INTRODUCTION Contributed by: Tobias Pusch and Teresa Gabele, Pusch Wahlig Workplace Law
Work–life balance Companies around the world are increasingly con - cerned with work–life balance as a non-monetary incentive in the competition for the best staff mem - bers. Many legislators are supporting this trend with regulations that make it easier to combine family and career, with a particular focus on combating the grow - ing shortage of skilled workers. In Europe, this has been driven mainly by the need to adopt EU direc - tives in national law. These include, for example, the right to paid birthday leave and parental leave in many EU member states, as well as regulations regarding part-time working models and provisions regarding remote working. Inflation crisis Rising inflation is also having a global impact. On top of significant financial losses during the COVID-19 cri - sis, a global slowdown in economic growth – driven in part by the Russia-Ukraine war and the global energy crisis as well as the COVID-19 aftermath – has caused a striking fall in real monthly wages in many countries. The cost of living has increased rapidly, with a particu - larly significant impact on low-income groups. While schemes such as short-time work compensa - tion and wage subsidies have largely protected wage levels from the effects of the pandemic, adequate adjustment of minimum wage rates could be an effec - tive tool to help maintain purchasing power and living standards in the current inflation crisis. Supply chains There are also developments regarding the fair treat - ment of staff in supply chains. The global aim is to improve the protection of human rights all the way along global supply chains. To meet this objective, the prohibition in particular of child labour and forced labour is to be enforced and controlled, as well as the prohibition of substances that are harmful to peo - ple and the environment. As early as June 2011, the Human Rights Council issued the UN Guiding Prin - ciples on Business and Human Rights. These princi - ples aim to address violations of human rights in the context of economic activities. In order to effectively implement these values and principles adopted by the UN, the German government, for example, is pushing for internationally comprehensive standards regard -
ing fair global supply and value chains with its own national legislation. The German Act on Corporate Due Diligence Obligations in Supply Chains ( Liefer- kettensorgfaltspflichtgesetz – LkSG) is the binding implementation of the UN Guiding Principles and came into force in January 2023. As of January 2024, the law was extended to cover companies with 1,000 or more employees (previously 3,000 or more), thereby significantly increasing the number of companies sub - ject to its obligations. Whistle-blower protection One of the most significant European and global developments has been the adoption of the Whistle - blowing Directive in national law by EU jurisdictions. Although most member states have now implemented the directive, many initially gave employers a period of grace in which to establish internal reporting pro - cesses, some of which will soon expire. Outside Europe, countries are also encouraging employees to report information on violations of laws or regulations they become aware of at work. In Singa - pore, for example, the Ministry of Manpower recently took steps to raise awareness of the various channels through which workers can report health and safety problems at work, and to provide legal protection for workers who raise concerns. Transparency Global developments in the area of transparency – particularly pay transparency – are likely to continue since the entry into force of the EU Pay Transparency Directive in April 2023. Member states have three years to implement the directive into national law, which will lead to significant changes for many mem - ber states. However, the current status is that only Belgium implemented the Directive, a few member states published draft laws, whilst most other coun - tries (including Germany) are still in the preparatory phase. There have also been developments in this area outside Europe, including in the US, where New York has become the latest US state to introduce leg - islation on pay transparency in job advertisements. Equal pay There have also been a number of recent develop - ments in case law on equal pay. In Germany, for exam -
8 CHAMBERS.COM
Powered by FlippingBook