Immigration: European Visa Code Entered into Force on 5 April 2010

European Regulation (EC) no. 810/2009 of 13 July 2009, establishing a Community code on visas, entered into force on 5 April 2010. The Visa Code provides for a harmonization of short stay and transit visas for third-country nationals in the Schengen area (the European Union with the exception of Ireland, the United Kingdom, Cyprus, Bulgaria and Romania, and with the addition of Iceland, Switzerland and Norway).

The Visa Code will simplify visa applications and will ensure that a visa becomes more easily accessible for those third-country nationals who need one.

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Major Equal Pay Victory by Council Workers

Man Woman Scales II.jpgAn Employment Tribunal has upheld equal pay claims brought by more than 4,000 women against Birmingham City Council, the UK's largest local authority.

The claimants were employed in a variety of traditionally female-dominated jobs, including catering, cleaning, care and administrative work.  They claimed they had been excluded from bonuses paid to male colleagues that were worth up to 160% of basic pay.  The male comparator groups included refuse workers, gravediggers, road workers and gardeners.

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Legislative Update for the Week of April 19

Leg Roundup Image 132 by 140.jpgBill Would Target Independent Contractor Misclassification
Rep. Lynn Woolsey (D-CA) and Sen. Sherrod Brown (D-OH) introduced the Employee Misclassification Prevention Act (H.R. 5107, S. 3254), legislation that would amend the Fair Labor Standards Act, impose new record-keeping requirements on employers that hire independent contractors, and impose stricter penalties for misclassification. Read the full post here. (April 23)

Department of Labor Provides Fact Sheet on Internship Programs for the Private Sector
The Department of Labor's Wage and Hour Division has issued a fact sheet to help for-profit private sector employers determine whether they need to pay their interns minimum wage and overtime under the Fair Labor Standards Act. Read the full post here. (April 22)

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U.S. Health Care Bill Requires Employers to Provide Time and Space for Nursing Mothers to Express Milk

Buried in the Patient Protection and Affordable Care Act, the massive health care overhaul legislation President Obama signed into law last month, is a provision requiring most employers to provide rest breaks and an appropriate space for lactating employees to express breast milk.  This provision amends the Fair Labor Standards Act (FLSA), which until now did not regulate employee rest breaks.

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Validity of Dismissals in Simplified Share Companies (SAS) in Debate

According to several recent Appeal court decisions, a dismissal of an employee of an SAS company ("Société par actions simplifiée") is void unless the signatory of the notification of dismissal is the president of the company or a duly empowered officer whose power of attorney has been declared to the commercial registry and published on the company's commercial registry extract ("Kbis").

These decisions were based on company law provisions which specify that an SAS is represented towards third parties by its president, whose powers can also be exercised by another officer, subject to provisions to this effect in the bylaws of the company and an appropriate filing with the Commercial Registry.

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New Equality Act Becomes Law

The Equality Act 2010 successfully has completed its passage through Parliament and received Royal Assent.  Most of its provisions are currently scheduled to come into force in October 2010. 

The Act, which comprises 218 sections and 28 schedules, totally overhauls the architecture of UK anti-discrimination law.  It will replace at least nine major pieces of legislation - including the Equal Pay Act 1970, Sex Discrimination Act 1975, Race Relations Act 1976 and the Age, Sexual Orientation and Religion or Belief Regulations.

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Ontario Government Moves to Freeze Public Sector Wages

Bill 16 (pdf), Creating the Foundation for Jobs and Growth Act, 2010, has passed second reading in the Ontario legislature.  If passed, the Bill would prohibit increases in wage rates, benefits, perquisites or other payments for employees of the Crown, education boards, universities, colleges and technical institutes, hospitals and boards of health, certain crown corporations, and any not-for-profit authority, board or corporation that received at least one million dollars in funding from the Ontario Government. The proposed freeze would apply retroactively to March 24, 2010 and would expire on March 31, 2012.

The freeze would not apply to unionized or non-unionized employees who bargain collectively with their employers.

Ontario's Minimum Wage Rate Increased

Amendments to regulations under the Employment Standards Act, 2000 have increased the minimum wage rate payable in Ontario.  Effective March 31, 2010, the minimum wage rate has increased as follows:

  • General minimum wage rate from $9.50/hour to $10.25/hour.
  • Students under 18 working less than 28 hours per week from $8.90/hour to $9.60/hour.
  • Liquor servers from $8.25/hour to $8.90/hour.
  • Hunting and fishing guides working less than five consecutive hours from $47.50/day to $51.25/day.
  • Hunting and fishing guide working more than five consecutive hours from $95/day to $102.50/day.
  • Homeworkers from $10.45/hour to $11.28/hour.

Canada Leads in Workforce Participation and Education but Lags in Productivity

The United States Bureau of Labour Statistics has released (pdf) its 2010 comparison of labour statistics from industrialized countries in North America, Asia, Oceania and Europe.

According to the report, Canada enjoyed the highest labour force participation rate in 2008 with 62.8% of women and 73.1% of men of working-age actively engaged in the labour market.  Norway, Sweden, Denmark, and New Zealand rounded out the top five with labour force participation rates of at least 60% for women and 69% for men.  Italy had the lowest participation rate of countries surveyed with only 38.6% of women and 60.2% of men participating in the labour force.

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Immigration Update for the Week of April 12

Imm Roundup Image 134 by 131.jpgIndia: Government Continues to Ponder Project Visa
A "project visa" for foreign nationals working on joint ventures in India continues to be contemplated by the government, according to The Economic Times. The visa would be valid for the duration of a specific project and, possibly, divided into two categories: unskilled labor visas, and skilled labor visas. Read the full post here. (April 13)

Kuwait: Automated Immigration System
In connection with the implementation of a new automated immigration system, there was a brief period during which Kuwait's Ministry of Social Affairs and Labor did not process transactions related to the issuance of work permits or the transference of expatriate residence, reports Arab Times. Read the full post here. (April 13)

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Tags: Migration

Legislative Update for the Week of April 12

Leg Roundup Image 132 by 140.jpgObama Signs Bill Providing Two Additional Months of UI, COBRA Assistance
President Obama signed into law legislation that provides another temporary extension of emergency unemployment insurance (UI) benefits and the 65% premium COBRA subsidy, both of which lapsed over the recent legislative recess. Read the full post here. (April 15)

Department of Labor Launches Searchable Enforcement Database
The Department of Labor has launched a website compiling enforcement data that includes Office of Federal Contract Compliance Program compliance evaluations and complaint investigations, Employee Benefits Security Administration cases that resulted in penalty assessments, Occupational Safety and Health Administration inspection case details, and concluded Wage and Hour Division compliance actions, among other information. Read the full post here. (April 15)

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Rome I and Terms of Employment

Employers who post employees abroad should check which terms of employment they should provide to them at the level required by the law of the country of posting. They should make sure whether, under the new Regulation No. 593/2008 on the Law Applicable to Contractual Obligations ("Rome I"), which came into force on 17 December 2009, in the respective jurisdiction the scope of applicability of the local law will be wider than under the 1980 Rome Convention and the "Posting Directive" (Directive No. 96/71).

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Additional Maternity Leave

Since 1 January 2010, employees have the right to additional maternity leave. It may be used either by the mother or - in certain situations - by the father. In 2010 and 2011 the additional leave for mothers amounts to 2 weeks in the case of  single births and 3 weeks in the case of multiple births. For fathers it is 1 week. The employee should apply for this leave at least 7 days in advance. An employee using this leave has the right to work during the leave, however, at no more than half-time.

Legislative Update for the Week of April 5

Leg Roundup Image 132 by 140.jpgInternal Revenue Service Releases Form W-11 Affidavit
The Internal Revenue Service has made available Form W-11, the Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit. Employees will use Form W-11 to confirm that they are "qualified" employees under the HIRE Act. Read the full post here. (April 8)

NLRB, EEOC Members Sworn In
The National Labor Relations Board (NLRB) and the Equal Employment Opportunity Commission (EEOC) moved a step closer to full capacity this week when Craig Becker and Mark Pearce were sworn in as NLRB members, and Jacqueline A. Berrien and Chai Feldblum assumed their positions as Chair and Commissioner, respectively, at the EEOC. Read the full post here. (April 8)

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Restrictions on Temporary Work Discontinued

As of 24 January 2010 employers who conducted collective redundancies will not be restricted in the use of temporary work. However, it is still not allowed to use temporary work in the positions from which employees were dismissed for economic reasons. Also the company will be able to use a temporary worker for up to 18 months instead of 12 months.

Increase in Average Remuneration: No Need to Consult

Companies no longer have to consult the index of increase in average remuneration with the unions. This is the most important consequence of the abrogation of the Act on the Negotiating System for Determining the Increase in Average Remuneration at Companies as of 1 January 2010. Also, the Tripartite Commission (government, unions, employers' organizations) will no longer establish such an index at the national level. For the private sector, this index had no significance anyway.

Accidents at Work Insurance

Companies will be obliged to pay premiums for accident insurance for all civil contractors. Until 2010 these contributions did not have to be paid for contractors working outside the company's seat or outside the place where the company conducts business. This results from the amendment to the Act on the Social Security System coming into force as of 1 January 2010.

Challenging the Constitutionality of a Law is Now Possible Before Any French Court

Constitution (FR) II.jpgSince 1 March 2010, it is possible to contest the constitutionality of a law before any French court ("Priority Preliminary rulings on the issue of constitutionality").

This possibility is open to individuals and companies in all matters and at any point in time in a court procedure.

However, the court itself is not allowed to raise the issue of constitutionality.

Once the issue is brought up before the court, the judge must immediately refer it to the highest courts in private and administrative law (respectively the Cour de cassation and Conseil d'Etat).

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Legislative Update for the Week of March 29

Leg Roundup Image 132 by 140.jpgEEOC Issues Advisory Letters on Use of Credit Checks, Education Requirements as Selection Criteria
The Equal Employment Opportunity Commission's (EEOC) Office of Legal Counsel recently issued two informal discussion letters addressing how two common and seemingly innocuous hiring practices could, under certain circumstances, inadvertently subject employers to charges of disparate impact discrimination. Read the full post here. (April 2)

White House Hosts Forum on Workplace Flexibility
President Obama, First Lady Michelle Obama and the White House Council on Women and Girls hosted a White House Forum on Workplace Flexibility. The forum, which was attended by policy experts, workers, senior administrative officials, and members of the business and labor communities, focused on ways to make the workplace more flexible for working families. Read the full post here. (April 2)

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Union Files Criminal Charges Against Employer Following Workplace Accident

The United Steel Workers have commenced a private prosecution against Weyerhaeuser, a leading forest products company, on charges of criminal negligence causing death by filing an Information in the Provincial Court of British Columbia.  This is the first time a private prosecution has been commenced alleging criminal negligence by a corporation since amendments to the Criminal Code in 2004 to make it easier for the Crown to convict corporations of criminal negligence.

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Private Use of a Mobile Phone - Still No Flat-Rate Assessment

The benefit a worker derives from his/her private use of a company phone constitutes a remuneration benefit and is subject to social security (NOSS) contributions and tax.

In practice, the question which arises is how can a monetary value be assigned to this benefit?

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Federal Government Continues Pension Reform Consultation

The federal government has announced that it will continue consultations on pension reform through a series of town hall meetings across Canada.  The government has posed the following ten questions as the basis for its consultation:

  • What are the main issues and challenges that Canadians face in saving for retirement?
  • What is the appropriate role of governments in supporting Canadians to achieve adequate retirement income?
  • Does the retirement income system currently have the appropriate mix of public and private support?
  • Are changes needed to further strengthen Canada's retirement income system?
  • Should there be more mandatory retirement savings?
  • Should individuals be auto-enrolled in any new voluntary savings program?
  • Should increased savings, whether mandatory or voluntary, be locked-in for retirement purposes only?
  • Should there be more flexibility and choice with respect to private savings options?
  • How would the approaches described impact you personally and/or your business?
  • How should any changes to the retirement income system be financed?

Interested parties may also participate in the consultation process online or by sending written submissions by e-mail to ris-consultations-srr@fin.gc.ca.

For more information on pension reform in Canada, please see Heenan Blaikie's Pension Pulse "Three Pillars: Ten Questions--Federal Government Continues Consultations on Pension Reform".

Seniority Bonus: The Tax Administration Follows the NSSO

The tax administration has changed its position on the seniority bonus (Circular of 25 February 2010) having been "inspired" by the instructions of the NSSO (National Social Security Office) (see our Newsflash  (pdf) of 12 March 2009). The changes concern the following elements.

The alternative calculation method to determine the maximum amount of the seniority bonus exempted from social security contributions, as provided by the NSSO, is now also accepted by the tax administration. This means that the seniority premiums awarded from 1 January 2009, are also considered as exempted social advantages, when they are calculated on the average gross amount of a monthly salary in the company.

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Tags: Bonus

Immigration Update for the Week of April 19

Imm Roundup Image 134 by 131.jpgIndia: "Visa on Arrival" Scheme a Success
India's "visa on arrival" scheme, which allows certain nationals to obtain a tourist visa upon arrival in India instead of securing the visa beforehand, has proven popular, with 1,793 visas issued in the first three months of a 12-month pilot program. Read the full post here. (April 23)

United States: Senate Unlikely to Address Immigration Reform Before Memorial Day
Although Senator Harry Reid (D-Nev.) has been focusing on immigration reform on the campaign trail during the past few weeks, he predicts that the Senate will not address the issue until after Memorial Day. Read the full post here. (April 22)

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Tags: Migration

Multinational Employers Taking an Increasingly Global Approach to Health Care

U.S.-based multinational employers are taking a global approach to address rising health care costs, Workforce Management reports.  A recent survey of HR and health and wellness executives found that 77% of businesses offer employer-sponsored health care coverage to overseas employees in lieu of, or in addition to, publicly-provided programs. Although only 26% had a global health care strategy, that number is expected to double soon, as an equal number intend to have one implemented by 2012.

Survey respondents indicated that worker stress, chronic conditions, and obesity impact their health care costs.  Accordingly, many businesses are shifting the focus from mitigating health care costs to measures aimed at preventing illness and promoting health and well-being.  However, managing health risks globally has proven difficult because health care products, services, desired vendors, and cost data are not as developed in many countries as they are in the United States.

Immigration Update for the Week of March 29

Imm Roundup Image 134 by 131.jpgCanada: Backlog of Skilled Immigrant Visa Applications Emerging
Canada is on the verge of a backlog of skilled immigrant applications with recent government data showing that the average processing time is seven and a half years. Currently, 600,000 applications have been submitted for the 80,055 available 2010 skilled immigrant visas, more than half of which were submitted after March 2008. Read the full post here. (April 2)

United States: Greek Nationals Eligible for Visa Waiver Program
The Department of Homeland Security has published a final rule in the Federal Register designating Greece an eligible country for the U.S. Visa Waiver Program (VWP). Beginning April 5, 2010, Greek nationals can visit the United States for tourism or business for 90 days or less without obtaining a visa before arrival. Read the full post here. (April 2)

United States: Arizona House Advances Strict Immigration Enforcement Bill
Arizona legislators have given preliminary approval to legislation that would, among other things, allow police officers to charge illegal immigrants with criminal trespassing based solely on their presence in Arizona. Read the full post here. (April 2)

Tags: Migration