Authors

Sean Nesbitt

Partner

London

Marc André Gimmy

Partner

Munich

Celine Enos

Trainee Solicitor

London

Authors

Sean Nesbitt

Partner

London

Marc André Gimmy

Partner

Munich

Celine Enos

Trainee Solicitor

London

26 March 2024

Work/Life – 2 of 96 Insights

Work/Life: international employment news update

Quick read

Issue 95

Welcome to the latest edition of our international employment news update.

Our strategic alliance with leading Spanish law firm ECIJA means clients looking to do business in Spain, Portugal and Latin America are supported by one of the best multidisciplinary law firms in the legal sector with a well-established reputation for innovation and success. Furthermore, this alliance enriches our newsletter as ECIJA regularly contributes insightful content, broadening our insight on legal matters.

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United Kingdom

Sexism in the City: UK MPs want NDAs banned in harassment cases

Members of Parliament have urged for a prohibition on employing non-disclosure agreements (NDAs) in cases pertaining to sexual harassment. This move aims to dismantle the "era of impunity" that has enabled sexism within the financial district, following revelations of alarmingly common misconduct in the sector. The Commons Treasury Select Committee has highlighted a pattern of businesses exploiting NDAs to mute victims and expedite their exit from companies. In response, the Committee advocates for enhanced whistleblower protections and an uncompromising stance against sexual harassment and abuse.

Quit-Tok: why young workers are refusing to leave their job quietly

Gabrielle Judge uploaded an edited segment of her resignation during a performance review to social media as "Anti Work Girlboss" to demonstrate her departure from a relatively stress-free and well-paid position after her team was downsized and her workload increased. Young employees connected with this public resignation, many of whom felt unappreciated in their roles. This video is a part of the emerging "Quit-Tok" trend where private resignations or layoffs are broadcasted publicly, especially by Gen Z individuals seeking transparency in the workplace.

Notably impacting the tech sector and HR policies, this movement aims not only to enhance social media visibility – some clips have amassed millions of views – but also to spotlight and potentially improve substandard working conditions and managerial practices. Contrasting with the "quiet quitting" phenomenon where employees minimally engage to retain their jobs, this new form is dubbed "loud quitting." While filming such videos poses legal risks regarding covert recording – with some taking place inside workplaces – there seems to be little concern among participants about potential litigation from employers.

EU countries back new human rights supply chain law

The European Union has enacted an amended corporate sustainability directive that has elicited objections from environmental advocates and industry groups alike. The legislation, finalised in December, targets enterprises with a workforce exceeding 1,000 employees and a net turnover exceeding EUR450 million. This modification is projected to exempt approximately 70% of the initially targeted businesses. Under this directive, there is now an established legal mechanism enabling communities to hold EU firms accountable for violations of human rights and environmental degradation within their operational supply.

The proposed legislation could have implications for UK firms that either engage in exporting to the EU or operate a branch within the EU, provided their operations exceed the financial thresholds specified in Article 2 of the draft legislation. Additionally, UK companies supplying goods to EU entities governed by this law may be affected; such regulated EU entities are likely to require their UK suppliers to comply with all relevant obligations under this law.

Companies must involve employee representatives in changing the criteria for the use of electronic systems

On 6 February 2024, the Spanish Supreme Court stated that companies must involve employee representatives if they want to implement measures to prevent the misuse of computer and e-mail equipment provided by the company. The Court decision indicates that the Organic Law on Data Protection has an imperative nature over the Workers’ Statute when the work is carried out using digital devices. Therefore, the company must establish criteria for the use of information equipment and e-mail which guarantee the privacy of the employees and these criteria must be carried out with the participation of employee representatives.

French court finds Adecco guilty of racial profiling and discrimination

A French court has criminally convicted the employment agency Adecco and two of its managers for participating in racial profiling and discrimination during the period from 1997 to 2001. The ruling ascertained that over 500 employees of colour were unjustly assigned a discriminatory code. Despite Adecco's implementation of anti-discrimination measures in recent times, the court imposed a fine of EUR50,000 on Adecco and EUR10,000 on each former manager. Additionally, compensatory damages are to be paid to the victims and organisations that brought forth the lawsuit.

ASML's threat to leave uncovers deeper concerns in Netherlands Inc.

ASML's consideration of relocating from the Netherlands has cast a spotlight on the nation's deteriorating business environment. Whilst ASML's CEO has dismissed the notion of a complete withdrawal, other prominent Dutch corporations are scrutinising their future in the country amid escalating corporate taxes, social turmoil, and growing support for populist political factions.

Boskalis, a prominent dredging firm, has disclosed its strategic decision to establish part of its corporate headquarters in Abu Dhabi as part of its annual financial disclosure. CEO Peter Berdowski attributed the move to anticipated legislative changes by Dutch authorities, aiming to limit the influx of highly skilled migrants into the Netherlands.

A recent study suggests that one-third of multinational firms based in the Netherlands would contemplate relocating internationally.

50% increase in support for Dutch whistleblowers

Last year, 369 individuals contacted the House for Whistleblowers, an independent administrative body (ZBO), with concerns of workplace misconduct, an increase of over 50 percent compared to the prior year's figure. This rise is attributed in part to the newly enacted Whistleblowers Protection Act (Wbk). The issues reported included potential mishandling of trade secrets and personal data, fraudulent activities, and breaches of security protocols. Out of all inquiries received, some 10% were formally identified as legitimate "whistleblower cases" upon establishing a plausible indication of malpractice impacting public interest. These substantiated incidents predominantly took place within the sectors of healthcare, education, and local government authorities.

Significant changes to Austrian employment law

As part of the implementation of the EU Directive on transparent and predictable working conditions, the Austrian National Council adopted significant changes to employment law in its plenary session on 28 February 2024, which are expected to come into force by the end of March.

Amendments have been made to the provisions governing payslips – requiring they contain more detailed information including the company's registered office, a precise job description, and overtime pay – with the aim of significantly enhancing transparency and clarity within the employment context. The amendment also provides for the introduction of a right to multiple employment.

How many Hungarian employers are planning to reduce their headcount in the second quarter

According to a survey, 31% of Hungarian employers plan to increase their workforce in the next quarter, while 22% plan to reduce it. Sector-wise, alongside communication services and IT, finance, and real estate project substantial employment increases. Moderate growth is anticipated in the raw materials, processing industries, consumer goods and service sectors. Regarding company size influences on employment trends, larger companies with staff exceeding 5,000 are expected to have more layoffs compared to smaller enterprises which appear to have a more positive hiring outlook.

Slovakia launches new initiative to bring inactive individuals to labour market

Recognising the barriers that inactive individuals encounter in securing employment, the Ministry of Labour, Social Affairs, and Family of the Slovak Republic has recently unveiled a new comprehensive project – Step by Step II. This initiative aims to foster the integration of such individuals into the labour market, ensuring they have access to opportunities for economic participation and self-sufficiency. To support this initiative, the ministry will provide a total amount of EUR25 million, broken down into financial contributions starting at EUR50,000, to a range of organisations, foundations, and other entities assisting such individuals.

The government is working rapidly on the whistleblower protection act

Poland is now accelerating its efforts to pass a new whistleblower protection bill to align with the European Union Directive 2019/1937. Despite these efforts, Poland faces potential fines from the EU for not implementing the directive which should have been in place by no later than 17 December 2021. The bill introduces key changes for companies, including extending the deadline for the act to come into force and the acceptance of anonymous reports.