Interruption Benefits - Eligibility Conditions Modified

In the Belgian Official Gazette of this 1 March, a Royal Decree was published that modifies the conditions that must be met in order to receive interruption benefits in case of time credit.

A first modification concerns the employees who suspend their work entirely or who switch to half-time employment in the framework of the general time credit regime. In order to be entitled to interruption benefits, these employees must from now on have a seniority of at least two years with their employer and this at the moment they notify in writing their intention to take time credit. 

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Dismissed Blue-Collar Workers Are Entitled to a Crisis Premium

The Act on diverse provisions of 30 December 2009 stipulates that a crisis premium is due to blue-collar workers who are dismissed between 1 January and 30 June 2010 inclusive.
 
This premium amounts to 1.666 EUR and the cost is in principle divided between the National Employment Service (1.111 EUR) and the employer (555 EUR). This arrangement is expected to be confirmed in a Decree implementing the law.

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Legislative Update for the Week of March 22

Leg Roundup Image 132 by 140.jpgHouse Passes Bill Extending Certain USERRA Right to Members of the National Guard
The House of Representatives overwhelmingly approved by a vote of 416-1 the National Guard Employment Protection Act of 2010 (H.R. 1879), legislation that would extend certain employment and reemployment rights to members of the National Guard who are ordered to report for full-time duty. Read the full post here. (March 26)

Health Care Reform Law Presents Unique Considerations for Collectively Bargained Plans
The new health care reform legislation has dramatic implications for all employers. While full implementation of the law is still years away, employers should begin evaluating and preparing for its impact on collective bargaining agreements today. Read the full post here. (March 26)

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Scope of Dismissal for Gross Misconduct Clarified

In Dunn v AAH Ltd, the Court of Appeal has upheld a ruling that an employee's failure to follow instructions and report on a significant risk issue so undermined trust and confidence that the employer was entitled to treat the contract as repudiated and terminate it without notice.

The case concerned the finance director and the managing director of AAH Ltd, who were dismissed summarily (i.e. without notice) for failing to notify the German parent company (Celesio) of an issue that had arisen with one of their suppliers.They had become aware that there was a significant risk that the supplier, introduced by an ex-employee of a sibling company, was perpetrating a fraud that exposed them to around £10.9 million.

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HIRE Act Provides Tax Benefits to Employers that Hire and Retain Unemployed Workers

Incentive Street Sign.jpgOn March 18, 2010, President Obama signed into law the Hiring Incentives to Restore Employment (HIRE) Act, a measure that provides certain "qualified" employers with limited tax breaks and financial incentives for hiring unemployed workers.  The highlight of this law is a provision exempting certain employers from paying their share of 2010 OASDI (Social Security) taxes on any new hire who has been without full-time employment for at least 60 days.  The maximum tax break an employer could gain per employee under this provision would be $6,621, or 6.2% of total wages paid in 2010 up to the $106,800 FICA wage cap.  This tax "holiday" does not apply to the component of FICA tax covering the Medicare Hospital Insurance (HI) contribution, or other state and federal tax obligations.

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Legislative Update for the Week of March 15

Leg Roundup Image 132 by 140.jpgProposed Rule Would Implement Executive Order Affecting Service Contractors
The Department of Labor's Wage and Hour Division published in the Federal Register a notice of proposed rulemaking that seeks to implement Executive Order 13495, Nondisplacement of Qualified Workers Under Service Contracts. The rule would require that any federal service contracts and solicitations for such contracts include a clause requiring contractors and their subcontractors to offer existing employees the right of first refusal to take positions for which they are qualified under the new contract. Read the full post here. (March 19)

Senators Unveil "Blueprint" for Comprehensive Immigration Reform
Senators Charles Schumer (D-NY) and Lindsey Graham (R-SC) released a framework for comprehensive immigration reform. Although a bill has yet to be introduced, the Senators outlined their "four pillar" reform strategy (1) "requiring biometric Social Security cards to ensure that illegal workers cannot get jobs; (2) fulfilling and strengthening our commitments on border security and interior enforcement; (3) creating a process for admitting temporary workers; and (4) implementing a tough but fair path to legalization for those already here." Read the full post here. (March 19)

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Compensation Trend: Semiannual Bonuses

Many U.S. companies, particularly those in the retail and high-tech industries, are replacing their annual incentive structure with semiannual bonuses, The Wall Street Journal reports.  Changing to a semiannual bonus structure is intended to help retain key employees, decrease turnover, and increase morale as the economic climate has led some companies to cancel 401(k) contributions, freeze pay or cut salaries.

Those who argue against the wisdom of semiannual bonuses contend that under this structure employees are rewarded for short-term achievements that might not produce long-term results.  However, business leaders who have instituted semiannual bonuses argue that shortened performance periods allow them to set more realistic goals for their employees.

Employment Newsnotes (Issue 48, Spring 2010)

LS Image II.jpg LS Newsnotes Issue 48 Spring 2010  (PDF) is an occasional publication by Lewis Silkin covering recent UK employment law developments in an accessible, succinct and entertaining way.  The latest issue includes articles on:

  •  The potential implications of a Conservative government for employment law
  •  Bullying and harassment in the workplace
  •  Tribunal and court decisions rewriting UK employment legislation to comply with EU law
  •  A successful age discrimination claim by a middle-aged employee
  •  Severe weather: employment law issues
  •  Serial litigants in employment tribunals
  •  Employment of children
  • Scope of the right to claim discrimination on grounds of 'philosophical belief'

Legislative Update for the Week of March 8

Leg Roundup Image 132 by 140.jpgLabor Secretary Discusses Plans for Worker Misclassification, Enforcement Initiatives During Committee Hearing
Testifying before a House subcommittee hearing, Labor Secretary Hilda Solis explained how the agency would use the $116.5 billion in proposed funds and 17,800 full-time equivalent employees outlined in the Department of Labor's fiscal year 2011 budget. Read the full post here. (March 12)

Senate Approves Bill Extending COBRA Subsidies, Unemployment Insurance Benefits, Pension Relief Measures
The Senate passed by a 62 to 36 margin the Tax Extender Act of 2009 (H.R. 4213), legislation that would extend until December 31, 2010, the 65% COBRA premium subsidies and emergency unemployment insurance benefits, both programs that are set to expire in the coming weeks. Read the full post here. (March 11)

Supreme Court to Decide Constitutionality of Certain Background Check Questions for Federal Contractors
The U.S. Supreme Court will decide whether the government violates a federal contract employee's constitutional right to informational privacy when it: (1) asks in the course of a background investigation whether the employee has received counseling or treatment for illegal drug use within the past year; and (2) asks the employee's designated references for any adverse information that may have a bearing on the employee's suitability for employment at a federal facility, when the information obtained in both scenarios is to be used for employment purposes only and is protected under the Privacy Act. Read the full post here. (March 9)

EU 20-Week Maternity Leave Proposal: UK Implications

The recent vote by a committee of the European Parliament in favour of women becoming entitled to a minimum of 20 weeks' fully paid maternity leave has been causing concern in the United Kingdom.  The Government had anticipated having to make few significant amendments to UK law as a result of the European Commission's original proposals to amend the EC Pregnant Workers Directive (92/85/EEC).

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Anti-Blacklisting Regulations in Force

The Employment Relations Act 1999 (Blacklists) Regulations 2010, which prohibit the blacklisting of trade union members and activists, came into force on 2 March 2010. Broadly, the Regulations prohibit employers, employment agencies and others from using such blacklists for discriminatory purposes such as employment vetting.

Under the Regulations, it is unlawful to compile, use, sell or supply 'prohibited lists', subject to certain exemptions. Workers have the right not to be subjected to detriment or dismissal for a reason connected to a prohibited list. Individuals and trade unions can bring claims in the Employment Tribunal or County Court if they have suffered loss or are threatened with potential loss as a result of unlawful activities.

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Google Execs Convicted of Violating Italian Privacy Law

On February 24, 2010, a Milan court convicted Google's Chief Legal Officer, Global Privacy Counsel, and a former member of Google Italy's board of directors for violating Italian privacy law and imposed a six-month, suspended jail sentence.  The case stemmed from a posting on Google Video® - a YouTube® predecessor - of a video depicting several teenagers bullying a classmate with Down's Syndrome.  Although the Google executives had no involvement in either the posting or in the decision whether and when to remove it, Italian law imposes criminal liability on senior executives for the actions of the corporation.  Prosecutors alleged that Google should be held responsible not only for permitting the video to be posted in the first instance, but also for allegedly not having acted quickly enough to remove the video after receiving a complaint.

For more information on this case and its implications for employers, continue reading What Does the Criminal Conviction for Privacy Law Violations of Three Google Executives in Italy Mean for Multi-National Employers in the U.S.? by Phillip L. Gordon at Littler's Workplace Privacy Blog.

U.S. Appellate Court Permits Practice of Tip-Pooling

Tip III.jpgIn a decision that will be well-received by hospitality and tourism employers, the U.S. Court of Appeals for the Ninth Circuit has held that employers that do not take a tip credit against the federal minimum wage when paying their employees can lawfully implement tip-pooling arrangements.  In Cumbie v. Woody Woo, Inc. (pdf), No. 08-25718 (Feb. 23, 2010), the appellate court rejected the argument that a restaurant's use of a tip pool that redistributed a portion of its wait staffs' tips to kitchen employees violated the Fair Labor Standards Act (FLSA).  The FLSA requires an employer to pay its employees a certain minimum wage, but recognizes in its definition of "wage" that under certain circumstances, employers of "tipped employees" may include part of such employees' tips as wage payments.  An employer must pay a tipped employee a cash wage of at least $2.13 per hour, but if the cash wage is less than the federal minimum wage (currently $7.25), the employer can make up the difference with the amount an employee receives as tips, often referred to as the "tip credit."

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Court Certifies Class Action Proceeding for Unpaid Overtime

In Fulawka v Bank of Nova Scotia (pdf), the Ontario Superior Court of Justice certified a class action proceeding against the Bank of Nova Scotia ("Scotiabank") alleging that 5,000 personal banking officers, financial advisors, and account managers were routinely required to work unpaid overtime.

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Legislative Update for the Week of March 1

Leg Roundup Image 132 by 140.jpgHouse Advances Jobs Bill
The House of Representatives voted 217 to 201 in favor of the Hiring Incentives to Restore Employment (HIRE) Act, the $15 billion jobs bill introduced by Sen. Majority Leader Harry Reid (D-NV) as an amendment (S. Amt. 3310) to H.R. 2847, the more expansive jobs bill that the House passed in December. Read the full post here. (March 4)

Obama Makes Final Push for Health Care Reform; Endorses Reconciliation
Telling Congress to "finish its work," President Obama urged both chambers to schedule a vote on final health care overhaul legislation in the coming weeks. While Obama did not outline a specific roadmap for reform, it is widely believed that the plan for going forward involves first having the House of Representatives vote on the Patient Protection and Affordable Care Act (H.R. 3590), the bill that the Senate approved in December, and then passing via budget reconciliation a package of changes to that bill reflected in the estimated $950 billion proposal Obama unveiled on February 22. Read the full post here. (March 3)

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Criminal Charges Filed Following Workplace Accident

In what should serve as a stark reminder for both employers and individuals, police in Ontario have charged a corporate employer and two individuals with criminal negligence causing death after a fatal workplace accident at a construction project.  These events demonstrate that while criminal prosecutions for workplace accidents remain rare, the police will not hesitate to pursue criminal charges as they deem appropriate.

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Age-Based Early Retirement Upheld

In its recent decision in Kovacs v. Arcelor Mittal Montreal, the Human Rights Tribunal of Ontario (the "Tribunal") upheld the validity of an age-based early retirement program. 

In this case, the employer, Arcelor Mittal Montreal, offered an early retirement program that provided enhanced pension benefits to employees who had 30 or more years of service, were at least age 55 with 15 or more years of service, or were at least age 52 with 25 or more years of service. A 44 year-old employee with 27 years of service alleged that he was discriminated against on the basis of age contrary to the Ontario Human Rights Code (the "Code") because the sole reason that he did not qualify for the early retirement program was that he was too young.

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Stress at Work: Experiencing 'Name and Shame' in France

On October 9, 2009, Xavier Darcos, Minister of Labour, announced the creation of a contingency plan on the prevention of psychosocial risks in the public and private sectors. One of the first steps of this plan involved encouraging negotiations on stress in all companies with more than 1,000 employees.
 
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Even though there is no specific national survey on stress at work in France, according to periodic government surveys more than half of all employees work in emergency situations, more than one-third receive contradictory orders or guidance,  and one-third cite situations of tension in their relationships with their colleagues or their superiors.

Without any law or specific legal basis, companies were invited by the Minister to enter into negotiations before February 1, 2010. The companies that failed to reach an agreement on how to deal with stress by that date, had to submit a diagnosis and draw up a plan of action in consultation with their staff representatives. In mid-February the report entitled "The status of the prevention of occupational stress in companies with more than 1,000 employees" was published on the official website.
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Tags: Stress

Legislative Update for the Week of February 22

Leg Roundup Image 132 by 140.jpgBill Would Strengthen Worker Benefits, Limit Executive Pay in the Event of Bankruptcy
Senator Dick Durbin (D-IL) and Representative John Conyers (D-MI) introduced the Protecting Employees and Retirees in Business Bankruptcies Act (S. 3033, H.R. 4677), legislation that would strengthen employees' ability to recover wages and benefits and restrict the awarding of bonuses in the event of their employer's bankruptcy. Read the full post here. (February 26)

White House Health Care Summit Fails to Resolve Differences
The White House bipartisan health care summit produced no final legislation or agreement about how to proceed with health care reform. Democrats took the position that they would not start from scratch, and Republicans claimed they would not support the proposals that have already been put forth. Read the full post here. (February 26)

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Supreme Court Clarifies Where Multi-State Employers Can Be Sued

In what could be hailed as a victory for employers, the U.S. Supreme Court has made it less likely that a company can be sued in state court just because it conducts business in that state.  Under federal statute, a corporation is to be considered a citizen of any state in which it has been incorporated and the state where it has its principal place of business.  If sued in state court, a corporation can seek to have the case moved to federal court - a move often deemed advantageous for employers - if the parties are from different states.

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Immigration Update for the Week of March 15

Imm Roundup Image 134 by 131.jpgUSCIS, Civil Rights Division Announce E-Verify Initiatives
U.S. Citizenship and Immigration Services and the Department of Justice's Civil Rights Division announced their collaboration on a series of initiatives to "strengthen the efficiency and accuracy of the E-Verify system." A Memorandum of Agreement establishes the relationship and process for case referrals between the two agencies with respect to allegations of discriminatory employer use of E-Verify, and information regarding the misuse, abuse, or fraudulent use of E-Verify. Read the full post here. (March 19)

Tags: Migration

Immigration Update for the Week of March 8

Imm Roundup Image 134 by 131.jpgOnline Application Process for Nonimmigrant Visas Fully Operational
The U.S. State Department has unveiled its new nonimmigrant visa application process, Form DS-160, which combines three application forms into a single online platform. Read the full post here. (March 14)

Immigration Reform Bill Might Call for Biometric Identification Cards
A mandatory biometric identification card for U.S. citizens and legal residents could be included in a comprehensive immigration reform bill. The card would contain standard identifying information, but would also contain a biometric identifier, e.g., fingerprints. Read the full post here. (March 12)

ICE Serves 180 Audit Notices on Businesses in Five Southern States
U.S. Immigration and Customs Enforcement (ICE) announced that it has served Notices of Inspection (NOIs) on 180 businesses and will review these businesses' hiring records to determine their compliance with federal employment eligibility verification laws. Read the full post here. (March 12)

Tags: Migration

Immigration Update for the Week of March 1

Imm Roundup Image 134 by 131.jpgUnited States: Report Finds E-Verify Fails to Detect 54% of Unauthorized Workers
According to the Wall Street Journal, an independent report commissioned by the Department of Homeland Security found that E-Verify, the federal electronic employment verification system, may be failing to detect 54% of unauthorized workers processed. Read the full post here. (March 5)

Chile: U.S. State Department Revises Travel Alert
In its revised Travel Alert on Chile, the State Department is advising U.S. citizens to avoid tourism and non-essential travel to Chile due to the February 27 earthquake's aftermath. Read the full post here. (March 4)

United States: Bill Would Grant Two-Year Visa to Entrepreneurs with U.S. Investor Backing
Senators John Kerry (D-MA) and Richard Lugar (R-IN) have introduced the StartUp Visa Act of 2010 (S. 3029), which would create a new visa category (EB-6) for foreign entrepreneurs. Foreign entrepreneurs would qualify for a two-year visa upon demonstrating that a qualified U.S. investor will dedicate at least $250,000 to his or her startup venture. Read the full post here. (March 4)

Tags: Migration

Punctuality Could Pay in Bolivia

Reuters reports that Bolivian lawmakers have proposed a new labor law to reward punctual workers, as part of a labor reform prompted by Bolivians' tendency to arrive late for everything from social events to business meetings. Workers would receive a bonus for arriving at work on time every day for a month. The bill also would require companies to provide workers who reside more than 1.25 miles from the workplace with a travel subsidy and a stipend for buying refreshments during breaks.

The bill is expected to pass without significant alteration, as it is sponsored by Bolivia's ruling party, Movimiento al Socialismo (the Movement for Socialism).

Immigration Update for the Week of February 22

Imm Roundup Image 134 by 131.jpgGlobal: Increase in Use of Trusted Traveler Programs
The number of individuals using "trusted traveler" programs that permit prescreened passengers to expeditiously clear customs has increased in recent years. Read the full post here. (February 27)

United States: House Bil Would Impose Criminal Penalties for Employing Unauthorized Aliens
Representative Frank Kratovil (D-MD) has introduced the Criminal Penalties for Unauthorized Employment Act of 2010 (H.R. 4627), which would amend the Immigration and Nationality Act by establishing criminal penalties--and increasing the existing civil penalties--that can be levied against individuals with "hiring authority" who employ unauthorized aliens. Read the full post here. (February 26)

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Tags: Migration