Issue 103

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

In this issue of Work/Life we ​​deal with:

Our strategic alliance with leading Spanish law firm ECIJA means that 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 strong reputation for innovation and success. In addition, this alliance enriches our newsletter, with ECIJA regularly contributing insightful content, broadening our understanding of legal issues.

(You may need a subscription to view some of these articles.)

European Union sues Germany and Italy for alleged discrimination against mobile workers

The European Commission has launched proceedings against Germany and Italy, referring them to the European Court of Justice (ECJ), accusing them of discrimination against EU mobile workers in their family allowance schemes. Both countries have passed laws that lead to benefit cuts for certain categories of workers. Italian rules require a minimum two-year residency to qualify for benefits, while German benefits are cut for workers whose children live in EU countries with a lower cost of living. “One of the fundamental principles of the EU is that people should be treated equally, without distinction based on nationality,” the European Commission said in a statement. “According to this fundamental principle, EU mobile workers who contribute the same amount to the social security system and pay the same taxes as native workers are entitled to the same social benefits,” it said.

Read more

Back to top

British and Spanish Prime Ministers discuss youth mobility programme

British Prime Minister Keir Starmer has held talks with his Spanish counterpart Pedro Sanchez about a possible agreement to allow young people to move freely between Spain and the UK. These developments come despite the Labour Party initially opposing an EU-proposed youth mobility scheme that would allow people aged 18 to 30 to travel across the UK and mainland Europe for residential and study purposes. But due to widespread public discontent over immigration, it has been reported that the UK is not seeking such a deal.

Read more

Back to top

CrowdStrike faces complaint over ‘unlawful’ diversity initiatives in hiring

Following CrowdStrike’s involvement in the July Microsoft software update malfunction that caused computer outages around the world, the cybersecurity company is now facing a lawsuit over its diversity hiring practices. Conservative US advocacy group America First Legal (AFL) claims that CrowdStrike discriminates by favoring women and minority groups when hiring and promoting employees, and allegedly prioritizes gender and ethnicity over merit. AFL has filed formal complaints with the US Equal Employment Opportunity Commission (EEOC) targeting various companies, including CrowdStrike, over their diversity initiatives. Some have suggested that these policies have contributed to the deterioration of service quality.

Read more

Back to top

10 pitfalls when dealing with diversity and inclusion in German law

Promoting diversity and inclusion is usually seen as a strategic advantage. But companies operating in Germany must navigate a complex legal landscape. From understanding the General Equal Treatment Act (AGG) to complying with strict data protection regulations, there are critical pitfalls that can lead to significant legal and reputational risks. In our latest Insight article, we examine the 10 biggest challenges employers should be aware of.

Read more

Back to top

British labour laws are “significantly weaker” than in other major economies

According to a report by the Trades Union Congress (TUC) and the University of Cambridge, Britain’s labour laws are “significantly weaker” than those of other major economies. The research shows that Britain’s labour laws offer half as much protection as those in France and are weaker than those in Germany, Italy and Spain. The report argues that this inequality has widened since the Conservatives came to power in 2010. The TUC is calling on Prime Minister Sir Keir Starmer to reduce working hours and allow strikes. In addition, the report calls for a law that would make Sunday the standard day of rest and guarantee extra pay for weekend work. The measures proposed by the TUC aim to strengthen workers’ rights by banning “fire-and-rehire” practices and increasing the minimum wage.

Read more

Back to top

EU law on artificial intelligence comes into force

The European Union’s groundbreaking Artificial Intelligence Law has officially come into force, marking a major step in regulating AI technology within the bloc. The Artificial Intelligence Law is designed to protect fundamental rights while encouraging investment and innovation in the AI ​​industry. This law applies to all AI products and services offered in the EU and categorizes them by risk levels. By February 2025, high-risk AI systems (such as social scoring systems, certain predictive policing methods, and emotion recognition technologies) will be completely banned. General AI models are to be regulated by August 2025.

To ensure compliance with these rules, the EU is setting up an AI Office. Companies that do not comply with the rules face fines of up to 7% of their annual global turnover. The entire regulatory framework will be fully in place by mid-2026. “With the AI ​​Law,” said Margrethe Vestager, Executive Vice-President of the European Commission, “the EU has taken an important step to ensure that the rollout of AI technology in Europe complies with EU rules.” A summary by Taylor Wessing can be found here.

Read more

Back to top

Bolt promises gig workers benefits ahead of legal battle with union

Estonia-based ride-hailing company Bolt is now offering holiday pay to its UK drivers. In addition, Bolt is guaranteeing these drivers the minimum wage in preparation for a court hearing next month about their employment status.

Read more

Back to top

Sharp increase in applications to admit workers from non-EU countries to the Netherlands

The widespread shortage of staff in the Netherlands has led to a significant increase in work permit applications from non-EU countries. The Employees’ Insurance Agency (UWV) received 18,800 work permit applications in the first half of 2024, compared to 20,900 in the whole of 2023. Due to this high volume of applications, the UWV struggled to meet its five-week processing time. Currently, companies in the Netherlands have almost 450,000 unfilled positions. “The economy and the labor market have recovered quickly after the coronavirus pandemic,” a UWV spokesperson explained. “Employers are now looking for solutions. Recruiting people from outside the EU is one of them.”

Read more

Back to top

Employees contacted outside working hours could receive more compensation

The UK government’s policy of giving workers the “right to switch off” could lead to significantly higher compensation payments in employment tribunals, according to a report. A new code of conduct will set out expected normal working hours and when employees can reasonably expect contact from employers. According to Acas, employers who repeatedly breach this agreement can expect a 25% increase in their compensation liability if it is considered an aggravating circumstance in a wider claim. The spThe precise form this right will take, like all new British employment law proposals, will be discussed in the autumn. Click here to stay up to date.

Read more

Back to top

Survey – Employee retention and wellbeing

We invite you to take part in our short survey, the aim of which is to develop a comprehensive toolbox highlighting both Europe-wide trends (e.g. workation policies in multiple jurisdictions) and country-specific differences (e.g. financial benefits during parental leave). This approach aims to improve the understanding of employee engagement and wellbeing and provide companies with the insights needed to effectively attract and retain talent.

Read more

Back to top