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European Edition
23rd July 2024
 
THE HOT STORY
UK companies are being advised to dismiss underperforming staff ahead of workers’ rights overhaul
Employment lawyers are advising their clients to take action ahead of the UK government’s incoming Employment Bill, which is expected to include awarding workers’ full rights from day one. Nicholas Le Riche, an employment lawyer at BDB Pitmans, said: “We’re definitely flagging the upcoming changes with clients and highlighting that now is the time to consider their workforce structures for the rest of the year.” James Davies, an employment lawyer at Lewis Silkin, has said that some firms are also considering strengthening the terms of probationary periods. He said: “The advice we are giving at present includes looking at contracts for new hires to make sure they have properly drafted probationary periods . . . Many employers have historically managed them poorly as there was little legal significance to an employee failing a probationary period and an employer deciding a little later that it wasn’t working out.” Caspar Glyn, who is chairman of the Employment Lawyers Association, observed that employers will want to “set up and implement more rigorous systems to ensure that new staff who don’t measure up can be fairly dismissed within their probationary period.” Andrew Taggart, head of employment at Herbert Smith Freehills, added: “Businesses need to think about what changes might be needed . . . We’re advising that clients get ready to contribute meaningfully to the consultation because the devil is in the detail.”
HIRING
Unemployed immigrants in Portugal find jobs faster
Young unemployed immigrants make up 18.5% of registered unemployed young people in Portugal, according to a study by the Employment and Professional Training Institute (IEFP) and Iscte. The majority of these immigrants are from Portuguese-speaking countries, and are concentrated in the Lisbon region. They have completed secondary education and only a fifth of them receive unemployment benefits. The study also reveals that immigrants are willing to accept jobs that are worse than their initial expectations, which explains why they enter the job market more quickly than most young people in Portugal. On average, it takes five months for young immigrants to register with the IEFP, compared to 11 months for young people in general. Immigrants mainly occupy positions in the least attractive sectors of activity, such as administrative activities and support services. The study recommends greater monitoring of immigrants registered with the IEFP and speeding up the recognition of qualifications to increase their insertion in sectors that contribute to the modernisation of the national economic fabric.
HEALTH & SAFETY
Slovenian health workers demand protection from increasing violence
Slovenian health workers have proposed a new criminal offence of assault on a health worker to address the increasing incidents of violence they face at work. The proposal, submitted to the National Assembly, aims to create a safe environment for healthcare professionals. Data suggests that 41% of healthcare workers have experienced physical violence and 89% have faced psychological violence. The existing legislation does not allow healthcare employees to prosecute perpetrators of physical violence unless they are seriously injured. The Medical Chamber proposes prison sentences of six months to three years for assault on a health worker and six months to five years for threatening or mistreating them. The aim is to equalise the status of healthcare workers with that of law enforcement officers. The proposal has gained support and is expected to be approved by the National Assembly. Medical Chamber president, Bojana Beović, emphasized the importance of protecting healthcare workers.
REGULATION
Former EY Germany boss to appeal against €300,000 fine for Wirecard audits
Hubert Barth, the former boss of EY Germany, is to challenge a €300,000 fine for alleged violations of professional duties during the Big Four firm’s audits of Wirecard.
LEGAL
Council worker in UK loses unfair dismissal claim over pronoun policy
A local council worker in the UK has lost his claim for unfair dismissal after suing his employer, East Riding of Yorkshire council, over its pronoun policy. James Orwin refused to add pronouns to his email signature, instead changing it to "XYchromosomeGuy/AdultHumanMale" in protest. He argued that the policy was a "political position" which the council had no mandate to adopt. Orwin was suspended and subsequently sacked for refusing to remove the addition to his email signature. The employment tribunal rejected Orwin's claim of discrimination but acknowledged that gender-critical opinions were a protected "philosophical belief." The judge stated that the council's implementation of the policy was poorly executed but necessary to comply with equality duties.
STRATEGY
Renault CEO wants more flexibility in electric vehicle transition timeline
Renault CEO Luca De Meo has expressed doubts over the timeline for transitioning to electric vehicles in Europe. De Meo stated that the carmaker needs more flexibility in the schedule and must bring down costs to achieve its EV goals. However, he emphasized that abandoning the objective due to the current market slowdown would be a serious strategic error. Renault aims to shift 100% of its European car production to electric vehicles by 2035, but De Meo admitted that the company is not yet on the right trajectory to achieve this.
UK seeks ‘regular’ EU meetings to rebuild post-Brexit relations
The new Labour government is looking to have regular meetings with EU politicians as part of moves to build closer ties on a wide range of issues including security, trade and migration. The move to reset relations had been hailed by media in the EU, the Guardian notes, with reporters at Der Spiegel, Le Monde and La Vanguardia all applauding a reversal in approach from the UK.
CORPORATE
French TV group Canal+ to list in London as part of Vivendi break-up
Vivendi’s French TV business Canal+ will list in London as part of a break-up of the conglomerate controlled by French billionaire Vincent Bolloré. Vivendi said the decision reflected the increasingly international operation of Canal+, which will remain incorporated in France and is expected to have a secondary listing in Johannesburg. Meanwhile, Vivendi’s advertising business, Havas, will be hived off and listed in Amsterdam, while publishing and distribution companies, including Lagardère and Prisma Media, will be listed in Paris under the Louis Hachette Group.
INTERNATIONAL
Bangladesh top court cuts back job quotas after unrest
The Supreme Court of Bangladesh has reduced civil service job quotas that had sparked deadly protests across the country. The quotas, which originally reserved 30% of positions in the civil service for the families of those who fought for independence in 1971, were reintroduced last month, causing widespread anger. The court ruled that only 5% of civil service jobs would now be reserved for children of independence war veterans and 2% for other categories. Despite the reduction, public anger is expected to continue. The protests, led by university students, are the largest since Prime Minister Sheikh Hasina's reelection. Critics argue that the quotas benefit families loyal to Hasina and that her government suppresses dissent. Soldiers are currently patrolling cities in Bangladesh following the protests.
Indian tech hub approves bill to reserve jobs for locals
The state government of Karnataka, home to India's tech hub Bengaluru, has approved a bill mandating that companies give 50%-70% of jobs to locals. The move could make it harder for global firms operating in Bengaluru to attract talent. The draft bill requires employers to give 50% of management jobs and 70% of non-management jobs to local candidates. Industry leaders have criticized the bill, saying it would discriminate against those from outside the state who want to work there. IT industry body Nasscom has urged the state government to withdraw the bill. Karnataka is not the first Indian state to try to impose job quotas for local candidates. The northern state of Haryana in 2020 tried to impose a 75% job quota for local hires, but a court later overturned it. "For a few years now, the sentiment in some urban parts of the state has been for greater local protectionism - from bigger nameboards in [local language] Kannada to higher job reservations," observed political analyst Sandeep Shastri.
Nigeria agrees on new minimum wage of 70,000 naira per month
Nigeria's main labour unions have agreed on a new minimum wage of 70,000 naira per month, following talks with the government. The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) argued that rising prices and a weakening currency were negatively impacting workers. The new wage, which is more than double the current minimum wage of 30,000 naira per month, will be reviewed again in the next three years. The unions had suspended a strike in June to allow negotiations on the new minimum wage. President Bola Tinubu will send the proposal to parliament for passage into law. The current minimum wage of 30,000 naira per month was agreed upon in 2019.
PwC to slash China partner pay
PwC has asked its China-based partners to take a pay cut of up to 50% following a regulatory probe into the firm and the departure of some corporate clients. Chinese authorities have been investigating PwC's role in auditing China Evergrande Group, which has been accused of a $78bn fraud. The pay reductions will affect top-earning partners, who will see their annual income halved, while other partners will face pay cuts of around 20% to 40%. PwC's move to cut costs comes after a number of clients have left the firm, leading to layoffs. The pay cuts are rare among international firms operating in China.
 


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