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

In our Global Employer Monthly eAlert, we capture recent employment law developments from across the globe to help you keep up with the ever-changing employment law landscape around the globe.

In this month’s issue, we share updates from Argentina, Australia, Austria, Brazil, Canada, Chile, France, Italy, the Netherlands, South Africa, Sweden, Taiwan, Thailand, the United Kingdom and the United States.

Click here to view.

In our latest podcast, Baker McKenzie partner Ben Ho introduces Monica Kurnatowska to talk about employment laws in the UK and give an overview of what changed in 2017 as well as what we can expect for the year ahead.

Key Takeaways:

  1. Brexit – UK employment rights will generally be unaffected in the short term, but there is concern from nationals from other EU states about their right to remain, despite attempt to re-assure them by the government
  2. Gig economy – closer scrutiny on misclassification of workers
  3. Gender pay gap – companies with 250 or more employee in GB, are required to publish key data points relating to the difference in pay between men and women

Download now on iTunes | Android | Stitcher | TuneInGoogle Play.

We are pleased to announce our new “Employer Report” podcast series.

Each 15-minute episode gives an inside view into employment laws in various countries around the world, highlighting legislative changes, trends, and tips for US multinational employers. Our first five countries available now: Brazil, Germany, Japan, United Kingdom, and Spain.

Download these episodes now on iTunes | Android | Stitcher | TuneInGoogle Play.

Our Baker McKenzie colleagues in our London office just shared their January 2018 Employment Law Update. Find it HERE.

Highlights include:

  • Increases to statutory payments for time off work
  • Tribunal claims: volume of claims increasing following abolition of tribunal fees
  • Brexit: proposed technical changes to employment laws published
  • Gender pay gap reporting: pressure on employers increases as government indicates that it will publish details of employers who have not yet registered on the government website

For more information, please contact your Baker McKenzie lawyer.

Keeping up with the pace of change in employment law around the world is quite a challenge.

In our Global Employer Monthly eAlert, we capture recent key developments in employment law from across the globe.

In this month’s issue, we share updates from Argentina, Brazil, Canada, France, Mexico, Singapore, South Africa, Vietnam, Ukraine, the UK and the US.

Click here to read the latest eAlert!

 

A recent Court of Appeal decision in the UK (Tillman v Egon Zehnder Limited) found that a post-termination non-compete restriction was unreasonably wide (and therefore unenforceable) on the basis that there was no carve out for shareholdings in the typically broad restriction which provided that the employee could not “directly or indirectly engage or be concerned or interested in any business carried on in competition with” the employer.

The Tillman court declined to sever (or “blue pencil”) the offensive wording and enforce the remaining provisions. Instead, the court invalidated the entire agreement.

Lots of non-compete covenants are broadly drafted and include catchall phrases like “concerned or interested in” and often do not include an express carve-out for shareholdings. As such, we suggest a quick review of your non-compete covenants in the UK (and other Commonwealth jurisdictions such as Hong Kong, Singapore and Canada) to determine if they are at risk of being deemed invalid. Seeking to enforce an invalid restriction could have costly consequences. However, there are steps you can take now, to mitigate the risk of voiding a restriction, even with existing employees.

Reach out to your Baker McKenzie lawyer for more details.

Slavery and human trafficking has become a priority for many governments around the world.

The UK Government passed the Modern Slavery Act 2015 to simplify and bring up to date the criminal law in relation to modern slavery and human trafficking. The Act (section 54) imposes a new obligation on UK businesses to publish an annual slavery and human trafficking statement setting out the steps it has taken to ensure slavery and human trafficking is not taking place in any part of its business or supply chain.

What businesses does this impact?

The requirement applies to all businesses that supply goods or services in the UK provided that it has an annual turnover of £36m. It does not need to be a UK registered entity. The turnover does not need to be UK turnover, provided it supplies some goods or services in the UK. The turnover of subsidiary entities (but not parent entities) is included in assessing whether the threshold is met. There is no requirement for the organisation to have a minimum number of employees, a minimum balance sheet total, or to be incorporated (or formed, if it is a partnership) in the UK. As a result, these rules will have extraterritorial effect and apply to a much wider range of organisations than just large companies under the UK Companies Act.

For more, read the informative alert (here) authored by our colleagues in London, Monica Kurnatowska and John Evason.

Reach out to your Baker McKenzie lawyer for the steps businesses should be taking to ensure compliance with the Modern Slavery Act,  as well measures to consider taking with both suppliers and within your own business to address issues of modern slavery.

The TLDR on the new UK pay gap reporting regs:

New Requirements

  • From April 2017, employers with at least 250 employees (which may include some contractors) in the UK will need to publish details of their gender pay gap on an annual basis.
  • The gender pay gap reflects the difference between what women are paid, on average, compared to what men are paid, looking across the company as a whole.
  • Employers must publish six different metrics, including the differences in hourly pay and bonuses between men and women and the proportion of women in each pay quartile.
  • The information will be publicly available and is likely to be considered by employees, potential job applicants, the media and in some cases by clients / customers.
  • Employers will have until April 4, 2018 to publish their first set of data, but it must be based on a “snapshot” of pay data as at April 5, 2017.

New Challenges

  • CALCULATION – The rules are complex and not always clear. Being compliant may require employers to make judgment calls on tricky issues such as whether particular payments or employees are in scope. Employers need to find practical solutions but also want to ensure their calculation approach and their pay gap figures are in line with their peers.
  • PRESENTATION – The government is encouraging employers to explain the causes of their gender pay gap and what they are doing about it. Employers will need to consider carefully what to include in this narrative to best manage multiple stakeholders.
  • CLOSING THE GAP – The Regulations shine a light on the challenges for employers seeking to close the gender pay gap. Considering existing diversity and inclusion initiatives, and considering how to achieve further progress, is a good first step.
  • CLAIMS & AUDITS – The new requirements may prompt more equal pay claims, either because employees misinterpret the figures or because they expose areas of potential discrimination. Some employers are therefore taking a more in-depth look at the discrimination and equal pay risks within their business.

Multinationals Take Note!

  • Outside of the US, legislation either mandating or encouraging gender pay gap reporting is on an uptick (see e.g. Germany and Switzerland)
  • Unfortunately, a one-size-fits-all approach is not a solution. The legal requirements, types of data involved and comparator groups all vary by jurisdiction which means you may end up with very favorable numbers in one country, and something substantially different in another.

Contact your Baker McKenzie lawyer to prepare an action plan to address key potential risks and meet your compliance obligations globally.