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LEL Strategic Global Topics Labor & Employment Law Strategic Global Topics Fall 2016 edition Employment Law Challenges in Mobility and Posting of Workers In this issue, we focus on … Employment Law Challenges in Mobility and Posting of Workers Editorial 3 Costa Rica 14 • Employment mobility law: aspects to consider EU update on posting of workers 5 • The new 2014 Directive Cyprus 15 Angola 6 • Worker mobility • Work visas: a closer look Czech Republic 16 Argentina 7 • International employee mobility • Migrant workers and the social security system Estonia 17 Australia 8 • Employment law issues in mobility • Global Mobility Update September 2016 France Belgium 9 18 • Employment law challenges in mobility • Employment law issues with posting workers Georgia Brazil 10 19 • Employment law and mobility • Choice of law in employment agreements with international connections Bulgaria 11 Germany 20 • A trend toward greater protection of posted workers • Employment law issues in mobility China 12 Greece • How employment law influences mobility 21 • Employment law issues in mobility Colombia 13 Hong Kong • Employment law issues in mobility 22 • Employment law issues in mobility 1 Labor & Employment Law Strategic Global Topics India 23 Serbia 33 • Employment of expats: legal aspects • Employment law issues in mobility Singapore Italy 24 34 • New constraints for assignments under Italian law • Employment law issues in assignments Slovak Republic Japan 25 35 • Regulations for expatriate employees • New Slovak rules for posting workers South Korea Netherlands 26 36 • Dutch employment law challenges with the posting • Effective integrated strategy — focusing on South of workers Korean law New Zealand 27 Spain 37 • International employee mobility • Assignment of workers abroad Sweden Norway 28 38 • The rights of employees assigned or posted • Rules for posting workers Switzerland Poland 29 39 • Employment law issues in mobility • Employment law issues in mobility Turkey Portugal 30 40 • International mobility — the Portuguese approach • Employment law in mobility United Kingdom Romania 31 41 • Assignment to the UK — employment law issues • Labor force mobility — regulations and challenges to consider Russia 32 Vietnam 42 • Employment law issues in mobility • Employment law issues — mobility Labor & Employment Law Strategic Global Topics 2 Editorial The traditional mobility model of the 20th Century, where employers were required to coax their employees to venture out into the brave world and take on an international assignment is rare in today’s digitalized and globalized world. Indeed, employee mobility is no longer an issue faced by businesses in special cases but has become a key component of their organizational structure and business model. Businesses now seek to benefit from advantages of a more flexible and mobile workforce, and therefore fully optimize their internal HR supply chain. Businesses now need employees to be mobile, on shorter notice, for shorter periods of time, and not only for internal matters but also to serve client project needs and deliver on global contracts. Indeed, in today’s competitive landscape, a multinational must be agile and ensure that its workforce is in the right place, at the right place, at the right time, with the right skills. The use of mobile employees however raises HR legal risks of which employers need to be aware. Employee mobility is a key aspect of the European Union, given that freedom of movement for workers is one of the Union’s cornerstones. The European Union has implemented complex regulations and directives, and country specific rules must also be kept in mind in order to avoid legal with respect to the posting of workers and reputational risk. In this edition, we will explore these key challenges and issues. Roselyn Sands EY Global and EMEIA Labor & Employment Law Leader 3 Labor & Employment Law Strategic Global Topics Labor & Employment Law Strategic Global Topics 4 EU update on posting of workers The new 2014 Directive recent modification was in 2012), the 1996 posting. The 2014 Directive also provided Posting of Workers Directive had not been for additional rights to posted employers Posting of workers is regulated in the updated since 1996 and it was felt that its in order to increase their rights in the European Union by Directive 96/71/CE, contents were no longer sufficient in our subcontracting chain. Indeed, following called “the Posting of Workers Directive” globalized economy. It is for this reason, the new Directive, Member States must which was approved on December 16, and through political pressure from several now ensure that posted workers in the 1996. The posting of workers Directive Members of the European Union that the subcontracting sector can hold their direct aims to protect the social rights of posted Directive was reviewed, in order to provide subcontractor, in addition to or in place of workers by providing for core employment additional protection to posted employees. the employer, liable for all wages owed. conditions that must be applied to posted Thus, the business relationship may be at workers in their host country. These core On May 15, 2014, Directive 2014/67/EU risk if violations occur and customers are employment conditions include maximum was implemented, modifying the 1996 held liable. work periods and minimum rest periods, Posting of Workers Directive. The deadline annual paid leave, health and safety for the transposition of this new Directive One of the other main parts of the new at work as well as applicable minimum by Member States was June 18, 2016. 2014 Directive is focused on increasing rates of pay. Even if today, this deadline has passed, cooperation between national authorities the following countries have yet to have and administrations in charge of The Posting of Workers Directive has been implement the EU Directive in their national compliance. These changes include applied in coordination with other various legislation: Bulgaria, Croatia, Czech time limits for the supply of information European Regulations, in particular to Republic, Estonia, Greece, Luxembourg, between national authorities as well as regulate the issue of the social security Slovenia and Portugal. Belgium is currently the implementation of fines for companies affiliation of posted employees. The most debating the conditions under which the that fail to comply with the applicable recent EU Regulation on social security is Directive will be implemented in their regulations. Posted workers also have Regulation 987/2009, which provides the country. Some countries, like Germany, increased protections as they can bring currently applicable coordination rules on consider that their local law already takes legal action both in the home or host social security systems. the new Directive into account and that no jurisdiction. The coordinated application of both the transposition is required. On March 8, 2016, the European Directive and the EU Regulation provided The purpose of the 2014 Directive is to Commission proposed another revision of for holistic rules on both employment law help fight abuse and circumvention of the rules on posting of workers within the and social security regulation. However, the applicable rules, in particular via the EU. So this an issue that requires careful although the European Regulation has use of “fake” companies, and ensure legal attention. been updated over the years (the most that specific situations qualify as genuine Roselyn Sands EY Global and EMEIA Labor & Employment Law Leader 5 Labor & Employment Law Strategic Global Topics Ricardo E Veloso Angola Work visas in Angola: qualified foreign citizens can be approved. Repatriation deposit a closer look An application should be carefully prepared The repatriation deposit requirement is set to demonstrate the foreign citizen’s forth in Law No. 2/07 of 31 August 2007 Work visas: requirements and qualifications and professional experience. and in Presidential Decree No. 108/11 procedures Employment agreement of 25 May 2011. The granting of a work According to Angolan law, a work visa is Foreign citizens working in Angola must visa is subject to a deposit made by the required for those undertaking temporary sign an employment agreement that employer to cover the costs of a potential remunerated work in Angola, and its holder contains some imperative clauses and that repatriation of the employee. can perform only the specific professional must be registered with the Ministry of activity for which the visa was issued. Declaration of Honor Labor. When the contract is terminated, Foreign citizens wishing to work in the Main characteristics the employer must write to the Ministry of country must sign a Declaration of Honor This visa allows its holder to undertake Labor to request cancelation of the foreign stating that they will comply with Angolan law remunerated activity in Angola for employee registration. and will return to their country of origin after Angolan companies, but it does not allow The employment agreement will enter into the employment agreement is terminated. the applicant to become a resident in the force only after the work visa is issued and national territory of the Republic of Angola. the employment agreement is registered Registration The local company must register the Period of stay with local authorities. To obtain the visa, companies can submit an employment foreign employee with the relevant This visa must be used within 60 days of authorities at least 30 days before issuance, and entitles
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