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labour law
Newsletter January, 2021

Austria reform on employment law

January, 2021
  • In Austria, a new collective agreement will enter into force at the end of 2021 for all employees of companies in the trade sector
  • The agreement will reform the salary schedule and aims at uniformising and reducing the salary levels, and “to create a modern scheme of employment groups, obtain more legal certainty in job grading

Mexico regulates telework

January, 2021
  • On 9 December 2020, the Mexican Senate approved a reform to the Federal Labour Law to regulate telework.
  • The law establishes the voluntary nature of this form of work and the need to define it in writing

Peruvian new agrarian law is adopted in the midst of social partners' objections

January, 2021
  • The 2000 agrarian law was derogated by the Peruvian parliament without consulting or taking into account the views of the social partners
  • The reform generated violent protests throughout the country
  • The new law imposes a higher minimum living wage and requires the employers to pay a special bonus, equal to 30% the minimum living wage
  • Bipartite discussions continue, prior to the adoption of the specific regulations to be annexed to the law.
Newsletter December, 2020

Switzerland: minimum wage in Geneva now amounts to monthly CHF4210 (USD4768) gross per employee

December, 2020
  • On 27 September 2020, the citizens of the Geneva Canton agreed to modify the Law on Inspection and Labour Relations, by the institution of a mandatory minimum hourly wage.
  • This means that the monthly minimum wage will amount to CHF4210 gross per employee (42 hours weekly).

Italy: the private employment service sector signs an agreement clarifying the coverage of extensions for fixed-term contracts

December, 2020
  • The private employment service sector signs an agreement with the trade unions that clarifies the “neutrality” of this extension vis-à-vis the maximum number of extensions.
Newsletter November, 2020

India: New Labour Codes on Industrial relations, social security and occupational safety and health

November, 2020
  • Changes to the labour codes aim at promoting harmonious industrial relations, higher productivity and employment creation, and increase the workers coverage by social security.
  • They also aspire to facilitate businesses in terms of licensing and permit requirements.

Indonesia: Revision of 81 laws results in an Omnibus Bill on Job Creation

November, 2020
  • On 5 October 2020, the Indonesian Parliament adopted the “Omnibus Bill on Job Creation” to favour investments and positively impact employment in the country.
  • The labour law component of the Bill introduces important changes for employers on minimum wages, outsourcing and temporary contracts, severance payment, unemployment and other matters.

Mexico: Presidential initiative to ban “outsourcing” to be discussed by the Parliament

November, 2020
  • The reform aims at limiting outsourcing only to the provision of specialized services that are not part of the beneficiary’s main economic activity.
  • National social partners met President Lopez Obrador, who expressed the government’s openness to dialogue.
  • IOE and WEC underlined their concern and offered support to draft a future-proof labour market regulation.

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