For More Information Contact:

Belgium
Claeys & Engels
Sophie Maes
sophie.maes@claeysengels.be
Tel: +32 (0)2 761 46 08
Czech Republic
Randl Partners
Nataa Randlov
randlova@randls.com
Tel: +420 222 755 31
France
Capstan
Thomas Lestavel
lestavel@capstan.fr
Tel: + 33 (0)1 44 95 48 20
Germany
Kliemt & Vollstadt
Markus Janko
markus.janko@kliemt.de
Tel.: +49 (0) 211 88288-0
Italy
Toffoletto e Soci
Valeria Morosini
svm@toffoletto.it
Tel +39-02-72144.1
Netherlands
Bronsgeest Deur Advocaten
Erik Deur
e.deur@bd-advocaten.nl
Tel: +31 (0)20 - 305 33 37
Spain
Sagardoy Abogados
Montserrat Alonso Paul
map@sagardoy.com
Tel: +34 914 540 052
Ukraine
Vasil Kisil & Partners
Oksana Voynarovska
voynarovska@vkp.kiev.ua
Tel: + 38 044 581 7777
United Kingdom
Lewis Silkin LLP
Nathalie Townley
nathalie.townley@lewissilkin.com
Tel: +44 20 7074 8000
London, United Kingdom
Staffing Industry Analysts
Matt Norton, Research Analyst
mnorton@staffingindustry.com
+44 (0)207 194 7751
This monthly update is provided solely for informational purposes, and should not be considered legal advice. It is always recommended to seek qualified legal counsel before taking action.
This Months Items:
Belgium
Claeys & Engels
France
Capstan
Germany
Kliemt & Vollstadt
Italy
Toffoletto e Soci
Staffing Industry Analysts
London, UK
Netherlands
Bronsgeest Deur Advocaten
Spain
Sagardoy Abogados
Ukraine
Vasil Kisil & Partners
United Kingdom
Lewis Silkin LLP
For More
Information
Contact:
July 2013
This monthly update is provided solely for informational purposes, and should not be considered legal advice. It is always recommended to seek qualified legal counsel before taking action.
1. Belgium New law introduces try before hire
2. Czech Republic Amendments to fixed term employment relationships
3. France - Indefinite duration contracts introduced for temporary agency workers
4. France - Temporary recruitment initiative extended
5. UK - Plans to further regulate the recruitment sector
6. UK- Gangmasters licensing authority announces licensing changes
1. Belgium New law introduces try before hire
This monthly update is provided solely for informational purposes, and should not be considered legal advice. It is always recommended to seek qualified legal counsel before taking action.
Jurisdiction:
Belgium
Description: From 1
st
September staffing firms will be able to provide candidates to employers to fill permanent jobs. The
client will be able to try the candidate on a temporary contract before hiring.
Before the new law came into effect in July, temporary work agencies could only provide workers to end-user businesses on
temporary assignments. Furthermore, the use of temporary agency workers was highly regulated as it had to fall under one
of the following prescribed reasons: to replace an absent permanent employee, to temporarily replace a permanent
employee who was dismissed, or to face a temporary rise in demand. Under the new law, staffing firms will be able to
improve their strategic partnership with employers and help find suitable candidates for hard-to-fill positions.
Buyers will be allowed to use temporary workers on a try-and-hire basis. For every vacancy an employer can try up to three
candidates. The employment contract must have a minimum duration of one week and can last up to six months; the total
duration of the try-and-hire process for the same position cannot exceed nine months.
If the temporary worker is a suitable candidate, then they will have to be hired on the basis of a contract of indefinite
duration. The duration of the temporary contract will count towards seniority, and should be deducted from the trial period i f
applicable to permanent employees at the employers premises. Buyers of contingent labour should be aware that in case of
abuse, they will be liable according to the new law.
Item Type:
Enacted legislation
For Contingent Workforce Buyers For Staffing Firms
Implications/ Suggested Actions:
Buyers now have the opportunity to source permanent employees
from staffing firms.
The new legislation allows for a trial period before a buyer hires a
temporary worker.
For every vacancy an employer can try up to three candidates and
the employment contract can last between one week and six
months.
Buyers of contingent labour should be aware that in case of abuse,
they will be liable according to the new law.
The new law gives buyers greater flexibility with regard to sourcing
and hiring employees.
Implications/ Suggested Actions:
Staffing firms are now able to provide candidates to employers to fill
permanent jobs.
The new legislation allows for a trial period before a buyer hires a
temporary worker.
2. Czech Republic Amendments to fixed-term contracts
This monthly update is provided solely for informational purposes, and should not be considered legal advice. It is always recommended to seek qualified legal counsel before taking action.
Jurisdiction:
Czech Republic
Description: The Czech Parliament has passed a new amendment to the Labour Code, which was published in the
Collection of Acts under No. 155/2013. This amendment became effective on 1 August 2013 and implements changes to
fixed-term employment relationships.
Currently, according to Section 39 of the Labour Code, if the parties wish to enter into an employment law relationship for a
definite term, the following rules shall apply: the length of the employment law relationship may not exceed 3 years; and the
employment law relationship for a definite term may be repeated / extended only twice. Therefore, in total, the duration of a
fixed-term employment law relationship cannot exceed 9 years.
The new Act states that the employer does not have to adhere to these rules under the following conditions:
if there are serious operational reasons on the part of the employer or reasons relating to the special nature of the work;
if, due to such reasons (operational or relating to the nature of the work), it is not justified to require the employer to hire
the employee in an indefinite term employment relationship;
If the terms of a fixed-term employment relationship offered by the employer are adequate (proportionate) to the
employers reasons (operational or relating to the nature of the work);
if an agreement with the trade union (or an internal regulation issued by the employer at which no trade union is present)
regulates the following:
- Closer specification of the employers reasons (operational or relating to the nature of the work);
- Rules for different procedures of negotiation and repetition / extension of the fixed-term employment relationship;
- Scope of employees to which this different procedure applies;
- Terms for which the agreement is concluded (or internal regulation is issued).
Item Type:
Enacted legislation
For Contingent Workforce Buyers For Staffing Firms
Implications/ Suggested Actions:
Buyers are excluded from law governing fixed term contracts if
certain conditions are met.
Implications/ Suggested Actions:
Staffing firms should familiarise themselves with the changes to the
Labour Code.
3. France Indefinite duration contracts introduced for temporary agency workers
This monthly update is provided solely for informational purposes, and should not be considered legal advice. It is always recommended to seek qualified legal counsel before taking action.
Jurisdiction:
France
Description: After months of negotiations, trade unions and the French staffing association PRISME beat an 11
th
July
deadline to sign a draft proposal to introduce permanent contracts in the staffing sector.
There are two main types of employment contracts in France: the CDI (Contract Duration Indetermine) which is an open-
ended contract and the CDD (Contract Duration Determine) which is a fixed-term contract. Up to now, staffing firms have
been restricted from supplying workers on CDI contracts. Following a landmark labour agreement in January, unions and
employers had been given a deadline running to July this year to negotiate the introduction of permanent contracts in the
staffing sector (termed CDI Intrimaire).
The proposal was welcomed by staffing firms as failure to agree on a text before the July deadline would have kick-started
an increase in unemployment contributions with an estimated cost of 200 million for the sector. Instead, staffing firms are
expected to hire approximately 20,000 highly qualified agency workers on indefinite duration contracts over the next three
years.
Between assignments, the workers with CDI contracts will still be paid by the staffing firm and receive extra training. In
accordance with the trade unions request, the staffing association PRISME has agreed to provide extra work to those not
benefiting from the CDI intrimaire. The sector will offer an extra 40 hours of assignment to every temporary agency
worker already spending at least 800 hours per year on assignment. The measure is believed to benefit approximately
80,000 temporary agency workers, with an estimated cost between 60 and 70 million for the staffing industry.
The agreement will have to be examined by the government, in order to establish whether its implementation would require
changes to the Labour Code.
Item Type:
Draft propsal
For Contingent Workforce Buyers For Staffing Firms
Implications/ Suggested Actions:
Buyers will now be able to source workers on indefinite duration
contracts.
Buyers should be aware that the draft proposal may lead to further
changes to the Labour Code.
Implications/ Suggested Actions:
The agreement reached on the CDI will allow agencies to escape
rising unemployment contributions on some short-term contracts,
increasing that would cost them 200 million euros minimum.
The agencies agree on an additional 40 hours per year the 80,000
employees who work 800 hours over the year (4 months). Cost: 60
to 70 million.
4. France Temporary Recruitment Initiative Extended
This monthly update is provided solely for informational purposes, and should not be considered legal advice. It is always recommended to seek qualified legal counsel before taking action.
Jurisdiction:
France
Description: The French government has confirmed that its fixed-term recruitment initiative has been extended for a year.
The fixed-term contracts, known as Contrat Dure Determine de Mission (project-based CDD), were implemented on the
25 June 2008 and were set to run on a trial basis for five years. The trial had been due to end on the 27 June 2013; however
it has been extended for a further year and is now due to end 27 June 2014.
The guidelines for recruiting employees on CDD contracts are firmly established and highly regulated. The contracts can
only be implemented in companies with a collective agreement (accord d'enterprise) with unions regarding the use of such
contracts and are applicable to engineers and managers only. The contract must have a duration of 18 or 36 months and
cannot be renewed. The contracts can; however, be broken after 18 months or 24 months should the parties agree that the
project cannot be completed, or for another legitimate and serious reason.
CDD contracts can only be used under three conditions; to replace an absent worker, to deal with an unexpected increase in
activity, or to work in a position that does not necessitate a permanent employee, i.e. seasonal workers. All project-based
CDD contracts should also have a specific project for completion for the duration of the contract. CDD contracts cannot be
used in lieu of permanent contracts, to replace striking workers, to carry out hazardous tasks, or to fill a post made vacant by
redundancy in the last six months.
A Parliamentary report will be commissioned following the end of the initiative in order to determine its sustainability.
Item Type:
Legislation
For Contingent Workforce Buyers For Staffing Firms
Implications/ Suggested Actions:
The fixed term recruitment initiative has been extended by one
year and will now expire on 27 June 2014.
The guidelines for recruiting employees will stay the same as before
the extension to the scheme was granted.
Buyers should be aware that the scheme will be reviewed after this
date and should await the findings of the parliamentary report that
will follow.
Implications/ Suggested Actions:
The fixed term recruitment initiative has been extended by one year
and will now expire on 27 June 2014.
The guidelines for recruiting employees will stay the same as before
the extension to the scheme was granted.
Staffing firms should be aware that the scheme will be reviewed after
this date and should await the findings of the parliamentary report
that will follow.
5. UK Plans to further regulate the recruitment sector
This monthly update is provided solely for informational purposes, and should not be considered legal advice. It is always recommended to seek qualified legal counsel before taking action.
Jurisdiction:
UK
Description: The UK government has published the official response to its recent consultation on reforming the regulatory
framework for the recruitment sector. While acknowledging the important contribution that the flexible labour market makes
to the economy, the government recognises that individuals using recruitment services are often vulnerable and require
appropriate protection. Therefore the government intends to introduce a new regulatory scheme to replace the existing
legislation, including the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment
Businesses Regulations 2003.
The revised framework will focus on areas where individuals are most at risk of exploitation, while reducing the
administrative burden on businesses. The government also intends to change the existing enforcement regime, although it
has not yet confirmed whether this will include providing individuals with the right to pursue claims before the Employment
Tribunal. The government also noted that clear and specific definitions of employment agency and employment business
are required. The existing definitions have not kept pace with technology developments, such as internet-based services, or
present business practices whereby a vast array of entities provide temporary labour, including businesses providing staff on
secondment. As a result, the current definitions create confusion in the market as to which types of business are caught by
the legislation.
The publication also noted that the increasing number of intermediaries, including payroll providers and master/neutral
vendors, has led to more complex supply chains where it may be unclear who is responsible for certain obligations and who
is governed by the existing legislation. The government says that the new framework should address the issue of who is
responsible for paying temporary workers where a complex supply chain is involved. The government also believes that the
existing rules on temporary-to-permanent employment and transfer fees are unworkable and would like to introduce a
simpler system whereby fees could not be charged except where the hirer agreed.
Item Type:
Consultation
For Contingent Workforce Buyers For Staffing Firms
Implications/ Suggested Actions
Buyers should be aware of potential changes to the regulation of the
recruitment sector.
Buyers should be aware of possible changes to temporary to
permanent transfer fees.
Implications/ Suggested Actions
Staffing firms should be aware of potential changes to the regulation
of the recruitment sector.
The government is looking to provide clear and more specific
definitions to the terms employment agency and employment
business.
6. UK Gangmasters licensing authority announces licensing changes
This monthly update is provided solely for informational purposes, and should not be considered legal advice. It is always recommended to seek qualified legal counsel before taking action.
Jurisdiction:
UK
Description: From 1
st
October 2013 the Gangmasters Licensing Authority (GLA) will no longer automatically send an
inspector to check that agency workers are being paid properly and working under safe conditions before it grants a
business or employment agency a licence to operate. The GLA, the agency that regulates the supply of workers to the
agricultural and horticultural industries, will use their discretion to decide whether a physical site inspection is required on a
case by case basis.
Certain criteria will continue to require an automatic inspection, for example where an applicant has previously had a license
refused or revoked, or where checks with other government departments find potential complications. However, the GLA
has advised that they expect applications falling into this always inspect category will be in the minority.
It is anticipated that there will be a small increase in automatic refusals without inspection. Where the GLA finds clear
evidence of recent non-compliance or criminality through initial intelligence checks, it is probable that they will refuse the
application outright rather than conduct an unnecessary site inspection.
For the majority of applicants, however, it will be up to the GLA to decide whether a license can be granted on the strength
of the application and checks with other government departments alone, or whether inspectors will still need to pay a visit.
The changes are intended to accelerate the application process: a growing business making the transition from sole trader
to limited company could well be granted a license without having to undergo another application inspection as a new legal
entity, provided the GLA are satisfied that the change is being made for legitimate reasons. Likewise, an agency that let their
license lapse as a result may be able to get their license back without having to be re-inspected, provided they reapply
within six months of the license lapsing and have a clear history of compliance.
Item Type:
-
For Contingent Workforce Buyers For Staffing Firms
Implications/ Suggested Actions:
If you are using a gangmaster check that they are licenced.
Implications/ Suggested Actions:
From 1
st
October, the GLA will no longer automatically send an
inspector to check that agency workers are being paid properly and
working under safe conditions before it grants a business or
employment agency a licence to operate.
The change is intended to reduce the administrative burden on
staffing agencies and to accelerate the application process.