Employment News Update on a Global Scale: Recent Developments in International Labor Markets
In the ever-evolving landscape of employment laws, two significant developments have emerged in Europe. On one hand, the European Union (EU) is cracking down on no-poach agreements, a practice that restricts competition for labour. On the other hand, Portugal and Spain have introduced new leave policies aimed at supporting employees, particularly women.
No-poach agreements, where employers agree not to compete for each other's workers, are recognized as a form of unlawful collusion in the EU. These agreements can potentially lower wages and harm workers' interests due to reduced competition for labour. Despite a lack of quantitative data on their prevalence across the EU, the anticompetitive nature of these agreements has led to increased legal scrutiny.
Companies engaging in such agreements risk antitrust investigations, fines, and reputational damage. The European Commission has been active in addressing anticompetitive practices, including those affecting labour markets, as part of its broader enforcement efforts. This marks the first occasion of the EU penalising companies for no-poach agreements.
In a different context, Portugal has amended its labour code to allow female employees with endometriosis or adenomyosis to take up to three consecutive days of leave per month during their period. Meanwhile, Spain has introduced menstrual leave, but a study found it was only utilised 1,559 times in a year, suggesting delays in diagnosing endometriosis may be a factor.
In the Netherlands, major banks such as ING and ABN Amro are implementing guidelines increasing office attendance to at least two days a week, causing concerns among some employees. The IT field is also expected to be impacted by the reforms, according to a recent report by the Migration Advisory Committee.
The Employment Rights Bill (ERB), currently under discussion in the UK, has raised concerns among business leaders. 72% believe it will impact growth, with over 50% saying it would have a "strong negative" economic impact. Almost 50% of respondents are less likely to hire staff due to the ERB.
In a positive move, some employers have introduced 'life leave' as an additional discretionary employee benefit, allowing staff to take days off for important life events without using up their holiday entitlement. The leave requires medical evidence showing the diagnosis and symptoms.
However, the proposed reforms may lead to labour shortages in certain sectors, such as retail and hospitality. This was evident in the recent €329m fine imposed by the European Commission on Delivery Hero and Glovo for creating a cartel in the online food delivery sector. The companies were penalised for agreements not to poach employees and exchange confidential information, which resulted in higher prices and reduced choice for consumers.
In France, the Competition Authority has issued fines worth EUR 29.5 million to three engineering and technology companies for non-poaching agreements, breaching competition law.
As these developments unfold, it is clear that the European labour market is undergoing significant changes, with a focus on fair competition, employee well-being, and protecting consumer interests.
- The European Union's crackdown on no-poach agreements, which are recognized as a form of unlawful collusion, aims to prevent potential wage lowering and harm to workers' interests due to reduced competition for labor.
- Companies engaging in such agreements risk antitrust investigations, fines, and reputational damage, as evidenced by the €329m fine imposed on Delivery Hero and Glovo for similar practices in the online food delivery sector.
- In an effort to support employees, particularly women, Portugal has allowed female employees with endometriosis or adenomyosis to take up to three consecutive days of leave per month during their period, while Spain has introduced menstrual leave.
- The upcoming Employment Rights Bill in the UK has raised concerns among business leaders, with 72% believing it will impact growth, and almost 50% less likely to hire staff due to the bill.
- In an attempt to prioritize employee well-being, some employers have introduced 'life leave' as an additional benefit, allowing staff to take days off for important life events without using up their holiday entitlement. However, this could potentially lead to labor shortages in sectors like retail and hospitality.
