Employment & Benefits updates

Australia

Contributed by Lander & Rogers
Navigating the murky waters of employee bonuses and incentive payments
  • Australia
  • June 13 2018

Navigating the payment of bonuses or incentive payments can be a tricky legal issue. One question that clients regularly ask is how discretionary is an employer's discretion when it comes to awarding a bonus or setting an employee's annual remuneration? As with most legal issues, there is no quick answer, but there are some tips from case law which can provide guidance.

How to manage the challenges of an ageing workforce
  • Australia
  • June 06 2018

The effects of Australia's ageing workforce are expected to be so pronounced that the government has budgeted for retraining. Between the tax cuts and promises to return to surplus, one of the centrepieces of the 2018 Budget was increased funding to assist Australia's so-called 'greying' population. To manage the changes to Australia's demographics, employers should start to prepare for an ageing workforce and develop strategies to manage and retain older workers.

New labour hire licensing schemes in Queensland and South Australia
  • Australia
  • May 23 2018

Under new legislation, labour hire service providers in Queensland and South Australia must be licensed to provide labour hire services in order to avoid costly penalties. Businesses that engage labour hire service providers must also ensure that those providers are licensed. The new licensing schemes aim to regulate the provision of labour hire services and protect employees from exploitation by labour hire service providers.

Fair Work Commission suspends protected industrial action by rail workers
  • Australia
  • May 16 2018

In January 2018 rail workers employed by Sydney Trains and NSW Trains threatened a 24-hour stoppage and overtime bans. In a noteworthy decision for all employers, the Fair Work Commission ordered that all industrial action be suspended for six weeks, finding that the stoppage threatened to cause significant damage to the economy and endanger the welfare of the community and the people who rely on the network to get to work and school.

How to deal with difficult people in a workplace investigation
  • Australia
  • May 02 2018

Managing a workplace investigation can be challenging at the best of times, particularly where the complainant or alleged offender proves difficult. Employers should consider a number of issues that can arise when managing absent participants or vexatious employees in the context of an investigation, as well as various tips on how to move forward successfully.


Austria

Contributed by Graf & Pitkowitz Rechtsanwälte GmbH
Employed or self-employed? Request an advance ruling!
  • Austria
  • May 09 2018

Determining whether an individual is an employee or self-employed can be risky for both the contractor and engager. Often, no one knows exactly how to qualify an individual until the national insurer claims arrears in social security payments in the wake of an audit. The parties involved hardly ever have legal certainty in advance. The Social Security Determination Act aims to change that.

Accurate and complimentary – difficult standard for recommendation letters
  • Austria
  • February 07 2018

Under Austrian law, a recommendation letter must be truthful and cannot contain language that would aggravate the professional advancement of the employee. When truthfulness would result in less than lavish praise, employers must resort to a short-form recommendation letter, devoid of any information beyond the type of work performed and the duration of employment. This alternative, although accurate in its lack of praise, can aggravate an employee's career prospects.

Blue-collar and white-collar employees – sweetening the deal
  • Austria
  • December 06 2017

In its final session before the general election, Parliament passed a bill which serves as a first step in harmonising the different legal regimes covering blue-collar and white-collar employees. However, not everyone is happy with this half-hearted harmonisation project – most notably, employer organisations – as they believe that the extended notice period for blue-collar workers will cost employers dearly.

Up in smoke: new law favours non-smokers in pub over workplace
  • Austria
  • October 04 2017

As of May 1 2018 smoking in restaurants and bars will be prohibited. The restrictions on smoking in the workplace will also be tightened as of this date. However, the new provisions still afford some leeway to employers in that they can organise smoking breakrooms. As a consequence, the workplace may be more smoker friendly than pubs – who would have imagined that.

Vocational reintegration through novel part-time model
  • Austria
  • July 26 2017

New legislation recently came into effect that aims to ease the process of reintegration into the workplace for employees who have been on extended sick leave and who would benefit from a reduced workload in order to aid rehabilitation and reconnect with the workplace. Although it is a well-meant initiative to curb the increase in long-term sickness, the legal framework reveals some major flaws.


Brazil

Contributed by Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados
How to avoid overtime costs: overview of compensatory time off agreements
  • Brazil
  • May 23 2018

In Brazil, employees who work overtime are entitled to statutory premium pay at one-and-one-half times the regular rate. In the past, the courts often voided compensatory time off agreements and granted overtime payment claims to employees on the grounds that their employer had failed to comply with legal requirements. However, the 2017 labour reform introduced more flexible requirements, which should curb litigation on compensatory time off agreements and encourage their use.

Impact of labour reform on awards paid to employees
  • Brazil
  • February 07 2018

The discussion regarding the legal nature of awards is not new to Brazilian labour courts, especially because amounts paid as awards could be considered salary, obliging the employer to include the award in the employee's salary and pay him or her every month or include this amount as a basis for determining the employee's labour rights. The legislative branch has tried to clarify this matter, defining the legal nature of awards, as well as the concept and legal criteria for their application.

Outsourcing and impact of labour reform
  • Brazil
  • November 08 2017

The use of outsourcing has historically been uncertain in Brazil, particularly in relation to the outsourcing of a company's core business. However, once in force, the labour reform will create a scenario of greater legal certainty for outsourcing because it expressly authorises the outsourcing of any activities, including a company's core business.

Buyers' liability for labour debts
  • Brazil
  • October 25 2017

According to a precedent established by the Superior Labour Court, the acquiring company is not liable for the labour debts of other companies within a corporate group that encompasses the acquired company, provided that the entities – at the time of the transaction – were creditworthy or economically viable, except in the case of bad faith or fraud. However, a recent reform to the Labour Code will enter into force in November 2017 and may change the existing understanding in this regard.

Labour reform: equal treatment for litigating parties
  • Brazil
  • September 20 2017

The need to modernise the procedural rules applicable to the labour procedure has long been a concern in Brazil. As such, it was well known that labour relations were being modernised and that the law did not satisfactorily account for this progress. In light of this, the newly enacted Law 13,467/2017 will introduce, among several changes not seen in prior legislative amendments, equal treatment of litigating parties and greater legal certainty for both litigating parties and Brazilian society as a whole.


British Virgin Islands

Legislation to change work permit fee calculation enacted
  • British Virgin Islands
  • August 09 2017

The government recently enacted a measure regarding the fees payable for work permits in the British Virgin Islands. The amendment order replaces the employee flat fee system with an incremental calculation based on salary bands, which now generally assume a higher gross salary. It also replaces most exceptions to the previous scheme, keeping only those for domestic workers.


Canada

Contributed by Fasken
What is the origin of a name – not as innocent a question as it seems
  • Canada
  • June 13 2018

The Human Rights Tribunal recently examined discrimination in hiring, specifically in regard to ethnic or national origin. It opined that the purpose of Section 18.1 of the Charter of Human Rights and Liberties is to eliminate discrimination in hiring at its roots by prohibiting any question relating to a personal characteristic. Accordingly, a mere question relating to one of the grounds listed in Section 10 of the charter will constitute an automatic violation of Section 18.1.

Employer-mandated physician visit is not a privacy violation
  • Canada
  • June 06 2018

Employers are entitled to require employees to visit in-house occupational health department physicians to obtain reasonably necessary medical information if that right is provided for in their collective agreement. This was recently confirmed when an arbitrator found that an employer had not violated employee privacy rights when it required employees to visit in-house occupational health department physicians to confirm eligibility for wage loss protection benefits.

Bill 6 – amendments to British Columbia Employment Standards Act
  • Canada
  • May 30 2018

British Columbia's minority New Democratic Party government recently introduced Bill 6 into the British Columbia legislature. The bill contains many amendments dealing with the British Columbia Employment Standards Act. Among other things, the proposed amendments align provincial leave benefits with the changes made to federal employment insurance benefits. Bill 6 would also provide new and extended maternity, parental and compassionate care leave.

Bill 148: Ontario makes important changes to health and safety law
  • Canada
  • May 23 2018

While the Fair Workplaces, Better Jobs Act 2017 (known as 'Bill 148') made many changes to the Employment Standards Act 2000, it made only one change to the Occupational Health and Safety Act. However, the Stronger, Fairer Ontario Act (Budget Measures) 2017 also made changes to the Occupational Health and Safety Act – most significantly, an increase in the maximum fines following a conviction and a change to the limitation period for charges to be laid.

Pay Transparency Act enacted in Ontario, national trend emerging
  • Canada
  • May 16 2018

The Ontario Pay Transparency Act has been enacted as a central piece of Ontario's strategy for women's economic empowerment. The act will require employers with more than 100 employees to collect information and prepare pay transparency reports, which may be published online by the Ministry of Labour. The Ontario legislation is part of an emerging Canada-wide trend reflecting increasing efforts to improve pay equity and, more generally, equality in the workplace.