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EUROPEAN EMPLOYMENT UPDATE

2018 EDITION INTRODUCTION

2017 has seen immense changes to employment law usual employee or worker protections. A common theme throughout , and the coming year looks to bring throughout is preparation for the General Data Protection more of the same. The 2018 edition of our annual Regulation in 2018, which will have an enormous Employment Law Update aims to assist organisations impact, particularly on Human Resources departments with a pan-European presence in keeping up to date with processing large quantities of employees’ personal and changes to legislation and best practice. sensitive data. We also continue to see increases to family leave provisions in many countries, and some further A total of 31 leading law firms across the continent protection for whistleblowers has been introduced in a have collaborated to create this guide, summarising few jurisdictions. recent amendments to labour across Europe and highlighting key anticipated reforms. Contact details for all of the contributor firms are provided within the Guide, so please get in touch if you have any This year, a key theme is variety, with many jurisdictions questions. making a number of incremental changes to their practices and procedures. Many countries are grappling This brochure contains a summary of general principles of law. It is not a with the ‘gig economy’ and how to protect individuals substitute for specific legal advice, which should be sought in relation to from being exploited by companies who try to avoid the any application of the subject matter of this brochure.

2 CONTENTS

FINLAND PAGE 11 PAGE 22 PAGE 31 UK PAGE 18 PAGE 34 PAGE 26 PAGE 10 PAGE 16 PAGE 21 PAGE 23

BELGIUM PAGE 5 PAGE 13 PAGE 28 PAGE 33 CZECH PAGE 4 PAGE 12 PAGE 9 PAGE 15 PAGE 25 PAGE 29 PAGE 27 PAGE 30 BOSNIA & HERZEGOVINA PAGE 24 PAGE 6 PAGE 32 PAGE 14 PAGE 7 PAGE 8

ITALY MACEDONIA PAGE 17 PAGE 19

MONTENEGRO PAGE 20 AUSTRIA

More legal certainty for by their occupation group (based on their periods in the event of termination as white- self-employed persons job position) and year of service (taking collar workers. The statutory notice periods The aim of the new Act on Social Insurance into account the employee’s seniority with range from six weeks to five months, Classification (Sozialversicherungs- the employer as well as previous years of depending on the employee’s seniority. employment). Zuordnungsgesetz) is to provide for a Family leave bonus greater degree of legal certainty regarding The new CBA provides for new occupation The new Act on Family Leave Bonus the re-classification of freelancers and groups and new rules on how previous (Familienzeitbonusgesetz) entered into self-employed persons as employees, years of service are credited. A maximum force on 1 March 2017 and provides financial which may lead to substantial liabilities for of seven previous years of service will be assistance for fathers who take unpaid leave employers in the form of retroactive social taken into account under the new CBA. from work in order to spend time with their security contributions and wage tax. new-born children. Employers will need to transition employees Since 1 July 2017, the classification as into the new CBA by 1 2021 The family time bonus amounts to EUR a freelancer, a self-employed person at the latest. The transition must be 22.60 per day and must be claimed before or an employee is determined upon implemented by way of a agreement the competent sickness insurance carrier. commencement of the activity by the concluded with the works council or (in competent social insurance carriers. The business units where no works council has The prerequisite for receiving this payment decision is binding for both social security been established) by information letter to is that there must be an agreement between and tax authorities. Social insurance carriers the employees at least three months in employer and employee on the family leave, may also deliver a binding decision upon advance. The transition may entail higher the duration of which may span 28 to 31 request by the employer or the insured minimum wages for employees. consecutive days. The leave must be taken person. within 91 days from the date of the child’s Extended sickness pay birth and the bonus is only paid out once for In the event of a re-classification as and notice periods each birth. an employee, any social insurance Starting 1 July 2018, both white-collar and contributions rendered by the insured -collar workers with more than one The duration of the leave may not be person are credited to the employer, thus year’s service will be entitled to eight extended, prematurely terminated, reducing the employer’s liability. weeks of continued payment of their full postponed or divided into smaller time New Collective Bargaining remuneration in case of sickness. According blocks. Agreement (CBA) for White- to the current legal status, employees are Collar Workers in Trade entitled to six weeks of full payment during The regulations on minimum payment for the first five years of service and eight white-collar workers in the trade sector have weeks of full payment starting with the sixth been reformed. year of service.

Generally, the minimum wages that From 1 2021, blue-collar workers employees are entitled to are determined will be entitled to the same statutory notice

Thomas Angermair Partner T +43 1 533 4795 24 E [email protected]

4

Re-integration of employees written report that it must keep available for included within the company’s work rules affected by long-term illness the social inspection service. and variable working schedules only have At the start of 2017, the Belgian legislator to be included in a condensed version. The re-integration track is crucial for a introduced a new ‘re-integration track’, Moreover, the ‘posting’ of variable working termination for ‘medical force majeure’, which is organised through an occupational schedules will no longer be required which is when the employer establishes physician and is aimed at leading and can be replaced with an electronic the termination of the employment employees with long-term illnesses to notification to the employee. because the employee is permanently temporary or permanently adapted work or incapable of performing his/her job, Furthermore, the new Act provides other types of work. meaning that the employer does not need for a legal framework for occasional Such a re-integration track can be initiated to serve notice upon or pay an indemnity teleworking in the case of force majeure either by: (i) the employee or his/her in lieu of notice to the employee. Such a or for personal reasons (e.g. a doctor’s treating physician; (ii) the advising physician termination will only be possible if the re- visit, an unannounced train strike, etc.) of the Health Insurance Fund (mutuelle integration track above has been completed and simplified rules for obtaining an – ziekenfonds), or (iii) the employer. The and re-integration appears not to be authorisation to constitute an ‘employers’ employer can only initiate the procedure possible or has failed. association’ (with the aim of ‘pooling’ employees between the members of the after four months of work incapacity or if New rules on ‘practicable the employee gives the employer a medical and flexible work’ association). Also, new rules on training certificate attesting to his/her permanent have been introduced. A new milestone Act of 5 March 2017 work incapacity. on practicable and flexible work has Finally, the Act sets out the principles of Once the procedure is started, the modernised Belgian employment law. a new system of ‘career savings’, which is occupational physician will make a re- an option for employees to save time and First, the Act has introduced new rules for integration assessment. If he/she decides to convert it into holidays at a later stage , including a legal framework that the employee is temporarily or during their careers, but these rules still for flexitime (working with core time frames permanently incapable of performing his/ need to be further elaborated. and flexible time frames within certain her current function but is able to perform limits) and the option, with the employee’s adapted or other work, then the employer consent, of performing 100 extra overtime must draw up a re-integration plan, which hours per employee per year without any the employee is free to accept or not. need for justification (as opposed to the The employer can decide not to draw up current system of overtime hours which can a re-integration plan if, in its opinion, it is only be performed on the basis of a limited technically or objectively not possible to number of specific grounds). draw up such a plan or if doing so cannot Secondly, the stringent rules for part-time be reasonably expected. However, the work have been simplified. Fixed part-time employer must justify such a decision in a working schedules no longer need to be

Philippe De Wulf Partner T +32 2 426 14 14 E [email protected]

5 BOSNIA & HERZEGOVINA

The development in employment who initiates legal proceedings within notification of the result of the procedure law in the Republic of Srpska, Bosnia 30 days after the whistleblower learned must be communicated to the whistleblower and Herzegovina has been increased of the detrimental consequence, but no within eight days of the completion of whistleblowing protection. later than one year after suffering the the procedure. The disclosure must be detrimental consequence. The individual forwarded to the competent authority, if On 15 June 2017, the National Assembly is entitled to external protection even if the act conducted is thought to have the of the Republic of Srpska passed the no internal protection was requested. The characteristics of a criminal offence, and Law on Protection of People who Report whistleblower is permitted to initiate legal annual reports on the number and results of Corruption (the Law). The Law represents an proceedings if the procedure of internal the disclosures need to be submitted to the expansion of the whistleblower protection protection is not in progress. Ministry of Justice. to National Assembly level, since ’s Law on the Protection of Obligations for employers An employer with 15 or more employees Whistleblowers, which was adopted in 2014, The employer, as a Responsible Person, is is required to adopt the ‘Instruction on the applies only to employees working in public obliged: procedure of disclosing corruption and institutions at a State level. providing protection to persons reporting ▪▪ to enable and note any disclosure; corruption’. The law prescribes fines to For whistleblowers to be protected, there the Responsible Person for violating the ▪▪ to protect the personal data and the must be: obligations prescribed by the law, ranging anonymity of the whistleblower; and from BAM 5,000 to 15,000 (approx. EUR ▪▪ a disclosure made in good faith; and, ▪▪ to take action with respect to revealing, 2,500 – 7,500). ▪▪ a detrimental consequence caused by preventing, combating and punishing the act of corruption or the disclosure of the act reported as corruption. such an act. The employer is required to act immediately Internal protection is provided to a to remove any detrimental consequences whistleblower who discloses the act of for the whistleblower and provide for the corruption within 30 days from when the protection of the whistleblower’s rights, whistleblower learned of the detrimental as well as to take the necessary actions consequence, and no later than one year in order to determine the disciplinary and after suffering the detrimental consequence. material liability of the person who behaved The request for protection is submitted to in a corrupt manner. the responsible person in the authority/ company (the Responsible Person) – who is If a whistleblower requests to be provided required to reach a decision concerning the with information on the measures and request within 30 days after its submission. actions taken regarding the disclosure, the employer is obliged to provide such External protection is provided to a person information within 15 days after the suffering a detrimental consequence request. In any event, a decision on or a

Goran Babić Partner, Attorney-at-Law, in cooperation with Karanovic & Nikolic T +387 51 212 104 E [email protected]

6 CROATIA

The general source of employment law Tax Benefits for Employees non-EU nationals has been amended in in Croatia is the Labour Act, which was At the beginning of 2017, a new tax reform accordance with Directive 014/66/EU, while introduced in 2014. Since the Labour was introduced in the Republic of Croatia residence and work permits for seasonal Act entered into force, and the with the significant changes from the employees have been prescribed in detail, Ministry of Labour and System employment law perspective being related taking into consideration the provisions of have offered us answers to many questions to taxation of salary. Directive 2014/36/EU. that have arisen in practice. During 2017 there were various amendments to the The basic personal allowance was employment related laws. Therefore, we increased to HRK 3,800 (approx. EUR 500) have provided below a general review of for all taxpayers by amending the Income the most significant amendments. Tax Act. Before the tax reform, the basic personal allowance for pensioners was Increase of Maternity and Paternity Benefits HRK 3,800 and for employees HRK 2,600 (approx. EUR 345). Furthermore, income tax On 1 July 2017, the Act on Amendments to rates of 25% and 40% have been reduced the Act on Maternity and Paternity Benefits to 24% and 36%. In addition, tax bases have (Official Gazette 59/17) entered into force. also been changed. The main goal of these amendments was to encourage demographic renewal Going forward, tax will be calculated at a and prevent emigration into other EU rate of 24% for monthly personal income member states by increasing the amount of up to HRK 17,500 (approx. EUR 2,320). of monetary benefits for maternity and Income above this will be taxed at a rate of parental allowances. The salary-based limit 36%. It should be noted that the foregoing during the of employed and tax reduction was welcomed by, among self-employed parents for the first six or others, the institutions of the European eight months of parental leave has been Union and the MMF. increased from HRK 2,660.80 (approx. EUR 350), to HRK 3,991.20 (approx. EUR Amendments of the Foreigners Act 530). For the remaining part of the parental In July 2017, significant amendments to the leave (after the expiration of the first six or Foreigners Act were introduced in Croatian eight months of parental leave, or for twins, legislation. The amendments mainly triplets and each subsequent child) the limit relate to the implementation of relevant was increased from HRK 1,663 (approx. EU directives and aim to resolve unclear EUR 220) to HRK 2,328.20 (approx. EUR situations which have been arising in 308). In our opinion, this trend of increasing practice. The most important amendments maternity and paternity benefits is bound to relate to seasonal work and intra-company be continued in the future. transfers of non-EU nationals. The law relating to intra-company transfers of

Saša Divjak Senior Partner T +385 1 539 1600 E [email protected]

7 CYPRUS

Surrogacy and maternity leave Paternity leave The Protection of Maternity of 1997 Pursuant to Law 117(I)/2017, which is effective (L.100(I)/1997) was recently amended so as from 1/8/2017, new fathers are entitled to to include the concept of surrogacy. paternity leave for two consecutive weeks if they fulfil certain conditions regarding their Pursuant to the amending legislation contributions to the Social Insurance Fund. (L.116(I)/2017) a female employee who uses a surrogate mother has the right to maternity The right to paternity leave leave for 18 consecutive weeks, provided is granted to employees: that she provides her employer with: ▪▪ whose wife gave birth to a child;

▪▪ a Court order declaring that she will ▪▪ who had a child through a surrogate have a child through a surrogate mother; or mother; and ▪▪ who adopted a child. ▪▪ a medical certificate proving the Paternity Leave can be taken within a period pregnancy of the surrogate mother. of 16 weeks from the date of birth provided The surrogate mother is also entitled to that they have notified their employer two maternity leave of 14 consecutive weeks. weeks prior to the commencement of their paternity leave. Finally, the new legislation extended the on employment termination, so Employers are not obligated to pay any as to cover all female employees who are wages to employees during the paternity going to have a child through a surrogate leave. Employees on paternity leave are mother. paid by the Social Insurance Fund and the relevant allowance is equal to 72% of the Surrogacy and maternity benefit employee’s insurable earnings over the The Social Insurance law of 2010 (L. previous year. This can be increased to 59(I)/2010) was also recently amended 80%, 90% and 100% for one, two or three with Law 115(I)/2017, so as to include the dependants respectively. provision of maternity allowance (benefit) to surrogate mothers (for 14 consecutive weeks) and to female employees who intend to have children through surrogate mothers (for 18 consecutive weeks).

Yiannis Karamanolis Partner T +357 22 777000 E [email protected]

8

Agency employment and alcoholic drinks or abusing addictive Long-term care benefit employee privacy protection substances while performing activities With effect from 1 June 2018, the Various changes were made this year to which may be hazardous or harmful to their amendment of the Act on Sickness agency employment legislation governing health, to the health of others or cause Insurance introduces a new long-term care employee privacy in the workplace (from 29 damage to the employer’s property. The Act benefit. The benefit provides compensation July 2017), conditions for employing people also governs procedures and authorities (for up to 90 days) for the loss of the with disabilities (from 1 2017), and for indicative or professional examination income to a person who cares for someone general regulation of labour intermediation if the employer has a reasonable suspicion suffering from a serious health disorder provided by employment agencies. that the employee is under the influence (requiring hospitalisation for at least seven of alcohol or addictive substances, as well days and subsequent permanent care at Employment agencies are now required as regulating expenses for the relevant home for at least 30 days). The benefit to prove their financial capacity to carry examinations. could be drawn by the policyholder (usually out the activities by means of providing a family member), or a cohabitant of the a security deposit of CZK 500,000 The increase of sickness insurance and further social security changes sick person. The amount of the long-term (approx. EUR 19,500). Employment agency care benefit is 60% of the assessment base. representatives may only work in the The amendment of Act No. 589/1992 Coll., Where this happens, the employer must context of an employment relationship, at with effect from 1 January 2018, among provide the employee with carer’s leave. least 20 hours per week. Hiring labour to other things, increases sickness insurance third parties without observing contract for employees on sick leave which lasts terms set out in labour intermediation longer than 30 days. Employers have a regulations is deemed to be disguised duty to report to the Czech Social Security agency employment. Administration about the creation of employee insurance or the basis for the In addition, the Labour Code is being calculation of sickness insurance. supplemented by new obligations which Paternity leave aim to secure joint liability for agency employee contractors for the observance of From 1 January 2018, the amendment of regulations governing employer-employee the Act on Sickness Insurance introduces relationships etc. The amendment also paternity leave to the sickness benefit introduces new infractions relating to the scheme. The benefit will be provided to violation of employee privacy in workplace new fathers for a seven-day period in the (e.g. by surveillance) which may now be six weeks following the birth. The amount punished with high fines. of the benefit is 70% of the average daily assessment base, which is similar to the Employee alcohol and substance regime established for other sickness misuse (Act No. 65/2017 Coll.) insurances benefits. This Act, which came into force on 31 May 2017, prohibits employees from consuming

Václav Rovenský Partner T +420 224 103 316 E [email protected]

9 DENMARK

New holiday act the period in which they can take the The GDPR entails several key issues that In order to meet the requirements of EU holiday for an additional four months. are specifically relevant within HR. In general, HR data will often relate to all or law, the Danish Holiday Committee has Transition period recently submitted a report to the Danish several of the categories of personal data, The report includes a suggestion for Government with a suggestion for a new including sensitive personal data, personal a transition period to ensure that the Holiday Act, including a transition to data relating to criminal convictions and implementation of the new Holiday Act will concurrent holiday. If adopted, it is expected offences, national ID and ordinary personal be as smooth as possible. that the new Holiday Act will enter into force data, which means that various legal grounds will be relevant when processing in September 2020. Be prepared for the GDPR the different categories of data. The current Holiday Act The GDPR entails rules and obligations which companies must be aware of when Further, control measures must be Under the rules of the Danish Holiday Act doing business in the EU. The regulations necessary and proportionate, and personal currently in force, paid holiday is accrued aim to ensure the free movement of data data can only be retained for as long as is during the calendar year and is to be taken between the EU member states and (at least necessary to pursue a legitimate purpose. in the subsequent holiday year, which in theory) to simplify doing business across The GDPR repeats the rights of data runs from 1 May - 30 . Consequently, borders in the EU. subjects such as the right to be forgotten pursuant to the current rules, new etc. One of the significant focus areas of the employees cannot take paid holiday during Among the rules are the direct obligations, GDPR is that consent from employees may their first year of employment, and may which impose specific requirements for no longer be a valid ground for processing wait as long as 16 months before they are companies processing personal data, of their personal data under the GDPR. entitled to take paid holiday. both in regard to the legal grounds for processing as well as fulfilling the rights of Submission of report to the data subjects. Further, the regulation the Government imposes the new obligation that employers On 22 August 2017, the Danish Holiday must be able to demonstrate compliance Committee submitted a report to the Danish and implement appropriate technical Government with a suggestion for a new and organisational measures to ensure Holiday Act that includes a transition from compliance. staggered holiday to holiday that can be taken as it is accrued. The number of paid The GDPR contains more than 50 holidays to be taken remains the same, i.e. derogations. Most important is the 25 days each year. derogation to specify further requirements for processing of personal data in the Under the new rules holiday, employees context of employment, which appear in will be entitled to both accrue and take paid Article 88 of the GDPR. holiday during the period 1 September until 31 August, with the possibility of extending

Henriette Stakemann Attorney-at-Law, Partner T +45 36 94 12 28 E [email protected]

10

Changes in employment legislation After these significant changes in 2017, that require great mental or physical effort. Several amendments to the Employment no major reforms are expected to be Further, the previous part-time pension Act and Occupational Health Care introduced in 2018. has been replaced by a partial early old-age pension that allows the employee Act came into force on 1 January 2017. Working Hours Act to draw parts of their old-age pension The maximum length of a probationary A comprehensive reform of the Working before reaching the general retirement period was extended from four months Hours Act is currently under consideration age regardless of whether the employee to six months. In addition, the employer and expected to be submitted to the Finnish continues, reduces or stops working. If is now entitled to extend the probation if during 2018. retirement is postponed past the general the employee has been absent from work Posted Workers Act , the employee’s pension will during the period due to incapacity or family grow by 0.4% for each deferred month. Employers’ notification obligation for posted leave. workers entered into force on 1 September Collective Bargaining In addition, the employer’s re-employment 2017. Companies posting employees to New collective bargaining agreements obligation (which obliges an employer to Finland must notify the Finnish Occupational are currently being negotiated. Collective re-employ a previous employee if they are Safety and Health authorities before bargaining agreements for the leading a registered job-seeker and the employer the work begins, and the local Finnish Finnish export industries (paper, technology needs new employees for the same contractor must ensure that this is done. and chemicals) expired during the last or similar work to which the employee The Act states in detail what information quarter of 2017, triggering negotiation performed) after a termination on financial must be included in the notification. If this rounds. Several other business fields are and production-related grounds was obligation is breached, the Act imposes a expected to follow the salary increase shortened from nine months to four months. penalty of EUR 1,000–10,000 depending levels accepted by these leading However, if the employment relationship on the type, extent and recurrence of the industries, all three of which have now has lasted for at least 12 years, the re- negligence. reached agreements at least for blue collar employment period is six months. Pension reform employees. Another change has been that employers The Finnish pension reform entered into are now able to conclude fixed-term force on 1 January 2017. The minimum contracts without needing to justify their use general retirement age is rising gradually with someone who has been unemployed from 63 to 65 and the maximum from 68 to for over a year. 70. As of 2030, the retirement age will be linked to life expectancy. The reform does The obligations of an employer employing not affect people already in retirement. at least 30 employees were tightened in relation to re-employment training and The reform also introduced two new occupational healthcare towards employees pension types. A years-of-service pension with more than five years’ service who are is for employees aged 63 or over who made redundant. have worked at least 38 years in duties

Carola Möller Partner T +358 29 000 6250 E [email protected]

11 FRANCE

During the last French presidential negotiate collective agreements, if the Some changes regarding dismissals for elections, Emmanuel Macron committed social partners agree. economic grounds should also be noted. to review a large part of the French labour For instance, the extent of the redeployment legislation, in order to reduce the burden on In the domain of working relations, a obligation of the employer will be limited to companies. For this reason, the Parliament mandatory scale for damages in cases of the national territory if the company belongs voted for the Law of the 15 September 2017, unfair dismissal has been created. The to a group of companies. to strengthen the social dialogue. Then, amounts on the scale vary according to on 22 September 2017, the Government the length of service of the employee (with While some measures entered into force adopted several ordinances to implement a cap of 20 months’ pay for an employee on 23 September, 2017, several have been this law. with more than 30 years’ service) and will suspended until the publication of decrees be mandatory for judges, but will not be of application, most of which have not yet In terms of collective bargaining, these applicable in cases of discrimination or been published. However, they should be ordinances modified the questions that harassment. published before 31 December 2017. could be negotiated within a company, based on the principle that the labour In addition, a standard form of dismissal standards should be decided as close to letter has been created for small companies, the company in question as possible. For and the legal dismissal indemnity has been example, companies can now negotiate increased. From now on, it cannot be lower overtime and working time calculated as a than a quarter of a month of salary per lump sum of days (forfait jours). Similarly, the year’s service for the first ten years and a rules relating to the bargaining of collective third of a month of salary per year’s service agreements in the absence of union for the following. Naturally, it is still possible representatives, a situation which often that a collective bargaining agreement arises in smaller companies, have been could provide for higher sums, in which changed. It is now possible to negotiate case that agreement will supersede this with employee representatives, or even with minimum. an employee given authority by a union or, There has also been an affirmation of a right for very small companies, by holding a vote. to work from home, and modification of The ordinances also provide for a merger the rules regarding job termination by way of the employee representative bodies of voluntary agreement. This agreement, (employee representatives délégués based on the practice of the voluntary leave du personnel, works council comité plans, will be submitted to the validation d’entreprise, and health and safety of the administration and will result in committee CHSCT) into a single institution the collective mutual termination of the (the social and economic committee contracts of the employees involved. They le Comité social et économique). This will not be considered as dismissed. committee will even have the power to

Isabelle Pontal Counsel T +33 1 45 05 80 08 E [email protected]

12 GERMANY

On 13 February 2017 the German Parliament elected. The works council or the employer passed the Law to Promote Salary must determine equal positions from at least Transparency between Women and Men. six other employees of the other sex. Its main purpose is the removal of pay Duties to verify and evaluate inequalities between women and men and remuneration structure the promotion of equal pay for equal work. Private companies with more than 500 Statistically, women are still not paid equally employees have to verify their remuneration to men. In Germany, there is a general structures and publish the results of their gender salary gap of up to 21%. The new study. legislation aims to decrease this gap from 21% to 10% by 2030. More transparency in It can be expected that these reporting wage structures and wage agreements shall obligations, as well as the right of help to eliminate the causes of unequal pay employees to request that their employer between women and men. discloses the level of salary of their Prohibition of direct or colleagues, will in the long term indeed indirect pay discrimination lead to greater transparency and a more Direct or indirect pay discrimination based coherent salary structure which will reduce on sex for the same or equal work is discrimination and lead to equal pay. prohibited, meaning that any agreement that provides for this is legally void. This prohibition also includes collective agreements. The employee has the right to be treated as if the discrimination had not taken place (i.e. to receive a salary increase, including back pay). Individual right to information Employees are entitled to a right to request information from their employer which covers the comparison of salaries of employees (of the other sex) who hold similar positions in the company. This claim can be repeated every two years by workers in establishments with more than 200 employees. The employee has to refer the request to the works council or to the employer, if there is no works council

Prof. Dr. Martin Reufels Partner T +49 221 20 52 331 E [email protected]

13 GREECE

Collective dismissals dismissals can be made 60 days after the public contracts and public procurements or Greek Law 1383/1987 on collective filing of the consultation minutes. in funding and aid schemes. dismissals has been amended, so that Collective labour agreements Also, where a violation entails direct administrative approvals are no longer Until the end of the Economic Adjustment or grave danger for employees’ health required for the implementation of a Program on 20 August 2018, any company and safety, the labour inspectors may collective dismissal scheme. The old collective labour agreements (concluded temporarily suspend the operation administrative approval procedure has between a Company and its employees’ of the company, until the situation is been replaced by a mere notification to representatives) shall continue to supersede resolved. If the company, even after the the Supreme Council of Labour, of the any sectoral collective labour agreements. temporary suspension of operation or minutes of consultation with the employees’ The provisions for making a collective other administrative sanctions, continues representatives, signed by both parties. labour agreement which binds 51% of to systematically violate health and safety The consultation period has also the employers in a sector or profession requirements, the labour inspectors may been extended to 30 days mandatory shall continue to be suspended recommend the definite closure of the If an agreement is reached, the until this date. operation. collective redundancies can be effected Trade unions Court procedures in accordance with the terms of the The Greek Law on trade unions has been Court procedure deadlines for the agreement, after the expiry of a ten day- amended to provide that a member of a determination of a hearing date and the period from the date the minutes are filed. trade union can be dismissed if they have issuance of the Court judgment (in cases of If no agreement is reached, the Supreme stolen from or embezzled their employer, disputes regarding the nullity of a dismissal Council must issue a decision within ten as well as if the member unjustifiably does or the payment of due salaries) have been days after the date of filing, on whether not come to work, for a period longer than accelerated. Additionally, employees now the obligations of the employer in three days. have the right to issue a court order for respect of information, consultation and payment in cases of unpaid salaries. Sanctions documentation filing were met. If the Supreme Council rules that the employer’s The labour inspectors have been granted obligations were met, then the collective additional rights to directly impose redundancies can be effected after the administrative sanctions on employers who expiry of a 20 day-period from the issuance refuse access to their premises, refuse to of the decision. If not, the Supreme Council provide requested information, or provide shall extend the period of consultations or incomplete information. set a deadline for the employer to fulfil its The administrative and criminal sanctions obligations. If the Supreme Council then in case of grave or very grave violations of ascertains that the obligations were met, the employment legislation have become then the collective redundancies can be stricter, including, amongst others, the effected after 20 days from the issuance sanction of exclusion from participating in of the decision. In any case, the collective

Terina Raptis Partner T +30-210-3670400 E [email protected]

14 HUNGARY

Changes to the Labour Code members have gathered over the years to internal policies, instructions and other In 2017, there were no major changes to the the to come. documents, (ii) the accuracy of the Labour Code. One of the most important calculations regarding the claimed This means that, besides the student changes is that a new public holiday (Good amounts if the claimed amount is cooperatives, cooperatives of pensioners Friday) was introduced. After the change, disputed, and (iii) in case of a dispute will also be on the market. It is expected there are now eleven public holidays in regarding the remuneration, the that, in certain cases, consortiums of Hungary (including Good Friday). payment of the respective remuneration, student cooperatives and cooperatives of shall now be borne by the employer. Under a bill that is currently being discussed pensioners may offer their labour forces jointly to employers. Changes regarding data by the Hungarian Parliament, some labour protection rules in 2018 safety and occupational health-related New Civil Procedural Act The new general data protection regulation modifications to the Labour Code may be from 1 January 2018 of the EU (Regulation 2016/679) will be expected, which would be effective from 1 The New Civil Procedural Act will enter into applicable from 25 May 2018. This will, of January 2018 if the bill is accepted by the force on 1 January 2018. This will also affect course, affect all employers processing Parliament. In addition to this, the definition the procedural rules of employment-related the personal data of their employees. of an employee representative would disputes. There are some changes to the Employers must take the necessary steps cover, besides the members of the works current procedural rules, mainly in favour of to comply with the new data protection council, the shop steward and the employee employees. Such changes include, among requirements before 25 May 2018. representative on the supervisory board of others, the following: a company, the representative of the trade union at the employer as defined by the ▪▪ Changes to the rules for determining Labour Code as well. the competent labour court. Employees may initiate the legal dispute in front Cooperative of pensioners of the labour court that is competent The Hungarian Parliament approved an based on the residence or temporary act creating a new type of cooperative in of the employee or according 2017: the cooperative of pensioners. This to the employee’s place of work (e.g. if will create a possibility for pensioners to the employee has a new position at a return to the labour market. Cooperatives new employer, a legal dispute against of pensioners may be established with his/her former employer may be initiated the objective of providing employment in accordance with the employee’s new for active elderly people, to reactivate place of work; it is irrelevant where them on the labour market and to improve the former employer’s permanent their economic and social status. Other establishment was). objectives of a cooperative of pensioners include providing a way to pass on the ▪▪ The burden of proof regarding (i) the wealth of knowledge and experience the content of the collective agreement,

Dr. László Pók Partner T +36 1 472 3000 E [email protected]

15 IRELAND

Gig economy must be met in order to succeed in a conducting such investigations. The recent Given the pace of developments in personal injury claim arising out of alleged decisions have to some extent recalibrated technology, new models of working workplace bullying is now quite high. The fair procedures during investigations back relationships continue to evolve. Employers decision also clarifies that a breach of fair to what employers were familiar with prior to find themselves having to adapt to facilitate procedures by an employer in the course of the Lyons case. novel ways of working and the boundaries an internal HR process does not, in and of of this have yet to be established. To date, itself, constitute bullying of the employee, we have not had a seminal judgment on the subject of that process. Provided they the issue of gig status (where individuals continue to adopt a fair and reasonable are engaged on an ad hoc basis for gig approach when managing employees, business). However the concept of the sticking closely to their internal processes gig economy is a ‘live’ issue for many and affording employees fair procedures, employers. It is likely just a matter of time they may proceed with the management of before we see an Irish decision in this . employees’ conduct and performance with confidence. Priority drafting of legislation for those on Investigations and fair procedures low/insecure hours has been directed by the Government. The Employment Equality In the case of Lyons v Longford Westmeath (Miscellaneous Provisions) Bill is expected Training and Education Board [2017] IEHC by the end of 2017. Low-hours contracts 272 the court held that where the outcome are often used by employers to deal with of an investigation is potential dismissal seasonality in their business. Whilst they or an adverse impact on an employee’s are an attractive proposition for some reputation the employee has the right to workers, for the vast majority they result in cross-examine the individual accusing him/ financial insecurity and uncertainty. The new her of wrongdoing and the right to legal proposals are designed to ensure that the representation during the process. law is fit for the modern workplace. This was followed by two further High Court Bullying decisions on this point in the cases of EG The Irish Supreme Court issued an v The Society of Actuaries Ireland [2017] important decision on workplace bullying IEHC 392 and NM v Limerick and Claire in Ruffley v The Board of Management Education and Training Board. The latter of St. Anne’s School [2017] IESC 33. This decisions are a welcome development has brought much needed clarity to the from an employer’s perspective. They law in this area and provides a degree clarify that not all internal investigations of comfort for employers in relation to automatically give rise to courtroom-esque managing employees. The threshold that entitlements and that employers should be striving for fairness, not perfection, in

Duncan Inverarity Partner T +3531 649 2401 E [email protected]

16

Law no. 81 enacted on June 13, 2017 (Jobs leave and benefits for self- ▪▪ the rest times and the technical and Act Autonomi), provided for the extension employed people are also included. organisational measures ensuring of certain protection rights to self-employed that the employee logs off from IT people and the introduction of a first set of In addition, Jobs Act Autonomi introduced connection during those times; and rules governing ‘smart working’. provisions in relation to the competence of the Labour Court in deciding cases involving ▪▪ the exercise of the employer’s control Protection for self-employed people self-employed people under certain over the working activity carried out The new provisions are aimed at preventing circumstances. outside the company premises and the certain commercial practices which give relevant disciplinary power. Smart Working rise to an excessive contractual imbalance Remuneration and benefits of the smart in favor of the client. Clauses reserving The Jobs Act Autonomi introduced rules on worker must be equivalent to those granted the client’s right to unilaterally change ‘smart working’ for the first time. to the employees performing same duties contractual terms or (in case of professional Smart Working is not a new type of at the company premises. Also health service performed “on a continuous basis”) employment contract, but a different way and safety requirements should be met; to terminate the contract without proper of performing working activity unrelated the employer must communicate, at least notice, as well as clauses by means of to specific locations and working time annually, to the worker and to health and which the parties agree terms of payment regulations, save for the need of complying safety representative, the risks related to longer than 60 days from the date of with the daily and weekly working time smart working. receipt of invoice or payment request, are limits set forth by law and collective now unlawful. Moreover, it is unlawful for a agreements. Such a scheme is mainly client to refuse to enter into the contract in relevant to employees providing, in whole writing. As a consequence, such clauses or or in part, services that do not require behaviours are deemed null and void and physical presence in the company, or trigger the self-employed person’s right to special equipment. damages. The law requires that a Smart Working The Jobs Act Autonomi has also introduced arrangement be agreed in writing. The rules on and relevant economic agreement can be on an open or fixed term consequences. It confirmed a general basis. Depending on the term, different principle whereby, unless the termination rules will apply. The agreement falls under the scope of the contract and must govern: it is expressly remunerated, the self- employed person is deemed the owner ▪▪ the actual performance of the working of the intellectual property rights arising activity outside the company premises, from invention made in the course of in connection with the instructions providing the services. Additional provisions by the employer and the use by the concerning, among other things, parental employee of IT equipment;

Cristina Capitanio Partner T +39 06478751 E [email protected]

17 LATVIA

On 16 August 2017, amendments to the If the employment relationship is terminated a health condition, which is verified by a Labour Code came into effect, which before the granted paid time of rest is used, physician’s opinion, will come into effect introduce several improvements in the legal the employee will be eligible to receive the immediately, and not in 10 days. framework governing employment. additional payment for overtime work. Breaks during work Restrictions on rights Reimbursement of expenses If an employee is prohibited from leaving of the employee on vocational training the workplace during the break, the break The amendments to the Code specify The legislator has eliminated the current shall be included in the working hours. that compensation for non-competition legislative gap in the Labour Code, clauses shall be paid after termination of meaning that, where an employer ends The employer’s right to join general agreements concluded in the employment relationship. The non- an employee’s employment due to the the industry or in the territory competition obligation is subsequently employee’s behaviour, the employer will Employers, groups of employers, employer extended also to non-solicitation of have the right to request that the employee organisations, and associations will have customers and employees of the former reimburse expenses on vocational training a right to join a collective bargaining employer. and qualification improvement measures agreement previously concluded in (sub-paragraphs 1-5 of paragraph one of the industry or territory. If the employer Additionally, the employer will be able to Article 101 and paragraph five of Article 101 secedes from the employer organisation withdraw from a non-competition agreement of the Labour Code). during the notice period after receipt of the or association after joining the collective employee’s notice of termination. Extra leave bargaining agreement, the respective The new amendments stipulate that paid collective bargaining agreement shall still These modifications expand the employer’s extra leave for the current year should be be binding on the employer. right to restrict rights of the employee granted and used before the annual paid to perform a side job by preventing the leave of the following year. payment in employee not only from entering into an lieu of the extra leave is allowed only upon employment contract with other employers terminating the employment relationship, but also from entering into any other if the annual paid extra leave has not been contract governed by the for used. performance of work. Changes concerning termination Changes in legal framework of the employment relationship governing overtime work The employer will be able to give notice of Instead of an additional payment for termination of an employment contract to an overtime work, it will be possible to reach an employee while the employee is suspended agreement on paid time of rest in lieu. The from work. employer and the employee are entitled to agree on adding the paid time of rest to the The employer’s notice of termination by annual paid leave. reason of employee incapability due to

Irina Kostina Head of Employment Law Practice T +371 67814848 E [email protected]

18 MACEDONIA

The key employment law change in 2017 influential. The amendments state that employer), it must return all the financial in the Republic of Macedonia has been the the employer will determine SWRs in assistance it received 30 days after such a Amendments to the Law on Minimum Salary cooperation with the employees. However, termination. (Minimum Salary Law) workers’ unions fear that the law is unclear Misdemeanour provisions on the role of the employees here and how The amendments were introduced in late they are to agree this, and that, additionally, Some misdemeanour provisions were also September 2017. The new Macedonian this will allow for employers to circumvent introduced. These provide that an employer Government had previously campaigned paying the increased minimum salary by may receive a fine of EUR 4,000.00 to on the matter and the new amendments setting unachievable SWR thresholds. EUR 6,000.00 if the employer does not increase minimum monthly salary to the determine SWR or confirm what the SWR net amount of MKD 12,000.00 (approx. Financial assistance to employers are, or does not pay the minimal salary or EUR 195.26) from MKD 10,080.00 (approx. A new addition provides for financial contributions. EUR 163.79). The average monthly pay assistance for the payment of minimum for workers working less than full time is salaries, paid for from the budget of the calculated on a basis of hours worked, Republic of Macedonia. This assistance discounting overtime. The specifics of the is provided if certain conditions are met, mechanism are outlined below: including:

Standardised work results (SWR) ▪▪ the employer is not relieved from the Article 2 of the Minimum Salary Law, which payment of compulsory contributions; defines minimum salary as “the lowest monthly amount of basic salary which the ▪▪ no bankruptcy or liquidation procedures employer is obliged to pay to the employee have been initiated; for work done during full-time hours, if ▪▪ the employer has reported a loss, or net standardised work results are achieved”, gain after taxation in the amount of less is now expanded with the introduction than 10% of total expenditures; and of subsections specifying how SWR are determined. SWR must be achievable for ▪▪ the employer has paid all salaries, at least 80% of the workforce, and the compulsory social insurance employer is obliged to issue a confirmation contributions and taxes. each month that this is the case. The employer that receives financial Achieving SWRs is a condition for receiving assistance is obliged to keep the employee the minimum pay which has caused quite for a period of one year after the period for the uproar in sectors where most of the which they received financial assistance has employees earning minimum salary are ended. If the employer does not uphold this found (textile, leather, shoe and the mining requirement (provided that the termination industry) and where SWRs will be most of the employment agreement is due to the

Art Mehmeti Associate, Law Office Veton Qoku in cooperation with Karanovic & Nikolic T +389 2 3223 870 E [email protected]

19

As has been the case for the past couple within four years (the current law provides Sector entered into force and will be valid of years, Montenegrin employment and that those claims never prescribe if incurred indefinitely. labour legislation did not face any significant since 2008). changes in 2017. However, it is notable that It will apply to all employees and employers the Government of Montenegro prepared However, the draft has been criticised whose activity is in the energy sector its first draft of the new Employment by the non-governmental sector and (regulated by the Law of Energy), while Law. Additionally, one of the major acts Montenegrin Agency for the Prevention some of the provisions will be further governing employee rights, the General of Corruption (which has already filed detailed through employers’ collective Collective Bargaining Agreement, is still in 14 complaints about the draft). The main agreements and individual employment effect and will last until June 2018. Finally, issues are that the draft enables employers contracts. the Energy Branch collective agreement to manipulate employment contracts and The Agreement regulates salary issues, the was adopted. avoid the obligation to make temporary employees permanent (which the draft responsibilities of employees, the protection Draft of the new Employment Law provides that the employer has to do after of work, redundancy rights, and other issues of importance to this sector. On 4 August 2017, the Government three years of temporary employment). announced the first draft of the new Moreover, it is stated that employment Employment Law, and invited all interested agencies may also manipulate and misuse parties to participate in a 40-day public their authority, as they have unlimited discussion. The Government reported that authorisation to conclude and terminate the adoption of the new law comes from employment of up to 59 days. Finally, the the desire for further harmonisation with employer may request the reconsideration the EU acquis envisaged by the Action of sick leave, which, according to the Plan for Negotiation Chapter 19 (related critics, also jeopardises the rights of the to Montenegro’s accession to EU) and ILO employees. The employer is entitled conventions and recommendations. to seek a review of the justifiability of employee’s sickness, which may be Some of the most important goals of the interpreted as an interference in the work proposed law are the suppression of the of other state bodies (medical institutions grey economy and finding the instruments which issue certificates on sickness and for the legal battle against it. Additionally, recommendations for sick leave), inferring this draft extends the protection of that those bodies made a mistake or workers during periods of parental leave misused their rights. and imports certain changes in the employment procedure (in order to speed Energy Branch Collective up and facilitate the procedure). One of Agreement the major changes is the re-introduction On 12 November 2016, the Branch of the prescription of claims arising from Collective Agreement for the Energy employment – claims must be brought

Stefan Lučić Attorney at law in cooperation with Karanovic & Nikolic, Associate T +382 20 238 991 E [email protected]

20 NETHERLANDS

Pre-pack business sales substantiate one of the other dismissal maximum three months may be agreed On 22 June 2017, the European Court of grounds. If the employment contract is instead of maximum two months. Justice rendered its judgment in the Dutch terminated based on this new dismissal ▪▪ Changes to sick-pay for small Smallsteps (previously Estro) case. In 2014 ground, the court may grant the companies: Companies employing up Smallsteps bought 243 of the 380 Estro’s employee an additional compensation to 25 employees will be required to childcare locations in the Netherlands. On 5 of up to half the statutory severance continue salary payments only during July 2014, the day Estro Group was declared pay. the first 52 weeks instead of 104 weeks. bankrupt, a pre-packaged sale agreement ▪▪ Amendments to statutory severance was signed between the bankruptcy trustee pay: Service after ten years will be ▪▪ Extension of paternity leave: Current and Smallsteps. Smallsteps then offered weighted the same as prior service paternity leave entitles partners to some 2,600 of the 3,600 a new years at one third of monthly salary per two days’ leave with full wage after employment contract. The rest of the staff year instead of half of monthly salary per childbirth, which should be taken within were dismissed by the trustee. The ECJ year. Employees will start accruing the four weeks. As of 1 January 2019, this ruled that this pre-pack (flitsfaillissement) payment on the first day of employment will be extended to five days. The plan qualifies as a transfer of undertaking. The instead of after two years. is that partners will receive additional Court found that the pre-pack was aimed paid paternity leave of five weeks from 1 at continuation of (part of) Estro’s business ▪▪ Changes to rules around fixed-term July 2020, to be taken within the first six and not the liquidation of the business. contracts: Under the current rules, no months after childbirth. The employees involved are therefore more than three consecutive fixed-term protected under the European transfer employment contracts can be agreed ▪▪ Taxation of independent contractors: of undertakings Directive. This matter in two years before the employment The existing legislation on wage tax and was referred back to the Dutch court for converts into a permanent contract, social security when hiring independent reconsideration, including considering if unless the employment is interrupted contractors is expected to be abolished, honouring employees’ claims will go against for a period of six months or more. This and new legislation introduced to the principle of legal certainty. two-year period will be extended so determine on the basis of the hourly fixed-term contracts can be agreed for a rate and the duration of the agreement Proposed reforms to Dutch whether a work relationship qualifies employment law maximum period of three years before the contract converts. as an employment agreement or an On 11 October 2017 the newly formed Dutch independent contractor agreement. government published its plans for the ▪▪ Changes to rules on probationary four years in the Coalition Agreement periods: If an employer offers a (Regeerakkoord). The most important permanent contract for the first time, a proposals are: probationary period can be agreed for a maximum of five months (rather than the ▪▪ Cumulative dismissal ground: The current two). For contracts lasting two introduction of a cumulative dismissal years or longer, a probationary period of ground, for use in cases where the facts and circumstances are not sufficient to

Els de Wind T +31 20 678 9242 E [email protected]

21 NORWAY

Restrictive covenants ▪▪ Limited to customers the employee has ▪▪ procedure for notification; and On 1 January 2017, new regulations had the responsibility for or contact with ▪▪ procedure for receipt, processing and regarding restrictive covenants in in the last year. following-up of notifications. employment relationships entered into c. Non-poaching of employees force. For agreements entered into after 1 The steps shall be prepared in cooperation January 2016, the regulation has been in ▪▪ Prohibition against non-poaching with the employees and the employee force since 1 January 2016. clauses between the employer and representatives. The steps must be in other undertakings. writing and be easily accessible for all Restrictive covenants are regulated in a new employees. Chapter 14 A in the Working Environment ▪▪ Exemption in case of transfer of Act (WEA). The new regulations set forth undertakings on certain terms. Any public authority receiving notifications strict requirements in order to invoke must keep confidential the whistleblower’s restrictive covenants. The main points of the ▪▪ Non-poaching clauses between the identity and other information identifying the new regulations are: employer and the employee are not whistleblower. regulated. a. Non-competition The whistleblowing protection is extended The CEO may be exempted from the new to include hired-in workers. ▪▪ Maximum length of one year from regulations by waiving his/her protection cessation of the employment. against severance pay. Legal initiatives At the government’s initiative, an expert ▪▪ The employer must have a particular The new regulations in the WEA set forth group is reviewing the whistleblowing need for protection against competition. strict notification procedures when invoking regulations. The group shall consider the non-competition and non-solicitation ▪ The employee must be paid whether there is a need for further ▪ obligations. compensation equal to 100% of the amendments in order to strengthen the total compensation (salary etc.) up to Whistleblowing employees’ whistleblower protections under Norwegian law. The group will present a eight times the Basic Amount and at The whistleblowing regulations have been final report to the government on 1 March least 70% of the compensation above amended with effect from 1 July 2017. The 2018. that (the Basic Amount is set by the regulations have been separated into a new National Insurance and is currently NOK Chapter in the WEA. The government has also initiated 93,634 – approx. EUR 9,750 – per year). amendments to the regulations in the The compensation may be limited to 12 Under the new regulations, there is a WEA regarding permanent employment, times the Basic Amount. requirement for all enterprises with more temporary employment and hires from than five employees to have written steps temporary staff recruitment agencies, b. Non-solicitation of customers for internal notification. These include: in order to strengthen the employment ▪▪ Maximum length of one year from ▪▪ encouragement to notify of any protection for temporary employees cessation of the employment. ‘censurable conditions’; and hired-in personnel. A hearing was concluded 29 September 2017.

Martin Jetlund Partner, Head of Employment T +47 23 01 15 71 E [email protected]

22 POLAND

2017 was an eventful year for laws in with more information. The new provisions retirement. Those not entitled, but reaching Poland, including employment law. More increase liability for failing to comply with retirement age before 1 October 2021 enjoy changes are expected in forthcoming years, the temporary work regulations with fines pre-retirement protection of employment for but certain changes have already been of as much as PLN 100,000 (approx. 23,830 four years from 1 October 2017. enacted. The key changes are described EUR). Foreigners’ seasonal and below. ZUS has a new power short-term work Minimum pay for contractors From 13 June 2017, the Social Insurance From 1 January 2018, it will be easier to From 1 January 2017, there has been Institution (ZUS) may determine, through obtain permits for seasonal work for citizens a minimum hourly rate for individuals one administrative decision (previously two of , , , , performing a commission or providing separate decisions were needed), the actual Russia and Ukraine as the work legalisation services, with no possibility of them waiving remitter of social security contributions procedure in such cases is simplified. or transferring their right to remuneration. when payments have been remitted Payment of anything lower than the by unauthorised entities to an insured minimum rate is punishable by a fine. The individual’s account. minimum hourly rate will be increased More protection within insolvency slightly each year, from PLN 13 (approx. 3.10 EUR) in 2017 to PLN 13.70 (approx. 3.26 On 5 September 2017, employees gained EUR) in 2018. fuller protection of their claims if their employer becomes insolvent, as well More time to appeal as financial assistance to those laid off against dismissal and any applicable benefits arising from From 1 January 2017, employees have 21 employment. An important change is days (previously seven or 14) to appeal to a that the payment of advances for future labour court against the termination of their employee benefits is allowed from the date employment. of the actual (and not formal) cessation of an Protection for women who are employer’s business. Also, family members pregnant or breast-feeding who work together in the running of a business by one of them are now deemed 1 May 2017 saw the entry into force of a new employees and benefit from this protection. list of tasks that are burdensome, dangerous or harmful to pregnant or breast-feeding Pre-retirement protection women and are thus prohibited. On 1 October 2017, the retirement age in Tightening of rules for hiring Poland was reduced to 60 for women and temporary workers 65 for men. Current and former employees From 1 June 2017, user-employers must who enjoy or would have enjoyed keep registers of temporary workers whom protection on 1 October 2017 will be entitled they hire and provide temping agencies to it now for the entire period until reaching

Katarzyna Żukowska Adwokat T +48 22 437 82 00 E [email protected]

23 PORTUGAL

FORTHCOMING LEGISLATION rests periods, even though exceptional an employment agreement, which was Amendment of the legal rules on the cases are contemplated. Specific rules created to limit the misuse of independent transfer of undertakings or business may be provided in collective bargaining contractor agreements in order to avoid establishments agreements. giving workers employment status. This special legal regime has been recently RECENT CHANGES The Portuguese Parliament is currently amended to encompass not only false Harassment at work debating the Draft Law designed to amend independent contractors, but also to cover the legal framework on the transfer of The Labour Code has been recently other situations of undeclared work, such as undertakings. The amendments envisage amended to incorporate specific measures false internships or false volunteering. increasing workers’ guarantees and the on harassment prevention. transparency of such transfer processes. Finally, if the worker is dismissed before Highlights include: the final court ruling is issued, the law now This Draft Law seeks to clarify the concept provides for an interim measure to suspend ▪▪ the right to compensation for pecuniary of an ‘economic unit’ and to avoid the dismissal pending the ruling, increasing and non-pecuniary damage, whenever contradicting decisions, depending on the rights of such workers. harassment occurs; the sector or the case-by-case evaluation conducted. It also seeks to expand the ▪▪ the introduction of specific provisions to joint liability of the transferor for labour ensure the protection of the victim and , to introduce an information duty to witnesses in harassment proceedings; labour authorities with supervisory powers, and to deal with administrative offences ▪▪ the obligation to adopt a code of good related to the breach of these obligations. conduct in companies with seven or The aim of such measures is to avoid more employees, to prevent and combat fraudulent conduct by certain companies harassment at work; and and to safeguard the professional status of ▪ the obligation to start disciplinary impacted workers. ▪ proceedings whenever the employer Professional disconnection becomes aware of alleged harassment Another expected forthcoming change situations. to labour law is the introduction of a In addition, it is now expressly provided that professional disconnection right. The draft the employer is also liable for the damages law expressly provides for a duty of non- in respect of illness directly caused by the communication with the worker during his/ harassment. her rest periods. Undeclared subordinate work The aim is to ensure that the use of digital Since 2013, there has been a special judicial tools in the employment relationship does procedure to determine the existence of not impede the worker’s right to enjoy

Nuno Ferreira Morgado Partner T +351 213 197 471 E [email protected]

24 ROMANIA

Increased minimum to the child’s birth and has been capped at employees’ gross base salaries, although gross base salary RON 8,500 (approx. EUR 1,828). future legislative measure may mean that any amendments of the gross base salary From 1 January 2018, the minimum monthly Increased sanctions for gross base salary guaranteed for payment undeclared work must be made only with the employee’s for full-time workers was increased to RON express agreement. The Labour Code has been amended, 1,900 (approx. EUR 408). providing for a definition of ‘undeclared Within this context, the government Posting of workers in the work’ and a new obligation to conclude has issued a new piece of legislation, framework of the provision and register any employment contracts or obliging all employers to initiate collective of transnational services amendments to these contracts prior to negotiations in order to enforce the In March 2017 Law no. 16/2017 was the employment or amendment coming amendments brought to the Fiscal Code. adopted, which transposed the provisions into effect. The amendments provide for However, the signing of such a collective of European Directives 96/71/EC and a stricter of work to be kept by labour agreement is not mandatory under 2014/67/EU. Under the new provisions, the employers, including keeping copies of the Romanian law. Labour Inspectorate is entitled to perform employment contracts at the work place and evaluations of all factual elements that keeping track of the daily work schedule characterise a transnational posting (such of each employee. Criminal liability has as analysis of the main activity for which the been removed for employers who do not company is authorised and the object of the conclude employment agreements in writing services agreement etc.), to determine if for more than five employees, while the such posting is genuine or not. amendments to the Code provide for higher fines in the case of persons working without Support for apprenticeships and internships having signed individual employment agreements, part-time employees working Employers concluding apprenticeship overtime etc. contracts or internship contracts will receive, upon request, a monthly amount The fiscal revolution and of RON 1,125 (approx. EUR 242) or RON temporary additional collective 1,350 (approx. EUR 290) respectively, negotiation obligation for the entire period of the respective As of 1 January 2018, the obligation to make apprenticeship or internship contract, from certain social security contributions will be the unemployment insurance budget. moved from the employer to the employees. The employee’s gross base salary will be Capped indemnity for affected since the fiscal charges applicable childcare leave to it have been increased and therefore, The amount of the monthly childcare leave their net income will decrease significantly. payment is 85% of the average monthly While this piece of legislation has caused income earned in the last 12 months prior employers to consider an increase in the

Luminița Dima Partner T +40 31 225 33 61 E [email protected]

25 RUSSIA

Less stringent rules for necessary to arrange ongoing training for for a temporary stay are included in this micro-enterprises employees (16 hours per year). requirement. It is possible to register for migration only in the territorial units of the Starting from 1 January 2017, micro- Part-time work arrangements enterprises (legal entities with an average Ministry of Internal Affairs via the hosting Starting from 29 June 2017, part-time work of fewer than 15 employees and annual party. may include both a part-time working day earnings of less than 120 million Roubles (shift) and working only certain days of the (approx. EUR 1.7 million); quite often start- week including split working days. No such ups) are not obliged to implement the full opportunity existed before – employees had set of mandatory HR policies. Until they to choose between only working certain maintain the status of microenterprise, they days of the week, or else working for limited are allowed not to adopt Internal Labour hours each day. Regulations (main workplace policy of an entity), Compensations and Benefits Policy Certain categories of employees are and some other policies required by the law. entitled to request any mix of part-time Sick leave digitalisation working arrangements for as long as they hold the relevant status. For example, this Starting from 1 July 2017, instead of a includes pregnant women or women on hard copy document, employees may be childcare leave until the child reaches the provided (subject to their consent in writing) age of three. with a sick leave certificate in a digital form. However, in order to do this, the Open-ended working employer and medical institution have to be day restrictions registered in a special electronic information Starting from 29 June 2017, open-ended system of the Social Insurance Fund of working days can be set out to employees Russia. working part-time only if the employee Training on civil defence works more than eight hours per day. Starting from 2 May 2017, organisations Migration law have been obliged to provide employees Due to the 2018 FIFA Cup that will with Civil Defence Instructions within be held in Russia, all foreign citizens who one month from the date of their hiring. arrive to Volgograd, Ekaterinburg, Kazan, Specifically, the organisation has to plan Kaliningrad, Moscow, Nizhny Novgorod, and organise training about this topic as Samara, St. Petersburg, Saransk and Sochi well as to inform new employees about the during the period from 25 May to 25 July evacuation procedure, forms of notification 2018 will be obliged to register for migration about the danger, etc. Moreover, it is within one day of crossing the Russian border. All foreign citizens who arrive

Irina Anyukhina Partner T +7 495 234 9692 E [email protected]

26 SERBIA

Serbian employment and labour legislation Convention No. 181 on Private Employment each other in this tripartite relationship are did not face any significant changes in Agencies in 2013, which necessitates the sufficiently clear. 2017. The main changes relate to the recent production of national rules that introduce introduction of a new minimum salary at and frame the concept of staff leasing in line We anticipate that this law, once adopted, state level, and the anticipated staff leasing with ILO guidelines. will greatly contribute to legal certainty and regulation that will be adopted in the near predictability in the local business market. future. In light of this, the Ministry of Labour announced some time ago the enactment New minimum salary of a separate law that would regulate staff A new minimum salary amount has just leasing through local employment agencies. been agreed upon on a state level between A special work group, which includes the representatives of the Government representatives from the Ministry of Labour, of the Republic of Serbia, representative trade unions, representatives of employers trade unions at the state level and the and local employment agencies, has been Serbian Association of Employers. The new organised to prepare the first draft of this minimum salary is set to RSD 143.00 net per regulation. The work group has been working hour (approx. EUR 1.17) and it will engaged on this draft for more than a year, come into force from 1 January 2018. and it is expected that their work will be finalised soon, after which their proposal of All employers need to abide by this new the future law should be released for public amount and cannot provide employees discussion before it is presented to the with a basic salary that is below this legal Parliament for final adoption. minimum. Although the title and content of this future This new amount overrides the previously law that will regulate staff leasing are valid minimum salary that was in force since currently in progress, it is expected that January 2017, in the amount of RSD 130.00 this new law will focus on guaranteeing the net per working hour (approx. EUR 1.06). same level of employment rights to persons Law on Staff Leasing engaged via staff leasing as those provided to regular employees within the company The concept of staff leasing is currently in which they perform their work, all in line not regulated in the Serbian employment with the European standards of equal pay legislation, though this manner of and equal treatment. Also, this law should engagement is present in local business regulate in detail the mutual relations practice and has grown over recent years. between the company who uses staff The need for formal regulation of this issue leasing services, the employment agency arises also from the fact that Serbia ratified and the leased worker, so that the rights the International Labour Organisation and obligations of all participants towards

Jelena Danilović Attorney at law in cooperation with Karanovic & Nikolic, Senior Associate T +381 11 3094 427 E [email protected]

27 SLOVAKIA

Extension of collective bargaining for employers to follow the process and For comparison, the minimum gross wage in agreement of higher degrees check the Commercial Journal and Codex 2017 has been EUR 435 per month or EUR On 1 September 2017 a change to the law regularly. 2.50 per hour. on collective bargaining was adopted which This is the second attempt of the Slovak Expected changes in 2018 introduced an instrument of ‘representative’ Government to introduce generally binding parts of collective bargaining agreements of The Slovak Parliament was provided collective bargaining agreements while the higher degrees (CBA-HD). with a draft law on further changes to the first one was ruled unconstitutional by the Labour Code. Under the draft law, new The CBA-HD are collective bargaining Constitutional Court of the Slovak Republic. mandatory preferential wage rates for agreements concluded between a group Therefore, the actual impact of the change work on Saturdays and Sundays are to of employers in certain sectors and is unclear. be introduced, while the already included representative trade unions of employees mandatory preferential wage rates for Employment of Foreigners in this sector (currently there are 17 of such work at night should be increased. As agreements). Previously, they were binding On 1 May 2017 changes to the law on the draft law is only in the early stages of only on the employers who signed them. foreigners’ stay in the Slovak Republic and adoption, and several draft amendments However, the new change means that a also to the law regulating their employment have been introduced, the final structure request either by the trade unions or by were adopted which introduced several of the preferential wage rates is still to be both parties to the CBA-HD can be made instruments to simplify the employment discussed. to the Ministry of Labour, Family and Social and registration process for stay of certain Affairs to declare the CBA-HD or its parts categories of employees who are non- The Slovak Government presented binding for all employers in the respective Slovak citizens. their intention to introduce a mandatory sector without their express consent by preferential wage rate for work on The changes aim to simplify the process declaring it ‘representative’. Saturdays and Sundays earlier this year and for multinational groups of companies and so it is very likely that this will be introduced. The process of declaration by the Ministry intra-group employee transfers, as well as of Labour, Family and Social Affairs is rather for seasonal employees. The new rules are long. Employers who have not signed strict and provide several requirements the CBA-HD have only five days from and limitations for each category and thus the start of the process (published in the each individual case should be reviewed publicly available Commercial Journal), to separately. present any response to the declaration Increase of Minimum Wage and its reasoning.. The final declaration From 1 January 2018 the minimum gross on ‘representation’ (i.e. extension) will wage will be EUR 480 per month or EUR be published in the Codex of Statutes 2.76 per hour (in the case of hourly paid of the Slovak Republic (the Codex). The employees). This amount is set for a regular CBA-HD will be binding for all employers 40-hour work week and for jobs of level 1 in the relevant sector from the date of difficulty. publication in the Codex, and so it is crucial

Jana Cernakova Partner T +421 2 5441 4441 E [email protected]

28 SLOVENIA

The Slovenian employment and labor a prohibition on performing business if requirements for approval of the action did not introduce significant an employer fails to pay their employees exist. Only after that it will proceed with changes in 2017. However, certain novelties correctly and on time. deciding on the outcome of the claim. were introduced in the Labor Market Adoption of a new Class Action Act Regulation Act and Labor Inspection Act and the new Class Action Act was The new mechanism of class action will adopted, introducing collective lawsuits and provide for injured parties, both natural and settlements for the first time. legal persons, to file a compensation claim where there has been mass harm. Besides a Amendments to the Labour collective action for compensation, the law Market Regulation Act also provides for the possibility of filing a The main purpose of the amendments collective action for the cessation of illegal introduced in October 2017 to the Labour behaviour, as well as the procedure of Market Regulation Act is to speed up the collective settlement in case of mass harm return to work of unemployed persons. events. Employees are now obliged to register in the unemployed persons register during The law regulates procedures for collective their notice period (and not only after redress in cases when the infringer its expiration). Moreover, incentives for breached consumers’ or workers’ rights, as employing recipients of unemployment well as rights arising from the prohibition allowance who have secondary education on the restriction of competition, or rights were also introduced, together with the from the financial instruments market, and in establishment of a register of student cases of damage caused by environmental employment. accidents.

Amendments to the The aim of the new law is to provide Labour Inspection Act for easier enforcement of the right to The amendments introduced in October compensation for injured individuals 2017 provide for a higher competence of and legal persons, while companies the Labour Inspectorate when it establishes which breach individuals’ rights can also that the elements of an employment be prohibited from carrying out illegal relationship exist between a particular behaviour in the future. The law also employer and its employee without there provides for safeguards against abusing being an employment contract. In such such court procedures by regulating the a case, the Inspectorate is now able to procedure, based on which the court impose an obligation on the employer will – after a preliminary assessment of to put an employment contract in place. the admissibility and the completeness Moreover, the Inspectorate can also impose of the action – first assess whether the

Minu A. Gvardjančić Attorney at law in cooperation with Karanovic & Nikolic T +386 1 200 9692 E [email protected]

29 SPAIN

Although it has not been a year ▪▪ including specific details in the notice are treated as a benefit in kind and are characterized by the existence of major (identifying an individual or legal therefore included in the computation basis legislative developments, the truth is that, entity as a liaison with the Spanish for severance pay. over the past year, the Spanish government authorities and an individual who acts No obligation to record daily has enacted some laws in the labour and as a representative of the workers of the working hours (Supreme social security field that have affected company providing the services); and Court judgments of 23 March employment relationships in a variety of and 20 April 2017). ▪▪ an obligation to hold and safeguard ways. The Supreme Court has concluded that documentation for consultation by the there is no obligation for companies to Expansion of paternity leave authorities (contracts, wages, timesheets record daily working hours and that they are to four weeks (Law 9/2009, and others). of 6 October 2009) only required to record overtime working This measure, which expanded paternity Extension of the Employment hours. leave due to birth, adoption or fostering Activation Plan (Royal Decree 7/2017) Worker’s prior consent not required from 15 days to four weeks, was included to place video recording cameras in Law 9/2009, of 6 October 2009, but had The Employment Activation Plan has been in workplace (Supreme Court been suspended until 1 January 2017. extended to 1 May 2018. This Plan aims to judgment of 31 January 2017) decrease levels of long-term unemployment The Supreme Court considers it sufficient Amendment of regulations by helping people who have difficulty to give workers general notice (by placing governing the posting of workers accessing the labour market to improve in the framework of the provision a sign in the workplace) of the existence of their employability. It defines the active of transnational services cameras in the workplace, with no need to employment policy services and programs (Legislative Royal Decree 7/2017) obtain specific consent from them. to be carried out by the State as a whole Legislative Royal Decree 7/2017 applies to and by Regional Governments under the companies established in states which are The Court also held that the measure framework of their authority in this respect, members of the EU or EEA that temporarily adopted by the company was adequate, as well as the indicators to be used to post their workers to Spain in the framework suitable, proportionate and justified and, evaluate the degree of achievement. of the provision of transnational services, therefore, the disciplinary dismissal was valid. excluding merchant navy companies’ Inclusion in the basis for seagoing personnel, and has amended the computation of severance pay of formerly applicable law. the amount paid by the company for life and health insurance (Supreme The most notable changes consist of: Court judgment of 3 May 2017) Previously, the view was that life and health ▪▪ an obligation to give notice of the insurance policies were discretionary posting by electronic means before it is benefits improving on the protection implemented; afforded by the social security system and were not included when calculating severance pay. With this new ruling, they

Ángel Olmedo Partner T +34 91 514 52 00 E [email protected]

30 SWEDEN

New legislation regarding possibilities for Swedish trade unions to organisations to register a contact person public procurement conclude collective bargaining agreements or a contact function with the Swedish Work As of 1 June 2017, new rules entered into with companies posting employees in Environment Authority. The purpose of such force in Swedish public procurement Sweden. They also implement certain contact person/function is to inform posting legislation implying that labour-law provisions of the Enforcement Directive employers about the work and employment conditions shall be required in certain public 2014/67/EU. conditions that may be required by a trade procurements. More specifically, the new union through industrial action but also to According to the new rules, Swedish rules stipulate that the contract awarding be available to answer general questions trade unions may bring industrial actions authority shall, if necessary, require the about the Swedish legislation regarding against a posting employer in order to contractor and its subcontractors to provide posted workers. conclude such an agreement, even if certain minimum levels of salary, holiday the posting employer can prove that the and working hours to its employees. These posted workers are entitled to salary and levels shall follow the minimum levels other terms corresponding to the minimum prescribed for in the central collective conditions regulated in an applicable bargaining agreement applicable for such central collective bargaining agreement. work and shall be applied in relation to Further, a posting employer is obliged, the employees performing work under the upon request by a Swedish trade union, to contract. However, there is no requirement appoint a representative who is authorised that the contractors or the subcontractors to negotiate and enter into a collective actually enter into or become bound bargaining agreement on behalf of the by a collective bargaining agreement. posting employer. The new rules also entitle Whether it is necessary for the contracting posted workers who are not members of awarding authority to require such minimum a Swedish trade union to certain terms levels shall be determined by an overall and conditions regulated in any collective assessment of all relevant circumstances in bargaining agreement entered into by the each individual procurement. The purpose posting employer. of these new rules is to prevent public contracts being performed by employees Moreover, a posting employer may not take with unfair employment conditions and to action against a posted worker who has minimise the risk of distortion of competition commenced legal or administrative actions by social dumping. in order to uphold his/her rights following New rules regarding posting from the act or a collective bargaining of workers in Sweden agreement. An employer who acts in breach of this prohibition may be liable to damages. As of 1 June 2017, new rules entered into force in the Swedish Posting of Workers Finally, these new rules also involve an Act (1999:678). The new rules increase the obligation for trade unions and employers’

Magnus Berterud Counsel T +46 8 677 54 87 E [email protected]

31 TURKEY

The major changes in Turkish employment Employee Inventions Regulation In determining the fee to be paid to the legislation during the year 2017 were (i) the Under the Employee Inventions Regulation, employee, the economic value of the enactment of the new Labor Courts Law once an employee invents something in invention, the role of the employee within numbered 7036 (New Labour Courts Law) the course of their employment, they must the operation and the contribution of the and (ii) the new Regulation on Employee notify the employer in writing, without any workplace to the invention shall be taken Inventions, Inventions in High Education delay. The employer will then be required into consideration. If the parties cannot Institutions and Inventions Realized in to register such notification. If the employee come to an agreement within two months, Projects with Public Support dated 29 fails to make such notification, then they will the issue shall be resolved by arbitration. October 2017 (Employee Inventions be obliged to compensate any damages the Regulation). employer incurs in relation to this invention. The New Labour Courts Law If the employee makes an application to the Turkish Patent and Trademark Institute The major novelty of the New Labour Courts for the registration of their patent without Law is the obligation to apply for mediation notifying the employer, the employer will before an employee initiates a lawsuit for have the right to initiate a lawsuit claiming reinstatement of employment, or for any its ownership of the respective patent and/ compensation arising from law, employment or to request the transfer of the patent agreement or collective labor agreements, under its name. which shall apply from 1 January 2018. Where the employee makes a notification, With the New Labour Courts Law, the upon receipt the employer shall notify decisions of the court of cassation will the employee whether or not it would be final and binding in cases based on like to acquire a full or partial rights to the invalidity of termination or reinstatement invention. of employment and it will not be possible to continue the appeal process before the If the employer requests full rights, all rights Court of Appeals. arising from the invention shall pass to the employer in return for a fee requested by Additionally, the time of prescription for the employee. Furthermore, the employer the initiation of a lawsuit for the collection shall also pay the employee, within two of unpaid annual leave, severance months, an encouragement bonus which payment, payment in lieu of notice, bad cannot be less than the minimum statutory faith compensation due to termination of salary (net TL 1,404 in 2017). employment and compensation claims for the termination of employment in breach If the employer requests partial rights, the of equality principles, is decreased from 10 employer will acquire the right to use the years to 5 years. invention by paying a fee to the employee.

Senem Gölge Yalçın Attorney at Law T +90 212 359 57 00 E [email protected]

32 UKRAINE

Reform of Pension Legislation The most important amendments to the perform relevant work or if there is On 3 October 2017 the Ukrainian Parliament Law of Ukraine on Legal Status of Foreign sufficient justification for employment of adopted amendments to the Law of Ukraine Citizens and Stateless Persons made by the a foreigner or a stateless person; and on Mandatory State Pension Insurance. law include that it: ▪▪ provides for a longer validity period of The amendments extended the pension ▪▪ allows a foreigner or a stateless person up to three years (instead of a general qualifying period, which must be earned to obtain a temporary residence term of one year) of work permits for by the person as employee, or otherwise permit if the applicant qualifies as a certain categories of foreign employees according to the law, to be eligible to foreign investor. For this purpose, the (high-paid, creative, IT professionals and receive social security payments. Starting Investments Law views a foreigner or a others). from 1 January 2018, the person is eligible to stateless person as a foreign investor if receive a pension if such person’s qualifying (i) he/she is a founder and/or participant period is 25 years, which will be extended and/or beneficial owner (controller) of annually by one year reaching 35 years in a Ukrainian legal entity, based on the 2028. Retirement age remains 60 years. information from the Ukrainian legal If the person’s pension qualifying period is entity register; and (ii) the amount of the not sufficient under the general rule, the participation interest contributed to the person may still be eligible to receive a charter capital of such a legal entity that pension under a special transitional rule. the foreign investor holds or controls equals to at least EUR 100,000; and Changes in laws on immigration and employment to promote ▪▪ provides for a longer validity period of foreign residence permits for foreign investors On 27 September 2017, the Law of Ukraine (two years) and for persons who obtain on Amendments to Certain Legislative a residence permit based on a work Acts of Ukraine on Elimination of Barriers permit (up to three years depending on to Attracting of Foreign Investments No. the grounds for issuance of the work 2058-VIII of 23 May 2017 (the Investments permit, instead of the previous general Law) became effective. term of one year).

The Investments Law introduces certain The most important amendments to the Law amendments that aim to streamline of Ukraine on Employment of Population immigration procedures for foreign made by the Investments law are that it: investors, as well as simplifying the receipt ▪ abolishes the general approach, which of work permits for employment of foreign ▪ has made issuance of a work permit citizens and stateless persons. possible only if there are no qualified workers in Ukraine (or its ) to

Armen Khachaturyan Senior Partner T +380 44 230 6000 E [email protected]

33 UK

Removal of fees were able to have a substitute undertake between men and women in their workforce. One of the major developments in UK a delivery for them, Uber lost its appeal of Employers to whom the regulations apply employment law in the last year has been an employment tribunal’s decision that its have until April 2018 to upload their first the ruling by the Supreme Court in July 2017 drivers were workers and entitled to be report to the Government website, and will that the employment tribunal fee regime was paid the national minimum wage for so long then have to do this annually going forward. unlawful. The Court held that the level of the as they are logged into the app and in the There has been a slow start to the uploading fees was such that they constituted a barrier territory they are authorised to work in. It of the reports to date, and it is thought to justice, effectively pricing people out of is expected that Uber will appeal again, so that businesses with larger gaps may be the justice system. As a result, those who there will be further developments to come. delaying until competitors have uploaded have paid fees since 2013 are entitled to a In the meantime, companies operating in their statistics. these types of area should be careful that refund, which extends both to employees Brexit who brought claims and to employers who their contracts reflect the reality of the We do not have a definitive picture of what were ordered to pay an employee’s tribunal situation and, where individuals are not the UK legal landscape will look like post- fees as part of a judgment made against engaged under a worker contract, be wary Brexit. Existing EU laws are going to be them. Not covered are sums paid under of potential changes in future that may maintained upon Brexit, with changes only settlement agreements which were partially increase employment protections due to being made as desired by the government attributable to the tribunal fees. these people. of the day. The UK already frequently goes ‘Week’s pay’ Going forward, we understand that the beyond the minimum standards required by Government may re-introduce fees at a later One seemingly small but potentially the EU and there is currently no indication date, in a way which is more proportionate significant development this year has been that any employment laws are due to be and at a lower level than the 2013-2017 a ruling of the Employment Appeal Tribunal changed. However, some aspects of EU regime; however, no firm plans to do so that employer pension contributions must employment law are at odds with business have yet been announced. In the meantime, be included in weekly pay calculations, opinion in the UK, so in time we may see many are seeing a strong rise in affecting payments such as minimum changes in areas such as holiday pay, the number of claims being brought, which statutory notice pay, statutory redundancy the right to uncapped compensation in is also leading to delays in hearings taking pay, and unfair dismissal compensation discrimination claims and some industrial place. where an employee’s salary falls under the relations provisions. statutory cap. This increases compensation Worker status and the gig economy payable to departing employees, especially The immigration position post-Brexit Despite a Government review into the where an employer is making significant remains unclear. Any change to the law question of worker or employee status, it contributions to a defined benefit pension could impact on free movement so we will seems that we are no further forward in scheme. need to wait to see what is finally agreed having clarity related to when individuals between the UK and the EU. This is of most Gender pay gap reporting undertaking gig economy jobs are entitled significance to employers who rely heavily to worker or employee protection. There As reported in last year’s edition of the on a workforce exercising rights to free have been several cases considering Guide, from April 2017 UK employers with movement (particularly seasonal workers) this issue this year, and while the Central over 250 employees have had to produce and for businesses who have a number of Arbitration Committee found that Deliveroo and publish gender pay gap reports giving individuals that regularly travel between the riders were not workers because they details of any pay or bonus disparities EU nations for work.

Katie Russell Partner T +44 207 429 4661 E [email protected]

34

KEY CONTACTS

Austria Belgium Thomas Angermair Philippe De Wulf Partner Partner T +43 1 533 4795 24 T +32 2 426 14 14 E [email protected] E [email protected]

Bosnia and Herzegovina Croatia Goran Babić Partner, Attorney-at-Law, in Saša Divjak cooperation with Karanovic & Nikolic Senior Partner T +387 51 212 104 T +385 1 539 1600 E [email protected] E [email protected]

Cyprus Czech Republic Yiannis Karamanolis Václav Rovenský Partner Partner T +357 22 777000 T +420 224 103 316 E [email protected] E [email protected]

Denmark Finland Henriette Stakemann Carola Möller Attorney-at-Law, Partner Partner T +45 36 94 12 28 T +358 29 000 6250 E [email protected] E [email protected]

France Germany Isabelle Pontal Prof. Dr. Martin Reufels Counsel Partner T +33 1 45 05 80 08 T +49 221 20 52 331 E [email protected] E [email protected]

Greece Hungary Terina Raptis Dr. László Pók Partner Partner T +30-210-3670400 T +36 1 472 3000 E [email protected] E [email protected]

Ireland Italy Duncan Inverarity Cristina Capitanio Partner Partner T +3531 649 2401 T +39 06478751 E [email protected] E [email protected]

Macedonia Latvia Art Mehmeti Irina Kostina Associate, Law Office Veton Qoku in Head of Employment Law Practice cooperation with Karanovic & Nikolic T +371 67814848 T +389 2 3223 870 E [email protected] E [email protected]

36 Montenegro Netherlands Stefan Lučić Attorney at law in cooperation with Els de Wind Karanovic & Nikolic, Associate Lawyer T +382 20 238 991 T +31 20 678 9242 E [email protected] E [email protected]

Norway Poland Martin Jetlund Katarzyna Żukowska Partner, Head of Employment Adwokat T +47 23 01 15 71 T +48 22 437 82 00 E [email protected] E [email protected]

Portugal Romania Nuno Ferreira Morgado Luminița Dima Partner Partner T +351 213 197 471 T +40 31 225 33 61 E [email protected] E [email protected]

Serbia Russia Jelena Danilović Irina Anyukhina Attorney at law in cooperation with Partner Karanovic & Nikolic, Senior Associate T +7 495 234 9692 T +381 11 3094 427 E [email protected] E [email protected]

Slovenia Slovakia Minu A. Gvardjančić Jana Cernakova Attorney at law in cooperation with Partner Karanovic & Nikolic T +421 2 5441 4441 T +386 1 200 9692 E [email protected] E [email protected]

Spain Sweden Ángel Olmedo Magnus Berterud Partner Counsel T +34 91 514 52 00 T +46 8 677 54 87 E [email protected] E [email protected]

Turkey Ukraine Senem Gölge Yalçın Armen Khachaturyan Attorney at Law Senior Partner T +90 212 359 57 00 T +380 44 230 6000 E [email protected] E [email protected]

UK Katie Russell Partner T +44 207 429 4661 E [email protected]

37

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