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Global Daily News

  • GDP posts weak growth in second quarter

    US real gross domestic product grew at an annual rate of 1.2% in the second quarter, according to an “advance” estimate of GDP growth by the US Commerce Department. This follows an increase of 0.8% in the first quarter.“Second-quarter growth came in well below expectations and provides more evidence that the economy has weakened so far this year,” according to The Conference Board. “The economy continues to operate at two speeds, with businesses feeling some uneasiness while consumers remain buoyant. Businesses, though, continue to show more wariness about the strength of the economy which is reflected in the largest quarterly drop in private investment numbers since the beginning of the expansion.”This is the third consecutive quarter that growth is close to 1%, demonstrating that the growth trend of the American economy seems on a path of dropping off significantly from its assumed 2% growth trend, according to The Conference Board.MarketWatch reports the pace of growth in the spring was well below forecast as a big rebound in consumer spending was overshadowed by the largest drop in business investment since the end of the Great Recession.Jason Furman, chairman of the Council of Economic Advisers, also commented on the GDP number in a blog post.“The economy grew 1.2% at an annual rate in the second quarter of 2016, due in part to a large decline in inventory investment (one of the most volatile components of GDP), along with declines in business investment, residential investment and government spending,” Furman wrote. “However, consumer spending grew strongly at 4.2%, and, in contrast to the pattern in recent years, net exports also added to GDP. Overall, the most stable and persistent components of output — consumption and fixed investment — rose a solid 2.7% in the second quarter.&rdquo […]

  • TSR revenue up 3%, net income rises

    TSR Inc. (NASD: TSRI), a Hauppauge, NY-based supplier of IT staffing, reported revenue rose 3.3% to $15.5 million in its fiscal fourth quarter ended May 31. The revenue increase resulted from an increase in the average daily rates charged for consultants on billing with customers. (US$ thousands) Q4 2016 Q4 2015 % growth Net revenue $15,504 $14,970 3.6% Net income attributable to TSR $169 $112 50.9% Quote“The increase in revenue resulted from an increase in the average daily rates charged for consultants on billing with customers,” CEO Joseph Hughes. “The current year quarter was also affected by the average number of consultants on billing with customers increasing from approximately 347 in the quarter ended May 31, 2015 to approximately 350 in the quarter ended May 31, 2016. Although we are experiencing a gradual increase in revenue, profitability will continue to be affected until such time as our new sales and recruiting hires generate a sufficient increase in revenue.” Full-year results (US$ thousands) FY 2016 FY 2015 % growth Revenue $60,998 $57,403 6.3% Gross profit $9,959 $9,315   Gross margin 16.3% 16.2%   Net income attributable to TSR $399 $193 106.7% Share price and market capShares in TSR rose 31.51% in early afternoon trading today to $5.02 and TSR had a market cap of $9.89 million, according to Yahoo! […]

  • Recruit raises fiscal year forecast in wake of USG acquisition

    Japanese staffing giant Recruit Holdings Co. Ltd., one of the world’s largest staffing firms, revised its consolidated financial forecasts for fiscal year ending March 31, 2017, from the forecasts announced in March. The revisions are the result of the company’s acquisition of European staffing company USG People B.V.Recruit increased its forecast for net sales by 8.3%, to ¥1.83 trillion from ¥1.69 trillion.Operating income and ordinary income are anticipated to fall below the previous forecasts due to additional amortization of goodwill and intangible assets arising from the consolidation of USG. […]

  • Heidrick accounting exec steps down

    Executive search firm Heidrick & Struggles International Inc.’s (NASD: HSII) principal accounting officer, Karen Pepping, tendered her resignation on July 7, according to a filing today with the US Securities and Exchange Commission. Her resignation takes effect today, and her departure is not due to a dispute or disagreement with the company, according to the filing.The company today appointed Stephen Bondi as interim principal accounting officer. He currently serves as VP of tax and accounting. Bondi joined Heidrick & Struggles in March 2011 as director of worldwide tax and was appointed to his current role of VP of tax and accounting in January 2015. […]

  • UK – Recruitment agency loses licence over ‘chopping workers’ hours

    TRS Personnel, a recruitment agency listed as a member of the REC (Recruitment and Employment Confederation) has lost its Gangmaster Licence Authority permit after it was found that the company was systematically skimming workers’ pay.The agency’s licence to provide temporary workers to a number of food factories in the UK has been revoked with immediate effect earlier this month. The deadline to appeal the decision has already passed.The company is based out of Stafford Park, Telford, and is run by Shrewsbury couple Jeff and Vicki Lawrence. The GLA had investigated TRS Personnel after receiving complaints that it was ‘chopping’ workers’ hours, resulting in underpayment of wages and a significant financial advantage for the business.The discrepancy over wages was revealed when the numbers of hours the factories being billed for was checked against and found to be greater than the number of hours for which employees were paid. GLA Director of Licensing Nicola Ray said: “TRS Personnel systematically denied money due to their workers using a number of different methods – effectively preying on the lowly-paid by skimming their wages to boost company profits.“By employing such tactics the employees received less than the National Minimum Wage and such pre-determined exploitation will not be ignored by the GLA. The Lawrences showed no willingness to comply with legal, regulatory or professional requirements and standards and have effectively now been banned from working in our regulated sector.”The company was found to have breached four of the GLA’s Licensing Standards – three of which were critical. One critical breach is sufficient for a licence revocation. […]

  • UK – Restaurant faces criticism after immigration sting rounds up dozens of migrant workers

    UK Immigration officials have arrested and detained 35 employees from Byron Hamburger restaurants across London earlier this month, reports the Evening Standard.Byron has been accused of setting a trap for its migrant workers as it is alleged that Byron had arranged for the staff to attend a fake training day and were instead interviewed and later arrested by immigration officials.  Customers of the restaurant chain have reacted angrily to these reports.The CIPD (Chartered Institute of Personnel and Development) reports that the Home Office has confirmed it had arrested 35 Byron employees from Albania, Brazil, Nepal and Egypt, and dismissed reports that an event was set up to trap employees.Byron has said it had carried out the right-to-work staff checks, but had been shown papers they suspected to be false and therefore breached immigration and employment regulations.A statement from Byron said: “We can confirm that several of Byron's London restaurants were visited by representatives of the Home Office. These visits resulted in the removal of members of staff who are suspected by the Home Office of not having the right to work in the UK, and of possessing fraudulent personal and right-to-work documentation that is in breach of immigration and employment regulation.“The Home Office recognises that Byron as an employer is fully compliant with immigration and asylum law in its employment practices, and that Byron had carried out the correct right-to-work checks on staff members, but had been shown false/counterfeit documentation.”The raid predates amendments to the Immigration Act that came into force on 12 July, which has resulted in the penalty fine for illegal workers being doubled – from £10,000 to £20,000 – and the maximum prison sentence being increased from two to five years.“The introduction of these steeper penalties means we can expect to see more Home Office crackdowns in the future,” Chris Brazier, an immigration lawyer at BP Collins, said. “This won’t be the last case we see. The Home Office wants to discourage employers from employing illegal workers.&rdquo […]

  • UK – PRISM pushes for independent review of employment

    PRISM, a trade body for the umbrella (contractor payrolling) market, has unveiled plans for a strategic review of employment sponsored by the private sector.The move will see the Social Market Foundation (SMF) carry out an in-depth study of modern engagement practices.Companies across the employment intermediary industry can back the initiative which PRISM chief executive Crawford Temple describes as "essential". It is hoped the white paper will form the building blocks of a more stable and prosperous future for the sector and contractors themselves.A key plank of the study will look at whether contracting constitutes a third form of employment - distinguishing contractors from the ‘employed' and ‘self-employed'."This is a crucial time for the sector and it really is essential that firms within the intermediary industry commission the kind of research capable of putting independent, sensible conclusions and recommendations to the Government,” PRISM CEO Crawford Temple said. "The contracting sector has been forced to put up with shifting sands for too long, which is no way to recognise the huge contribution made by workers who cement two of the UK's greatest strengths, namely the flexible workforce and entrepreneurial spirit."The study by the non-partisan SMF will look at the merits of recognising a third form of employment, establish why workers are engaged in this way and look at how the flexible workforce is catered for abroad. It will conclude with findings and recommendations for government. […]

  • Germany – Employment and Unemployment prospects show improvement in July

    The latest Labour Market and Occupational Research (IAB) of the Federal Employment Agency (BA) has shown that employment and unemployment prospects in Germany are improving, as the barometer has increased in July by 0.4 points to 103.2 points - the second consecutive increase."The employment agencies expect that, despite the increasing labor market entry of refugees in the next three months, unemployment will not rise," Enzo Weber, director of the IAB Research Centre "Forecasts and Structural Analyses", said. The value of the sub-component "development of unemployment" in July eased to positive territory in by 0.4 points to 100.5 points, according to a press release of the Institute.  The additional unemployment of refugees will be offset due to the positive developmeny within the labour market."The development of employment in Germany is robust and will continue after the EU Referendum," said Weber , the results. According to IAB, this seems that the German labor market has hardly seen any harm.For the IAB Employment Outlook Survey, the Institute surveyed monthly all local employment offices to their expectations in terms of unemployment in the next three months and the employment development. To get a perspective on the overall development of the labor market, the Institute is the average of the two components. The scale of the leading index ranges from 90 points for a very poor up to 110 meters for a very good development. […]

  • Japan – SMS Co Ltd reports positive Q1 revenue

    Japanese healthcare services provider SMS Co Ltd (2175: JP) reported revenue yesterday for the first quarter ending 30 June 2016 of JPY 6.6 billion (USD 63.9 million), an increase of 22.1% compared with JPY 5.4 billion (USD 52.3 million) during the same period last year.   Q1 2016 USD Q1 2015 USD Change Revenue JPY 6,618 million 63.9 million JPY 5,421 million 43.7 million 22.1% Gross Profit JPY 5,727 55.3 million JPY 5,039 40.6 million 13.6% Operating Income JPY 1,668 16.1 million JPY 1,456 11.7 million 14.5% SMS states on its website: “We define the marketing segments essential in our aging society as Nursing Care, Medical Care, Career, Healthcare, Senior Life and Global, and with a focus on these marketing segments, we develop, improve and manage various services that leverage on information as their core value. Through such efforts, we have developed over 40 services since our founding. We operate numerous industry-leading services, most notably in the nursing care, medical care and career markets. In response to the expanding aging society, we will reinforce the synergetic effects among our services, while developing, improving, and managing a wide array of services, and thereby create values and contribute to realizing a better society.”In the Career Segment, the company provides recruiting agent (permanent placement) and recruiting ad services (job board) in the nursing and medical care sectors which represents approximately two-thirds of the company’s revenue.In nursing care, the company offers recruiting agent services for care managers, physical therapists, occupational therapists and speech therapists, via Kaigo Job, a job board, which draws about 500,000 visitors per month.In medical care, the company operates under the Nurse Jinzai-bank brand, a recruiting agent service for nurses, which boasts the No.1 share in the industry. According to the company, some two-thirds of the total number of nurses leaving work annually are registered to the website, while 60% of all hospitals in Japan are also registered as clients.The company also provides a variety of recruiting agent services for paramedical workers.In trading yesterday, SMS Co Ltd trading shares closed at JPY 2,189 (USD 21.14), down 0.63% on the day and 19.3% below its 52-week high of JPY 2,712 (USD 26.19), set on 28 January 2016. Based on its current share price the company has a market value of JPY 95.88 billion (USD 926 million). […]

  • Japan – Quick Co Q1 revenue up 20%

    Japanese staffing firm Quick Co. Ltd (4318: JP) reported revenue for the first quarter ending 30 June 2016 of JPY 4.17 billion (USD 40.2 million). An increase of 20.1% compared with JPY 3.47 billion (USD 33.5 million) the previous year.   Q1 2016 USD Q1 2015 USD Change Revenue JPY 4,171 40.2 million JPY 3,473 30.3 million 20.1% Gross Profit JPY 2,891 27.9 million JPY 2,354 19 million 22.8% Operating Income JPY 1,293 12.4 million JPY 981 7.9 million 31.8% The company provides recruitment advertising and dispatch (temporary staffing) services in Japan with overseas offices in the US, Vietnam and Mexico.Quick Co. released a forecast for the half-year ending in September 2016 and for the full year ending in March 2017 with forecasted revenue of JPY 6.92 billion (USD 66 million) for the half year and JPY 13.60 billion (USD 131 million) for the full year.In trading today, Quick Co. Ltd closed at JPY 787.00 (USD 7.60), up 1.94% on the day and 30.73% above the 52 week low of JPY 602.00 (USD 5.81) set on 12 February 2016. Based on its current share price the company has a market value of JPY 14.9 billion (USD 143 million). […]

  • New Zealand – Construction candidates juggling multiple job offers due to increased demand

    Experienced construction candidates remain in such high demand that they often receive multiple job offers, according to international recruitment firm Hays in New Zealand.Quantity Surveyors, Site Managers and good skilled trades and labour are among the skills in such short supply that employers will move quickly and offer career progression in order to secure their preferred candidate."Most regions in New Zealand are experiencing increased residential activity while the unprecedented investment in commercial construction and transport projects across Auckland is adding to the significant skill shortage," Jason Walker, Managing Director of Hays in New Zealand, said.“In Auckland, residential companies are busier than ever and are growing their teams. Some candidates are moving to the Bay Of Plenty due to the number of residential developments there as well as for a lifestyle change, which adds to the shortage of necessary construction skills. Commercial construction is also very active, with new names entering the market and stretching the workforce.”“The Wellington market is moving forward slowly with a number of large private and government commercial construction projects either underway or announced. Continued seismic strengthening work is adding to the skill shortage, as are the growing civil construction and residential markets,” Walker said.“In Christchurch the number of commercial projects valued above NZD 5 million (USD 3.5 million) is increasing. With larger high-profile projects underway, certain skills are in high demand,” Walker said.Candidates with experience within the construction sector remain in high demand in New Zealand including carpenters, plumbers, machine operators and more. […]

  • Japan – Unemployment rate hits 21-year low

    The unemployment rate in Japan fell to 3.1% in June compared to 3.2% in May, its lowest level since 1995 according to the Ministry of Internal Affairs and Communications.The job-to-applicant ratio rose to 1.37, the highest level since August 1991. […]

Latest Research

  • 2016 U.S. Geographic Opportunity Atlas

    This Excel workbook provides data your firm can use to identify potential U.S. temporary staffing market opportunities at the state, metropolitan (‘metro’) and county levels. It can also be used to benchmark your firm against other temporary staffing companies in your area and to estimate your firm’s share of area totals. For the reader’s convenience, Staffing Industry Analysts has ranked states, metros and counties using an “opportunity score.” This score has a potential range of 0 to 100; higher scores indicate greater opportunity for temporary staffing firms. The score is based on temporary employment growth, temporary employment payroll growth and temporary employment payroll per branch. Area-specific data provided includes 2015 levels and 2007-2015 trends for: total employment, temporary employment, temporary penetration rate, number of branches, payroll amount, payroll per branch, workers per branch and average temporary worker wage. Where possible, temporary staffing market size estimates (including skill segment size estimates) are also provided. The PDF report contains a subset of the contents in the accompanying Excel file, specifically: top ranked markets at the state, metro and county levels; temporary staffing market size estimates at the state and segment levels; and color-coded maps displaying state-level temporary employment growth, payroll per branch and temporary penetration rate. Please download both parts of this report: the Excel file, which contains more extensive data and interactive tools, as well as the PDF report. Note: Macros must be enabled for all interactive components of the Excel file to function properly. To download these two files, please click on the links below: 2016 U.S. Geographic Opportunity Atlas 20160727.xlsm - You do not have permission to view this object. 2016 U.S. Geographic Opportunity Atlas, Companion Report to Excel file 20160727 - You do not have permission to view this object. […]

  • Largest Marketing Creative Staffing Firms in the United States: 2016 Update

    Key Findings We estimate that eight firms generated at least $25 million in U.S. marketing/creative temporary staffing revenue in 2015. Added together, these firms generated $0.9 billion in such revenue, accounting for 72% of the market, by our estimates. The list of eight firms can be found on page three of this report. In this market share report, we have ranked companies in order of revenue size, according to industry custom, but this ranking should not be taken to imply that a firm with a higher rank provides better service or more value to its shareholders. Staffing firms varied in degree of financial transparency, and even when forthcoming with information, in some cases data provided was adjusted for the sake of consistency. Therefore, for all firms in this report, the revenue figure is estimated by Staffing Industry Analysts. Market share percentages in this report were calculated by dividing each company’s revenue figure by our estimate of $1.2 billion for the U.S. marketing/creative temporary staffing market in 2015. Overall, we believe that this list is accurate and can be used appropriately to get a “big picture” reading of the U.S. marketing/creative temporary staffing industry landscape. However, as transparency and availability of information from staffing companies can vary from one year to the next, this year’s estimates may not be comparable to those of previous years in all cases. For that reason, we did not display prior year revenue estimates in this report. This year’s ranking includes one company that did not appear in last year’s report: Global Employment Solutions. Additional details on the methodology of this report are provided on page four. Please select the following link to download the full report: Largest Marketing Creative Staffing Firms in the US - 2016 Update - You do not have permission to view this object. […]

  • Largest Clinical Scientific Staffing Firms in the United States: 2016 Update

    Key Findings We estimate that 16 firms generated at least $25 million in U.S. clinical/scientific temporary staffing revenue in 2015. Added together, these firms generated $1.7 billion in such revenue, accounting for 78% of the market, by our estimates. The complete list of 16 firms can be found on page three of this report. In this market share report, we have ranked companies in order of revenue size, according to industry custom, but this ranking should not be taken to imply that a firm with a higher rank provides better service or more value to its shareholders. Staffing firms varied in degree of financial transparency, and even when forthcoming with information, in some cases data provided was adjusted for the sake of consistency. Therefore, for all firms in this report, the revenue figure is estimated by Staffing Industry Analysts. Market share percentages in this report were calculated by dividing each company’s revenue figure by our estimate of $2.2 billion for the U.S. clinical/scientific temporary staffing market in 2015. Overall, we believe that this list is accurate and can be used appropriately to get a “big picture” reading of the U.S. clinical/scientific temporary staffing industry landscape. However, as transparency and availability of information from staffing companies can vary from one year to the next, this year’s estimates may not be comparable to those of previous years in all cases. For that reason, we did not display prior year revenue estimates in this report. Two firms are included on this year’s ranking that did not appear in last year’s report: Real Life Sciences (Sthree plc) and Lancesoft. Additional details on the methodology of this report are provided on page four. Please select the following link to download the full report: Largest Clinical Scientific Staffing Firms in the US - 2016 Update - You do not have permission to view this object. […]

  • Largest Finance Accounting Staffing Firms in the United States: 2016 Update

    Key Findings We estimate that 11 firms generated at least $50 million in U.S. finance/accounting temporary staffing revenue in 2015. Added together, these firms generated $3.9 billion in such revenue, accounting for 53% of the market, by our estimates. The complete list of 11 firms can be found on page three of this report. In this market share report, we have ranked companies in order of revenue size, according to industry custom, but this ranking should not be taken to imply that a firm with a higher rank provides better service or more value to its shareholders. Staffing firms varied in degree of financial transparency, and even when forthcoming with information, in some cases data provided was adjusted for the sake of consistency. Therefore, for all firms in this report, the revenue figure is estimated by Staffing Industry Analysts. Market share percentages in this report were calculated by dividing each company’s revenue figure by our estimate of $7.3 billion for the U.S. finance/accounting temporary staffing market in 2015. Overall, we believe that this list is accurate and can be used appropriately to get a “big picture” reading of the U.S. finance/accounting temporary staffing industry landscape. However, as transparency and availability of information from staffing companies can vary from one year to the next, this year’s estimates may not be comparable to those of previous years in all cases. For that reason, we did not display prior year revenue estimates in this report. Additional details on the methodology of this report are provided on page five. Please select the following link to download the full report: Largest Finance Accounting Staffing Firms in the US - 2016 Update - You do not have permission to view this object. […]

  • Largest Direct Hire Firms in Europe 2016

    We estimate the European Direct Hire market was worth €9.2 billion in 2015, accounting for 5.1% of the European staffing market.Five countries were responsible for 84% of the European Direct Hire sales in 2015. These are some the most established staffing markets in Europe.The UK was the largest Direct Hire market in Europe with €2.7 billion of annual sales in 2015, accounting for 36% of sales in Europe. To download a full copy of the report, click below: Largest Direct Hire Firms in Europe 20160726 - You do not have permission to view this object. […]

  • Freelancer Management Systems Landscape and Differentiators Report: 2016

    MethodologyA survey questionnaire was sent to 11 freelancer management systems (FMS) suppliers in April 2016. Seven responses were collected by May 16, 2016.Survey responses were validated through follow-up calls and live platform demonstrations.About the firms in this reportThis report profiles seven FMS providers (in alphabetical order): Field Nation, Lystable, MBO Partners, OneSpace, Shortlist, Upwork, and Work Market. Four other firms were invited to participate: Sweden-based Coworks, UK-based Elevate Direct, US-based Gigwalk and US-based Onforce (subsidiary of Beeline/Adecco). Elevate Direct and Gigwalk felt their business models did not quite fit the category, despite the fact that they’ve developed offerings for enterprise clients. Onforce - a subsidiary of Adecco’s VMS brand Beeline - participated in last year’s survey, though they declined to participate this year.We note there may be firms that offer an FMS solution that are not featured in this report. For example, in June, Randstad announced it had acquired twago, a Germany-based online staffing firm. In a later press release, Randstad describes twago as a “freelancer management system” and states it will offer the platform to its MSP clients. That said, we did not invite twagoto participate as when we launched the survey it appeared to be a pure online staffing firm. Additionally, the acquisition was not announced until the report was nearly complete.Evolution of Human Cloud platforms/FMSAs noted in previous reports, the category of freelancer management systems is an evolving space, with some human cloud firms seemingly moving towards such a solution. Moreover, FMS providers continue to innovate and revise their delivery. Other workforce solutions providers (including independent contractor compliance firms, consultancies, and in some cases even end-users themselves) are experimenting with FMS-like solutions, which will no doubt continue to expand the category. Thus, it is unlikely that the “FMS” platforms of the future will exactly resemble those of today.This report is a snapshot in time of that evolution.The full report is available at the following link:  2016 FMS Differentiators and Competitive Landscape 20160718 - You do not have permission to view this object. […]

  • Buyer Webinar: SOW and Program Management, Metrics and Measurements that Make Sense

    As the saying goes, you can't manage what you can't measure. This is especially true when incorporating SOW (statement of work) into your contingent program. What are the most appropriate measurements to consider when implementing this critical spend category? How can you build a sustainable strategy? What is the role for the program office and the MSP provider in defining success?In this information-packed webinar, our panel of industry experts shares wisdom on SOW best practices and what techniques you can take back to your company to implement.Speaker Panel: Bryan Peña, SVP, CWS Strategies & Research, CCWP, Staffing Industry Analysts Sarah Tyre, SVP, Vendor Manager, Global Human Resources, Bank of AmericaBrian Cicirello, Consultant, SAP FieldglassDownload a PDF of the presentation Double click the 4 arrows to view full screen. […]

  • Europe Legal Update Q2 2016

    In this report we round up the legal developments making the headlines in Europe in Q2 2016:European Union1. EU Adopts General Data Protection RegulationOn 14 April the European Union adopted the General Data Protection Regulation (EU 2016/679) (GDPR) after four years of negotiation. The legislation will come into force from 25 May 2018, and will affect every organisation that processes EU residents’ personally identifiable information (PII).The GDPR will establish a single set of rules providing clarity and consistency across the EU member states. Multi-national companies will only have to deal with one single supervisory authority where their main establishment is located, rather than a possible 28 different countries’ authorities, with the aim of making it cheaper and simpler to do business in the EU. However any company established outside of the EU but offering goods or services within the EU will have to apply the same rules, ensuring there is a level playing field.The GDPR will bring in a large number of changes and organisations will need to consider it carefully and make sure they are compliant by the time it comes into force in 2018. Issues which are attracting particular focus include consent, increased administrative requirements and the need to provide a full audit trail, data exports and the new obligations on data processors.For further information see SIA’s Global Developments in Data Protection and Privacy 2015. 2.       UK Votes to Leave the European UnionThe UK electorate, in a referendum held on June 23, 2016, voted to leave the European Union (EU) by 51.9% to 48.1%. Article 50 of the 2007 Lisbon Treaty on the European Union permits any Member State to notify the European Council of its decision to withdraw following which “the Union shall negotiate and conclude an agreement with that State, setting out the arrangements for its withdrawal, taking account of the framework for its future relationship with the Union”. The process for exit should be completed within a two-year timeframe for negotiations over the UK’s withdrawal. The negotiations will focus on the sort of relationship the UK will have with the 27 remaining member states of the EU, but the outcome of these is far from clear as there are a number of options.In the meantime there is little that will change although there has been wide speculation as to the future of the many rules, restrictions and employee rights that have been introduced, as a result of European legislation, for example regulations on working hours, holiday pay and agency workers’ rights.For more on its potential effect on the contingent workforce, click here. Albania: Minimum Salaries for Self-Employed ProfessionalsThe Albanian Government has approved decision no.37 dated 21/01/2016 for a minimum salary for self-employed professionals. This minimum payment is for social and health contributions. The decision increased the average salary for self-employed professionals by 1.7 times compared to other employees, starting with travel agents increasing by 1.23 times, to IT specialists increasing by 2.34 times.The minimum salary for all other employees and self-employed remains Lek 22,000 (€158.6) and is one of the lowest minimum wages in Europe.Belgium: Temp Contracts by Email or SMSTemporary contracts may be capable of being signed by email or SMS, the Employment Minister, Kris Peeters, has announced, after drawing up a bill upon the issue.Currently, a temping agency has up to 48 hours to put a contract in writing with, as a consequence, a certain level of legal insecurity for the temporary employee. The temporary staff member is often already in post, before a legal agreement has been made between the parties. Every temporary contract should be made in writing at the latest when the temporary member of staff starts to perform his services as agreed between the parties, Peeters says. The means to do so will now be widened comprising, in particular, a contract of employment in electronic format, which will either be made by SMS or by e-mail. The worker will thus be able to easily confirm their agreement to the document by using a PIN number. This change could come into force from 1 October 2016.This follows approval on 29 January, by the Flemish Government of a draft paper on the use of temporary work in public services and local authorities in Flanders. The proposal must now be transposed in a decree. During the discussion of the note to the Commission 'Binnenlands Bestuur' of the Flemish Parliament on 16 February, the Minister Homans has expressed its willingness to complete this issue by mid-2017.France: Government Plan to Force Through Labour ReformsFrench Prime Minister Manuel Valls has announced that the Government plans to force unpopular labour market reforms through the lower house of parliament without a vote as hundreds gathered to protest outside the National Assembly in response. A cabinet meeting invoked the French constitution's rarely used Article 49.3, allowing the government to bypass parliament.The proposed labour law has been controversial and triggered months of protests and marches. The protesters want the government to abandon the reform, which extends working hours and makes hiring and firing workers easier. Opponents of the bill say that it will allow employers to avoid workers' rights on pay, overtime and breaks. Greater flexibility in this respect could lead to dampened demand for temporary workers.  Lawmakers to the left of the Socialist Party have stated that they would try to gather enough signatures to put forward their own no-confidence motion. It is therefore by no means certain that the law will be passed in its current form.Germany: Agreement on Amendments to Labour Leasing Act (AüG)Following criticism of the initial draft bill presented by the Federal Ministry of Labour and Social Affairs, proposing amendments to the German Act on the Supply of Temporary Employees (Arbeitnehmerüberlassungsgesetz – AÜG) in November 2015, a second draft was presented in February but failed to reach agreement.  In May 2016, however, a political breakthrough was achieved and on June 1, 2016, the draft law has been adopted by the Federal Cabinet. The initial draft bill provided that the principle of equal pay after nine months of an assignment will apply to all assignments that commence before the law's planned entry into force. This has now been amended so that the principle applies only to assignments that commence after the law's entry into force. This means the earliest date on which the mandatory equal pay entitlement can apply is October 1 2017, assuming the date that the law enters into force is, as originally planned, 1 January 2017.The initial bill also provided that temporary work shall be limited to a maximum duration of 18 months with the same hirer (after which temporary workers will be regarded as being hired on the basis of long-term contracts of employment by the hirer, if the temporary work agency does not send the temporary worker to a new user) and the temporary employee does not object.In the revised bill the maximum duration of an assignment has been modified so that trade unions and employers can agree on an exception to the maximum duration in a collective agreement. A works council agreement at company level between the employer and the works council about the duration of temporary work or about takeover obligations, can also be established in the collective agreement.Companies not bound by collective bargaining agreements can make use of the exception in collective bargaining agreements in their sector. If the collective bargaining agreement does not stipulate the extent of permitted deviation by the parties, such companies may determine a maximum hire term of up to 24 months, using a works agreement. There is no such time limit for companies bound by collective bargaining agreements.When calculating an employee's total assignment period, the original period of interruption specified in the initial bill, after which assignment periods would not be added together was six months; this has been reduced to three months. Consequently, if an assignment is suspended for up to three months, all previous and subsequent assignment periods will be included in the determination of the date on which the maximum assignment period has been reached. However, if the assignment is interrupted for more than three months, the temporary worker can be re-employed by the same company for up to a further 18 months. Similar periods also apply for equal pay.A company cannot engage temporary workers to replace striking employees. However, a company that is the subject of strike action is not prohibited from employing temporary workers to perform tasks not previously performed by striking permanent employees.Further details of the latest draft bill are available here.Israel: Independent Contractor Status Prevents Use of StrikesThe case of Postal Agencies Organisation v the Israeli Postal Company Ltd highlights the significance of strike laws according to S Horowitz & Co. Within the framework of a government decree intended to reform Israel’s postal market in order to adapt it to global and technological changes, the postal authority announced its intention to reduce the number of postal agents and introduce changes to the contracts with the remaining postal agents. In reaction, the postal agents initiated what they termed a "strike", which included the full and partial closure of postal agencies.The district court ruled that although the reform was severely injurious to the postal agents and their families, the agents were independent contractors and therefore employment law did not apply and they could not benefit from strike laws. As a result, the concerted closure of postal agencies amounted to a breach of contract, which entitled the Postal Company to terminate the existing contracts and sue for damages. In turn their claim was offset against part of the damages that the postal agents were entitled to for the Postal Company's breach of its duty to act in good faith.Independence has many advantages, but the right to strike without breach of contract is not one of them. Employment status is determined by rules developed in Israeli case law, broadly similar to those of other jurisdictions relating to the extent to which the worker is controlled by the employer. Portugal: Changes to Employment LawsEarlier this year, the government in Portugal approved a number of legislative changes to laws affecting employers. Intended to support employment, Decree-Law 11/2016 of March 8 2016 creates an exceptional measure which reduces by 0.75% the social security contribution rate payable by employers regarding the salaries of their employees from February 2016 to January 2017 (including values due as holiday and Christmas bonuses) if they meet the following conditions: The subject employee is bound to the employer by: a full-time employment contract; or a part-time employment contract entered into before January 1 2016; As from December 31 2015, the employee has earned a base monthly salary of €505 to €530 or a proportional value in the case of part-time contracts; and The employer's social security obligations are in good order. Law 8/2016 of April 1 2016 was the 10th amendment to the Employment Code. It reinstated the following national public holidays, which were removed in 2013: Corpus Christi (a moveable feast); Implantação da República (October 5); All Saints' Day (November 1); and Restauração da Independência (December 1). On the same date, Ministerial Order 67/2016 of April 1 2016 was also published. This order raises the normal age of access to retirement pensions from 66 years and two months in 2016 to 66 years and three months in 2017. There were also changes to the rules on early access to retirement pensions.For further information click here.Sweden: New Work Environment RegulationsIn an effort to keep up with the ever-changing labour market and working arrangements, and in light of new knowledge about the causes of work-related illness, the Work Environment Authority has issued new regulations regarding organisational and social work environment, effective as from March 31 2016.The main focus of the new regulations is preventive measures concerning the work environment. The employer must ensure that assignments and responsibilities do not lead to an unhealthy workload, and that allocation of working hours does not lead to illness.Employers must ensure that there are systems in place, and training for managers and supervisors, to prevent and deal with victimisation, in the form of bullying and discrimination. Further, employers must clarify that victimisation is not acceptable in the workplace and take all necessary steps to counteract a work environment in which victimisation can occur. Employers should ensure that employees are aware of the systems in place.The regulation does not apply to workers in education or those under institutional treatment. However, according to the Occupational Safety and Health Act, employers still have a responsibility to workers that are not considered employees, but who perform certain duties for the employer.The new regulations entail higher administrative costs for employers. However, administrative costs are likely to be recovered through decreased costs for employee absence assignable to illness and rehabilitation. If an employer fails to comply with the rules, the Work Environment Authority can present a claim towards the employer and fines may be imposed.Switzerland: Staff Leasing CBA is Generally ApplicableThe collective bargaining agreement (CBA) on temporary work has been in force since 1 January 2012. The Federal Council declared it generally applicable on 18 April 2016 with effect from 1 May 2016. It applies to all companies that hold a federal or cantonal temporary work agency permit, whose main activity is providing labour hire services. The CBA was also amended to make significant changes to the scope, working hours and the minimum wage.Further details are available, on the Tempservice website.Turkey: Draft Law Allows Private Employment Agencies to Supply TempsA new draft law allowing private employment agencies to establish temporary employment relationships has received approval. Prior to this private employment agencies could act as intermediaries in relation to permanent employment but could not engage in temporary employment relationships with workers. The new Draft Law provides a definition and sets out the scope of these relationships for the first time. The main goal of the Draft Law will be to improve the flexibility of the labour market and employability of the workforce.The Draft Law does set limits on when temporary employment relations can be established such as maternity replacement, seasonality, periodic ‘non-core’ employment and when there is a significant increase in workload. Temporary staffing is also banned in workplaces undergoing redundancy, state institutions and underground mining.The new law makes reference to the EU Agency Workers Directive and, although Turkey is not obliged to observe this Directive, it has established the same principle that temporary workers should receive the same pay as an equivalent permanent worker.Further information is available here.UK 1.    Employment Agency Conduct Regulations Changes Come Into ForceAfter a consultation period lasting two years, the government finally enacted reforms to the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (“the Conduct Regulations”) in April 2016.The Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2016 (SI 2016/510) have been published and came into effect on 8 May 2016. The Regulations amend the Conduct of Employment Agencies and Employment Business Regulations 2003 (SI 2003/3319) by inter alia, removing the requirement for employment agencies to agree terms, and enter into a written contract, with hirers before providing any services under Regulation 17. Job boards remain in scope of the Regulations, following the consultation which preceded the amendment.The Amendment Regulations also extend the scope of Regulation 27A which prohibits employment agencies and businesses from placing advertisements for specific job vacancies (based in Great Britain) in other EEA countries, without also advertising the vacancy in Great Britain. The extension covers generic recruitment campaigns carried out.Despite announcing an intention to repeal Regulation 7, which prohibits employers from using temporary workers to replace striking employees, in the Trade Union Act, such a provision was not included in the Act, which received Royal Assent on 4 May 2016.Further detail of the changes to the Conduct Regulations is available here.2.    Immigration Act Introduces New Sanctions on Illegal Workers and Rogue EmployersOn 12 May 2016, the Immigration Bill received Royal Assent and became the Immigration Act 2016.The Act will be brought into force in stages by secondary legislation on dates to be announced. It will give effect to a number of government commitments that are intended to curb illegal working and prevent the exploitation of migrant workers. Provisions of particular interest include: Extending the existing criminal offence of knowingly employing an illegal migrant, to apply where an employer has a reasonable cause to believe that a person is an illegal worker. Conviction on indictment for this offence will increase from two to five years. The Act also creates a new offence of illegal working which will enable the earnings of illegal workers to be seized under the Proceeds of Crime Act 2002; Giving the Secretary of State the power to introduce an immigration skills charge on certain employers who sponsor skilled workers from outside of the European Economic Area. The immigration skills charge is expected to be introduced in April 2017; Requiring public authorities to ensure that public sector workers in customer-facing roles speak fluent English; and Creating a new criminal offence of aggravated breach of labour market legislation. 3.    Powers and Remit of Gangmasters Licensing Authority ExpandedThe Immigration Act 2016 also provides for the expansion of powers and remit of the Gangmasters Licensing Authority (GLA). The move was welcomed by the GLA’s Chief Executive Paul Broadbent who said: “The ability to investigate labour exploitation wherever and whenever it happens across the UK, regardless of the industry, is crucial if we are to deal with abuses that are ever-present across some other sectors that use low-cost, low-skilled labour. The reach of the GLA into these extra areas will cover all types of worker regardless of whether they are temporary, directly or self-employed.”The changes in the Act that will directly affect the GLA are as follows:  Renaming the GLA as the Gangmasters and Labour Abuse Authority (GLAA); Provide a broader remit and stronger powers to tackle labour exploitation across the economy, introducing the capacity to search and seize evidence and investigate modern slavery where it relates to labour abuse and other offences; Create a new labour market undertaking and enforcement order regime, backed up by a criminal offence and custodial sentence – to tackle repeat labour market offenders and rogue businesses; Create the role of Director of Labour Market Enforcement to set the strategic priorities for labour market enforcement bodies (the Employment Agencies Standard Inspectorate, Her Majesty’s Revenue and Customs’ National Minimum Wage team and the Gangmasters and Labour Abuse  Authority) in an annual labour market enforcement strategy; Create an information hub to support the work of the Director; and Allow data sharing between the Director, the Information Hub, labour market enforcement bodies and other bodies with intelligence that inform the preparation of the labour market enforcement strategy. For further information on these changes see the Government website on the Immigration Act.4.    IR35 Consultation on Off-Payroll Public Sector Intermediaries LegislationIn the Budget earlier this year it was announced that from April 2017 the government will make public sector bodies and agencies responsible for operating the tax rules that apply to off-payroll working in the public sector. The government believes public sector bodies have a duty to ensure the people working for them are paying the right tax and that there is widespread non-compliance with the intermediaries rules, commonly known as IR35. The rules will remain unchanged in the private sector.From April 2017, where workers are engaged through their own limited company, often known as a personal service company (PSC), responsibility to apply IR35 will fall to the public sector body, agency or other third party paying the worker’s company. The public sector body, agency or other third party will be liable to pay any associated income tax and National Insurance.The government proposes that where an individual provides services to a public sector engager through a PSC and is doing a similar job in a similar manner to an employee, IR35 rules will mean that both they and their engager will be required to pay broadly the same tax and National Insurance (NI) as if they were an employee. The government proposes that this will be the case whether the individual is engaged directly or through a third party such as a recruitment agency. Taxes will be reported through the Real Time Information (RTI) system, and paid using HMRC’s accounting procedures which public sector organisations and agencies will already be using for any individuals they employ directly. Currently, and in the private sector regardless of any change in relation to this consultation, it is the PSC that is responsible for paying the correct tax and NI on any earnings received from contracts to which IR35 applies.To assist in determining whether or not IR35 rules apply, HMRC will provide a new interactive online tool, available to both public sector engagers and individuals working through PSCs in the private sector.These proposals will place a significant burden on staffing companies supplying contractors to the public sector as they will have to scrutinise potential contracts to make a determination as to whether IR35 applies.Mishcon De Reya comments further on the implications of the proposed changes for staffing firms and public sector clients.Legal Disclaimer: This update is provided solely for the purposes of information, and should not be considered legal advice.  It is always recommended to seek the advice of qualified legal counsel before taking action.To download a pdf copy of this update click below: EU_LegalUpdate_Q2_2016_071116 - You do not have permission to view this object. 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  • Freelancer Management Systems Landscape and Differentiators Report: 2016

    MethodologyA survey questionnaire was sent to 11 freelancer management systems (FMS) suppliers in April 2016. Seven responses were collected by May 16, 2016.Survey responses were validated through follow-up calls and live platform demonstrations.About the firms in this reportThis report profiles seven FMS providers (in alphabetical order): Field Nation, Lystable, MBO Partners, OneSpace, Shortlist, Upwork, and Work Market. Four other firms were invited to participate: Sweden-based Coworks, UK-based Elevate Direct, US-based Gigwalk and US-based Onforce (subsidiary of Beeline/Adecco). Elevate Direct and Gigwalk felt their business models did not quite fit the category, despite the fact that they’ve developed offerings for enterprise clients. Onforce - a subsidiary of Adecco’s VMS brand Beeline - participated in last year’s survey, though they declined to participate this year.We note there may be firms that offer an FMS solution that are not featured in this report. For example, in June, Randstad announced it had acquired twago, a Germany-based online staffing firm. In a later press release, Randstad describes twago as a “freelancer management system” and states it will offer the platform to its MSP clients. That said, we did not invite twagoto participate as when we launched the survey it appeared to be a pure online staffing firm. Additionally, the acquisition was not announced until the report was nearly complete.Evolution of Human Cloud platforms/FMSAs noted in previous reports, the category of freelancer management systems is an evolving space, with some human cloud firms seemingly moving towards such a solution. Moreover, FMS providers continue to innovate and revise their delivery. Other workforce solutions providers (including independent contractor compliance firms, consultancies, and in some cases even end-users themselves) are experimenting with FMS-like solutions, which will no doubt continue to expand the category. Thus, it is unlikely that the “FMS” platforms of the future will exactly resemble those of today.This report is a snapshot in time of that evolution.The full report is available at the following link:  2016 FMS Differentiators and Competitive Landscape 20160718 - You do not have permission to view this object. […]

  • Buyer Webinar: SOW and Program Management, Metrics and Measurements that Make Sense

    As the saying goes, you can't manage what you can't measure. This is especially true when incorporating SOW (statement of work) into your contingent program. What are the most appropriate measurements to consider when implementing this critical spend category? How can you build a sustainable strategy? What is the role for the program office and the MSP provider in defining success?In this information-packed webinar, our panel of industry experts shares wisdom on SOW best practices and what techniques you can take back to your company to implement.Speaker Panel: Bryan Peña, SVP, CWS Strategies & Research, CCWP, Staffing Industry Analysts Sarah Tyre, SVP, Vendor Manager, Global Human Resources, Bank of AmericaBrian Cicirello, Consultant, SAP FieldglassDownload a PDF of the presentation Double click the 4 arrows to view full screen. […]

  • Latin America Legal Update Q2 2016

    In this report, we round up the legal developments making the headlines in Latin America in Q2 2016:ArgentinaDraft Laws Promote Employment of Young Persons and Protect Against DismissalOn April 25 2016, President Mauricio Macri announced the publication of the Promotion of First Jobs and Work Formalisation, a draft law which would introduce benefits for employees regarding: the recruitment of workers aged between 16 and 24; and the regularisation of non-registered employees. According to Staffingamericalatina, business partner of Staffing Industry Analysts, around one million young people in Argentina are neither in employment, education nor training. They are the so called ‘NEETs’.Subsidy for EmployersThe Promotion of First Jobs and Work Formalisation aims to encourage registered employment contracts and includes the following benefits in that regard: Employers will receive an exemption from payment of social security contributions for: employees aged between 16 and 24 who start their first registered job or who have made less than three years of social security contributions; and workers who hold a disability certificate. The exemption will be calculated according to an employee's social security contributions and the number of employees that a company registers, and could potentially result in a 100% exemption from social security contributions. It will be applied only to gross remuneration not exceeding one and a half times the official minimum wage. Employers will be eligible for financial compensation for recruiting employees. When hiring a new employee, an employer will receive a lump sum in proportion to the new employee's social security contributions and the company's payroll of up to 8% of the employee's salary and not exceeding one and a half times the official minimum wage. Employers may have debts and fines written off through the regularisation of unregistered employees. The registration of up to 10 employees and the disclosure of remuneration rates and the actual start date of a labour relationship will result in the following benefits: Any potential penalties for the non-registration of the employees in question or outstanding social security contributions, including capital and interest, will be written off; Outlays made before the regularisation of the labour relationships in question, such as net earnings, expenses or sales, will be exempt from retrospective taxation; and Any employees registered as part of this process will have the right to use up to 60 months of previous service towards their pension provisions and unemployment benefits. After registering 11 employees and paying the required social security contributions, the employer will be entitled to receive the remaining benefits.The draft law will remain in force for one year after it has been passed.Increased Unemployment AllowancesMeanwhile, the government has made a commitment to increase unemployment allowances. The amount of allowance has remained the same since 2006 and is totally outdated, particularly considering the huge levels of accumulated inflation. In addition, the possibility of providing training to improve transitions is being analysed.Draft Law for EntrepreneursThe government has also sent a draft Law for Entrepreneurs to Congress. The bill seeks to strengthen the entrepreneur ecosystem in the country. The key points of the bill are the creation of a new kind of partnership, with innovative methods of payment for employees and less bureaucracy in order to create these companies in a 24 hour period.Ban on Dismissals Without Just CauseOn April 27, 2016, the Senate approved a draft law that proposes a temporary ban on dismissals without just cause in the public and private sectors for 180 days. The bill was passed in the Chamber of Senates and is being discussed in the Chamber of Deputies.In summary, the draft law provides as follows: Dismissals without just cause or suspensions of employees are forbidden in the public and private sectors for 180 days after the law comes into force. This provision is applicable to all employees. If a dismissal takes place, the affected employee can: request reinstatement to his or her job and payment of his or her salary until his or her reinstatement; or accept termination of the employment relationship. In that case, employers must pay any outstanding social security contributions for the employee in question. An employee who requests reinstatement will promptly resume his or her role according to Section 498 of the Civil and Commercial Code. If an employee accepts the termination of an employment relationship, he or she will be entitled to a bonus severance payment in addition to his or her statutory severance payment. Fixed-term employment contracts in the public sector that were due to expire in the 180 days following the draft law's introduction will be automatically renewed. The draft law will not apply to new employment contracts entered into after it comes into force. ChileExtension of Rights to Day Care FacilitiesIn a recent ruling (Ord 1646/031, March 21 2016), the Labour Department interpreted Article 203 of the Labour Code (as amended by Law 20,399/2015) in a way that extends the rights of employees to take advantage of day care facilities in the workplace.Article 203 provides that companies with 20 or more female employees of any age or marital status must have day care facilities in the workplace, which must be separate from the work area. The day care facilities must be available for the children of employees under two years of age. Mothers must be able to feed their children and leave them in the day care facilities while working.An employer is understood to have fulfilled its obligations under Article 203 if it directly pays the day care expenses of employees entitled to this benefit. The day care centre must be approved by the National Directorate of Children's Care Centres. According to the final paragraph of Article 203, this benefit is extended to male and female employees that, by court order, have obtained custody of a child.In its ruling, the Labour Department interpreted the last paragraph of Article 203 to mean that it applies not only to employees who have obtained the permanent custody of a child, but also to those who have obtained custody of a child under a court order, even if custody is temporary.Legal Disclaimer: This update is provided solely for the purposes of information, and should not be considered legal advice. It is always recommended to seek the advice of qualified legal counsel before taking action.To download a pdf copy of this update click below: Latin America_LegalUpdate_Q2_2016_071316 - You do not have permission to view this object. […]

  • Asia Pacific Legal Update Q2 2016

    In this report we round up the legal developments making the headlines in the Asia Pacific region in Q2 2016:Australia 1.       Senate Recommends Labour Hire LicensingAn Australian Senate inquiry into the exploitation of temporary visa workers (the "Inquiry") has recommended a number of reforms to the Fair Work Act 2009 (Cth) ("FWA"). These recommendations, if implemented, would impose licensing requirements on labour hire companies and additional burdens on employers of temporary visa workers. These recommendations, and a number of other key recommendations, are strongly opposed by the Coalition government, which holds a majority in the lower house but a minority in the Senate. A number of other reforms, aimed at protecting foreign and other vulnerable workers and increasing penalties for noncompliance by companies, are the subject of the Fair Work Amendment (Protecting Australian Workers) Bill 2016 (the "Bill"), which is currently before a Senate Committee.For further details of the proposals provided by Jones Day click here. To read the response of the Recruitment and Consulting Services Association (RCSA) click here. 2.       Labour Hire Company Liable for Temp Employee’s Unfair DismissalAdecco Australia were found by the Fair Work Commission (FWC) to have unfairly dismissed a factory worker it withdrew from its client's factory after she was wrongly accused of card clocking - a practice whereby an employee clocks off another employee. In Kool v Adecco Industrial Pty Ltd [2016] FWC 925, the FWC ruled in Kool’s favour as Adecco had not afforded her a fair dismissal procedureKool was employed by Adecco and began a placement with Nestle in 2012, working there for more than two years and up to 38 hours per week. In 2015, she was accused of misconduct by Nestle and then informed by Adecco that her assignment at the company was ending immediately. Adecco accepted the accusations of misconduct without question, and without consideration of the need to afford the worker substantive or procedural fairness, and removed the employee from Nestle without warning.Kool, claimed she was unfairly dismissed when Adecco told her she could no longer work at Nestle. In response, Adecco lodged a ‘jurisdictional objection’ to Kool’s application arguing that she had not been ‘dismissed’ as defined in the Fair Work Act because, effectively, she was still on their books and they were trying to secure new work for her. If Adecco’s argument had been accepted, Kool would not have been able to make an unfair dismissal claim.The FWC found that under the Fair Work Act an employee is considered to have been dismissed where the employment with the employer has been terminated ‘at the employer’s initiative’. The FWC found that Adecco did initiate the dismissal and did little to place the worker in another position. The FWC held that the managers of Adecco failed to appreciate that a "fundamental change to the terms and conditions under which an employee is working can constitute dismissal" and "failure to offer work to a casual employee can constitute dismissal". It was established that Adecco had continued to supply labour to Nestle, and Kool’s replacement work was not of the same hours or certainty as the Nestle placement.The FWC also found there was insufficient evidence to support a valid reason for the termination of Kool’s employment; Adecco had not afforded Kool a fair dismissal procedure in accordance with section 387 of the Fair Work Act. Consequently, the termination of her assignment at Nestle amounted to unfair dismissal. This case serves as a warning to staffing firms to ensure they follow a fair procedure and conduct any necessary investigation in order to establish a valid reason for terminating the employment of temporary employees.Hong Kong Consultation on Draft Code of Practice for Employment AgenciesOn 15 April the Labour Department announced a period of public consultation on a draft Code of Practice for Employment Agencies (EA) until 17 June 2016.The draft Code consists of five Chapters and eight Annexes. Chapter 3 mainly restates the salient legislative requirements in the Employment Ordinance (EO) (Cap 57) and Employment Agency Regulations (Cap 57A) that EA licensees must follow when operating their business. Chapter 4 sets out the minimum standards which the Commissioner for Labour (the Commissioner) expects of EA licensees in operating their business."Whether an EA licensee or applicant can meet the standards is one of the important factors which the Commissioner will take into account when assessing if the EA licensee or applicant is a fit and proper person to operate an EA. Section 53(1)(c)(v) of the EO provides the Commissioner the power that, if he is satisfied that a person is, for any other reason, not a fit and proper person to operate an EA, the Commissioner may refuse to issue or renew, or may revoke an EA's licence," a spokesman for the Commissioner said.Amongst the standards set out in Chapter 4, some are particularly relevant to EAs engaging in the placement of foreign domestic helpers (FDHs). Whether FDH EAs can meet such standards, amongst other factors, will be taken into account by the Commissioner when issuing licences to or renewing licenses for FDH EAs.The consultation period has now ended so the Labour Department will consider submissions and publish the final version in due course. For further information on the Employment Agencies Regulation, visit the Labour Department’s Employment Services webpage.IndiaIncrease in Minimum Wage for Contract WorkersOn 25 April 2016, the Minister of State for Labour and Employment informed Lok Sabha that the minimum wage for contract workers had been increased to R10,000 per month in response to a Supreme Court verdict.The increase took into account the Consumer Price Index and Dearness Allowance and linked it to the pension and bonus. Singapore1.       Amendments to the Employment ActFrom 1 April 2016, Singapore has amended the Employment Act (EA) as follows: Employers must issue itemised pay statements to all employees covered under the EA at least once per month and keep a record of all issued pay statements. Employers must issue key employment terms (KETs) in writing to all employees who have entered into a contract of service on or after 1 April 2016, and who work continuously for the employer for 14 days or more. The KETs are specified and include the main duties and responsibilities, working arrangements, salary and benefits. All employers must maintain detailed employment records of employees covered under the Employment Act. The Ministry of Manpower is to set up a framework to treat less severe breaches of the Employment Act, such as failure to issue KETs in writing, as civil breaches which attract administrative penalties instead of criminal offences. Further details are available on the Ministry of Manpower website.2. Tripartite Guidelines on the Employment of Term Contract EmployeesThe Ministry of Manpower (MOM), National Trades Union Congress (NTUC), and the Singapore National Employers Federation (SNEF), have jointly developed a set of Tripartite Guidelines on the Employment of Term Contract Employees.Term contract employees are those who are employed on fixed-term contracts that will terminate upon the expiry of a specific term unless it is renewed. According to MOM's 2015 Labour Force Report, there were 202,400 term contract employees last year, and this formed 11.3% of the resident workforce. Term contract employees are entitled to statutory leave under the Employment Act (EA), and the Child Development Co-Savings Act (CDCA), if they meet a minimum period of 3 months continuous service. The leave entitlements are: annual leave, sick leave, maternity leave, paternity leave, adoption leave, childcare and extended childcare leave. However, some term contract employees who have been working for the same employer for a long time do not get to enjoy these leave benefits, as they are on separate contracts that are each shorter than the minimum service period of 3 months, and renewed with a break in between the contracts.The Guidelines encourage employers to grant leave benefits to term contract employees with long-term working relationship. For contracts of 14 days or more, employers are encouraged to treat contracts renewed within one month of the previous contract as continuous, and grant or accrue leave benefits based on the cumulative term of the contracts.In addition the Guidelines state “For work arrangements that involve term contracts on a recurrent basis (i.e. contracts are renewed multiple times), it is good practice for both employer and employee to give sufficient notice (i.e. not less than one day’s notice if the cumulative employment is less than 26 weeks) before the contract’s expiry on whether either party wishes to renew the contract. This will allow sufficient time for either party to make alternative arrangements.These guidelines are not mandatory and do not amend or replace the existing law. However, employers operating in Singapore are expected to follow the Tripartite Guidelines and in instances where the employer is found to have infringed the Tripartite Guidelines on Fair Employment Practices, or is recalcitrant, unresponsive, or persistently fails to improve on their employment practices, the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) will refer the case to MOM for investigation. As a result, employers can potentially have their work pass privileges curtailed. South Korea1.       Guidelines for Job Security for Fixed-Term WorkersFrom 8 April South Korea’s Ministry of Employment and Labour ("MOEL") announced that it would enact and enforce the "Guidelines for Job Security for Fixed-term Workers" (the “Guidelines”) as a follow-up measure to its “measures to resolve labour market dualism” announced on March 10, 2016. The protection of non-regular workers, including fixed-term workers, is currently its’ most important labour reform initiative.The Guidelines address matters, such as converting non-regular workers to regular status, establishing a reasonable employment contract period and prohibiting the abuse of negotiating power in contract renewal and reducing unreasonable discrimination.The main details of the Guidelines are provided here.MOEL has announced that it will monitor compliance and implementation of the Guidelines in order to secure the effectiveness of such Guidelines. Meanwhile, MOEL has declared a plan for 2016 to inspect discrimination against non-regular workers during its labour inspection of all workplaces. Even in cases where the observed discrimination does not qualify as discriminatory treatment under current Korean labour laws, MOEL has declared that it will issue administrative guidance for the non-discriminatory application of matters, such as various welfare arrangements to non-regular workers pursuant to the Guidelines.2.       Guidelines for the Protection of Trainees to Eradicate “Passion Pay”With faltering economic conditions in Korea, there has been a rise in the exploitation of young workers experiencing persistent employment difficulties, being employed as ‘interns’ with employers failing to fulfil their required legal obligations prescribed under the Labour Standards Act. This issue of so-called “passion pay,” has aroused strong public criticism.With a view to eradicating passion pay, the Ministry of Employment and Labour (“MOEL”) prepared the Guidelines for the Determination and Protection of the Legal Status of Work Experience Trainees on February 1, 2016 (the “Intern Guidelines”). On March 14, 2016, MOEL announced its Workplace Labour Inspection Plan for 2016, which includes the inspection plan to eradicate passion pay through the system of reporting violations of the Intern Guidelines and by counselling in order to induce voluntary improvement in workplaces. The main points of the Intern Guidelines are discussed here.Legal Disclaimer: This update is provided solely for the purposes of information, and should not be considered legal advice.  It is always recommended to seek the advice of qualified legal counsel before taking action.To download a pdf copy of this update click below: AsiaPacific_LegalUpdate_Q2_2016_071216 - You do not have permission to view this object. […]