Enhanced Disclosure on Pay Proposed for UK Financial Sector

The Walker Review of corporate governance in the UK banking industry has published its final recommendations.  The independent review was commissioned by the Government last February in response to the 2007/2008 banking and credit crisis.

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UK Challenged Over Incorrect Implementation of EC Equality Directives

The European Commission has issued two reasoned opinions asserting that the United Kingdom has incorrectly implemented EC discrimination laws.  The first opinion concerns the EC Equal Treatment Framework Directive (No.2000/78), which prohibits discrimination in employment on grounds of age, religion or belief, disability and sexual orientation.  According to the Commission's press release, the opinion asserts:

  • UK legislation has no clear ban on 'instruction to discriminate' and no clear appeals procedure in the case of disabled people.
  • The exceptions to the principle of non-discrimination on the basis of sexual orientation for religious employers are broader than those permitted by the Directive.
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Strong Opposition from Korean Unions to Proposed Implementation of Laws

Korean Labour Minister Yim Tae-hee recently announced that the government intends to give effect to legal provisions with a significant effect on labour unions and employers with unionised workforces in early 2010.

The provisions set to take effect in 2010 deal with:

  • prohibiting employers from paying remuneration to full-time union officials, and
  • giving legal permission for multiple unions to be established at a single worksite (currently each enterprise may legally only have one trade union).
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When Does a Continuous Fault Become a Serious Cause Justifying Dismissal?

The Belgian Supreme Court recently annulled a judgment of the Labour Law Court of Bergen because a judgment it had handed down denied the right of the employer (in this case: an administrator of a hospital) to determine himself when a continuous misconduct makes the professional cooperation immediately and definitively impossible - and consequently justifies a dismissal for serious cause. Continue Reading...

New Language Requirements Applicable to Workplace Communications by Employers in Indonesia

On 9 July 2009 a new law came into effect in Indonesia which will have a significant impact upon the way in which foreign companies with operations in Indonesia communicate in the workplace and document their employment arrangements. Continue Reading...

Legislative Amendments to Executive Remuneration in Australia

As the current economic crisis continues to affect the corporate sector with depressed share prices and rising unemployment, there is increased scrutiny of executive remuneration taking place in Australia. In particular, strong media criticism of termination payments to executives has resulted in a plethora of reform proposals from stakeholders designed to curb executive salaries and termination payments. Continue Reading...

New European Social Security Regulations as of 1 May 2010

On 30 October 2009, the implementing regulation of Regulation (EC) No. 883/2004, that will replace Regulation (EEC) No. 1408/71, was published in the Official Journal of the European Union.

Regulation (EC) No. 883/2004 provides a series of rules to determine which social security regime is applicable in the event of cross-border employment.  The basic principle is that a worker is subject to the social security regime of one Member State, namely the country of employment. Secondment and simultaneous employment are two exceptions to the rule.  For an overview of the most important changes, we refer to our newsletter: 'Expats: the summer of 2009' (pdf).

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Recent Framework Agreements Indicate the Continued Influence of European Labor Unions in North America

Labor unions in the United States continue to search for international support in unionizing American and European employers operating in North America.  Within the last few weeks, the United Steelworkers (USW) announced a framework agreement with Spanish union MONDRAGON Internacional, S.A., and the Communications Workers of America reached an accord with German union ver.di.  The latter accord created a new, affiliated organization called T Union, the primary goal of which is to unionize the U.S. employees of T-Mobile.  The USW agreement with MONDRAGON is less specific in nature, but comes upon the heels of previous agreements between USW and U.K.-based Unite as well as the German industrial union IG Metall.

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Severance Pay in the Event of Part-Time Parental Leave

An employee with an employment contract that is dismissed during the period of part-time parental leave is entitled to a severance pay calculated on the basis of the full-time employment. This is what the European Court of Justice judged in a decision dated 22 October 2009. The Court was responding to a prejudicial question posed by the Supreme Court.

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Canadian Institute of Actuaries Releases Report on Pension Reform

The Canadian Institute of Actuaries (CIA), a national organization of actuarial professionals, has released a report (pdf) on pension reform in Canada entitled "Retooling Canada's Ailing Pension System Now, for the Future: Canada's Actuaries Advocate Change." This report repeats many of the recommendations made in the CIA's 2007 report (pdf) entitled "Canadian Institute of Actuaries' Prescription for Canada's Ailing Pension System."

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The Fair Work Act - Australia's New 'Forward with Fairness' Workplace Legislation

On July 1 2009, the Fair Work Act 2009 (Cth) came into effect, replacing the Workplace Relations Act 1996 (Cth). The Act significantly changed the industrial relations landscape in Australia.

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District of Columbia Court Applies Expansive D.C. Anti-Discrimination Law to Out-of-State Applicants and Employees

Employers with managers based in the U.S. capital should take heed of a recent decision by the District of Columbia Court of Appeals.  In Monteilh v. AFSCME, AFL-CIO, 107 FEP Cases 561 (D.C. 2009), the court significantly expanded the reach of the anti-discrimination provisions of the District of Columbia Human Rights Act (DCHRA) by holding that employees or applicants located outside of Washington, D.C. may bring claims for discrimination under the DCHRA so long as the discrimination decision was made in the District of Columbia (D.C.). 

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New York Court Rejects Foreign Corporation's Attempt to Dismiss Employment-Related Claim on Jurisdictional Grounds

It appears that the reach of New York's long-arm statute just got a little longer.  In a $15 million employment-related dispute between a Greek citizen and a Liberian company based in Athens, the Supreme Court of the State of New York held (pdf) that the state has jurisdiction over the matter because - in conjunction with other factors - the company traded its stock exclusively on the New York Stock Exchange (NYSE).

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Controversy over Withdrawal of Childcare Tax Relief

The Government is facing major opposition to its plans to remove tax relief on employer-supported childcare.  Under the proposal, first announced by prime minister Gordon Brown at the Labour Party conference in September, tax and national insurance relief will not be available for employees who join a childcare voucher scheme operated by their employer after April 2011, although existing members of schemes will continue to enjoy the same relief until April 2015.

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Sanctions Against Employers of Illegally Staying Third Country Nationals and the Joint and Several Liability of the Principal in a Subcontracting Situation

On 30 June 2009, Directive 2009/52/EC of the European Parliament and of the Council of 18 June 2009 concerning "sanctions and measures against employers of illegally staying third-country nationals" (the so-called "Sanction Directive") was publicized.

The Directive sets some minimum rules for actions and sanctions against employers of illegal immigrants in order to counter, in general, illegal immigration within the Member States.

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Ontario Labour Relations Board Reaffirms Weekend and Holiday Certification Applications for Construction Unions

The Ontario Labour Relations Board has reaffirmed its practice of allowing construction unions to bring applications for certification on Saturdays, Sundays and holidays.   According to the Ontario Labour Relations Boards rules, an application for certification that is sent by priority courier is deemed to have been filed on the date it is sent.  With many post offices open seven days a week, unions can file an application for certification on the weekend.  This is an important tactical advantage for construction unions in organizing drives because under the Ontario Labour Relations Act, only those workers on a construction site on the date of the application are eligible to vote.  Filing an application on the weekend allows the union to select an application date when fewer workers are on site.
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Privacy Commissioner Issues Guidelines on Privacy Rights During Flu Pandemic

Privacy rights are one of the issues most frequently raised when employers seek advice about the impact of the H1N1 virus on the workplace.  In order to assist employers in meeting their obligations under private sector privacy laws, the Privacy Commission of Canada, in conjunction with the Privacy Commissioners of Alberta and British Columbia, has developed a guidance document for employers (pdf) that discusses the application of privacy laws during a flu pandemic.  The Privacy Commission has also developed a fact sheet for employees explaining privacy rights at work during a flu pandemic.
Tags: Pandemic

The European Blue Card: Facilitating the Inward Flow of Highly Qualified Individuals

On 18 June 2009, the Council Directive 2009/50/EC of 25 May 2009 facilitating conditions of entry and residence in the EU of third-county citizens for the purpose of highly qualified employment was publicized.

This Directive introduces the European Blue Card, which is a residence and employment card for higher educated employees of third countries, and which can be seen as the equivalent of the American "green card." By doing so, Europe hopes to attract higher educated people from third countries, by installing a fast track procedure for residency and employment and by guaranteeing some social and economic rights.

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Holiday Pay on Holiday Pay? The "Snowball" Effect Confirmed by the Supreme Court

On 29 June 2009, the Belgium Supreme Court issued an important judgment (pdf) concerning holiday pay of employees whose remuneration is (partially) variable. The question was the following: Does the single holiday pay on the variable remuneration of the employee and which is paid during the year X, have to be taken into account in the basis of calculation of  the holiday pay of the year X + 1? Continue Reading...

New Law Expands Family Military Leave Entitlements

On October 28, 2009, President Obama signed into law the National Defense Authorization Act for Fiscal Year 2010, legislation that contains provisions expanding Family and Medical Leave Act (FMLA) military family leave entitlements that were enacted by last year's defense authorization bill.  The new law permits the spouse, parent or child of a member of the Armed Forces who is on active duty in a foreign country (or is called to active duty in a foreign country) to take up to 12 weeks of job-protected leave in a 12-month period for a "qualifying exigency." A broad range of events and activities are considered qualifying exigencies, including preparing for short-notice deployment; arranging for child care; making financial and legal arrangements; rest and recuperation; post-deployment activities; counseling; and military events and related activities.  Prior to this Act, exigency leave was limited to family of Reserve and National Guard members.

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Climate Change Can Found 'Philosophical Belief'

In Grainger plc and others v Nicholson, the Employment Appeal Tribunal (EAT) has held that an employee's belief in man-made climate change, together with the alleged moral imperatives that entails, is capable of being a 'philosophical belief' for the purposes of discrimination law.

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Green Light for Claims of 'Associative' Disability Discrimination

In EBR Attridge Law LLP and another v Coleman, the Employment Appeal Tribunal (EAT) has confirmed that the Disability Discrimination Act 1995 (DDA) can be interpreted so as to protect employees who suffer discrimination by reason of the disability of another person.

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Proposed Amendments to British Columbia Occupational Health and Safety Legislation

The Board of Directors of WorkSafe BC has published the 2010 proposed amendments to the British Columbia Occupational Health and Safety Regulation. 

There are 12 proposed amendments, including: an expansion of the duty to notify utilities after a service is hit during excavation; an amendment to the minimum distance that must be maintained from exposed, energized high voltage power lines; a requirement that trash and recycling vehicles have visual or audible warning systems to indicate when lifting mechanisms are extended; and standards relating to respirator protection factors.  A complete list of proposed amendments is available online. 

Interested parties may provide written feedback on the proposed amendments until 4:00 p.m. on Friday, December 18, 2009.

Benchmarking Study Finds Significant Percentage of Global Companies Have Labor and Human Rights Policies

A study (pdf) conducted by the Harvard Law School Pensions Project and ASSET4, and funded by the IRRC Institute, found that 28% of multinational companies have labor and human rights (LHR) policies applicable to their global supply chain. Among companies with market capitalizations of more than $10 billion, 45% have LHR policies. The study, which is the first publicly available benchmarking analysis of global LHR policies, examined 2,500 global companies found on the major stock market indices.

Non-Cash Rewards Gaining Popularity with Employers

A recent survey of blue-chip companies in the United Kingdom indicates that in 2010 employers will place less emphasis on rewarding staff with cash and greater focus on fostering work/life balance and career development.  The survey, conducted by Mercer, found that more than 27% of respondents believe that their reward strategy will change permanently as a result of the recession. The survey, conducted in September 2009, collected pay and reward data from 41 companies.

Global Growth in Real Wages Has Continued to Drop in 2009

The International Labour Organization has issued its "Global Wage Report: 2009 Update" (pdf), which found that in half of the 35 countries for which data were available, real monthly wages fell in the first quarter of 2009 compared to their average for 2008.  Some of the decline was attributed to cuts in hours worked.

Photo credit: Xander