International Employment Law Matrix

Transcription

1 International Employment Law Matrix June 2018 England & Wales France Germany Spain The Netherlands Italy Hong Kong Are there any prescribed formalities for the format, language and execution of employment documentation? Yes. Employers must provide employees with a written statement of the particulars of their employment within two months of the start of employment. An employment contract is the most common form of documentation and will be validly executed if signed by the employee. In certain situations, an employment contract may need to be executed in the form of a Deed and specific execution formalities will apply. Fixed-term contracts, part time contracts and temporary contracts must be in writing and include mandatory provisions. Other employment contracts (ie indefinite term full time employment contracts) do not have to be in writing. However, a collective bargaining agreement may require that a written format is mandatory for all contracts and that certain provisions must be included. Employment contracts must be in French, as well as any documentation necessary for the With the exception of fixed-term contracts, employment contracts do not have to be in writing. However, the employer has to provide a written statement about the essential conditions of the contract within one month of commencement of employment. There are no statutory language requirements. However, it is advisable for contracts to be in German or bilingual as otherwise employees may claim that they were unable to understand the documentation that they Yes. As a general rule, employment contracts are executed in writing though verbal contracts are also valid (although not customary). Employees are entitled to have their employment conditions established in a written contract if they request so, even if their employment has already commenced. There are certain types of contracts which must be executed in writing: part time contracts, contracts executed through temporary employment agencies, training contracts, etc. In general, there are no rules governing the form that a contract of employment must take. A contract of employment may be in writing or verbal. The employer must, however, provide certain specific information in writing, including the job title or a brief job description,, place of work, commencement date, duration of the contract, holiday entitlement, salary, notice period, working hours, pension arrangements, any restrictive covenants, a probationary period (if Permanent employment contracts do not have to be in writing or in a preferred language. However, it is standard practice to draw up a written contract, in Italian, in order to avoid future disputes about the terms of the contract. Other employment agreements (i.e. fixedterm, apprenticeship and project contract agreements) include requirements which must be in writing. The probationary period must be agreed in writing. A contract of employment, or any employment term, may be agreed in writing or verbally. An employer is, however, under a statutory obligation to provide certain information to employees in relation to terms and conditions of employment. There are no statutory language requirements. English is one of the official languages. It is generally fine to have most (if not all) of employment related documentation in English. 1

2 employee to perform his or her duties. Certain clauses such as those covering a probationary period and non-compete must be in writing. have signed. It is compulsory to have Spanish versions of the employment contracts for registration purposes and for review in the event of conflict. any) and/or the applicability of a collective labour agreement. In practice, most employment contracts are in writing. The requirements prescribed by law for an employment contract are (i) an authority relationship (ie the employer is entitled to give orders as to how the work is to be carried out), (ii) remuneration (ie wages) and (iii) the work is carried out personally (exclusively) by the employee. These requirements constitute an employment contract even without a written statement. The title given to the relationship by the parties is not decisive. There are no statutory language requirements. Is there any requirement for Government registration or other civil processing of employment documentation? No. Yes. A declaration must be filed with the Administration for each hiring. No. Yes. Employers must notify Labour Authorities of each new contract and/or change of contract. Social Security authorities must also be notified of the same changes. No. Yes. Employers must inform the appropriate Labour Office of any new employee, at least 24 hours before the employment starts. No. An employer has to inform the Inland Revenue Department (using a specified form) within three months of employing a new employee. Is the employment contract the sole source of employer/employee rights and obligations? No. There are a number of other rights and obligations set out by statute and implied by law. Rights and obligations may also be included in an Employee Handbook (although there is no obligation to provide one) or other workplace documentation (including collective bargaining No. The employment contract has limited importance. Laws, regulations and case law provide for a number of employer/employee rights and obligations. In addition, rights and obligations are provided by collective bargaining agreements, company No. Statute and case law are both important in defining the mutual rights and obligations between employer and employee. Additional terms and conditions may be included in collective bargaining agreements, works agreements or policies. Implied terms No. Statute and case law are both important in defining the mutual rights and obligations between employer and employee. Additional terms and conditions may also be included in the Workers Statute Act, collective bargaining agreements, company agreements or No. There are a number of other rights and obligations set out by statute and implied by law, for instance the Constitution, the Civil Code and governmental decisions/ decrees. Rights and obligations may also be included in an Employee Handbook (although there is no No. Statute and case law are both important in defining the mutual rights and obligations between employer and employee. The main terms and conditions of the employment relationship are included in the applicable collective bargaining agreement. No. There are a number of other rights and obligations prescribed by statute and implied by law. Rights and obligations may also be included in an Employee Handbook (although there is no obligation to provide one) or other workplace documentation. 2 B_LIVE_EMEA1: v3

3 agreements). collective agreements, company s internal regulations (which are mandatory for companies which employ 20(+) employees) and by unilateral decisions of the employer or customary practices. may apply. policies. obligation to provide one), a collective labour agreement or other policies/ regulations. Is it possible to subject the employment to a probationary period? Yes. The scope and terms of any probationary period may be set out by the employer within the employment contract. Typically, probationary periods are between one and six months and they provide for termination on short notice within the period (eg one week). Some employers exclude employees from certain contractual benefits during the probationary period. Probationary periods do not affect an employee's statutory rights. Yes. Probationary periods are allowed and the terms of which must be outlined in writing. The length of trial periods is provided by statute or by the collective bargaining agreement and depends on the employee s status (being two to four months). Probationary periods can be renewed once under certain conditions. Rules applicable to termination do not apply during the probationary period and a reduced notice period applies (between 24 hours to one month, depending on the employee s length of service and on the party that terminates the contract). Yes. Probationary periods are permitted for a period of up to six months. It is common for employers to adopt the maximum period as statutory dismissal protection will only apply after six months. The employer and the employee can agree on a reduced noticed period of two weeks during the probationary period. Yes. Typically, probationary periods are between two and six months. However, the length of the probationary period can be modified by each applicable collective bargaining agreement. Termination during the probationary period will not permit the employee to claim compensation. Probationary periods do not affect an employee s statutory rights. Yes, but only if the employment contract has been entered into for a duration longer than six months. It is relatively common to include a probationary period into the employment contract. The probationary period must be the same for both parties and must be agreed between the employer and the employee in writing. The length of the probationary period depends on the length of the employment contract: in contracts not exceeding six months: no probationary period is possible in contracts for a period longer than six months but not exceeding two years: no longer than one month in contracts for a period of two years or more: no longer than two months Yes. Probationary periods must be agreed in writing and expressly state the length of the trial period. The maximum limit on the length of a trial period is set by the national collective bargaining agreement. In all sectors the maximum is six months. During the probationary period no notice is required the relationship may be terminated with immediate effect in writing. Yes. Employers are generally free to decide on the scope and terms of any probationary period (with the exception of the notice period for termination of employment during probationary period see below). Typically, probationary periods range from one to six months. During the probationary period, statute provides that: either party may terminate the employment during the first month of employment without notice irrespective of any agreed period of notice in the contract, and thereafter, either party may terminate the employment after giving the other party the agreed period of notice (if any) but in any event not less than seven days notice. in fixed term contracts not 3 B_LIVE_EMEA1: v3

4 coinciding with calendar dates (ie for the duration of a project or to replace a sick employee): no longer than one month. During a probationary period, either party may terminate the employment contract, without observing any notice period. Do non-local nationals require a work/residence permit? Possibly. EEA nationals do not currently require a work or residence permit. (The UK has now reached agreement in principle in its negotiations with the EU (under Article 50) regarding the status of EU citizens living in the UK, but this has not yet been finalised under the Withdrawal Agreement. There will be an implementation period after exit date (30 March December 2020), following which EU citizens will need to apply for settled status or a temporary residence permit by 30 June 2021). Non-EEA nationals must obtain a visa. Non-EEA or non-swiss nationals can visit the UK as business visitors for short visits of up to six months to undertake certain business activities. Possibly. EEA nationals do not require a work or residence permit. Non-EEA or non-swiss nationals can only work in France if they have work authorisation. EEA nationals do not require a work permit. Non-EEA nationals require a residence permit and (in general) the approval of the Federal Employment Agency. EEA nationals do not require a work or residence permit, but non-eea nationals must obtain work and residence permits to live and work in Spain. EU/EEA and Swiss nationals benefit from free movement of persons and do not require a work or residence permit. Non-EU/EEA and non- Swiss nationals require a work and/or residence permit. EEA nationals do not require a work permit. Non-EEA nationals require a residence permit and (in general) the approval of the Immigration Labour office. Yes. A non-local national generally requires a valid work visa to enter Hong Kong for employment purposes. Note that an individual who comes into Hong Kong on a visitor visa and works may commit an offence. Being an employer of a person not lawfully employable is an offence. In this context, a person who does not possess a valid work visa is not a lawfully employable person. Is there any mandatory employee/workplace If an employee is normally based in England, Scotland or Wales (including Yes. The employer must pay social contributions for the employee s social Yes. Social insurances, (i.e. health, unemployment, nursing care and pension Yes. Social insurances are mandatory for employees. The employer must bear Yes. The mandatory employee insurance schemes are based on the Yes. Social insurances, (i.e. health, unemployment, nursing care and pension Yes. It is a statutory requirement for employers to take out employee 4 B_LIVE_EMEA1: v3

5 insurance requirement? offshore installations or associated structures), the employer must have employers liability insurance. Certain types of employer, including many public bodies, are exempt from this duty. insurances (i.e. health, pension scheme, unemployment, complementary pension scheme, etc). The applicable rate for contributions to be paid by the employer and the employee is provided by law. insurances) are mandatory for employees. The employer must bear half of the costs of these types of social insurance. The cost of statutory accident insurance must be borne fully by the employer. part of the costs of these insurances. Employees have the following social insurances: health, unemployment, sick leave, retirement pension, maternity and paternity leave, etc. Unemployment Insurance Act, the Sickness Benefits Act and the Work and Income (Capacity for Work) Act. The employer is obligated to pay a contribution. insurances) are mandatory for employees. The employer must bear part of the costs of these types of social insurance. Part of the cost for statutory occupational accident insurance must be borne by the employer. compensation insurance to cover their liabilities for injuries at work in respect of all their employees. Do different or specific employment protections apply to temporary / fixed-term workers? Yes. Statutes provide for certain rights relating to pay and other working conditions for agency workers and, in the case of fixed-term workers, to protection from less favourable treatment as compared with comparable permanent employees. Yes. Temporary and fixedterm workers may not suffer any unequal treatment compared to comparable permanent employees (in relation to remuneration). In addition, specific rules apply to the succession of fixed-term contracts. Furthermore, fixed-term workers are entitled to an end-of-contract indemnity (10% of their total remuneration) when their employment contract has expired and is not continued under an indefinite term contract. Fixed-term contracts can only be terminated in limited circumstances. Yes. Workers engaged for a limited term enjoy special protection. They may not be treated less favourably due to their limited term unless there are objective grounds justifying different treatment. The same principles apply to agency workers. According to the equal pay principle, they are entitled to be employed under the same employment conditions (eg remuneration) as the comparable core workforce, unless applicable collective bargaining agreements provide otherwise. No. Both have the same employment conditions. However, severance packages upon termination differ depending on the type of contract A recent EU Court Ruling, followed by a Spanish Supreme Court ruling have understood that fixed-term employment contract severance must be equal to the one paid to indefiniteterm employees upon termination. Currently, these rulings clash the current regulations. There is likely to be a change in the law in the short term. Meanwhile, employers should not pay equal severance to fixed-term and indefinite-term unless litigation is raised. Yes. Due to the provisions on succession of fixedterm employment contracts, parties can enter into a maximum of three consecutive fixed term employment contracts with a total duration of two years, in order for the (last) fixed term employment contract to terminate by operation of law. If there are breaks between the consecutive fixed term employment contracts that are longer than six months a new chain will start. Statutes provide for certain rights relating to terms and conditions for fixed-term employees to protect them from less favourable treatment as compared with comparable permanent employees Different rules may apply for temporary agency workers (uitzendkrachten). Yes. Workers engaged for a limited fixed-term enjoy special protection. They may not be treated less favourably due to their fixed-term unless there are objective grounds for justifying different treatment. The same principles apply to temporary workers. They are entitled to be employed under the same employment conditions (eg same minimum wages apply) as the comparable core workforce, unless applicable collective bargaining agreements stipulate otherwise. Yes. The Employment Ordinance (EO) prescribes the minimum benefits of employees. To be eligible for most EO benefits, an employee is required to be employed under a continuous contract (i.e. to have worked for at least 18 hours in each of the previous four or more weeks), or a longer period if specified in the EO. Is special permission required for the assignment of temporary agency No. Yes. Temporary workers must be assigned by a temporary agency, who must fulfil several Yes. The company must hold a special permit granted by the Federal Employment Agency. Depending on the Yes. Temporary working agencies must be duly authorised. Not when hiring temporary agency workers through a temporary employment agency. Yes. Temporary work agencies must be duly authorised. 5 B_LIVE_EMEA1: v3 No.

6 workers? administrative formalities. circumstances the permit may also be required for intra-group secondments. When assigning temporary agency workers and/or employees, different obligations apply, such as the registration with the Chamber of Commerce as a company that assigns temporary agency workers and/or employees. Are companies obliged to set up a European Works Council (EWC)? Are companies obliged to have a national works council or other types of employee representatives? Yes. If they meet relevant thresholds and receives valid written request. An undertaking with at least 50 employees in the UK may be required to set up an information and consultation agreement on economic and employment-related matters on receipt of a written request by at least 10% of the employees (subject to a minimum of 15 and a maximum of 2,500 employees). Yes. If they meet relevant thresholds and receives valid written request. A new law has merged all the previous Staff Representative Bodies (Works Council, Staff Delegates and Health and Safety Committee) into a single Social and Economic Council ( SEC ). This new body is mandatory in companies employing at least 11 employees. In companies with less than 50 employees, the SEC will replace Staff Delegates In companies with at least 50 employees, the SEC will replace Staff Delegates, Works Council, and Health, Safety and Working Conditions Council. For companies with previous Staff Yes. If they meet relevant thresholds and receives valid written request. Works councils are not mandatory. Employees may establish a works council in businesses with at least five employees aged 18 or over and at least three employees eligible to be elected (eligibility: 18 years or over and at least six months of service). Unless a works council is newly established elections take place every four years. The next elections will be in Yes. If they meet relevant thresholds and receives valid written request. No. Works councils or other types of employee representatives are not mandatory. However, employees are free to promote elections. The number and types of representatives may be different depending on the number of employees these represent. Yes. If they meet relevant thresholds and receive a valid written request. Every undertaking which employs 50 or more employees is required to establish a works council. If the employer does not comply with this obligation, all interested parties (such as employees and trade unions) may take legal action in order to ensure that the obligation is complied with. An employer employing between 10 and 50 people may establish an employees' representative body (personeelsvertegenwoor diging) and is obligated to do so upon request of an interested party. If there is no representative body, an employer employing between 10 and 50 people, must give employees the opportunity to meet with him at least twice a year in a staff meeting No, only if the company or the group: (i) employs at least 1,000 employees in different EU states; and (ii) employs 150 or more employees in two EU states, in which case the company must set up an EWC. Works councils are not mandatory. Employees may establish employees delegate in business units with at least 15 employees. 6 B_LIVE_EMEA1: v3 No. No.

7 Representative Bodies, the SEC will have to be implemented at the end of their terms of office (possibility to extend the terms of office under certain conditions) and at the latest on 31 st December (personeelsvergadering). In companies established in various locations, a SEC should be set up in each location which have sufficient autonomy and which have a certain stability (regardless of the size of the local establishment). A central works council should also be set up at the company s head office. A company collective agreement or a branchwide collective agreement can grant the Social and Economic Council the exclusive right to negotiate company collective agreements (in this case, the SEC is called the Corporate council). What are the main rights and responsibilities of works councils? This will depend on the specific negotiated agreement and how these interact with other forms of representation within the organisation. In companies with at least 50 employees, the Social and Economic Council ( SEC ) has wide powers and should be informed of and/or consulted on almost all the major economic or social decisions taken by the company. It must be periodically provided with economic and/or social information on specific subjects (economic and financial situation, strategic orientations, employment The works council has farreaching information, consultation and codetermination rights with regard to specific personnel related (eg hiring, redeployment, relocation, dismissals) social (eg beginning and end of daily working hours, implementation of technical devices that are able to monitor employee behaviour/performance) and economic matters (eg significant business changes such as mass dismissals, reorganisations Employee representatives enjoy a number of special rights (eg right to remain in the company in the event of redundancy, indemnity guarantee in the event of retaliation, mandatory grievance procedures, paid work hours to attend representation duties, etc). Whereas responsibilities, employers must generally disclose sensitive information to them. They have the right to be informed and consulted in certain scenarios, to issue The national works council has the right to give advice in respect of all important decisions concerning the undertaking. The national works council has a right of consent in relation to decisions concerning social changes in the undertaking. The works council also has significant rights to be informed. A national works council can have additional rights, by individual contract. As per 01 October 2016, a The works council and employees delegated have far-reaching information and consultation rights with regard to specific economic matters (significant business changes such as mass dismissals, reorganisations, transfer of business etc). There is, however, no duty to reach an agreement. With regard to numerous matters the works council has the right to negotiate agreements at company level, eg with regard to 7 B_LIVE_EMEA1: v3 N/A

8 and working conditions) and must be consulted prior to any major projects (restructuring/sale/merger, redundancy procedures, etc). The SEC may request information from the employer and has a right to alert the Board if it considers that the information provided is not sufficient or reveals a concerning situation. The works council receives an annual operating budget from the employer and can recruit personnel. It must be provided with a fully equipped room and the materials necessary to carry out its duties and its members must be allowed time dedicated to carry out their duties. etc). With regard to numerous matters the works council has the right to negotiate works agreements, eg with regard to working time, remuneration, leave etc. reports and so forth. works council s consent is also required in respect of any decision concerning pension agreements, instead of decisions in respect of pension insurance schemes only. This includes the decisions in respect of administration agreements (uitvoeringsovereenkomst en) and administrative regulations (uitvoeringsreglementen) and more specific, when these agreements have effect on determining the premium or conditions in respect of granting supplements. Consent in respect of pension agreements is, however, not required when arrangements have been made in an applicable collective labour agreement or in the case of compulsory membership in an industry wide pension fund. working time, remuneration, leave etc. What are the consequences of not informing/consulting the works council? A maximum penalty of 75,000. The SEC can ask for an injunction (ie the employer can be required to provide more information). The employer may also be fined for hindrance offence of 7,500. Depending on the specific right infringed, the implementation of a project may be delayed and/or the actions taken by the employer may be held invalid. For example, failure to consult the works council on a mass collective redundancy plan may result in having to start the information and consultation process again The works council can ask for an interim injunction or fines of up to 10,000. Significant frequent breaches can result in criminal charges. Depending on the specific right that has been breached the employer s actions may be invalid. For example, failure to obtain approval for new hires will result in the employer being prevented from employing the individual. Failure to properly consult prior to a dismissal will result in the dismissal being void. Administrative fines ranging from 6,250 to 187,515. Depending on the specific right that has been breached the employer s actions may be invalid (eg not disclosing or sharing information during collective layoff consultations may result in all terminations declared null and void). The works council can bring legal action, which could result in the company being forced to reverse all action taken as a result of the decision that was made without consulting the works council. Union associations are entitled to make an application to the local employment judge for an urgent injunction to stop the anti-unionist activity and prevent it occurring. Depending on the specific right that has been breached the employer s actions may be invalid. For example, failure to properly consult prior to a collective dismissal will result in the dismissals being void. 8 B_LIVE_EMEA1: v3 N/A

9 (if dismissals have not been notified) or the dismissals being void (if dismissals have been notified). Failure to consult staff delegates or health and safety committees may trigger the same risks. Must an employer recognise or deal with a trade union? A union can acquire the statutory right to recognition if (i) at least 10% of the workers in the proposed bargaining unit are members of the union, (ii) they make a statutory request and (iii) it is shown that a majority of workers within the bargaining unit are likely to support recognition of the union. An employer can also voluntarily recognise and deal with a trade union. In companies with at least 50 employees, the employer must recognise (i.e. respect the protection provided by law) and may deal with (negotiate and conclude company collective agreement) trade union representatives appointed by a trade union, if the employee and the trade union meet several requirements (namely the trade union must be representative, the employee must be an employee representative elected with at least 10% of the votes). The trade union must inform the employer of the appointment of any trade union representative. If these conditions are not satisfied by the trade union, a trade union representative can also be appointed. They would have no right to negotiate company collective agreements. Trade unions have various rights, with regard to the individual business if they have at least one member in such business. For example, a union representative may enter premises to perform union related tasks. Additionally, the union can eg call an employee meeting to elect the electoral board for works council elections. With regard to collective bargaining agreements employers only have to deal with a trade union if they are a member of an employers' association of the relevant industry sector. There are two levels of recognition: (i) union delegates and (ii) company employee s representatives. Employers must generally recognise or deal with the company employee s representatives (workers council or delegates for companies with less than 50 employees). However, trade union delegates present within the company (if any) have the right to receive the same level of information as the works council members. Trade union delegates have the right to be heard before any action is taken against employees and, in particular, against their own union members. An employer can recognise a union voluntarily or the union can acquire recognition or admission to collective labour agreement negotiations, if it is shown that the majority of employees are likely to support recognition of the union. No, unless the majority of employees are members of a particular trade union or the trade union negotiated the NCBA applied by the company. No. Unless a collective agreement has been put in place. Collective agreements are rare in Hong Kong. What rights do trade unions have? They conclude collective bargaining agreements and organise strike actions. They have the right to be informed and consulted in certain circumstances (collective dismissals and They represent the interests of the employees, can organise strikes, and conclude branch or company collective agreements. They have the right to be informed in certain They represent the interests of the employees vis-á-vis employers and employers' associations. They conclude collective bargaining agreements and Trade unions represent the interests of the employees. They conclude collective bargaining agreements and organise strike actions. Trade unions represent the interests of the employees. They conclude collective labour agreements and can organise strike actions. They represent the interests of the employees vis employers and employers' associations. They conclude collective bargaining agreements and organise strike actions. Trade unions have the right to independence and immunity from civil suits for certain acts done in contemplation or furtherance of a trade dispute. They have the right to be informed and consulted in Employees who are trade 9 B_LIVE_EMEA1: v3

10 transfers). circumstances (eg mass collective redundancy project). organise strike actions. the event of collective dismissals and transfers/mergers. union members or participate in trade union activities have certain protection. Is there a representation of employees at board level? No. Yes. For companies with more than 1,000 employees in France or 5,000 employees in France or abroad. Equal representation between men and women has to be respected. Yes. But it depends on the company`s legal structure and the number of employees. No. No. No. No. Are there any legal or regulatory constraints on the form and/or amount of remuneration? Generally no, other than the national minimum wage. Sector-specific rules should be considered, eg in the Financial Services sector. Yes. Remuneration must be paid each month. Remuneration cannot be lower than the legal minimum wage or, if more favourable, by the applicable collective bargaining agreement. Sector-specific rules should be considered, eg in the Financial Services sector. Generally no, subject to any sector-specific rules eg remuneration regulations in the Financial Services sector. The minimums set out in law and collective bargaining agreement must be observed. Typically, salary is paid on a monthly basis, with two additional salary payments in December and July each year, unless otherwise provided. There are legal constraints on the amount of remuneration in the (semi) public sector. Specific rules apply for remuneration in the Financial Services sector (such as a bonus cap limiting annual variable remuneration to 20% of the fixed remuneration). Generally no - other than the minimum wage. Sector-specific rules should be considered. Generally no, subject to any sector-specific rules eg remuneration regulations in the Financial Services sector. Is there a minimum wage? Yes. All employers are obliged to pay the National Minimum Wage and the National Living Wage, which applies to most workers working in the UK who are over compulsory school age. The National Living Wage was introduced on 01 April 2016 for all working people aged 25 and over, and is currently set at 7.83 per hour. The National Minimum Wage still applies to those under the age of 25 and the hourly rate depends on your age and whether you are an apprentice. For example, the current rate for those aged 21 to 24 is Yes. Employers must pay their employees the minimum wage. Exceptions may apply for certain group of workers such as interns or apprentices. The current standard minimum hourly rate is It is increased annually on 01 January. Yes. The current statutory minimum wage amounts to Exceptions may apply for certain groups of workers such as trainees, apprentices and volunteers. Yes. National Minimum Wage is / month for Minimum wage established in collective bargaining agreement. These set out minimums depending on job categories. Minimum salary increases are periodically published for each sector. Yes. Statutory minimum wage starts at 2.74 gross per hour for employees aged 15, up to 9.11 gross for employees aged 23 or older (based on a 40 hourly week). Yes. Minimum wage is provided by the applicable collective bargaining agreement. Yes. The current minimum wage rate is HK$ This is reviewed every two years. 10 B_LIVE_EMEA1: v3

11 7.38. The rates change every April. Can an employer make deductions from wages? Yes. Subject to: the deduction being required or authorised by statute or a provision in the worker's contract, or the worker having given prior written consent to the deduction. Yes. Subject to strict statutory limits. Any deductions are subject to statutory limits to ensure that the employee will be able to keep a specific minimum amount of their income. The employee s prior consent is required if it is envisaged to deduct a higher amount. Yes. Subject to: the deduction being required or authorised by statute or a provision in the worker`s contract, or the worker having given prior written consent to the deduction. Any deductions are subject to statutory limits to ensure that the employee will be able to keep a specific minimum amount of their income. Yes. Subject to: the deduction being required or authorised by statute or a provision in the worker`s contract; or the worker having given prior written consent to the deduction. Any deductions are subject to statutory limits to ensure that the employee will be able to keep a specific minimum amount of their income. Yes. Subject to: the deduction being required or authorised by statute or a provision in the worker s contract, or the worker having given prior written consent to the deduction. Any deductions are subject to statutory limits to ensure that the employee will be able to keep a specific minimum amount of their income. Yes. Subject to: the deduction being required or authorised by statute or a provision in the worker`s contract, or the worker having given prior written consent to the deduction. Any deductions are subject to statutory limits to ensure that the employee will be able to keep a specific minimum amount of their income. Yes. Only under very limited circumstances permitted by the EO. Are there any mandatory social or health or life insurance or retirement benefit requirement? There is a mandatory national insurance system, to which both employers and employees in the UK must contribute. Under this system, employees may be eligible for certain state benefits including healthcare, statutory sick pay, maternity and adoption allowances and retirement benefit. Employers are obliged to enrol employees automatically in a workplace pension if they meet certain criteria. Yes. Employers must pay for the social insurance contributions, as well as provide a complementary private health insurance scheme, a providence scheme and contribute to the payment of complementary retirement scheme. No benefits are required beyond those covered by social insurance contributions. Employees must however be given the option to enrol in a deferred salary pension insurance scheme upon their request. Contributions will be made from their salary. Other benefits like eg company pension schemes are voluntary employer benefits. If such benefits are granted, they must have to comply with the equal treatment principle. Yes. There is a mandatory national insurance system, to which both employers and employees must contribute. Employers may also make additional contributions to the national system, through private plans (this may be voluntary or mandatory as a result of CBA provisions). There is a mandatory national insurance system, to which employers and employees must contribute. Under this system, employees may be eligible for certain state benefits, including health care and unemployment benefits. The employer is obligated to pay a contribution. Employers are not obliged to enrol employees in a pension scheme. However, it is standard to operate a pension scheme and it is common that this is specified in the employment contract, policies or in a collective labour agreement. There is a mandatory national insurance system, to which both employers and employees must contribute. Under this system, employees receive unemployment allowances, statutory sick pay, maternity and adoption allowances and retirement benefit. Provisions of national collective bargaining agreement can require employees enrolment into mandatory pension and healthcare funds. Yes. Generally, employees who are aged 18 to just below 65 who have been employed for a continuous period of 60 days or more are required to join a Mandatory Provident Fund (MPF) scheme. The employer and employee are required to contribute 5% of the employee s relevant income, up to (currently) a maximum of HK$1,500 per month. The maximum level of relevant income will be reviewed from time to time. A person from overseas who enters Hong Kong for employment will be exempted from joining a MPF scheme if he/she is a member of an overseas retirement scheme, or for the first period of employment while his/her employment visa allows for a stay in Hong Kong for 13 months or less. The exemption falls away for 11 B_LIVE_EMEA1: v3

12 people who become permanent residents. Is there any statutory right to overtime pay? No. But this may be specified in any collective agreement or contract. In principle yes. Overtime hours must be paid at an increased rate (125% for the first eight hours and 150% afterwards, unless stated otherwise by a collective agreement. In this case, the increased rate can be lower but it must be at least equal to 110%). An exception applies if the employee is subject to a specific working time arrangement such as a lump sum annual working time counted in days or if the employee is a senior executive not subject to working time regulations. In principle yes. Unless the parties agree otherwise. Clauses excluding overtime pay will only be admissable in specific circumstances, eg where the number of hours covered by the salary is limited or where the employee's remuneration is so high that they cannot reasonably expect overtime pay. Yes. Overtime must be compensated by pay (at not less than the ordinary hourly rate) or with time off. As a general rule, overtime is limited to 80 hours per year, although overtime spent to prevent or repair damages caused by natural disasters or any other extraordinary events will not be taken into consideration when calculating the maximum overtime permitted. No, unless such is dictated by a collective labour agreement or due to equal treatment. Yes. The applicable national collective bargaining agreement establishes the rate to be paid by the employer for the overtime work. No. Employers must, however, ensure that employees are paid at least the statutory minimum wage (see above). Is there any obligation to provide paid sick leave? No. There is however a statutory sick pay ( SSP ) benefit that may be available to the employee. Employees who are unable to work due to illness or injury for four or more consecutive days are entitled to receive SSP, provided they meet the qualifying conditions. Employees do not receive SSP for the first three days of any sickness absence. The current weekly rate of SSP is The maximum entitlement is 28 weeks' SSP during any period of incapacity for work (or any series of linked periods). Yes. An employee on sickness leave receives a payment from the Social Security Administration, which is often, under certain conditions, supplemented by the employer to ensure that the individual maintains all or part of their normal salary. Collective bargaining agreements can provide for more favourable provisions. In addition, the social insurance subscribed to by the company may provide for a full coverage during the leave. Yes. The employer must continue paying the employee's remuneration for up to six weeks. As the six week period is per sickness, it may be triggered repeatedly in one year if the employee suffers from different illnesses. Yes. The Social Security System does not provide any coverage for the first three days of illness (cost usually borne by employer). Social Security system covers a determined percentage starting from the fourth day of sick leave. The applicable collective bargaining agreement may require the employer to increase to a determined percentage. Yes. During sick leave an employer must pay (at least) 70% of the employee s last earned salary for a period of 104 weeks, with a maximum of 70% of the maximum daily wage ( 4, gross per month) and provided that for the first 52 weeks the employer is obliged to pay at least the statutory minimum wage. Yes. The NCBA establishes the length of the paid sick leave and whether unpaid sick leave is available. A portion of the salary is paid by the employer and a portion by the National Health Authority. The portion paid by the employer depends on the duration of the sick leave, the sector and how many times sick leave is taken in a calendar year. Collective bargaining agreements can provide for more favourable provisions. Yes. An employee who has been in continuous employment with the employer for at least one month immediately preceding a sickness day will be entitled to paid sick leave for absences of not less than four consecutive days. An employee will accrue the right to paid sick leave at the rate of two paid sickness days for each completed month of the employee s employment under a continuous contract during the first 12 months of such employment, and four sickness days for each such month thereafter, up to a maximum of 120 sickness days. 12 B_LIVE_EMEA1: v3

13 For how long can employees take maternity leave? 52 weeks. Some of this leave can be transferred to the father under the shared parental leave scheme. 16 weeks: six weeks before the birth and 10 weeks after the birth, where the number of children in the household reaches one or two. It can be longer if there are three or more children in the household or in the case of multiple births. Maternity leave starts six weeks before giving birth and lasts eight to twelve weeks after birth. The leave period after birth cannot be waived. 16 weeks, plus an additional two weeks if child is disabled or in the case of a multiple birth (two weeks per additional baby). The six-week leave period immediately after birth can only be taken by the mother. Employees are entitled to 16 weeks pregnancy and maternity leave (20 weeks in the case of multiple births), which covers: i) six weeks pregnancy leave and 10 weeks maternity leave. Pregnant employees can take leave from six weeks 10 weeks in case of multiple births) but no later than four weeks (eight weeks in case of multiple births) before the due date. During their leave, employees are entitled to receive an allowance from the UWV equal to their maximum daily wage although this is subject to a statutory maximum amount (at the moment: 4, gross per month). Maternity leave can be taken from two months before giving birth until three months after birth. Maternity leave can start later than two months before giving birth in order to extend the leave to be taken after the birth of the child. Maternity leave can start earlier than two months before childbirth if the work poses a danger to the health of the mother and/or the unborn child. The period of maternity leave is generally 10 weeks plus a further period of not more than four weeks if the employee has an illness or disability arising out of the pregnancy or confinement. For how long can employees take parental leave? Parental leave can be taken by the father and the mother for up to 18 weeks. It must be taken in full before the child is 18. This leave is unpaid. Parental leave (full absence or part-time work) can be taken by the father and the mother for one year, and is renewable until the child turns three. This leave is unpaid. Parental leave can be taken by the father and the mother for up to three years, generally to be taken before the child has reached the age of three. A period of up to 12 months (24 months for births after 30 June 2015) can be transferred to the period between the child s age of four and eight. The employees are entitled to an extended (unpaid) leave of absence of not more than three years for the care of each child, both for biological children as well as for adoption, custody with the objective of adoption or permanent fostering. The three years maximum leave should be considered from the date of birth or, if applies, the date of the court or administrative decision. Employees in a family relationship with (a) child(ren) under eight are entitled to parental leave for every child. The maximum amount of parental leave that can be taken is a total of up to 26 times the number of contractual working hours per week for every child. This leave is unpaid. Parental leave can be taken by the father and the mother until the child reaches the age of 12 as follows: Mothers: up to six months (on top of compulsory maternity leave and does not need to be taken consecutively); Fathers: up to seven months (consecutive or not), depending on the amount of parental leave already taken by the mother; Single parents: up to There is no statutory requirement to grant parental leave but some employers have started to provide this benefit on a voluntary basis. 13 B_LIVE_EMEA1: v3

14 10 months. The total amount of leave taken by both parents cannot exceed 10 months. The cap on parental leave is extended to 11 months if the father takes leave for a period not exceeding three months. Is there any obligation to provide paid maternity, paternity or adoption leave? Yes. Employees who are eligible for maternity leave are also entitled to receive up to 39 weeks' statutory maternity pay, provided they satisfy certain conditions. Employees entitled to take paternity leave may also be eligible for statutory paternity pay if they fulfil the necessary criteria. For eligible employees, statutory adoption pay is available for a 39 week adoption pay period. Yes. Employees who are eligible for maternity leave are also entitled to receive maternity benefit, from the Social Security Administration but also very often from the employer, as provided by the applicable collective bargaining agreement (which sometimes provide for conditions eg in relation to length of service). Employees entitled to take paternity leave may also be eligible for statutory paternity pay if they fulfil the necessary criteria. Employees are eligible to adoption leave of 10 to 22 weeks, depending on the number of children adopted. Salary is maintained as for maternity leave. Yes. During maternity leave, employees receive a maternity benefit. This is approximately as high as the last net salary. Parental leave is unpaid and employees can receive state benefits. Yes. Employees who are eligible for maternity leave are also entitled to receive maternity benefits from the Social Security Administration. Additionally, the CBA may insist the employer must top up the public benefit up to 100% of the employees salary. Employees entitled to take paternity leave are also eligible for statutory paternity pay. For eligible employees, statutory adoption pay is available for a length similar to maternity pay (generally 16 weeks). Yes. During pregnancy, maternity or adoption leave employees are entitled to receive an allowance from the government body (the UWV) equal to their daily wage although this is subject to the maximum daily wage ( gross). There is no obligation to pay salary unless agreed in an employment agreement, collective labour agreement and/or policy. Co-parents are entitled to two days paid paternity leave. In addition, coparents are entitled to three days unpaid leave during the first four weeks after birth. Employees legally adopting a child or taking in a foster child are entitled to a maximum of four continuous weeks of leave in a period of 26 weeks. Yes. During maternity leave, employees receive a maternity benefit which is approximately equal to 80% of the employee salary from the social security authority. During parental leave the employee is entitled to receive 30% of his/her salary from the social security authority. An employee who fosters a child is entitled to paid adoption leave. Yes in relation to maternity and paternity leave. No in relation to adoption leave. An employee is entitled to be paid during her basic maternity leave period if she: i. has continuous service with that employer of at least 40 weeks before the date of commencement of maternity leave ii. has given notice of her intention to take maternity leave, and iii. produces appropriate medical certificates (i.e. to confirm pregnancy and the expected date of confinement). The daily rate of maternity leave pay is four-fifths of the average daily wages earned by an employee in the 12-month period preceding the first day of the maternity leave. An employee is entitled to be paid during his paternity leave if he: i. has continuous service with that employer of at least 40 weeks 14 B_LIVE_EMEA1: v3