Co-funded by the European Union
Newsletter February, 2021

IOE calls for leveraging digital opportunities

February, 2021
  • IOE responds to the recently published ILO World Employment and Social Outlook Report by underlying that digital platforms are important contributors to fostering innovation, reducing unemployment and alleviating poverty.
  • This and other topics will be the subject of a Discussion Forum on 11 March 2021
Newsletter January, 2021

Business Botswana in the front line for the implementation of a recovery plan

January, 2021
  • Business Botswana provides concrete suggestions for “building back better” through a Guide on Recovery Plan for the Private Sector

Results of the Israelian grant to all its citizens in August 2020

January, 2021
  • The grant secured by the Israelian Government to all its resident citizens was able to stimulate the domestic economy
  • Despite its lack of precise target, some redistribution was ensured by the recipients themselves

Minimum wage will increase in various US States in 2021

January, 2021
  • The US Federal minimum wage of USD $7.25 per hour (less for tipped employees) was last updated in 2009
  • 20 US states will progressively increase their minimum wage rates as of January 2021, in certain states up to USD $15-an-hour

German Federal Labour Court decision on the case of a crowdworker and relative salary

January, 2021
  • The German Federal Labour Court (No. 9 AZR 102/201, 1 December 2020) re-classified the crowdworker as an employee
  • It determined also that for remuneration purposes, the company shall not be bound by pre-established fees that the worker received as a self-employed worker. 

New Zealand Employment Court’s decision on the case of a self-employed for a platform company

January, 2021
  • The Employment Court examined the terms of the Service Agreement, the intention of the parties and the relationship operated in practice.
  • It ruled against the classification of the complainant as an employee of Uber

Apple adjusts its executives’ bonuses to social, environmental, governance performance

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.

Danish Competition and Consumer Authority pronounces on the establishment of fees by collective agreement in a platform company

January, 2021
  • Two years after a platform company signed a collective agreement with a trade union, the Danish Competition and Consumer Authority considered it does not align with the EU competition law
  • The authority required the company to partially modify their business model to fully comply with the EU law

Panama: outcomes of the tripartite Dialogue for Labour Economy and Development, including the regulation on telework

January, 2021
  • The tripartite dialogue concluded with 23 consensual agreements on various matters
  • It triggered the discussion and finalisation of the implementing regulation on telework

Business and labour organisations’ call to G20 governments

January, 2021
  • On 1st December 2020, Italy took over the G20 Presidency
  • This highly challenging period will require a lot of efforts from all G20 members to deliver an inclusive and resilient recovery
  • The IOE, together with 13 international business and labour organisations, have signed a joint letter to G20 governments calling to ensure that “building back better” is not just a mantra but materialises into concrete positive outcomes

The best and worst of Covid-19 responses, Adecco analysis of 20 countries

January, 2021
  • The paper provides a comparison of policy responses based on macroeconomic and pandemic indicators
  • This is a useful tool for policy action and advocacy purposes
  • 20 countries and their responses by October 2020 were examined

Brexit and its repercussions on employment law

January, 2021
  • The European Union and the UK were able to conclude a trade and cooperation agreement to regulate their future relationship
  • This agreement will have important repercussions on employment law. It has also consequences on the social security regimes and bilateral agreements

Mapping on new forms of work in the countries of the European Union and Norway

January, 2021
  • Eurofound research highlighted and measured 9 new forms of work
  • It proposed policymakers to focus on “balancing flexibility with the retention of employment standards and workers’ protection”.
Newsletter December, 2020

Finnish Labour Court dealt with a breach of labour peace obligations

December, 2020
  • The Helsinki Labour Court settled the case between a company and the union in the electricity sector, for violation of the collective agreement in force and the duty of peace.

New Zealand aims at changing the “Fair Pay Agreement” system

December, 2020
  • In 2018, the Government of New Zealand commenced internal discussions on the establishment of a “Fair Pay Agreement system”, a system combining simultaneously collective negotiations and the establishment of minimum legal employment standards.
  • The legislation is currently discussed among social partners and received important criticism for de facto imposing collective negotiations.

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).

The role of HR Services: how to mind the gap

December, 2020
  • Focus on the role of private employment services and the private sector facing the trends of the “future of work”.
  • Proposals to ensure that the social impact of these trends meets innovation.

Singapore United: an initiative to get together and be stronger

December, 2020
  • Covid-19 pushed Singaporeans to play a role during the peak of the pandemic, from showing their appreciation for workers on the frontline to volunteering in support of the vulnerable persons of the society.
  • Singapore United was launched by the Singaporean Government to allow everyone to give their support in a coordinate manner.

Colombia: the aviation company Avianca resumed social dialogue with the pilot and cabin crew trade unions

December, 2020
  • After 11 years of difficult relationships, the company signed a collective agreement with the pilot trade union Acdac.
  • A few days later the company reached another agreement with the cabin crew trade union, Acav.

French social partners sign a new interprofessional agreement on telework

December, 2020
  • On 26 November 2020, French social partners concluded a national interprofessional agreement on telework, that provides a framework clarifying the rules and modalities of remote working.
  • The text encourages social dialogue at the company and sectoral levels.

Italy: new collective agreement signed for the sector of domestic work

December, 2020
  • The text contains important updates and simplification measures compared to the previous collective agreement, on categories, qualifications, organisation of work, and salaries.

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.

100 years of the International Organisation of Employer: “Remember to celebrate milestones as you prepare for the road ahead” (Nelson Mandela)

December, 2020
  • The Centennial of the IOE was celebrated through several virtual centenary-related events, culminated with the General Council of the 24 November 2020.
  • Throughout the discussion participants reflected on the past, present and future of IOE.

Outcomes of the survey report on enterprises response and impact of the Covid-19 crisis

December, 2020
  • The International Labour Organization – Bureau for Employers’ Activities (ILO-ACT/EMP) has recently published the outcome of a global survey conducted in cooperation with Employer and Business Membership Organizations (EBMOs).
  • The report allows a better understanding about the impact of the Covid-19 crisis on enterprise activities.

What is the situation of workers stranded at sea? A resolution adopted by the ILO Governing Body aims at mobilise governments

December, 2020
  • The resolution urges ILO Member States to engage in collaborative actions to identify obstacles to crew changes, and establish time-bound plans to solve this situation
  • In order to facilitate the movement of workers, the resolution suggests to designate seafarers as “key workers”.
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.

Mexico: Full implementation of the Regulation No. 035/2018 on psychosocial risks and prevention at work

November, 2020
  • Regulation No. 035/2018 (Norma Oficial Mexicana NOM-035-STPS-2018) on psychosocial risk factors at work was adopted in 2018, but it entered into force on a two-step phase and became fully applicable on 23 October 2020.

Slovakia: Changes to labour Code on remote working, fixed-term contracts and representativeness criteria

November, 2020
  • On telework, the Code establishes the rights and obligation of employers and employees.
  • The amendments defined the criteria of representativeness to sit in the Economic and Social Council of the Slovak Republic.
  • The possibility to renew fixed-term contracts has been extended to three years.

Canada: Supreme Court decision requires employers to draft their incentive plans with an exceptional clarity

November, 2020
  • This case requires employment contracts and/or bonus plans to be extremely clear when it comes to employees’ participation in bonus plans.  
  • This has important repercussions for employers and requires an in-depth analysis on employment contracts.

Honduras: Employers’ organisation COHEP plays a key role towards the economic reactivation

November, 2020
  • Covid-19 in Honduras was characterized by high levels of collaboration within the employers’ community.
  • COHEP members together advocated for the reopening of businesses and successfully presented possible practical solutions, including safety protocols, gradual reopening, shifts, etc.

A private company’s vision on bridging the skills gap and favouring employability. A white paper from Adecco Group

November, 2020
  • The Adecco Group released the paper “Employability, not only employment. VET, apprenticeships and the urgent need to bridge the skills gap in a post-Covid world”
  • Vocational education training (VET) and apprenticeships are the suggested tools to close this gap.
  • Once the obstacles for their best use are defined, a coordinated approach is suggested.

How is remote work local country regulation impacting businesses? A position paper from Randstad

November, 2020
  • The article “a position paper on remote work local country regulation” provides a very clear and straightforward analysis of what must be taken into account when revising or drafting a legislation or regulation on remote work.

HR company ManpowerGroup Switzerland launches New JobCenter Platform to support workers in finding new work opportunities

November, 2020
  • JobCenter consultants support, coach and train dismissed employees during their job search.

Argentina: Social partners signed a collective agreement for an extraordinary and temporary bonus in the metallurgical sector

November, 2020
  • The bonus is not part of the salary.
  • Social peace must be ensured during the duration of the agreement.

Belgium: massive use of electronic voting during the social elections

November, 2020
  • Work councils and committees for prevention of psychosocial risks and protection of work are in the process of being elected in Belgium.
  • The elections concern more than 6,000 companies.