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APAC Edition
29th July 2024
 
THE HOT STORY
The Commonwealth Bank pleads guilty to not paying staff entitlements
The Commonwealth Bank - Australia's richest company - has pleaded guilty to criminal charges relating to not paying staff entitlements. The case involves A$69,000 in long service leave owed to 17 former staff. The Commonwealth Bank is one of the largest private employers in the nation and produced a A$9.5bn profit last year. The bank has been fined A$36,000 and has spent over A$1m to fix the problem. The bank's early guilty plea avoided a larger fine. The investigation found that the Commonwealth Bank companies underpaid 529 current and former staff A$1.673m in long service leave entitlements. Stephen Clibborn from the University of Sydney's Business School has been investigating wage theft and says that many companies have not put in enough effort to ensure compliance with employment laws. Coles, Spotless, and Optus have also been fined for similar offences.
WORKFORCE
Japanese companies help employees build personal financial assets
Japanese companies are taking steps to help their employees build personal financial assets. They are providing access to expert advice and conducting educational seminars on managing corporate pension plans and the Nippon Individual Savings Account (NISA). The aim is to raise employees' financial awareness and satisfaction with their employers. Companies are inviting financial experts to guide employees in managing their pension plans and investment products. NEC, for example, has emphasised investment education for its employees and acquired a controlling stake in Japan Asset Management. Many employees seeking advice are in their 40s and 50s. Other companies, such as Mizuho Securities and Daiwa Securities, are also organizing seminars and introducing new measures to support employee asset formation. The Japanese government has asked companies to provide financial and economic education to employees.
One-fifth of workers in Korean companies aged 55 or older, government data shows
Government data released on Sunday revealed that about one-fifth of workers at companies with 300 or more full-time employees in Korea are aged 55 or older. The number of older adult employees totaled over 809,000 out of 4.31m employees at 3,948 workplaces with 300 or more employees, accounting for approximately 18.8%. The employment rate of those aged 55 or older at workplaces with 300 or more employees has been steadily increasing, reaching 18.8% in 2023. However, there are still companies that fail to meet the standard employment rate for older adults. Under the Act on Prohibition of Age Discrimination in Employment and Elderly Employment Promotion, companies with over 300 employees should “endeavour to provide the aged with employment opportunities suited to their abilities.”
TECHNOLOGY
Private member's bill to ensure rights of Indian workers in age of AI
Congress MP Mausam Noor has introduced the Workforce Rights (Artificial Intelligence) Bill 2023 in India's Upper House to address the potential biases and discrimination caused by AI technologies in the workplace. The bill emphasises the need for transparency and protection of workers' rights when AI is being used by organisations. It grants employees the right to refuse tasks or decisions based solely on AI-generated processes if they feel it violates their rights or ethical standards. The bill also calls for adequate training and upskilling opportunities for affected employees, as well as protection of employee privacy rights. Noor has also introduced a bill on criminalising deepfake videos and proposes the formation of a National Deepfake Mitigation and Digital Authenticity Task Force.
REMOTE & HYBRID WORKING
CEOs adopt hybrid work model to retain talent and boost efficiency
Company bosses in Hong Kong are adopting hybrid work environments to retain talent and boost efficiency. According to a report by the International Workplace Group (IWG), 90% of CEOs in Hong Kong have embraced the hybrid work model. The report also revealed that 56% of employees who work on-site five days a week are actively seeking new positions. Hybrid work environments have been found by some studies to improve company culture and create a happier and more loyal workforce. A Stanford survey led by Nicholas Bloom found that employees who work from home two days a week are just as productive and less likely to quit their jobs compared to those who work in the office full-time. The IWG survey showed that 94% of employers have invested in technologies to enhance the hybrid work experience. However, as companies shift their focus to hybrid work, Hong Kong's office market is experiencing setbacks with record high vacancy rates and declining rents. The vacancy rate for grade A offices rose to 13.6% in June, while average monthly rents declined to HK$49.7 per square foot.
CORPORATE
Shenzhen tech companies flock to Hong Kong for IPOs
Shenzhen, known as China's Silicon Valley, is witnessing a surge in technology companies eager to list in Hong Kong. The Hong Kong Exchanges and Clearing (HKEX) has received 106 listing applications this year, a significant increase from the previous year. The new listing regime Chapter 18C allows specialist technology firms to list even without generating any sales. HKEX CEO Bonnie Chan Yiting expects more technology companies to file listing applications soon. The Chapter 18C regime has already seen its first listing in June, with Shenzhen-based QuantumPharm raising HK$989.3m. HKEX aims to turn Hong Kong into a specialist fundraising hub for technology companies. The integration between Hong Kong and Shenzhen is expected to bring the capital markets of the two cities closer together.
REMUNERATION
Bumper pay rises for in-house lawyers
A report on counsel compensation from legal recruiter Major, Lindsey & Africa shows that since 2021, general counsel and chief legal officers have seen a 4% decrease in "total actual cash" compensation globally. However, the most junior members of in-house teams have enjoyed a 19% rise. The report says: "Corporate leaders face challenges in keeping up with pay rises and bonuses competitors offer, particularly in the current climate. The problem can be acute when the legal team is comprised of lawyers who have been with an enterprise for many years." It adds: "Salaries in those cases tend to slip below market and can create risk to the business by leaving the company vulnerable to decreased morale and productivity, unwanted employee turnover, and loss of intellectual capital."
INTERNATIONAL
Migrant cleaners at Harrods prepare to strike over 'discriminatory' holiday policy
Dozens of migrant cleaners at UK luxury retailer Harrods are preparing to strike over what they say is a new "discriminatory" holiday policy that affects Black and Asian workers. The policy limits workers' holidays to a maximum of two weeks, which restricts their ability to visit their families overseas. The workers claim that Harrods has turned down holiday requests longer than two weeks, accusing the company of undermining the welfare of its migrant workforce. The United Voices of the World (UVW) union, representing the cleaners, considers the policy to be race discrimination. The cleaners have instructed UVW to send Harrods a Notice of Intention to Ballot (NOIB), and strike dates will be announced soon. Harrods acknowledged the dispute and told The Independent that it does not plan to engage with the union as it is not recognised by the company. A spokesperson said: “There has been no introduction of a new policy in relation to holidays at Harrods. Harrods clarified existing company policy, which limits holiday length during peak periods, as defined by the specific divisional needs of the business. This is to ensure that holiday is taken fairly and consistently across the team, as well as ensuring the business can continue to operate during its busiest periods.”
Uber, Lyft and others win California ruling to treat drivers as contractors
The California Supreme Court has upheld Proposition 22, allowing gig economy companies including Uber and Lyft to classify drivers as independent contractors. The court rejected claims that the law is unconstitutional, stating that it does not interfere with lawmakers' authority over workers' compensation. The ruling marks the end of a long legal battle and means that delivery and ride-hailing services will continue to operate under the current classification. The decision has significant implications for the over 1m drivers in California and may have ripple effects on drivers in other US states. The law, which passed with 59% of the vote, grants limited benefits to drivers but exempts companies from providing full-fledged employee rights. Labour groups expressed disappointment but highlighted other avenues for workplace protections.
OTHER
Amazon Pharmacy goes live in Japan
Amazon has launched an online service that enables consumers to purchase prescription medications at home in Japan through a partnership with major drugstores and pharmacies. Amazon Pharmacy enables its customers to obtain medications without visiting physical pharmacies, and has partnerships with around 2,500 drug stores from nine companies, including Ain and Welcia Yakkyoku.
 


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