On June 11, the UK Government released a draft statutory instrument (The Companies (Miscellaneous Reporting) Regulations 2018) and accompanying FAQs, which, subject only to Parliamentary approval, will require additional disclosures to be made in the Annual Reports of Listed PLCs* for financial years beginning on or after January 1, 2019. These changes will be implemented via amendments to the Large & Medium-sized Companies and Groups (Accounts & Reports) Regulations 2008.

These new reporting requirements are part of the Government’s wider package of corporate governance reforms announced in August 2017 (for further information on the wider package of reforms, click here, for further information on the UK Corporate Governance Code developments, click here, and for further information on the reforms affecting large private companies and unlisted PLCs, click here).

Summary of the Additional Disclosures Required in the Annual Report

Subject to meeting the relevant thresholds described below, Listed PLCs* will be required to make additional disclosures regarding, among other things:

  • The ratio of the CEO’s pay (the single total figure of remuneration) to the median (50th), 25th and 75th percentile full-time equivalent remuneration of their UK employees;
  • The impact of the future share price on executive pay; and
  • How the directors have engaged with employees.

To read the entire Alert, click here. Thanks to Stephen Ratcliffe and our UK colleagues for sharing.

* A Listed PLC, otherwise referred to as a “quoted company”, is a UK incorporated PLC with equity shares listed on the FCA’s Official List, or on NASDAQ, the NYSE, or a recognised stock exchange in the EEA. It does not include AIM listed companies.

Following the Senate’s historic vote in favor of Bill C-45, the Cannabis Act, the Federal Government announced on June 20, 2018 that recreational marijuana will become legal on October 17, 2018. In anticipation of Bill C-45 becoming law, the provinces have begun preparing a framework for regulating the production, distribution, sale, possession and consumption of cannabis. Ontario’s response is Bill 174. With legalization fast approaching, we outline below key aspects of Bill 174 and steps to help employers prepare for the new reality.

Click here for more specifics on the bill and how employers should prepare.

(Huge thanks to our own Jordan Kirkness and Susan MacMillan for sharing this with us.)

Two recent events in the US vividly illustrate the growing centrality of gender pay equity issues. On one side of the ledger, in early April 2018, the US Court of Appeals for the Ninth Circuit, in Rizo v. Fresno County Office of Education, held that an employee’s prior salary—either alone or in a combination of factors—cannot be used to justify paying women less than men in comparable jobs. On the other side of the ledger, the US Department of Labor’s Office of Federal Contract Compliance Programs, on April 20, 2018, announced that it is upending standards implemented during President Obama’s administration designed to promote gender pay equity among federal contractors. Under this new policy, employers will be able to decide for themselves how their employees should be categorized and analyzed for purposes of fair pay investigations by the government.

These two US events are merely the latest examples of increased activity around the globe with regard to the issue of pay equity.  Click here to read more.

Happy Mother’s Day! 

May 13 is Mother’s Day in the US, Australia and Canada. As such, it feels apropos to recognize the latest initiatives in the US and around the world aimed at increasing opportunities at work for working mothers (and caregivers more generally). Government-mandated maternity, paternity and parental leave and benefits, as well as robust childcare and eldercare infrastructure are among the most effective public policy investments for promoting gender parity in the workforce. As employers strive to retain working parents and increase female representation in corporate leadership roles, this article highlights how parental leave rights and related benefits are changing to reduce the burden of work-family conflicts on women and encourage men (and even grandparents!) to avail themselves of paternity leave and/or parental leave.

While the intended effects of new legislation in this area are of course positive, it can be challenging for US and multinational employers to navigate the patchwork of statutory requirements that offer varying entitlements based on differing circumstances. Even beyond managing simple compliance, many multinational employers also feel the pressure to stay competitive in the war for talent and to create human resources policies that can be managed centrally in a streamlined fashion, while also locally compliant in jurisdictions outside of the US.

Please click HERE to read our article. We focus on recent entitlements and related benefits made available to employees who manage caregiving responsibilities outside of work and share the updates multinationals need to know.

For more details, please contact your Baker McKenzie lawyer.

As efforts to narrow the gender pay gap intensify across the globe, we launch the first article in our new series. Click the photo below to read the article, which provides an overview of the international picture.

The International Response to the Gender Pay Gap

Stay tuned over the coming months for weekly insights highlighting what multinational employers need to know about the gender pay gap.

  Yesterday we hosted a dynamic panel featuring four of our favorite European colleagues for a breakfast briefing in Palo Alto. Susan Eandi moderated a lively discussion with Nadège Dallais (France), Bernhard Trappehl (Germany), Fermin Guardiola (Spain) and Nicola James (United Kingdom).

Our colleagues gave guests an inside look at sociopolitical trends driving employment law change in each of their respective countries, as well as sharing important updates related to practical issues employers are currently facing.

In case you missed it, here are a few of the headlines:

Continue Reading Takeaways From Our European Employment Law Breakfast Briefing

(With special thanks to our Global Equity Services team and Lothar Determann for collaborating on this post.)

One month from today, on May 25, 2018, the European Union (EU) General Data Protection Regulation (GDPR) will go into effect. In light of this, we have been recommending companies review their data privacy policies and practices in the context of equity plan participation and update their share plan documents. In the final month, we want to highlight these items again and encourage you to make sure your company’s equity programs are ready for the GDPR.

Continue Reading Countdown to GDPR… Are Your Equity Plans Ready?

With the current focus on US multinational operations around the world and the pressure to meet globally acceptable and locally effective compliance, companies regularly turn to global employment policies as a tool to manage their local employment-related risks. Often the desire is to house these policies in a single “global” employment handbook. As efficient as it may seem to have a single employment handbook, a truly one-size-fits-all single, global handbook most often is not a realistic option. This paper discusses the potential problem with a single “global” handbook and outlines three approaches to get US multinationals to the same result while fully complying with local laws.

Click here to read the entire article, originally published in Bloomberg BNA.