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On your radar Key employment issues across Europe and beyond On your radar | May 2019
Welcome to our latest edition of CMS On your radar If you want to get in touch to find out more about a development in a particular country please do speak to your usual contact within CMS or alternatively email employment@cmslegal.com The CMS employment team On your radar | May 2019 CMS
Index of countries in this edition
Please click on the country below to take you to that section.
Austria Germany Spain
Belgium Hungary Switzerland
Bulgaria Italy Turkey
Chile Luxembourg Ukraine
China Monaco United Arab Emirates
Colombia Poland United Kingdom
Czech Republic Singapore
France Slovakia
On your radar | May 2019 CMS
Index of countries
On your radar | Key employment issues across Europe and beyond
Austria
Development Description Effective date Impact and risk Future actions
The European Court of The Austrian legislation had This came into The employer cannot refuse or The concept of a personal
Justice (ECJ) has decided to be amended to comply force on 22 prevent the worker from taking the public holiday is a new
(C-193/17) that the Austrian with this ECJ decision and March 2019. personal holiday, even if the concept in Austrian labour
legislation, according to decided to introduce the new worker's attendance is necessary law. As the concept contains
which Protestant, Old concept of a “personal public In general, the for operational reasons on the day elements of paid annual
Catholic and Methodist holiday”: employee must of the personal public holiday. The leave as well as of public
Church employees enjoy a Taking holiday is generally notify the employer may only ask the worker holiday law, it is yet unclear
public holiday on Good conditional on a prior employer of his to agree work despite his or her how certain situations will
Friday, while others do not, agreement between the or her personal choice of public holiday, and if the have to be dealt with, e.g.
amounts to religious worker and employer. holiday three worker agrees, has to pay sick leave that coincides with
discrimination. However, every worker can months in surcharges for the work a personal public holiday.
now decide - unilaterally - to advance. performed.
take off one “personal public
holiday” per year, without
prior consent of the
employer. It is irrelevant
whether this decision is
based on religious or other
motives. The overall holiday
entitlement of five weeks (or
six weeks, in the case of
long-term employment)
remains unchanged.
On your radar | May 2019 CMS
Index of countries
On your radar | Key employment issues across Europe and beyond
Belgium
Development Description Effective date Impact and risk Future actions
The Belgian Parliament has The following measures have Ongoing The following areas are affected We recommend that Belgian
adopted an Act regarding been taken: by Brexit: employers take steps to
the withdrawal of the UK • The right of residence • Asylum and Migration understand their workforce
from the EU (the “Brexit exposure to this, including
Act”). Until 31 December 2020, the • Employment: first job assessing immigration
Brexit Act maintains the right requirement of young workers of status.
This Act will enter in force if of residence of British foreign origin under 26
the UK leaves the EU nationals and their family They may wish to offer
without a withdrawal • Social affairs: consequences of
members on Belgian territory. Brexit in the different branches information to staff on the
agreement. Additional rules cover options available to them to
of social security
However, this Act is subject working in Belgium until the secure their residency status,
to reciprocity from the UK same date and the impact for their
and will cease to apply on •Social security coordination dependents. However this
31 December 2020. should be restricted to
Belgium will temporarily information rather than
continue to apply the individual advice.
principles laid down in EU
regulations on social security
coordination for British
nationals, provided that UK
grants a reciprocal
commitment vis-à-vis Belgian
citizens.
• First job convention
In the framework of the first
job convention, the British
nationals will be treated as
EU nationals during the
transition period.
On your radar | May 2019 CMS
Index of countries
On your radar | Key employment issues across Europe and beyond
Bulgaria
Development Description Effective date Impact and risk Future actions
National website on posting A single official national 1 April 2019 Foreign employers posting Due to the novelty of the
of workers went live website on posting of employees to Bulgaria as well as initiative, the functionality of
workers to Bulgaria has gone posted workers can find the website and the online
live. information about the labour register is still to be tested in
The website (information legislation applicable to posting of practice.
gateway) can be accessed at workers to Bulgaria on the
https://postedworkers.gli.gov website.
ernment.bg and is available A part of the project is the
in both English and launching of a register of posted
Bulgarian. workers in Bulgaria. From 1 April
The online register for 2019 onwards applications for
submission of posting posting/sending of workers can
declarations is now available. only be filed electronically via the
website.
Amendments to GDPR- Amendments to the Personal 26 February 2019 These amendments increase the New amendments to the
related legislation applicable Data Privacy Act have been administrative burden on personal data privacy
to employers. adopted recently, introducing employers to adopt and maintain legislation can be expected
additional obligations for various policies and procedures to further align it with the
employers in relation to for processing of personal data. GDPR, and employers
personal data of employees On the other hand, they create should continue to be aware
and job applicants. These clarity on the storage of personal of these changes in ensuring
include, among others: data of job applicants, which has practices are compliant.
• adoption of rules and not been explicitly regulated so
procedures for reporting of far.
data privacy infringements;
• storage of personal data of
unsuccessful job applicants
for no longer than 6
months.
On your radar | May 2019 CMS
Index of countries
On your radar | Key employment issues across Europe and beyond
Chile
Development Description Effective date Impact and risk Future actions
Amendment to the Labour Project-based employment The law became Companies that hire their We recommend analysing
Code on project-based contracts were commonly partially employees under project-based the possibility of changing
employment contracts. used in the past in e.g. enforceable on 1 employment contracts will incur from employment contracts
construction and mining January 2019. additional costs when signing this based on contracts to
projects, as they did not type of agreement. contracts of indefinite
require severance payments duration.
at the end of the specific It contemplates The new law establishes that, in
project. an annual some cases, employment In the event project-based
progressive contracts based on projects will be employment contracts are
A new law has been passed enforceability
which limits these types of considered as contracts of needed, we suggest making
until the year indefinite duration. sure that the new legal
contracts, and establishes 2022.
mandatory severance for the conditions are duly met to
employee when their contract The Labour Board is authorised to avoid sanctions from the
is terminated due to the inspect companies to determine Labour Board.
completion of the specific whether project-based
task for which they were employment contracts meet the
hired. conditions established by the new
law. If such conditions are not
met, then the Labour Board can
declare that the employment
relationship has an indefinite term,
which may have an economic
impact for the employer.
On your radar | May 2019 CMS
Index of countries
On your radar | Key employment issues across Europe and beyond
China
Development Description Effective date Impact and risk Future actions
The Chinese government The following behaviours are 18 February 2019 Based on the reports or Companies may wish to
issued the Circular on expressly prohibited: complaints through hotlines or review whether the existing
Further Regulating • To impose limits on gender onsite visits or the regular recruitment information either
Recruitment Practice to or have gender preference inspection system, competent posted by themselves or by
Promote Female in preparing recruitment authorities will carry out human resource service
Employment (the "Circular") plans, posting recruitment investigations and require agencies contain any
on 18 February 2019 aimed information or during the rectification of the companies or gender-discriminatory
at facilitating the equal recruitment process; human resource service agencies language, and to review
employment of women and that are suspected of carrying out whether any gender
eliminating gender • To reduce employment gender discrimination in the discriminatory behaviours
discrimination in opportunities for females or recruitment process. occur during their internal
recruitment. refuse to hire females recruitment/on-board
because of gender; If any company or human
resource service agency refuses process, and make prompt
• To ask women about to rectify or change the posted rectification, if necessary.
marriage status or recruitment information containing
childbirth; gender discriminatory language, a
• To include the pregnancy penalty from RMB 10,000 to RMB
test as one of the on-board 50,000 may be imposed. In
physical examination items; serious cases, the license of the
• To set the limitation on human resource service agency
childbirth as one of the can be revoked. In addition, the
recruitment conditions; administrative sanctions may be
recorded at the company’s human
• To distinguish and raise
resource integrity record system
the recruitment criteria for
and be announced to the public.
females.
On your radar | May 2019 CMS
Index of countries
On your radar | Key employment issues across Europe and beyond
Colombia
Development Description Effective date Impact and risk Future actions
Supreme Court of Justice, The Labour Chamber of the 6 February 2019 • The Labour Chamber reiterated • Hiring companies that use
Labour Chamber Supreme Court of Justice that EST cannot be hired to externalisation
Ruling relating to has defined the scenarios cover permanent positions, but approaches, should
Temporary Work Agencies where outplacement or temporary or back-up assess whether their
externalisation of services employees to the contracting providers are in
Judgement of February 6th through outsourcing and party (in Spanish Empresa compliance with the
of 2019, reference number temporary service companies Usuaria). current regulations
71281 (in Spanish Empresas de regarding externalisation of
• Under Article 77 of Law 50 of
Servicios Personales-EST) 1990, EST can be hired to services.
can be considered illegal. provide a limited list of services: • Outsourcing companies or
The Court decided a labour (a) where required on an temporary service
and pension claim settled occasional or transitory basis for companies providing the
against Manpower de up to 30 days; (b) as a external services to third
Colombia Ltda. (EST) and replacement during sickness, parties in response to
Manpower Professional Ltda. maternity leave or holidays; and market demands, should
(subcontractor), both (c) where there is an increase in also assess whether the
Colombian Companies production, transport or sale of agreements concluded
committed with the goods, or harvest for up to 6 with their clients are
externalisation of services. months, (with an extension for compliant.
the same term.)
• In case of contractors and • Companies that fail to
subcontractors hired to provide comply will be subject to
professional or technical administrative fines of up
services, they must prove to 5,000 legal minimum
administrative, technical and monthly wages
budgetary autonomy. (approximately USD
$1,300,000). Moreover, the
• Regardless of the type of Companies can be the
approach used for the subject of labour claims
externalisation of services, before the Labour Judge.
labour and social security rights
must always be observed.
On your radar | May 2019 CMS
Index of countries
On your radar | Key employment issues across Europe and beyond
Czech Republic
Development Description Effective date Impact and risk Future actions
The three day period during Employees will be entitled to 1 July 2019 The repeal of the no payment Given the fact the
which an employee is not compensation for salary period is likely to lead to increased conservative parties of the
entitled to compensation for (under conditions stated in labour costs and increased Parliament raised a proposal
salary in the event of the Czech Labour Code) number of employees who stay at to postpone the repeal until
sickness (in Czech: from the first day of their home due to sickness. the electronic sick note
“karenční doba”) will be sickness. On the other hand, the employer becomes effective (as
repealed. According to the current is entitled to conduct originally promised) and the
regulation (which is subject of investigations into whether the entire matter has become
The Czech Government has appeal), employees were not employee adheres to their politically sensitive, there is
delivered on one of its pre- entitled to any compensation medical regime to prevent misuse a chance the repeal of the
election promises and for the first three days of of the unfitness to work status by discussed period will be
repealed the above period sickness and the either pretending the sickness in postponed.
for compensation for salary compensation was payable the first place or unnecessarily
in the event of sickness of only from fourth day prolonging the status by not
an employee. However, the onwards. The compensation adhering to the recommended
repeal was supposed to of salary payable to medical regime prescribed by a
operate in parallel with the employees during the first medical practitioner.
introduction of an electronic fourteen days of their
sick note, the effectiveness sickness is paid by the
of which will most likely employer.
have to be postponed.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
France
Development Description Effective date Impact and risk Future actions
The French Parliament has The PACTE Act addresses Most provisions In relation to workforce thresholds, The PACTE Act brings new
passed the “Action Plan for various matters such as: of the PACTE Act the PACTE Act will: opportunities for companies
Business Growth and • simplifying thresholds will enter into • merge most Social Security and regarding employee
Transformation” (also applicable to small and force as soon as Labour law thresholds to incentive schemes and
known as “PACTE” Act) on medium-sized it is officially maintain only three of them: the profit-sharing agreements.
11 April. enterprises: obligations published. 11 employees threshold, the 50 Companies will have to be
Companies are linked to thresholds will be The Act still has employees threshold and the careful when amending their
overburdened with significantly reduced and to be approved 250 employees threshold; agreements if they intend to
obligations that complicate simplified in order to create by the • provide that a threshold is only keep their tax exemptions.
every step of their a new legal environment Constitutional reached if it has been crossed
development. The PACTE more favourable to Council. Its for five consecutive years. If certain criteria are not met
Act aims at removing such business growth; decision will by the agreement, the Social
obstacles, simplifying • continuing the promotion occur on 17 May Security Authority may seek
business formation and of employee incentive at the latest. reassessment.
easing obligations schemes and profit- Only then will the
concerning workforce sharing agreements PACTE Act be
thresholds. especially through financial published and its
incentives; provisions enter
• simplifying and ensuring into force.
portability of pension
savings accruals: all
employees will be able to
maintain and add to their
savings accruals
throughout their
professional lives, and
withdrawals of lump-sums
will be facilitated.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Germany
Development Description Effective date Impact and risk Future actions
Until now, part-time Part-time employees must Federal Labour Although the case to be decided Employers should consider
employees have usually not be discriminated against Court, judgment concerned a collectively agreed whether they need to adapt
received financial (section 4 (1) German Part- of 19 December extra work allowance, the decision their practice of paying extra
compensation for extra work Time and Limited-Term 2018 - 10 AZR is also likely to be relevant to work allowances to part-time
(in addition to the basic Employment Act (TzBfG)). 231/18 contractual extra work allowances. workers accordingly.
wage) only when they have Therefore, if a 20-hour week
worked hours exceeding the was stipulated, from the 21st In addition, existing con-
normal working hours of full- hour there would not only be tracts with part-time
time employees. an entitlement to the basic employees should be
wage, but also to the adjusted regarding working-
The German Federal time if it is foreseeable that
Labour Court has now (collectively agreed) extra
work allowance (which, in the the employees will have to
changed its case law and work extra hours on a
ruled that part-time case on which the decision is
based, full-time employees regular basis in order to
employees are entitled to avoid paying extra work
extra work allowances for receive only from the 41st
hour worked during a week). allowances.
working hours in excess of
their individually fixed
working hours (part-time
quota).
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Hungary
Development Description Effective date Impact and risk Future actions
Amendment of Act I of 2012 The main amendments are 26 April 2019 Amendments to the Labour Code The discrepancies
on the Labour Code relating as follows: under the Act may require revision discovered during this
to monitoring, biometric of existing employment contracts, process should be
identification, criminal According to the Act, the data protection briefings, internal eliminated at the earliest
personal data processing of employee must be informed labour processes and practices. convenience, and care
employees in writing about the restriction As a general rule, an employee should be taken to ensure
of the personal data right, may not use the information that the labour and data
including the control and the technology and computing tools protection documents with
The new Act processing of personal data the necessary modifications
comprehensively amends provided by the employer (e.g. a
for other purposes, which computer, telephone, or an are communicated to
the personal protection must include the employees in a timely
provisions of Act I of 2012 employer's wifi network) for private
circumstances justifying the purposes unless the employer manner.
on the Labour Code necessity and proportionality
(“Labour Code”). explicitly authorises private use.
of the restriction. The latter is Regardless of whether the
not the same as the information technology or
balancing test that the computing tool used for the work
employer has to carry out in is for the employer or employee,
the case of data processing its control can only cover the data
on the basis of the legitimate related to the employment
interest. Information is relationship. The employer must
considered to be in writing if also inform the employee in writing
it is published in a known of the terms of the inspection,
manner, such as by email or either by e-mail or by posting on
internet. the intranet if this is in accordance
with the usual and generally
The Act contains rules known method.
regarding the processing of
biometric data and criminal
records personal data.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Italy
Development Description Effective date Impact and risk Future actions
Legislative Decree no. 14 of The start of the judicial 14 August 2020 In case of automatic termination of In cases where there has
2019 introduces new liquidation procedure against (eighteen months the employment relationship, the been unlawful termination by
regulations for corporate the employer does not after the date of employee has the right to receive the liquidator the employees
crisis situations, stating the constitute a justification for publication of the the payment in lieu of notice. are entitled to challenge the
consequences for the dismissal. The employment decree in the In cases of termination made by dismissal and claim for the
employment relationship relationships existing at the Official Journal). the liquidator the dismissal has to protection provided by the
after the start of the "judicial date of the opening of the meet the requirements provided Italian law.
liquidation" procedure (an procedure shall remain for by the law both for procedure
expression that replaces the suspended. and justification provided.
reference to "bankruptcy"). The solutions may then be as
follows:
• the liquidator informs the
employees that their
employment relationship
continues, or that it must
be terminated
• after 4 months the
liquidator has not
communicated the
intention to continue the
employment relationship,
or to terminate the
employment relationship.
In this case the relationship
is considered terminated
automatically.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Luxembourg
Development Description Effective date Impact and risk Future actions
On 27 March 2019, the law The number of annual Effective in 2019 Depending on the wording of the Companies subject to a
on the implementation of an working days of paid leave is collective labour agreement collective labour agreement
additional working day of increased from 25 days to 26 applicable to the company, the which provides additional
paid leave and one days. total number of annual working working days of paid leave
additional public holiday An additional public holiday days of paid leave will increase or for the employees should be
was adopted by the (“Journée de l’Europe”) on 9 not: cautious on the impact of this
Luxembourg parliament. May is also added. • if a clear reference to the legal reform.
This law will be applicable provisions is made (i.e. if the
for the year 2019. collective labour agreement
refers to a number of extra
working days of paid leave in
addition to the legal provisions),
the total number will increase,
• If the collective labour
agreement only refers to a total
number of working days of paid
leave (e.g. 30 working days of
paid leave), there will be no
impact.
The previous remark is also
relevant in case of specific
provisions included in employment
contracts providing an additional
number of annual working days of
paid leave.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Monaco
Development Description Effective date Impact and risk Future actions
Extension of the period of This draft bill aims to extend No date has Failure to respect the woman’s With the aim of increasing
maternity leave from 16 to the period of maternity leave been set yet as it right to take 18 weeks of maternity the father’s role after the
18 weeks following: of up to 18 weeks. is still a draft bill, leave may expose employers to a birth thought is also being
• The Maternity Protection In the event of multiple births, but the President penalty from EUR 750 to EUR given to a possible extension
Recommendation (No. the legal duration will be of the National 2,250, which will be doubled in the of the duration of paternity
191), which has been extended for a further 2 Council stated event of a new offence. leave (which is currently 12
adopted by the weeks. that the bill will be One of the consequences of such consecutive days in case of
International Labour voted before the a measure would be the extension a simple birth and 19
As soon as the bill is passed, end of June consecutive days in cases of
Organization (ILO) on 15 these provisions relevant to of the term of protection (i.e.
June 2000 (although the 2019. contract suspension period of at multiple births/dependent
the employees in the private children in addition to the 2
Principality of Monaco is sector will be extended to least 18 weeks in addition to 4
not a party to ILO); weeks afterwards). days of exceptional absence
cover civil servants and state for birth).
• The wishes expressed by agents. It also should be recalled that
the Economic and Social It should be mentioned that Article 2-1 of the law No. 870
Council of Monaco on 22 the Caisses Sociales of prohibits discrimination on the
November 2017; Monaco (CSM) has given a grounds of pregnancy for hiring,
• The submission of the bill favourable opinion regarding terminating the contract of
to the National Council in the funding of this measure. employment including during the
the beginning of the probationary period and where
This bill also intends to there is a business transfer.
current year. recognise the possibility for
The purposes of the female employees, like civil
maternity leave’s extension servants or state agents, to
are: adjust the duration of their
• To protect the pregnant prenatal leave by reducing it
woman who works; by six weeks at most, to
enable them to increase the
• To safeguard the health duration of their postnatal
of mother and child; leave.
• To maintain the balance
between family and
professional life.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Poland
Development Description Effective date Impact and risk Future actions
New regulations on The Act introduces a new 4 May 2019 The employer should review Employers should review
employee monitoring and catalogue of data that an internal data processes and check whether the scope of data of
data processing. employer can demand from whether the scope of processed candidates and employees
The Polish parliament has employees/candidates, as data is justified and whether it is stored in their databases
adopted a new law well as the data processing compliant with the new law. meets the new legal criteria.
amending over 160 different rules. In particular, the Persons who have access to If they determine that the
regulations. The Act aims to employer will no longer be employees’ sensitive data will processing of some
ensure compliance of Polish able to demand from require a special written information is not justified,
law with the GDPR. candidates information about authorisation from the employer to they should delete the
the names of their parents. process such data. unnecessary data, especially
The new law introduces The employer will be able to If the employer runs a company in the context of potential
significant changes to the process sensitive data of social fund, it will have to review audits announced by the
Polish Labour Code and a employees and candidates, the scope of data processed for Polish Data Protection
few other employment- but only if they were provided the purposes of financing benefits Authority (“PDPA”). The
related acts, e.g. the at their initiative. from the fund at least once a year. PDPA plans to audit, among
Company Social Fund Act. The employer will have to others, recruiting activities
The Act also changes the
rules of monitoring in the determine whether the storage of and the use of workplace
workplace. Usage of CCTV is such data is justified and will have CCTV systems.
prohibited at trade union to delete any unnecessary
premises and monitoring of information.
sanitary rooms is permitted
only upon prior consent of
trade union or ad hoc
employee representatives.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Singapore
Development Description Effective date Impact and risk Future actions
On 1 April 2019, the The Guidelines contain Ongoing The Guidelines will have an We recommend that
Tripartite Guidelines on various illustrations of impact on all employers and employers and HR
Wrongful Dismissal (the wrongful dismissal, including employees in Singapore and will practitioners be mindful of
“Guidelines”) were by reason of discrimination, undoubtedly aid all parties in the information in the
released by the Ministry of deprivation of benefits, a properly understanding their Guidelines as these are
Manpower, the National desire to punish an employee employment rights and obligations matters which will directly
Trades Union Congress and for exercising an employment in the event of dismissal. impact on the
the Singapore National right and for providing a false determination(s) made by a
Employer’s Federation. reason for dismissal. Among other matters, the mediator / adjudicator in the
In the event of a dispute, The Guidelines also include Guidelines reiterate the event of a dispute.
the Guidelines allow examples of dismissals that importance of proper
employers, employees, are not wrongful, such as documentation and record You should consider
mediators and adjudicators dismissals on grounds of keeping in relation to employees. reaching out to employment
in Singapore to refer to poor performance, It also highlights the care that law specialists in Singapore
clear examples of what misconduct, and redundancy. should be taken in providing an to offer training to staff in HR
constitutes wrongful employee with substantiated and/or legal teams to ensure
dismissal. reasons for his or her termination that your organisation
of employment. complies with the Guidelines.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Slovakia
Development Description Effective date Impact and risk Future actions
The Labour Code Employers who employ more 1 January 2019 Additional bureaucracy and Employers should determine
introduced a new obligation than 49 employees are employment costs for the whether they fulfil the
on employers to provide obliged, upon request of the employers. threshold of employing more
employees with an employee who has been The benefit is pro-rated for part than 49 employees and,
allowance for recreation on continuously working for the timers. thus, qualify as employers
the territory of the Slovak employer during the previous with the recreation allowance
Republic. 24 months, to provide that obligation.
The aim is to promote employee with a recreation
domestic tourism. allowance of up to 55% of The calculation is based on
eligible expenses. The the average registered
maximum is EUR 275 per number of employees for the
calendar year. This covers previous calendar year
costs such as
accommodation, meals, and If they do then employers
other services relating to should set up internal
recreation. processes for fulfilling the
The eligible costs also cover recreation allowance
the employee’s obligation.
wife/husband, children and
other people living in the
same household, if they are
with them when the
allowance is used.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Spain
Development Description Effective date Impact and risk Future actions
The Spanish Government The regulation on equality Regulation on Implementation of these measures Employers shall undertake
has approved several includes the following equality would have an economic and the relevant actions to start
measures on equality and measures: measures: fully social impact for employers, in implementing the different
the gender pay gap, in • companies with more than effective. The particular regarding the measures in due time.
addition to an obligation on 50 employees must Salary Register implementation of a mechanism to
employers to register their shall be register the working time on a A regulatory development of
implement an Equality these regulations, including
employees’ daily working Plan; implemented daily basis in companies with
time. within one to “complex” employees, such as specificities on how the
• all companies shall have a three years employees working from home, obligations shall be fulfilled,
‘Salary Register’ including depending on the sales representatives, etc. is expected to take place.
the average salaries number of Moreover, the general
broken down by Lack of compliance with these elections to be held in Spain
employees obligations may qualify as a labour
men/women, which shall employed. on 28 April 2019 also
be made available to the infringement. provide uncertainty in this
employees’ Regulation on Furthermore, claims from regard.
representatives; registration of employees and/or their legal
working time: representatives in addition to In any case, seeking proper
• paternity leave to be fully effective. legal advice on these
increased to 16 weeks, on claims for wage discrimination,
Registration will overtime, etc., might also be measures and, in particular,
a progressive basis until be implemented on how the obligations shall
2021. expected as a result of a breach of
from 14 May these regulations. be fulfilled, is advisable.
2019.
Regulation on the registration Both regulations
of working time: employers are still pending
shall register their final approval by
employees’ working time on the Spanish
a daily basis and shall retain Parliament.
these records for a period of
4 years.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Switzerland
Development Description Effective date Impact and risk Future actions
Switzerland implements a Companies with more than The Companies with more than 100 No direct sanctions in case
duty to conduct an internal 100 employees must conduct corresponding employees must conduct the of negative results of the
analysis of salaries with an internal analysis of amendment to analysis and share the respective analysis, but there are
regard to the gender pay salaries with regard to the the Swiss Gender results. reputational risks and the
gap. gender pay gap. Equality Act has report may serve as a basis
been approved for potential discrimination
This analysis has to be and will enter into claims under the Swiss
carried out every four years force in either the Gender Equality Act.
and has to be verified by an second half of
independent external expert. 2019 or in 2020.
The results of the analysis
must be communicated to
the employees and, for stock
listed companies, be
published.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Turkey
Development Description Effective date Impact and risk Future actions
Employers applying for Shortened work-hours Ongoing Recently, applications for The Regulation and
Shortened Work Hours allowance is an allowance shortened work-hours and the shortened work-hours
Allowance have paid to the employees by the Allowance increased due to the application is defined by the
substantially increased due Turkish Employment Agency high fluctuations in Turkish Lira Employment Agency as a
to economic fluctuations in from the unemployment and the unstable economic "safety net" for the
Turkey. insurance fund, on environment. employers and the
application by the employer As a result, substantial employees during their
for “shortened work-hours” amendments were made to the economic hardships; the
due to sectoral and regional Regulation in November 2018, employers can use this
economic crises (the which (i) enlist new conditions method to economically
“Allowance”). where employers can apply for the downsize their business by
In accordance with the shortened work-hours, such as shortening the work-hours
Regulation on Shortened “external effects which have arisen instead of mass
Work Hours and Shortened beyond the control of the redundancies.
Work Hours Allowance employer” and (ii) tightens the
published in the official Therefore, the employers in
requirements to apply, including a financial distress may take
gazette dated 30 April 2011 new requirement to submit a
and numbered 27920 (the into consideration this option
board resolution of the employer for protecting their
“Regulation”), in the event of with the application for shortened
a general, regional or workforce.
work-hours.
sectoral economic crisis,
employers may apply to
materially decrease the
working hours at the
workplace and as a result of
this, the employees will be
entitled to be paid an
allowance of up to TRY
3,838 per month (for 2019)
by the Turkish Employment
Agency.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Ukraine
Development Description Effective date Impact and risk Future actions
New accounts for payment of The State Treasury Service of 2 May 2019 Employers may use "old” accounts Ukrainian UST-payers should
the Unified Social Tax Ukraine announced setting up for payment of the UST until 1 May mind to transfer their UST
(“UST”). new accounts for payment of 2019 (inclusive). The funds payments to the new accounts
the UST (withheld transferred to “old” accounts after 1 starting from 2 May 2019.
predominately from employers May 2019 as the UST payments will
for each of their employees). be classified as unidentified
payments and returned to the
respective taxpayers. Further, the
UST non-payment to the
appropriate accounts may be
deemed as tax evasion, which may
result in administrative and financial
sanctions against employers.
The Cabinet of Ministers of The Criteria are intended to 27 March 2019 The SLS’s scheduled inspections The business is recommended
Ukraine approved the criteria implement the risk-oriented frequency depends on the monitoring its risk status
(“Criteria”) for the frequency approach to scheduled businesses' risk status: low assessed by SLS, annual
of scheduling inspections by inspections by the SLS as well (inspection may be conducted no schedule of inspections and
the State Labour Service of as to enhancing business more than once in two years), general compliance with
Ukraine's (“SLS”). environment by reducing the medium (no more than once in Ukrainian labour law
number of the said three years), high (no more than requirements.
inspections. once in five years).
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
United Arab Emirates
Development Description Effective date Impact and risk Future actions
DIFC proposes amendment The DIFC recently sent a To be confirmed. Employers within the DIFC should The extent of the risk will
to the DIFC Employment consultation letter to The aim is for pay close attention to the depend on the final
Law. businesses in the DIFC, enactment on proposals set out in the provisions of the amendment
setting out its proposal to 1 January 2020. consultation letter and continue to to the DIFC Employment
phase out the end of service follow developments. Law. The consultation stage
gratuity and a move to a Although a minimum contribution has now ended and we can
trust-based savings scheme. rate has not yet been indicated, it expect an amendment to the
This seeks to align the is expected, although not Employment Law to be
DIFC’s pensions and benefits confirmed, that this will be equal to drafted based on the
regulations with the global the existing gratuity accrual rate. A responses received, with the
shift towards defined management fee may also be possibility of further
contribution plans. payable to the DFSA. Employers consultation before being
The current proposal would may in particular want to begin enacted.
require employers to considering financial planning for
contribute to a fund, which the possibility of such a change to
would be managed by the the end of service benefits
DFSA, unless they have their scheme. It is also yet to be
own trust based contribution confirmed whether employees will
savings plan to which they be able to contribute to the fund.
contribute at least the
minimum to be required
under law.
On your radar | May 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
United Kingdom
Development Description Effective date Impact and risk Future actions
The Court of Appeal (Timis The UK has afforded October 2018 This case has obvious implications Claimants who allege they
v Osipov) has confirmed protection to whistle blowers for legal and HR managers, and have blown the whistle are
that an individual director since 1999. anyone involved in the disciplinary now more likely to bring
could be personally liable to The legislation enables process of a whistle-blower. claims against the
pay compensation to a workers and employees to Because whistleblowing individuals involved in the
whistleblower. make a claim that they have compensation is uncapped in the dismissal process in addition
In this case the two non- suffered detrimental UK, the financial risks are to bringing claims against
executive directors who treatment as a result of significant. their employer. This may put
dismissed the individual blowing the whistle. more pressure on an
This puts liability in whistleblowing employer to settle a claim.
were jointly and severally Employees have the claims on a similar footing as
liable with the company for additional protection in discrimination claims in the UK, In this case the dismissing
the losses arising from his relation to automatic unfair where a claimant can bring a claim (non–executive) directors
dismissal which amounted dismissal on this ground. directly against the individual were covered by Directors &
to GBP 1.75 million. This is the first UK case that perpetrator, as well as the Officers (D&O) liability
(In this case the employer establishes that a employer. insurance, and coverage
was insolvent therefore in whistleblower can bring a should be checked.
order to recover claim against a co-worker in
compensation the claimant addition to their employer. Training is also
pursued the action against recommended to ensure HR
the individuals). and people managers are
aware of the legal issues
and are able to spot and
deal with a whistleblowing
claim.
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