The Global Employer Alert contains recent key developments in employment law from across the globe as well as our recent global employment and labor publications. This month has seen further proposals for immigration legislation in the US, greater protection for same-sex spouses in Hong Kong's benefits system, a stricter approach to interpreting non-compete clauses in the UK, which could have global consequences, and more.
Global Restrictive covenants: Employers should review non-compete clauses in the light of UK Court of Appeal decision The UK Court of Appeal has held that a 6-month non compete clause which precluded the employee from being "concerned or interested in any business carried on in competition " after termination of employment was unenforceable as it would prevent her from being a shareholder in a competing business. This judgement is also likely to have implications for employers in jurisdictions including the United States, Dubai, Hong Kong and Singapore, whose courts look to the UK for jurisprudence on issues such as severance. Read more. Asia Pacific Hong Kong - Employment & Labor Hong Kong employment law update - August 2017 In this update, we look at proposed changes in Hong Kong employment legislation including working hours protection for low-income employees, and recent court decisions including a civil servant's success in claiming benefits for his same-sex spouse. Read more. Indonesia - Employment & Labor New minister of employment regulation obliges employers to prepare and inform employees about a wage structure and wage scale Under a recently issued regulation, employers have until 23 October 2017 to prepare a wage structure and wage scale, and inform employees about the wage structure and wage scale. Read more. Malaysia - Employment & Labor Deferment of the employment insurance system bill 2017 We discuss the implications of the introduction of the Employment Insurance System Bill 2017, which seeks to establish the Employment Insurance System. The Bill was tabled on 1 August 2017 for reading before Parliament. Read more. New compulsory allowances and benefits scheme for terminated employees in Malaysia Under the Employment Act and the Sabah and Sarawak Labor Ordinances, mandatory termination or retrenchment benefits payments need to be made to all eligible employees. For those who are not covered, their entitlement to termination benefits is subject to the terms of their employment contract or collective agreement if any. Read more.
Singapore - Employment & Labor Tripartite standard on employment of term contract employees - what employers have to be aware of The Ministry of Manpower, the National Trades Union Congress, and the Singapore National Employers Federation jointly released the new Tripartite Standard on Employment of Term Contract Employees. Read more.
Thailand - Employment & Labor Latest developments on retirement under the amended labour protection act There have been significant changes to the latest draft of the Labour Protection Act including in relation to the issue of mandatory retirement. Read more.Europe, Middle East & Africa Italy - Employment & Labor Constitutional court to rule on protection provided by the Jobs Act Reform in case of unfair dismissal In 2015, the Jobs Act Reform introduced an innovative means of calculating indemnities due in case of unfair dismissal. Read more. Netherlands - Employment & Labor Netherlands employment law update Learn about the Supreme Court's guidelines for determining reasonable compensation, the recent evaluation of the 30% facility- a tax regime for foreign employees, and the European Data Protection Authorities' new guidelines on data processing at work. Read more. New Dutch work permit exemption: International trade regulation The new International Trade Regulation broadens Dutch work permit exemption categories by adding an increased opportunity to have non-EU nationals perform work activities in the Netherlands on a temporary project without the requirement to obtain a work permit. Read more. South Africa - Employment & Labor Rule from beyond the grave no more - for now A curious statutory effect of collective agreements is that a collective bargaining agreement amends the contracts of employment of individual employees. On the surface, the provision in section 23 of the Labor Relations Act, is inoffensive. Read more. So you've transferred the business… what about the pension fund? While section 197 of the Labour Relations Act, 1995 deals with transfers of a business as a going concern, the impact of the section 197 transfer on employee benefit schemes becomes a key focus in the transfer Read more. Anticipated assign appeal: Congratulations client, you're the sole employer of your TES employees The Labour Appeal Court handed down judgment on 10 July 2017 in a highly anticipated appeal ruling on the interpretation of section 198A of the Labour Relations Act, 1995 (LRA) and the nature of temporary employment service employees' deemed employment with the client. Read more.
New report: The Global Employer Forum 2017 - Connecting Leaders & Fresh Thinking Our FutureWorks Global Employer Forum in London discussed the megatrends that will impact global businesses and the future of work. Together with HR and employment leaders from some of the largest and most innovative companies in the world, as well as leading academics and thinkers, we looked at how global employers can embrace the opportunities and manage the coming shocks. Click here to access the report.
New blog: The Compensation Connection The Baker McKenzie "Compensation Connection" blog covers recent legal and tax developments, emerging trends and best practices in the world of executive compensation and employee benefits. Read the latest updates, insight and commentary on changes in the laws impacting equity and incentive plans, deferred compensation plans, pension and welfare plans and other compensation arrangements. Click here to access the blog.
Events September 13-15, 2017 Seminar (North America) Baker McKenzie is a proud sponsor of GEO's 2017 National Equity Compensation Forum (NECF). The NECF will feature more than 50 speakers who will be presenting on an array of topics. Our panels will look at legal developments in global executive compensation, taxation and income for the mobile employee, and more. Learn more. September 18, 2017 Seminar (North America) 2017 Global Pensions Conference - Invitation Learn more. September 20, 2017 Webinar Five Things You Need to Know About Employee Restrictive Covenants Around the World Learn more.
No country for old racists The outrage sparked by white supremacists marching in Charlottesville, Virginia took a further turn when reports indicated that at least one person had lost his job after being identified as a protesting white nationalist. Users took to Twitter after the march to identify protesters and blast their identities over social media. Read more. Talent has no borders: Seconding employees to Zambia The Republic of Zambia is located at the crossroads of South-Central Africa, which makes it a strategic location for businesses and is becoming an increasingly attractive jurisdiction for companies with African business interests Read more. United Kingdom - Employment & Labor United Kingdom Employment Law Update – August 2017 This month’s developments include further guidance on the calculation of holiday pay, clarification on the territorial scope of collective redundancy consultation, personal liability for whistleblowing compensation, and more. Read more. Pension Update - August 2017 This month’s update looks at the new corporate criminal tax evasion offence soon to be coming into force, a new definition of ‘professional trustee’, new restrictions on early exit charges for pension scheme members aged 55 or over, and more. Read more. Latin America Brazil - Employment & Labor Labor reform also changes the levy on social security contributions Recently, 467/71 was published to regulate the labor reform. In addition to the changes in the labor Legislation, the social security Legislation (Law n. 8,212/91) was also amended and modified regarding the levy of Social Security Contributions upon some payments. Read more. Colombia - Employment & Labor Colombia issues standards to determine countries with adequate levels of protection and other alternatives for the cross-border transfer of personal data This month, the Superintendence of Industry and Commerce published External Circular number 5 of 2017 which establishes the standards with which a country must comply in order to demonstrate adequate levels of protection to receive personal data transferred from Colombia. Read more. Immigration reform The Ministry of Foreign Affairs issued Resolution 6045, 2017 (the "Resolution"), and it will become enforceable on November 2, 2017. This Resolution introduced new requirements for obtaining Colombian visas. Read more. Mexico - Employment & Labor New system implemented by the Federal Ministry of Labor for the compliance of general working conditions; training and instruction; and safety and health obligations An agreement issued by the Ministry of Labor was published in the Federal Official Gazette, creating a system called "CUMPLILAB" which will allow employers to voluntarily declare the level of compliance with obligations related to General Working Conditions; Coaching and Training; and Safety and Health. Read more. New rules to submit construction notices to the Mexican Social Security Institute ("IMSS") New rules have been published in the Federal Official Gazette which are applicable to employers and other liable parties engaged in the construction activity, either permanently or sporadically, to register construction works, its stages and incidents. Read more. Reports issued by the IMSS determining a work-related illness or accident, are definitive resolutions that can be challenged by employers. Recently, the First Administrative Collegiate Court of the First Circuit issued a ruling which provides employers the possibility of challenging "ST-7" and "ST-9" reports issued by the IMSS that qualify an employee’s injury or illness as work-related accidents. Read more. North America Canada - Employment and Labor SCC Decision Reminds Employers to Draft Termination Clauses with Care The Supreme Court of Canada recently ruled that a unilateral contract renewal clause was valid, despite its potential to bind one party perpetually. The decision highlights the importance of drafting clear and unambiguous termination clauses in employment agreements that do not require further interpretation and clearly articulate the employer's right to terminate the contract without cause. Read more. Avoiding the Pitfalls of Social Media Social media has never been more popular and employers are facing a growing number of risks as a result. In our recent article, we provide guidance on dealing with social media as it impacts the workplace. In addition to outlining the prevailing risks, we suggest proactive steps to avoid issues before they occur. Read more. United States - Employee Benefits Tax-Qualified Plans – Blessing or Curse? When granting equity awards, one of the most important questions is the tax effect of such awards. Granting awards that have a negative tax impact on the employee or the company is counter-productive and should lead companies to consider other ways to incentivize their employees. Read more. Regulatory and Legislative Developments in Executive Compensation: An Evolving Landscape Although to date, the new administration has not been successful in moving forward its legislative agenda, it has aggressively pursued its goal of reducing the regulatory burden on American businesses. Read more. Do You Need an Investment Policy for Your Retirement Plans? Pursuant to Department of Labor guidance, a "statement of investment policy" provides fiduciaries responsible for plan investments with written guidelines or general instructions concerning various types of investment management decisions. Typically, an investment policy will establish criteria and procedures for the selection, monitoring, removal, and replacement of plan investments. Read more. Don't forget to track the payment of deferred RSUs (and other deferred compensation) for reporting on form W-2s As most employers are aware, the obligation to report non-qualified deferred compensation (NQDC) that complies with Internal Revenue Code (IRC) Section 409A is currently suspended, but non-compliant NQDC is required to be reported in Box 12 of an employee's Form W-2. Read more. United States - Employment and Labor Proposed immigration legislation includes point-based system On August 2, 2017, Senators Tom Cotton (Ark.) and David Perdue (Ga.), with the endorsement of President Trump, proposed new legislation that would change the eligibility requirements for employment-based permanent residence status. Read more. Responding to a 'Notice Of Intent To Revoke' from DHS We live in an era of increased immigration enforcement. While the U.S. Department of Homeland Security immigration enforcement mechanisms that grab headlines tend to be worksite raids or I-9 penalties, an increasingly common DHS enforcement tactic is the issuance of a notice of intent to revoke (NOIR). Read more.