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Last month the UK voted for a new government. The Labour party promised sweeping changes to UK employment law in its manifesto, and the King’s Speech confirmed the new government’s proposals to pursue numerous employment law reforms. Immediately following these announcements, Baker McKenzie employment partners Julia Wilson, Kim Sartin, Stephen Ratcliffe and Jonathan Tuck, and pensions partner Tom McNaughton discussed the implications of the new government’s proposals on employment and pensions law during our New Government, new law? webinar.

The government intends to make changes impacting “exploitative contracts,” unfair dismissal law, parental leave, statutory sick pay and industrial action laws. Our key takeaways document outlining steps UK employers can take now is available HERE.

And, for a deeper dive on the government’s proposals in relation to trade unions, industrial relations and collective rights, and how they might impact businesses, watch our quick chat HERE. Jon Tuck and Jess Bowden discuss Labour’s proposals in relation to trade union recognition and trade union access in the workplace and provide insights into what organizations can start thinking about before consultations open, as well as some useful tips on how you can develop your key stakeholder’s knowledge and approach when looking at your industrial relation strategy.

For more, reach out to your Baker McKenzie employment attorney.

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In June, we offered our annual Global Employment Law webinar series sharing expert insights on the business climate in major markets around the world for US multinational employers. Baker McKenzie attorneys from over 20 jurisdictions outlined the key new employment law developments and trends that multinationals need to know in four 60-minute sessions.

ICYMI: click below to hear updates for the Americas, Asia Pacific, Europe and the Middle East and Africa and contact a member of our team for a deeper dive on any of the information discussed.


Session 1: The Americas 

Presenters: Andrew Shaw, Clarissa Lehmen*, Daniela Liévano Bahamón, Benjamin Ho, Liliana Hernandez-Salgado and Matías Gabriel Herrero

Click here to watch the video.

*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.


Continue Reading Summer Replay: Tune In To Our Global Employment Law Update Series (Recordings Linked!)
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On July 1, 2024 California Governor Newsom signed “compromise” PAGA reform bills into law (AB 2282 and SB 92) (PAGA Reform), which took the PAGA repeal initiative we told you about in May (see here) off the November 5, 2024 ballot.  

On the bright side for employers, the new law shows leniency toward employers who can show they have taken reasonable steps toward PAGA compliance, through (among other things) caps on damages and expanded cure provisions. That said, employers will still need to be diligent to avoid wage and hour violations. One reason: while the ballot initiative (if passed) would have prevented plaintiffs’ attorneys from recovering fees, the PAGA Reform still allows plaintiffs to collect reasonable attorneys’ fees and costs. In addition, the PAGA Reform allows employees to keep a greater percentage of the recovery than before, meaning there is still plenty of incentive for employees to file PAGA claims–even with the employer-friendly changes.

We hit the highlights of the PAGA Reform here.

Effective date

The PAGA Reform applies to PAGA civil complaints and notices of PAGA claims provided to the California Labor & Workforce Development Agency (LWDA) on or after June 19, 2024. Prior PAGA rules will apply to claims pending on or before June 19 or based on notices sent prior to June 19. (Though note that certain cure provisions do not take effect until October 1, 2024–see more below.)

Stricter standing requirements, and statute of limitations questions clarified

Under PAGA Reform, employees are now required to show they “personally suffered” each of the violations of the Labor Code they seek to pursue in a representative capacity under PAGA. Before the new law, if an employee could prove a single Labor Code violation, the employee could sue in a representative capacity on the same or any other Labor Code violation–even if the employee had not been personally affected by the other violations. (Note, the new standing requirement does not apply to certain nonprofit legal aid organizations that have served as counsel of record for PAGA civil actions for at least 5 years prior to January 1, 2025.)

In addition, PAGA Reform clarifies that the statute of limitations to bring a PAGA claim is one year (the period prescribed under Section 340 of the Code of Civil Procedure)–dismissing interpretations that stemmed from the California Court of Appeals decision in Johnson v. Maxim Healthcare Services, Inc. that the PAGA statute of limitations defines the liability period for a PAGA claim, but otherwise places no time restriction on who may pursue a PAGA claim.

However, even if an employee meets the statute of limitations under PAGA, if the LWDA (or any of its departments, divisions, commissions, boards, agencies or employees) has already–on the “same facts and theories”–timely cited an employer for violation of the same section of the Labor Code under which the employee is attempting to recover a civil penalty, or initiated a proceeding under Section 98.3 (allowing the Labor Commissioner to prosecute certain violations, including wage-related violations), the employee is barred from pursing that civil penalty. This restriction remains from prior PAGA rules, and helps to ensure employers are not penalized twice for the same conduct.

Courts’ power to manage PAGA claims clarified

Under PAGA Reform, courts have specified power to manage PAGA claims, including by limiting the scope of any claim to ensure it can be effectively tried, and limiting the evidence presented at trial–following the lead of the California Supreme Court decision Estrada v. Royal Carpet Mills, Inc., which held that though trial courts do not have inherent authority to strike PAGA claims on manageability grounds, a trial court can use its case management procedures to ensure that PAGA claims can be tried effectively.

Injunctive relief and attorneys’ fees

PAGA plaintiffs can now seek injunctive relief in any circumstances under which the LWDA could seek injunctive relief–in addition to the civil penalties and reasonable attorneys’ fees and costs PAGA plaintiffs can seek. However, injunctive relief is not available for violation of a posting, notice, agency reporting or filing requirement, unless the filing or reporting requirement involves mandatory payroll or workplace injury reporting.

Continue Reading PAGA Reform: A Breath of (Some?) Fresh Air for Employers
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More than ever, organizations are feeling the pressure to disclose information from all sides – consumers, employees and regulators

Underlying this trend toward organizational transparency is a desire from stakeholders for accountability and meaningful change. But while transparency is undoubtedly a tool to achieving this, organizations will need to back information disclosure with effective governance and a strategy to drive real progress.  
 
In the latest article of our Workforce Redesign: Outlooks for Business Leaders series, we explore how increased demands for transparency are shaping the workforce landscape across key areas such as inclusion, diversity and equity (ID&E) and environmental, social and governance (ESG) efforts and how organizations can ensure their information disclosure is intentional, impactful and legally compliant.

Read the article today to confidently plan for what’s next for your workforce.

More articles coming soon! Our Workforce Redesign: Outlooks for Business Leaders series spans the key areas of change that are shaping the modern workforce, including: responsible AI in HR, the future of flexible work and the war for talent. Visit our hub for all of the insights on this topic to date, with more content coming soon!

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On the eve of the Fourth of July, the FTC rule banning most noncompetes is going up in smoke after a federal court in Texas held the US Chamber of Commerce and a tax firm are likely to prevail on their argument that the agency overstepped its authority to adopt the nationwide prohibition.

The decision, on the heels of the US Supreme Court’s ruling reining in federal agency power under the Chevron doctrine, demonstrates the challenge the FTC faces in promulgating substantive regulations dealing with competition in the economy.

Continue Reading Red, White and Blocked: Federal Judge Pauses FTC’s Ban on Employment Noncompetes
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Enforcement against restrictive labor market agreements has become a priority for many competition authorities worldwide.

As a result, certain HR practices are in the spotlight of antitrust enforcers and companies and staff who agree not to poach employees from others, or who agree to fix wages, are in clear and present danger of serious financial and even criminal penalties.

It is therefore crucial to know where the boundary lies between legitimate and risky HR practices and how to avoid crossing it.

Find out more and access valuable tips in International antitrust onslaught against HR practices: act now to stay ahead of the game, which includes: 

  • The global tipping point for competition enforcement in relation to HR practices
  • Compliance pitfalls when it comes to HR practices
  • Compliance pitfalls when it comes to HR practices

Click here to continue reading.

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When companies expand to new countries, they need to prioritize different legal and tax topics depending on whether they are just accepting orders from abroad (B2B or B2C), engaging with distributors, hiring contractors, or setting up formal presences. In this webinar, Baker McKenzie partners provide practical guidance on how to make decisions on going or staying global, and address topics that should be top of mind before expanding into new jurisdictions. You will receive roadmaps, checklists, suggestions for issue spotting, an introduction to Baker McKenzie’s Field Guide to Going Global publication and 1 hour of CLE credit. We will share guidance relevant to start-up companies and established multinationals that are broaching new frontiers. Join us to hear from our Firm’s practice experts on key considerations when expanding your business.

Date: Thursday, June 27, 2024

Time: 12:00 pm – 1:00 pm PT, 2:00 pm – 3:00 pm CT, 3:00 pm – 4:00 pm ET

Click here to register.

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We are pleased to share with you The Global Employer – Global Immigration & Mobility Quarterly Update, a collection of key updates from Brazil, Italy, Luxembourg, Singapore, the United Kingdom, and the United States.

Click here to view.

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We are thrilled to announced that the latest edition of The Global Employer: Focus on Global Immigration & Mobility is now available! This handy, go-to desk reference guide includes:

  • An overview of key global immigration and mobility issues to consider related to immigration, employment, compensation and employee benefits, income taxes and social insurance, and global equity compensation.
  • An executive summary for 27 jurisdictional chapters identifying key government agencies, highlighting current compliance and enforcement trends, and describing short and long term visas appropriate for business travel, training and employment assignments. The handbook includes other can’t miss insights for global human resources and legal teams.

Click here to access now.

Baker McKenzie offers comprehensive legal advice related to global immigration – delivered locally around the world. We help employers plan and implement global transfers and provide on-site legal support to companies and employees in most major business communities around the globe. To know more, visit our Global Immigration & Mobility page or contact us here.

*Jurisdiction chapters available for Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Colombia, Czech Republic, Germany, Hong Kong SAR, Hungary, Italy, Japan, Luxembourg, Mexico, Myanmar, The Netherlands, Philippines, Poland, Singapore, Spain, Switzerland, Taiwan, Ukraine, United Kingdom, United States, and Vietnam.


Global Employment & Compensation Resource Suite

Looking for additional resources to ensure your HR and legal counsel remain up-to-date on the latest employment law regulations globally?

Access our Global Employment & Compensation Practice Group’s full digital library of legal content on-demand.

The Global Employment & Compensation Resource Suite is a self-service database that provides our clients with 24/7 access to our global employment resources. Once registered, users can browse our range of Global Employer Handbooks, Blogs and Media, and Legal Updates.

Click here to request access.

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We’re bringing the world to you. Join Baker McKenzie for our annual Global Employment Law webinar series.

In the face of intensifying geopolitical risk and continuing economic uncertainty, the challenges for global employers to plan carefully and operate strategically to maintain a thriving workforce is greater than ever. We’ll help employers navigate those challenges in our four-part webinar series featuring Baker McKenzie Global Employment Law colleagues from the Americas, Asia Pacific, Europe, and the Middle East and Africa who will share legal updates and trends impacting US-based multinationals, and provide tips and best practices for your success. 

In each 60-minute discussion, we will explore:

  • The Local Political & Economic Climate
  • How Global Hot Topics Play Out Locally, highlighting developments in:
    • Noncompete Agreements
    • The Shifting ID&E Landscape
    • Labor Relations
    • AI in the Workplace
  • New Laws to Know
  • Action Items for Employers to Take Now (“To-Dos”)

Join us!

Registration Details

THE AMERICAS
Argentina, Brazil, Canada, Colombia and Mexico
Thursday, June 6, 2024
10 am PT/ 12 pm CT/ 1 pm ET
Click here to register for the Americas webinar.

ASIA PACIFIC
Australia, China, Japan, the Philippines, Singapore and Vietnam
Wednesday, June 12, 2024
3 pm PT/ 5 pm CT/ 6 pm ET
Click here to register for the APAC webinar.

EUROPE
France, Germany, the Netherlands, Spain and the United Kingdom
Thursday, June 20, 2024
9 am PT/ 11 am CT/ 12 pm ET
Click here to register for the Europe webinar.

THE MIDDLE EAST AND AFRICA
Egypt, Saudi Arabia, South Africa, Türkiye and the United Arab Emirates
Wednesday, June 26, 2024
9 am PT/ 11 am CT/ 12 pm ET
Click here to register for the MEA webinar.

To view these programs in a different time zone, click here
Please “register” for a copy of the recording and materials if you are unable to attend live.

CLE Accreditation

Each program is approved for 1.0 general California CLE credit, 1.0 general Illinois CLE credit, and 1.0 professional practice New York CLE credit. Participants requesting credit for other states will receive Uniform CLE Certificates.

Each 1-hour program can be applied towards the 9 Substantive Hours of Continuing Professional Development (CPD) required by the Law Society of Ontario.

Baker & McKenzie LLP is a California and Illinois CLE approved provider. Baker & McKenzie LLP has been certified by the New York State CLE Board as an accredited provider in the state of New York. This program is appropriate for both experienced and newly admitted New York attorneys. 
 
**While CLE credit may be pre-approved in certain jurisdictions, final CLE accreditation approval is anticipated, but not guaranteed.

To view the complete roster of presenters for each regional program, click here