Expenses Incurred to Finance Trade Union Activities Not Deductible
Fixed-Term Employment Agreements
Rescission of Non-Competition Agreement
New European Social Security Regulations in Principle as from 1 May 2010
In principle every country has its own social security regime and its own social security rules. To promote internal mobility Regulation (EEC) 1408/71 was introduced. This Regulation doesn't provide a unified European social security regime but rather a series of designation rules to determine which social security is applicable in the event of cross-border employment. The basic principle is that one is subject to the social security regime of one Member State, namely the security of the country of employment. There are two exceptions to this principle: secondment and simultaneous employment in various Member States.
Continue Reading...High Court Rejects Challenge to Mandatory Retirement Regime
The High Court has ruled that the UK age discrimination laws are not in breach of European Union law by allowing employers to force staff to retire when they reach the age of 65 (R (on the application of Age UK) v Secretary of State for Business Innovation & Skills). The judge said the Government had shown that this provision was a proportionate means of meeting legitimate labour market objectives when it was implemented in 2006.
Continue Reading...Statutory Redundancy Pay Increased
The weekly pay limit used to calculate statutory redundancy payments is going up from £350 to £380. This one-off increase is set out in a statutory order taking effect on October 1, 2009.
When dismissed on grounds of redundancy, employees in the UK with at least two years' service are entitled under the Employment Rights Act 1996 to a payment based upon their age, length of service and gross weekly wage. For these purposes, however, weekly pay is subject to an upper limit which is normally increased in February each year in line with the Retail Price Index (RPI).
Continue Reading...Customer Tips Can No Longer Count Toward Minimum Wage
New regulations coming into force on October 1, 2009 prevent employers using customer tips to top up staff wages to meet the UK's national minimum wage (NMW). The regulations also increase the adult minimum wage from £5.73 to £5.80 per hour.
Continue Reading...Employment Newsnotes (Issue 47, Summer 2009)
Employment Newsnotes (PDF) is a quarterly publication by Lewis Silkin covering recent UK employment law developments in an accessible, succinct and entertaining way. The latest issue includes articles on:
- Employee expenses claims: how employers can devise a clear and effective policy
- Preparing for swine flu: employment law issues
- New Government proposals on medical sickness certificates
- Cost-saving alternatives to redundancy
- Forthcoming legislation prohibiting trade union blacklisting
- Recovering overpayments of wages
- Age discrimination: UK mandatory retirement regime to be reviewed in 2010
- 'Dual discrimination' measures included in Equality Bill
Federal Government Introduces New Employment Insurance Changes
The federal government has introduced legislation to amend the Employment Insurance Act. Bill C-50, An Act to Amend the Employment Insurance Act and to increase benefits, if passed, would extend the length of time during which "long-tenured" employees may collect employment insurance benefits.
Continue Reading...Is Ontario's New Ban on Cell Phone Use While Driving In Effect?
Last year, the Ontario government introduced Bill 118, Countering Distracted Driving and Promoting Green Transportation Act, 2009 to amend the Highway Traffic Act to prohibit the use of hand-held communication and entertainment devices while driving. The new law will prohibit driving a vehicle on the highway if:
- the display screen of a TV, computer or other device is visible to the driver. This does not include GPS systems, commercial logistical tracking systems, collision avoidance systems, or the instrument panel of the vehicle.
- the driver is holding or using a hand-held wireless communication or electronic entertainment device, unless that device is not being held and is being used in hands-free mode.
Flu Season Looms and H1N1 Fears Return
While this information will apply to most workplaces, employers operating in a unionized environment should consider developing their responses in consultation with union representatives. Continue reading Heenan Blaikie's Labour & Employment in the News: "The Evolution of a Flu Pandemic: Issues for Employer Response, online.
Senator Specter Unveils Details of "Compromise" EFCA Bill
Sen. Arlen Specter (D-PA) released, on September 15, some long-awaited details of an amended version of the Employee Free Choice Act (EFCA) that he believes "will meet labor's objectives" and garner sufficient Congressional support. Speaking before the AFL-CIO Constitutional Convention, Specter predicted that a re-vamped version of EFCA will be passed this year. As reported in The Washington Post, Specter outlined the provisions of this so-called "compromise" bill following the AFL-CIO convention. Notably, Specter said the amended bill omits the controversial "card check" provision that would have allowed the National Labor Relations Board (NLRB) to certify a union as the exclusive bargaining representative based on a majority of signed authorization cards. Instead, according to the Post article, the amended EFCA:
Continue Reading...Court of Appeal Holds Failure to Pay Race Discrimination Damages may Constitute Victimisation on the Ground of Race
A Court of Appeal judgment in Rank Nemo (DMS) Ltd and others v Coutinho has held that an Employment Tribunal has jurisdiction to consider a victimisation claim (a type of discrimination claim) based on the employer's failure to pay race discrimination damages previously awarded by the Employment Tribunal.
Continue Reading...Dual Scale of Rights Upheld When Based on Objective and Reasonable Grounds
The Audiencia Nacional Employment Chamber judgment of 25 February 2009 confirmed the legality of the dual scale of rights (mainly in relation to salary) regulated by the current CLH (Tierra) collective bargaining agreement. This company originated from the State-owned company CAMPSA, which lost its oil monopoly under Law 34/92 and was forced to adapt to the oil sector legislation under European law, open to competition. This substantial change of circumstances resulted in the creation of a number of entities. The most important of these was CLH (Tierra), whose main activity is the distribution of liquid hydrocarbons in Spain through the management of oil pipelines.
Eligibility to Benefit from Anti-Crisis Measures: When is a Company a "Company in Difficulty"?
On 6 July 2009, one of the Decrees implementing the Law of 19 June 2009 on various provisions on employment in times of crisis, was published.
In order to benefit from certain anti-crisis measures, in particular the temporary regimes of economic unemployment for employees and the so-called crisis time credit, the Law of 19 June 2009 stipulates that a company must prove that it meets one of the requirements for recognition as a "company in difficulty," meaning:
IRS to Launch Employment Taxes Audit of 5,000 Employers - Is Your Company Ready?
Continue reading "IRS to Launch Employment Taxes Audit of 5,000 Employers - Is Your Company Ready?" by GJ Stillson MacDonnell.
Senator Baucus Formally Unveils Healthcare Bill
On September 16, Senator Max Baucus (D-Mont.), Chairman of the Senate Finance Committee, officially released the America's Healthy Future Act (pdf) for his committee's consideration. Although designed to appeal to conservatives in comparison to the House's Affordable Health Choices Act (H.R. 3200) and a similar measure approved by the Senate Health, Education, Labor and Pensions (HELP) committee, it is uncertain whether Baucus's bill will draw any Republican support, and enough to reach the 60 votes needed to avoid a filibuster.
Continue Reading...Revision of the Mileage Allowance
From 1 July 2009, the new amount of the fixed mileage allowance granted to an employee who uses his/her own vehicle (car, motorcycle or moped) to travel on behalf of an employer, will be 0.3026 EUR per kilometer. This amount applies from 1 July 2009 to 30 June 2010.
This new mileage allowance is indeed lower than the one that applied until 30 June 2009, namely 0.3093 EUR per kilometer.
Success in Workplace Bullying Claims Proves Elusive
- resigning and claiming the employer's conduct was so bad that it amounted to a dismissal (constructive dismissal);
- claiming the bullying is discriminatory harassment (but this is only possible if it is on a statutorily protected ground); or
- (if very serious) alleging criminal harassment under the Protection from Harassment Act 1997.
Federal Government May Be Preparing to Introduce Employment Insurance Reforms
- extend benefits to laid-off workers with a long tenure who have not previously collected benefits; and
- extend maternity and parental benefits to the self-employed.
Ninth Circuit Issues Its First Ruling Setting Forth the Elements for Sarbanes-Oxley Whistleblower Claims
Global Migration Flows Have Decreased During Economic Downturn
The Migration Policy Institute has released a report suggesting that migration flows, particularly illegal immigration, have decreased during the global economic downturn. The recession has impacted economic migration to major immigrant-receiving regions like the United States and the United Kingdom. Would-be migrants have stayed put, and migrants have remained in their adopted countries rather than return home, despite high unemployment rates.
Continue Reading...Sports and Culture Cheques: The Treasury Follows the Position Taken by the National Social Security Office
The Tax Administration has issued new directives concerning sport and culture cheques (Circular of 2 June 2009). The Administration was thereby obviously inspired by the legislation concerning social security (Royal Decree of 30 June 2006).
Sports and culture cheques distributed as from 1 July 2006 are considered as exempted social advantages, when they meet all of the following conditions:
To Recommend or Not To Recommend: The LinkedIn Conundrum
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New Federal Draft Disclosure Guidelines for Defined Contributions Pension Plans Issued
On September 4, 2009, the Office of the Superintendent of Financial Institutions ("OSFI") issued draft disclosure guidelines ("Guidelines") for defined contribution pension plans ("DCPPs"). The Guidelines will apply to employers in the federal sector who sponsor DCPPs.
Continue Reading...Latest Developments in E-Verify Requirements for Federal Contractors
On September 8, 2009, the "federal contractor" rule mandating E-Verify enrollment and usage for many federal government contractors and sub-contractors became effective. The E-Verify federal contractor requirement will be triggered upon the inclusion of specific Federal Acquisitions Regulations language in a new federal contract or a modification or amendment of an existing federal contract.
For a full discussion of the basic issues that employers need to understand with regard to this development, continue reading Federal Contractors: Be Aware of New E-Verify Requirements in Contracts, written by Jorge R. Lopez, Joshua Roffman, Aimee Clark Todd and Russell C. Ford.
Belief in Climate Change can Amount to a Protected 'Philosophical Belief'
The Employment Equality (Religion or Belief) Regulations 2003 (the 'Regulations') protect employees from discrimination on grounds of their religion or belief. The Employment Tribunal has confirmed in Nicholson v Grainger plc & others that 'belief' for these purposes need not be a religious-type belief - any belief can be protected, so long as it is sufficiently cogent, serious, cohesive and important, as well as worthy of respect in a democratic society.
Modification of the Procedure for Collective Dismissals
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California Supreme Court Provides Useful Guidance for Employers Engaging in Video Surveillance and Other Workplace Searches
Continue reading "California Supreme Court Provides Useful Guidance for Employers Engaging in Video Surveillance and Other Workplace Searches," written by Philip L. Gordon and Gregory Iskander.