On your radar Key employment issues across Europe and beyond - On Your Radar | January 2019 - CMS Law
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On your radar Key employment issues across Europe and beyond On Your Radar | January 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 | January 2019 CMS
Index of countries Please click on the country below to take you to that section. Belgium Germany Singapore Bulgaria Italy Slovakia China Monaco Spain Colombia Netherlands Ukraine Croatia Peru United Arab Emirates Czech Republic Poland United Kingdom France Romania On Your Radar | January 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 dismissal of an The court ruled that the Like the Court of Justice, a To avoid disputes (and, of
employee who refused to employee was not Belgian court has now ruled course, insofar as the
work without a headscarf dismissed because of her that the obligation to dress employer wishes to do so), it
(in circumstances where religious convictions, but neutrally must form part of a is advisable to explicitly
she did not wear a because of her refusal to policy of neutrality which is include the principle of
headscarf at the beginning comply with a dress code pursued in a coherent and neutrality in the employment
of her employment) is not imposed by the employer systematic manner and which contract, the work regulations
discriminatory. This on all employees. The aims, in a general and or an internal policy, taking
recently published court considered that the indiscriminate manner, at the into account the criteria
judgment by the Labour internal rule of the visible wearing of signs of defined by this case law.
Court of Brussels from 28 company did not amount political, philosophical or
May 2018 is one of the first to direct discrimination religious convictions. In
decisions to apply the because of its general addition this policy should only
Achbita case from 14 character. The employer apply to employees who come
March 2017 delivered by invoked the 'principle of into contact with clients.
the European Court of neutrality' although this This is an important
Justice. was not explicitly included observation because the
in the employment contract debate about religious
or in the work regulations. characteristics in the
According to the Court, workplace, like many European
there is also no indirect countries, is also ongoing in
discrimination because a Belgium.
consistent and systematic
prohibition of all
employees from wearing
visible, ideological signs is
an appropriate means of
achieving the legitimate
objective set out, namely
the company's policy of
neutrality.
On Your Radar | January 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
Parliament has adopted a Bulgarian employers shall Ongoing, effective Employers must meet the Where there has been non-
new Law for People with hire people with as of 1 January requirements for employment fulfilment of the obligation to
Disabilities. permanent disabilities, as 2019 of people with permanent employ people with
follows: The adoption of the disabilities, including the permanent disabilities,
i. employers with 50 to Rules of Application requirement to adjust the employers shall pay a monthly
99 employees - one of the Law for workplace conditions to their compensation contribution of
person; People with needs. 30 per cent of the minimum
Disabilities is still The new requirements wage for the country for each
ii. employers with 100 vacancy which should have
and over 100 pending. increase the additional
administrative and financial been designated and
employees - 2 per cent occupied by a person with a
of their average payroll burden on employers who
have to guarantee equal permanent disability.
numbers.
treatment of people with
The above obligation has permanent disabilities.
been introduced in
addition to the existing
employers’ obligation to
maintain a certain
percentage of workplaces
for employees under
occupational rehabilitation.
Parliament has set new Parliament has set the Ongoing, effective The increased thresholds will In the long-term, the
minimum gross monthly following new limits: as of 1 January affect the planned salary increased expense for
salary and new maximum i. minimum gross 2019 budget of the companies. employees’ salaries may
monthly insurable income monthly salary - BGN The increase in the maximum result in staff cuts where they
for the country. 560 (approx. EUR insurable income will lead to aim to compensate for the
285), and lower net salaries for increased costs.
ii. maximum monthly employees, whose salary is
insurable income - above the insured maximum.
BGN 3,000 (approx. In turn, some companies will
EUR 1,530). increase the salary of their
employees to cover the
On Your Radar | January 2019 CMS
reduction in net income.
Index of countries
On your radar | Key employment issues across Europe and beyond
China
Development Description Effective date Impact and risk Future actions
The PRC Individual In the past, employees 1 January 2019 According to the amended law, The employer may wish to ask
Income Tax Law has been should pay income tax on the deduction can be made the employees to choose in
changed. Employees will their salaries apart from either by the employer at the advance whether the
be able to deduct certain the social insurance and time of withholding income tax employees will ask the
personal expenses relating housing fund contributions from monthly salaries, or by employer to make the monthly
to education, medical payable by the employees. the employees themselves as preliminary deduction or to
treatment, housing and With the change of the part of their annual tax return make the annual declaration
support for elders from PRC Individual Income declaration (during the period by themselves. If any
their income for individual Law, some personal from 1 March to 30 June of the employee asks the employer
income tax. expenditure of the following calendar year). to make the preliminary
employees such as: some However, if an employee asks deduction as the individual
expenses incurred on their the employer to make a income tax withholding agent,
own continuing education, preliminary deduction in the employer may wish to ask
or their children’s relation to the costs of the employee to provide
education, or some education, housing loan his/her personal information
medical expenses for interest/rent, or support for through a remote tax App
serious illness, a certain elders, the employer shall not developed by the State
amount of the housing refuse. Due to historic reasons, Administration of Taxation. If
loan interest/rent, or some most employees are expected the employee can only
expenses for supporting to ask the employer to make provide the personal
elders can all be deducted the preliminary deduction. information directly to the
from the income of the This will not only increase the employer, the employer must
employees for individual administrative work of the ask the employee to provide
income tax. employer in relation to such information in writing and
managing the individual duly update the information if
income tax issues of their there is any change. Further,
employees, but will also bring no matter how the employer
additional obligations on the obtains the personal
employer in relation to keeping information of the employee,
the personal data of the the employer must keep such
employees confidential. information confidential.
On Your Radar | January 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
Decree 2451 of 2018 by The Colombian Legal From January Employment contracts with ordinary To adjust payroll rates in
which the Government Minimum Monthly Wage 1st, 2019 (for salaries (a salary that only includes the accordance with the
sets the Colombian Legal (CLMMW) for 2019 was both decrees) remuneration for the ordinary work) current CLMMW and the
Minimum Monthly Wage set at COP $828,116. equal to or estimated with regards to legal transportation
(CLMMW) for 2019 the proportion of the CLMMW will be allowance from January
subject to an adjustment considering 1st, 2019.
Decree 2452 of 2018 by The monthly legal the current value.
To determine which
which the Government transportation allowance Employees that earn up to two employees are entitled to
sets the monthly legal for 2019 was set at COP CLMMW will be entitled to the receiving the monthly
transportation allowance $97,032. payment of the legal transportation legal transportation
for 2019 allowance. allowance and the
Employees that earn up to two mandatory working
CLMMW and have been working for clothing.
up to three months in the Company
are entitled to receive mandatory To verify whether
working clothing. employment contracts
including integral salary
Employment contracts with integral agreements observe at
salaries agreements (a salary that also least the current legal
includes the payment of the fringe minimum integral salary
benefits, among others) will be subject amount (COP
to the respective adjustments. $10,765,508) in order to
Fines that can be imposed by the enjoy all the legal effects
relevant Labour Authorities will be relating to Article 132 of
adjusted in accordance with the the Colombian Labour
current CLMMW. Code. Otherwise, further
Limits to the income base for payment adjustments should be
of the contributions to the Social required to be in comply
Security System will be adjusted in with the current
accordance with the current CLMMW. regulations.
On Your Radar | January 2019 CMS
Index of countries
On your radar | Key employment issues across Europe and beyond
Croatia
Development Description Effective date Impact and risk Future actions
Recent amendments to the The Minimum Wage Act 1 January 2019 This is a further increase of The Minimum Wage Act will
Minimum Wage Act and includes the general definition the minimum wage. revoke an employers' right to
the Labour Market Act aim of the minimum wage, and In the amendments to the deduct 50% of the basis for
to provide more security stipulates that the Croatian Contributions Act, two types the calculation of social
and higher standards for Government should determine of social contributions, contributions for their
employees, as well as to the exact sum for each previously paid out by employees' who receive the
decrease unemployment calendar year by 31 October employers, are being minimum wage by 1 January
rates. of the preceding year, in revoked – (i) the 2021.
In addition, a sweeping tax consultation with social unemployment contributions
partners and an expert Employers currently using this
reform (including the and (ii) the occupational deductibility option can
change to the commission. health and safety continue using it in 2019 and
Contributions Act), The monthly minimum wage contributions (to be paid out gradually reduce the
effective as of 1 January for 2019, amounts to HRK of state budget). The health deduction to 25% in 2020
2019, will impact both 3,750 gross (approx. EUR 500 insurance contributions are before the option is revoked in
employers and employees. gross). This sum does not increased by 1.5%. 2021.
include wage increases for All of the measures should
overtime work, night work and lead to significant cost
work on Sundays or national reductions for employers
holidays. (current projections state
The Labour Market Act, savings of up to HRK 900
defines measures of active million (approx. EUR 120
employment policies, million).
prescribes conditions for If the employer fails to pay
receiving unemployment employees the prescribed
benefits for various recipients minimum wage, a monetary
and defines the status of penalty in the amount of
seasonal workers and HRK 60,000 – 100,000
individuals hired for the first (approx. EUR 8,000 –
time in their chosen profession 13,333) may be imposed
without establishing an (per employee!).
employment relationship.
On Your Radar | January 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
Private sector employers In its ruling File No. 21 15 August 2018 According to the Czech The risk of invalidity of the
can agree with any Cdo 1073/2017 dated 15 Supreme Court Section 73 par. contractual provision allowing
managerial employee on August 2018 the Czech 3 of the Czech Labour Code is the employer to recall the
the possibility of recalling Supreme Court has not mandatory, but managerial employee from
the employee from his/her answered a long discretionary regulation. his/her role in situations when
role, provided that it is discussed question on Therefore, it is possible to the managerial employee
simultaneously agreed that whether the employer may deviate from it and determine does not fulfil conditions set
the managerial employee agree on the possibility of the range of roles of out in Section 73 par. 3 of the
may also resign from that recalling the employee managerial employees for Czech Labour Code should
role. from the role with any which it can be agreed on the be mitigated. The employers
managerial employees or possibility of recalling the may now safely agree with
(In Czech law the principle only with those fulfilling employee from their role by their managerial employees
of recalling an employee criteria set out by Section means of collective or other on the possibility of being
means that the employer 73 par. 3 of the Czech agreement or by internal recalled.
should then consider them Labour Code (e.g. regulation.
for another role. If another employees directly Employers should note that
role is not available then reporting to the statutory The only condition that has to the employment relationship
the employee would be body or directly reporting be fulfilled is that, the does not terminate upon the
made redundant.) to employees who directly managerial employees must recall. However, the possibility
report to the statutory fulfil the conditions stipulated of recall may, under certain
body). by Section 11 of the Czech conditions, ease the
Labour Code (i.e. employees separation.
who are authorised, at the
individual management levels,
to determine and impose
working tasks on subordinate
employees, organise, direct
and control their work and give
them binding instructions).
On Your Radar | January 2019 CMS
Index of countries
On your radar | Key employment issues across Europe and beyond
France
Development Description Effective date Impact and risk Future actions
In response to the “yellow The tax-free bonus may The bonus may be The amount of the bonus can Employers must be extremely
jackets” movement, the benefit all the employees granted to be the same for every careful when drafting their
French Government of the company or only employees between employee or can vary in its decision or collective
unveiled a series of employees whose 11 December 2018 amount between employees bargaining agreement.
measures. The Bill (n°018- remuneration is below a and 31 March 2019. based on criteria such as their
1213) was passed ceiling determined by an level of remuneration, their If one of the criteria presented
following a fast-track agreement or decision of level of classification, their above is not met, the Social
procedure and adopted by the employer. effective presence in 2018 or Security Authority may seek
Parliament on 24 their working time duration. reassessment up to 3 years
The tax exemption will only after the bonus was paid.
December 2018. apply up to 1,000 euros The tax-free bonus can be
It contains several social and if: implemented through:
and economic provisions: it - the bonus is granted to - a collective bargaining
specifically allows employees who earned agreement;
employers to give their less than three time the
employees a tax-free - an agreement between the
value of the annual employer and unions that are
bonus up to 1,000 euros. minimum wage, i.e. representative within the
53,944.80 euros; company;
- the bonus is awarded to - an agreement concluded
employees who are bound within the social and economic
by an employment contract committee;
on 31 December 2018 (or
on the payment date if it’s - a referendum adopted by a
prior to December 2018) ; 2/3 majority vote of the
employees;
- the bonus is paid
between 11 December - or, if it is taken prior to 31
2018 and 31 March 2019; January 2019, a unilateral
decision. In such case, the
- the bonus does not social and economic
replace any wage raises committee is informed of this
nor prior existing bonuses. decision by 31 March 2019.
On Your Radar | January 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Germany
Development Description Effective date Impact and risk Future actions
The Act on the Further The following requirements 1 January 2019 The government estimates that Companies with 46 to 200
Development of the Law must be met for the in 2019 approximately 143,000 employees must
Governing Part-Time Work employee to be entitled to employees in the private sector (electronically) record and
(Gesetz zur Weiterent- bridging part-time will file an application for continuously update the
wicklung des employment: bridging part-time employment. number of employees in
Teilzeitrechts) has been • More than 45 For employers the bridging bridging part-time employment
included in the Part-Time employees must be part-time employment primarily if they wish to consider
and Fixed-Term employed at the means more difficulties in rejecting an application on the
Employment Act (Teilzeit- company personnel planning: grounds of unreasonableness.
und Befristungsgesetz). It • The employment
contains provisions on so- relationship must have • In the future, more Upon receipt of an application
called bridging part-time existed for more than "returnees" from part-time for bridging part-time
employment (Brücken- six months work will have to be taken employment, companies
teilzeit). • In companies with 46 into account than was should note down the
to 200 employees, only previously the case due to deadline set at one month
According to this Act, parental and nursing care (not 4 weeks!) prior to the
employees can reduce one in 15 employees is
entitled to bridging leave desired commencement of
their working hours for a bridging part-time
limited period of one to five part-time employment • Especially with regard to
(no "unreason- management positions of employment. If the employee
years and return to full- has not received the written
time work based on legal ableness") highly qualified employees,
• No conflicting it is likely that it will be rejection of the application by
entitlement. then, bridging part-time
operational reasons difficult to counterbalance
the temporary reduction of employment will take effect as
working hours by hiring requested.
temporary replacements
On Your Radar | January 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Italy
Development Description Effective date Impact and risk Future actions
Article 18 of the Italian Bill The United Divisions of the Applicable principle While we cannot exclude the We suggest evaluating
of workers which regulates Italian Court of Cassation possibility of a different court carefully the duty to proceed
the consequences against has ruled that a late opinion in future, the case law without delay in disciplinary
unfair dismissals does not disciplinary dismissal shall approach on this question of proceedings, and not to
expressly govern the require the reinstatement timing and delay now appears postpone disciplinary
amount of time which may of the dismissed quite consolidated. measures unless a complex
pass between the employee. investigation is required.
employer becoming aware This judgment observes
of a disciplinary act, and that the legislator’s
sending its letter to the intention is to be
employee containing the interpreted as willingness
complaint regarding that to consider the sole
act. reimbursement (from 12 to
Such “lateness” has been 24 months’ salary) in
interpreted by case-law as favour of unfairly
the employer’s intention to dismissed employees as a
waive any disciplinary general rule only.
measures. In some cases The Court specified that
it has been used to declare this principle of timeliness
a dismissal as being unfair, is infringed only in cases of
and the employer has “considerable and not
been ordered to reinstate justifiable delay”, to be
the dismissed employee. evaluated on a case-by-
case basis, leaving open
questions in individual
cases as to the reason for
delay e.g. complex
investigations, as well as
where the organisational
structure affects
knowledge of when the
misconduct took place.
On Your Radar | January 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Monaco
Development Description Effective date Impact and risk Future actions
The French Finance Act This new French 1 January 2019 Considering no new Tax Treaty The French Tax
n°2016-1917 of December regulation has raised two was signed between France Administration recommends
29th, 2016 and the types of concerns for the and Monaco, and according to that foreign employers inform
Ordinance n°2017-1390 of Monegasque employers Article 204 C of the French their employees about the
September 22nd, 2017 and employees: General Tax Code, Employees’ new procedure applied to
have provided a new way • About its scope of incomes, paid by employers them and about their
of collecting French taxes application; not established in France, are obligations towards the Tax
which consists in not collected by them on behalf Administration.
withholding income tax. • About the potential role of the French Tax
and responsibilities of Administration, but are subject However, we consider that
This procedure, already the Monegasque absent any legal ground for
implemented in most of to a direct withdrawal on
employers and employees’ bank account. such recommendation, it is
European countries, employees towards unlikely that a Monegasque
involves: French Tax Therefore: employer could be found
• The employer who Administration. - Contrary to French liable before Monegasque
must collect every employers, Monegasque jurisdictions for a breach of
month his employees’ employers cannot be found contract for solely not having
income tax on the liable in case of mistake, delay informed his Employee about
behalf of the Tax or non-payment of their the withholding income taxes
Administration. employees’ income tax, as procedure.
• The employee who has they do not collect it on behalf
to submit his tax of the Tax Administration.
declaration every year. - Still, Monegasque employees
• It necessarily impacts living in France who do not
the cross-border submit their tax declaration,
countries like Monaco. who make mistakes about it, or
who do not pay their taxes, will
be sanctioned by the French
Tax Administration.
On Your Radar | January 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Netherlands
Development Description Effective date Impact and risk Future actions
The Ministry of Social The aim of the grant 28 December 2018 Although it is the registered This development is aligned
Affairs and Employment scheme is to support until 10 January coach who is entitled to the with the obligation on
has decided to extend the employees of 45 and 2020. grant per individual employee if employers to provide for
duration and scope of a above to develop all formalities have been met, schooling in case positions
grant scheme which themselves, to increase we foresee that this new grant change and/or if the employee
should enable all their employability and to scheme will trigger more is no longer able to perform in
employees of 45 and prevent unemployment. employers to offer their his/her current role for
above to receive guidance The coaching can be done employees individual training example due to illness.
on their future capabilities. by offering group sessions and support through a
The former grant scheme and one-on-one sessions professional coach. This is
was meant for employees or by one-on-one sessions likely to strengthen the
of 50 and above and only. employability of employees
working in specific roles which in light of the impact of
By coaching, these technologies on jobs is a
and sectors. employees should get a positive development.
better understanding of
changes affecting their
current roles, such as the
impact of technologies. In
case additional schooling
is necessary, the
employee should be
informed about the
possibilities of such
schooling.
On Your Radar | January 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Peru
Development Description Solution Proposals Impact and risk
Recently, the President of the The Peruvian Constitution states Among the measures that some According to international
Republic Martín Vizcarra publicly verbatim that "the law gives the experts are proposing to make competitiveness reports, Peru is one
declared that it was necessary to worker adequate protection against labour stability more flexible are of the countries with higher rigidity to
make reforms to resolve the arbitrary dismissal." the following: hire and fire workers, which generates
rigidity and high non-wage costs The law establishes that the • Convince the Judges of the lower productivity, lower growth in
of the labour market. Even adequate protection against Constitutional Court about the employment and wages, greater
though these declarations led to arbitrary dismissal is the payment convenience of modifying impact on young people and women
the resignation of the Minister of of compensation of up to 12 their criteria, which is quite and greater labour informality.
Labour, who opposed such monthly salaries, and only in cases uncertain. Economists believe that if the
changes, a few days later, the of dismissals carried out in a government does not make the labour
President declared that his • Modify the Constitution in
discriminatory manner should the order to specify that the market more flexible, the informality of
government does not intend to Judge declare the dismissal null Peruvian society will continue to
carry out a labour reform that adequate protection against
and order the reinstatement of the arbitrary dismissal is increase, affecting the generation of
would cut workers' acquired employee. formal employment and making
rights. This new presidential exclusively the payment of
However, since 2001, the compensation, and that only employment more precarious.
statement makes it unclear if the
government really intends to Constitutional Court and the in cases of discrimination can Economists consider that there is
make the labour market more Supreme Court have changed this restitution proceed. This excessive labour rigidity because the
flexible. rule, by ordering the reinstatement measure could also be quite cost of severance pay in Peru is high
of employees dismissed for any difficult to implement. compared to countries such as Chile,
This issue has generated reasons, including workers whose Colombia and Mexico, but above all
controversy in the media and • Increase the amount of
fixed-term contracts are not compensation for dismissal because judges practically prevent
concern expressed publicly by renewed. In this way, since then, companies from firing their workers,
various economists, who insist provided by law, so that the
the judiciary is presently ordering proposed constitutional not only without justification, but also
that the government should the reinstatement of all dismissed when they commit faults at work, and
modify the legal regime of labour amendment does not imply a
workers who demand lack of protection for workers. when companies request the Ministry
stability recognised in the reinstatement in their employment of Labour authorize them to cease
Constitution, for the sake of if the employer does not justify the • Create a new labour regime personnel for economic, technological
greater inclusion and greater dismissal. for new employment contracts or similar reasons, such requests
dynamism of the economy that in small companies, without being generally rejected by the
could also help to raise the These rulings are establishing new job stability.
criteria which are often contrary to authority.
salaries.
the existing legal norms.
On Your Radar | January 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Poland
Development Description Effective date Impact and risk Future actions
Changes in storage of Instead of keeping hard 1 January 2019 If an employer decides to An employer will have to
personal files. copies of personal files, switch to electronic storage, it introduce a special security
As of 1 January 2019 the new law enables will have to scan all hard copy system to guarantee that all
Polish employers can store employers to digitalise files of current and former documents are stored in the
personal files as hard them. However, employees and sign them with proper way, if it decides to
copies or in electronic digitalisation must cover all a qualified digital switch to electronic storage.
form. Previously, hard personal files stored by a signature/stamp. Digitalisation For example, it must ensure
copy was the only company. It is impossible does not exempt an employer the identification of any
available option. to cherry pick the from the duty to issue a hard person viewing the documents
documents you will copy of some documents (e.g. and must provide detailed
The new law also reduces digitalise. the employment contract). The meta-data for every uploaded
the retention period of employer will be obliged to document.
personal files from 50 to 10 The new 10-year retention
period runs from the end store all digital documents in
years. an IT system which must meet Once an employment contract
of the calendar year in is terminated or expires, along
which an employment strict safety criteria.
Employers have a duty to with providing a work
relationship is terminated. certificate, employers will
It relates to: (i) employees inform all current and former
employees about the need to inform employees
hired after 1/01/2019; and about how and for how long
(ii) employees hired digitalisation of their personal
files. The information must their personal files are stored,
between 1/01/1999 and the employee’s right to collect
31/12/2018, provided that include a 30-day deadline for
collecting files. An employee them after this period, and the
the company submits a employer’s right to destroy
specific report to the Social can collect hard copies of
personal files within 30 days of them if they are not collected
Insurance Institution. If the in due time.
employer does not provide receiving the information.
a report, it will still be
required to keep employee
documentation for 50
years.
On Your Radar | January 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Romania
Development Description Effective date Impact and risk Future actions
Limitations on the use of The use of day workers 29 December 2018 The new legislation severely The restrictions brought in by
day workers. has been restricted, as limits the industries/activities the recent legislation also
follows: which may rely on day-labour. mean that beneficiaries which
Day-workers were - an individual can perform Prior to this change, a large previously procured labour
attractive primarily due to a maximum 120 days in number of other industries - from day-workers may need to
the tax regime i.e. only any calendar year as a including hotels/leisure, hire individuals on
income tax, but no social day worker, irrespective of restaurants and catering, employment contracts.
contributions (e.g. the number of waste collection, wholesale of
pensions, health beneficiaries (certain agricultural products and
insurance), was payable exceptions apply); livestock, landscaping etc -
on revenues obtained by - beneficiaries cannot use were also eligible for using
day-workers. the same individual for day day-workers.
work for a period Companies using day-workers
exceeding 25 continuous will need to reassess whether
calendar days (after this they are still eligible to do so.
period, an employment Failure to observe the
agreement will need to be limitations triggers the risk of a
put in place); fine up to RON 20,000
- the use of day workers (approx. 4,450 EUR) for the
has been restricted only to beneficiaries.
unqualified work, provided Individuals who work more
on an occasional basis, than the maximum period
and only in a limited permitted as day-workers
number of industries/ during one calendar year also
activities including: face a fine of up to RON 2,000
agriculture and hunting; (approx. 445 EUR).
forestry; fishing and
aquaculture.
On Your Radar | January 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Singapore
Development Description Effective date Impact and risk Future actions
The Employment The changes will include 1 April 2019 Employers of PMEs in We recommend that
(Amendment) Bill was the following:- Singapore should take note of organisations employing staff
passed in Parliament on • Widening the reach of the following:- in Singapore approach legal
20 November 2018. the EA to cover higher- • The EA presently confers counsel to review their
The Bill will introduce paid workers, including statutory protections to present employment
sweeping changes to all professionals, employees earning less arrangements to ensure
Singapore’s primary labour managers and than SGD 4,500. Once the compliance with the EA
legislation, the executives (“PMEs”); new legislative changes amendments when they come
Employment Act ("EA”) • Expanding the powers come in to force, these into effect.
when it comes into effect. of the Employment statutory protections (i.e.
Claims Tribunal (which minimum days of paid sick
presently only hears leave, notice periods
salary-related before dismissal, etc) will
disputes) to include apply to all PMEs.
wrongful dismissal • Employee contracts should
claims. be reviewed and/or revised
• Extending additional for compliance with EA
protections such as requirements before 1 April
overtime pay, hours of 2019.
work and rest days to
more workers.
On Your Radar | January 2019 CMSIndex of countries
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Slovakia
Development Description Effective date Impact and risk Future actions
A new amendment to the It has been common 1 January 2019 All provisions of employment Employers should refrain from
Labour Code prohibits practice for employers to agreements, contracts on work including confidentiality
employers from imposing impose upon their carried out outside provisions which concern the
upon their employees employees binding employment and internal working conditions of
binding confidentiality confidentiality obligations regulations prohibiting employees in employment
obligations concerning the in relation to the salary of employees from disclosing agreements, contracts on
working conditions of the the employees. their working conditions shall work carried out outside
employees (including The explanatory note to be invalid. employment and internal
salary conditions). the Labour Code regulations; if any such
amendment states that the provisions are contained in
introduction of an absolute existing documents,
ban on restrictions on the employers should refrain from
free communication of enforcing them against
salary conditions should employees.
contribute to the
application of the principle
of equal pay for equal
work.
Similarly, the respective
ban should prevent social
dumping in relation to
third-country employees.
On Your Radar | January 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Spain
Development Description Effective date Impact and risk Future actions
Adoption of two new The new regulations 1 January 2019 • Labour-related costs are Companies incorporated in
regulations: include, among others, the likely to increase for Spain should take into
• Royal Decree following measures: employers in Spain. consideration the possible
1462/2018, increasing • Collective bargaining • That said, the increase in economic impact which may
the minimum inter- agreements may the minimum inter- arise from the newly adopted
professional salary; establish a compulsory professional salary will employment and social-
and retirement age; affect companies which are security related regulations.
• Royal Decree-Law • Removal of certain currently paying some of its
28/2018, approving types of employment employees a gross annual
new employment contracts and salary below EUR 12,600.
measures, aiming to measures linked to • Following the removal of
increase Spanish unemployment rates; the employment contract
Social Security income. • Increase of the "for support of
minimum inter- entrepreneurs", companies
professional salary by with less than 50
22,3%; employees will no longer
be able to enter into
• 7% and 22% increase contracts with a 1-year
in the maximum and probationary period.
minimum social
security contribution
basis, respectively;
• 40% increase in social
security contributions
of temporary contracts
of 5 or less days;
• change in Social
Security contribution
rates for professional
contingencies.
On Your Radar | January 2019 CMSIndex of countries
On your radar | Key employment issues across Europe and beyond
Ukraine
Development Description Effective date Impact and risk Future actions
Increase of minimum wage From 1 January 2019, the 1 January 2019 The financial risks for breaches Ukrainian employers should
and penalties for minimum statutory monthly of employment legislation be thoroughly attentive to their
employment law breaches. wage is raised from UAH increases. compliance with the national
3,723 (EUR 117) to UAH labour law rules.
4,173 (EUR 132), and
financial penalties against
employers for breaches of
employment legislation
linked to minimum wages
respectively increase.
The State Labour Service An annual plan of state 1 January 2019 Many companies in Ukraine
of Ukraine has approved labour inspections is will be inspected in 2019.
an annual plan of state available on the website
labour law inspections for http://dsp.gov.ua/,
2019 year. including almost 17,000
inspections to be
conducted by the State
Labour Service of Ukraine
in 2019.
On Your Radar | January 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
New visa structures to be The categories are as follows: Awaiting confirmation of The grant of long-term Employers should make
introduced early 2019. Investors: Investors may be Effective Date, but visas is an appealing sure they know which of
In November 2018, further eligible to 5 or 10 year visas expected early 2019. attribute for the UAE, and their employees may be
details were announced depending on satisfying a is intending to bring in new eligible for the relevant
regarding long-term visa number of eligibility talent and retain existing categories, so they can
options for certain requirements. talent, especially in under- apply for a long-term visa
categories of expats. represented fields. rather than the standard
Entrepreneurs visa renewable every
The new visa categories
Entrepreneurs with a previous recognise emerging fields, three years.
project with at least AED500,000 such as entrepreneurs.
invested or that are approved by Also recognised are
an accredited business incubator innovative specialists,
in the UAE can apply for a five- such as doctors
year multiple-entry visa and may conducting advanced
be eligible to upgrade to an medical research.
investor visa.
Previously, highly
Specialised talents educated students would
The following categories of be forced to locate
worker may be entitled to a ten themselves elsewhere
year visa: doctors, scientists , when looking for
creatives, subject to fulfilling two employment opportunities,
additional requirements. so the new visa allows
Exceptional students graduates time to consider
Post-graduate students with a their career opportunities,
grade of at least 95% in and even to look into an
secondary school level and a entrepreneurial role on
distinction of at least 3.75 GPA graduation.
upon graduation from
universities within and outside
the UAE can get a five-year visa.
On Your Radar | January 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
Executive Pay Ratio In scope employers must Applies to in scope There is likely to be a great Given the complexities
Reporting and Workforce publish as part of their companies with deal of media interest in the involved in the structure of the
Engagement Measures to directors’ remuneration reporting periods pay ratios figures. remuneration packages of
be contained in the annual report, the ratio of their from 1 January It is recommended that the executives, it is recommended
Directors Report CEO’s total remuneration 2019 figures are sent to that remuneration schemes
These rules apply to to the median, 25th and communication teams before are reviewed and this aspect
listed companies with more 75th percentile full time being published. is given careful consideration
than 250 employees. equivalent remuneration of before analysing and
their UK employees. In relation to the workforce reporting the figures.
engagement provisions, the
new provisions require a The Regulations stipulate that
Companies can report total pay and benefits should
their ratios in three statement summarising how
the directors have engaged be included. Many companies
different ways. are expected to provide a
with employees, how they have
had regard to employee narrative to explain their
Additional rules apply to executive pay ratio on a
listed companies (again, interests and the effect of that
regard, including on the similar basis to gender pay.
with more than 250 UK
employees) to include a principal decisions taken by the Directors should be
statement as part of their company in the financial year. considering how they will
directors’ report This expands on the existing engage and inform employees
summarising how directors requirement to provide about key business decisions.
have engaged with information about employee
employees and had regard involvement.
to employee interests. This will involve additional
steps to be taken by directors
to consult with staff regarding
important decisions by the
company.
On Your Radar | January 2019 CMSYour free online legal information service. Your expert legal publications online. A subscription service for legal articles In-depth international legal research on a variety of topics delivered by email. and insights that can be personalised. cms-lawnow.com eguides.cmslegal.com CMS Legal Services EEIG (CMS EEIG) is a European Economic Interest Grouping that coordinates an organisation of independent law firms. CMS EEIG provides no client services. Such services are solely provided by CMS EEIG’s member firms in their respective jurisdictions. CMS EEIG and each of its member firms are separate and legally distinct entities, and no such entity has any authority to bind any other. CMS EEIG and each member firm are liable only for their own acts or omissions and not those of each other. The brand name “CMS” and the term “firm” are used to refer to some or all of the member firms or their offices. CMS locations: Aberdeen, Algiers, Amsterdam, Antwerp, Barcelona, Beijing, Belgrade, Berlin, Bogotá, Bratislava, Bristol, Brussels, Bucharest, Budapest, Casablanca, Cologne, Dubai, Duesseldorf, Edinburgh, Frankfurt, Funchal, Geneva, Glasgow, Hamburg, Hong Kong, Istanbul, Kyiv, Leipzig, Lima, Lisbon, Ljubljana, London, Luanda, Luxembourg, Lyon, Madrid, Manchester, Mexico City, Milan, Monaco, Moscow, Munich, Muscat, Paris, Podgorica, Poznan, Prague, Reading, Riyadh, Rio de Janeiro, Rome, Santiago de Chile, Sarajevo, Seville, Shanghai, Sheffield, Singapore, Skopje, Sofia, Strasbourg, Stuttgart, Tirana, Utrecht, Vienna, Warsaw, Zagreb and Zurich. cms.law 24 On Your Radar | January 2019 CMS
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