include The government intends Employers of PMEs in We recommend that Minister (i.e. the Minister in the following:- to implement these Singapore should take note organisations employing charge of employment • Widening the reach of the changes to the EA by 1 of the following:- staff, including PMEs, in matters) announced in EA to cover higher-paid April 2019 • The EA presently confers Singapore should approach parliament on 5 March workers, including all statutory protections to legal counsel to review 2018 that the government professionals, managers employees earning less their present employment intends to introduce and executives (“PMEs”); than SGD 4,500. Once arrangements. sweeping changes to • Expanding the powers of the new legislative Singapore's main labour the Employment Claims changes come in to force, law, the Employment Act Tribunal (which presently these statutory (“EA”). only hears salary-related protections (i.e. minimum disputes) to include days of paid sick leave, wrongful dismissal notice periods before claims. dismissal, etc.) will apply to all PMEs. • Contracts for all employees have to be reviewed and may have to be revised to comply with EA requirements before 1 April 2019.
18 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Slovakia Development Description Effective date Impact and risk Future actions
Parliament has adopted an The amendment increases: • Surcharges for work on The overall cost of work for Many employers have not amendment to the Labour • surcharges for work on public holidays: the employer will increase. budgeted for such expenses and will have to Code public holidays - from 1/5/2018 Employers will be 50% to 100% of motivated to change allocate their budgets to employee’s average • Surcharges for work at working conditions in order cover the new surcharges earnings; night: not to pay surcharges for or increase of the existing surcharges. • surcharges for work at 1/5/2018 – in the first the work at night, work on night – from 20% of step increase to 30% / public holidays or during Employers may decide to minimal hourly wage for 35% (risky work) the weekend. cover this by increasing each hour of night work, 1/5/2019 – in the prices of their products, to 40% of minimal hourly second step increase which may have negative wage for each hour of to 40% / 50% (risky impact on their clients and night work (in case of work) consumers. employees performing • Surcharges for work on risky work to 50%). Saturday: The amendment 1/5/2018 - 25% introduces: 1/5/2019 - 50% • surcharges for work on Surcharges for work on Saturdays and Sundays Sunday: in the amount of 50% of minimal hourly wage per 1/5/2018 - 50% each hour of work on 1/5/2019 - 100% Saturday and 100% of minimal hourly wage per each hour of work on Sunday.
19 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Spain Development Description Effective date Impact and risk Future actions
Case law from the A judgment of the Ongoing Recent judgments of the After the judgment from the European Court of Human European Court of Human Spanish Supreme and European Court of Human Rights reinforces the Rights of 9 January 2018 Constitutional Court Rights, it is advisable to employee’s right to privacy has established that allowed the placement of inform employees of the in the workplace placing hidden cameras in cameras at the workplace if placement and purpose of the workplace breaches the the employer had a cameras, in the extensive employees’ fundamental reasonable suspicion that terms of Spanish data right to privacy. an employee was protection law. The employees were not committing a labour Otherwise, in situations properly warned of their infringement, without the where there is a disciplinary installation, means and need to be expressly or dismissal based on facts purpose. The Court informed in the extensive recorded with cameras, the understands that this terms of the Spanish data dismissal may be declared information is required protection regulation. unfair or even null and void. under Spanish Law, as Therefore, the European Spanish data protection Court of Human Rights regulation establishes the judgment is likely to need to expressly inform change domestic case law, individuals in case their which is more permissive personal data is stored or with employees’ processed. information requirements.
20 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
Turkey Development Description Effective date Impact and risk Future actions
The removal of the The requirement that newly 10 March 2018 With such an The companies should be requirement to notify the established companies amendment, a procedural aware of this procedural relevant Social Security notify the Social Security burden is removed from change. Institution upon the Institution and obtain a companies, and trade establishment of a document evidencing such registries shall be company. notification named a required to make such “workplace declaration” is notifications to the Social removed. Security Institutions ex Under the new provisions officio registration of the company As of 10 March 2018, The to the trade registry shall be registration of the company deemed to meet the with the relevant trade requirement for notification registry will be sufficient to the Social Security notification and a workplace Institution. declaration will not be issued for such companies.
21 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
UK Development Description Effective date Impact and risk Future actions
Changes to the tax New rules mean that ALL 6 April 2018 Most senior contracts of Review any contracts that treatment of termination payments made to an According to current employment contain a do not contain a PILON payments. employee in lieu of notice HMRC Guidance for the PILON clause in order to clause. There is now no The intention behind the (PILONs) will become payment to be caught preserve the position of benefit in omitting a PILON. changes was to simplify the taxable as earnings. under the new rules, both post termination restrictions in the event of a lawful tax regime, however a Currently if an employer the “termination” and the Understand how to apply summary dismissal. complex new formula has wishes to rely on a PILON payment must be on or the PENP formula. been introduced. clause and make a after 6 April 2018 However in some situations payment then this is it may have been taxable as earnings. If preferable not to have a Carefully consider the there is no PILON in the PILON clause. There was impact of the timing of contract then the payment the ability to take settlement agreements. is considered to be advantage of the £30,000 damages and may be paid exemption. There was also as part of the termination scope to reduce the period payment provisions which of notice pay because an allow a £30,000 exemption. employee is under a duty to Introduces a new concept mitigate their loss where of post employment notice the payment is damages for pay – PENP which is the breach of contract. salary that would have been paid to an employee during any unworked period of notice, less anything paid as a contractual or discretionary PILON
22 On your radar | April 2018 CMS On your radar | Key employment issues across Europe and beyond
United Arab Development Description Effective date Impact and risk Future actions Emirates
New Employment Law The DIFC has published its To be confirmed. Employers within the DIFC The extent of the risk will proposed in the DIFC proposals for a new should pay close attention depend on the final employment law. This to the new requirements of provisions of the Proposed seeks to bring the DIFC in the Proposed Law. When Law. The consultation line with other jurisdictions hiring, terminating, or stage for the Proposed Law (particularly the UK) in light amending the terms for has now ended and is of the international nature current employees, it is therefore likely to be of the business conducted worth considering whether subject to further review in the DIFC. this will be in compliance and reform before being The Proposed Law includes with the Proposed Law published. provisions on: when it comes into force. • The applicability of the In particular, employers law to certain groups of should be aware of the employees (e.g. part time extension of the existing and short term discrimination provisions to employment age, pregnancy, indirect arrangements) discrimination and discrimination against those • Maximum working hours seeking to assist others. • Paternity leave Employers should also • Sickness pay factor in the inclusion of • Discrimination paternity leave, and may want to start drafting • Termination for cause paternity leave policies for • Matters to be covered in their employees on this the employment contract, topic. among others.
23 On your radar | April 2018 CMS Your free online legal information service. Your expert legal publications online.
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24 On your radar | April 2018 CMS