SIA_SampleAd

Global Daily News

  • On Assignment revenue up 7% on Apex division growth

    Second-quarter revenue rose 7.4% at Calabasas, Calif.-based On Assignment Inc. (NYSE: ASGN). The increase was 7.6% on a same-billable-days and constant-currency basis.Revenue rose 10.7% in its Apex division but fell 2.3% in its Oxford division, mainly attributable to revenue from two large projects that were substantially completed in 2016.On Assignment ranks 10th on Staffing Industry Analysts’ list of largest staffing firms in the US, with top segments served including IT, marketing/creative and clinical/scientific. (US$ thousands) Q2 2017 Q2 2016 % change Revenue $653,313 $608,088 7.4% Gross profit   $212,937 $202,086 5.4% Gross margin   32.6% 33.2%   Net income $33,097 $26,004 27.3% Quote“Financial performance in the quarter was driven by strong revenue growth at Apex, Creative Circle and CyberCoders,” CEO Peter said in a conference call with investors. “Revenue growth came from our local, mid-market, and large national accounts, reflecting strong customer demand. Our size and service offerings allows us to grow faster than published staffing industry growth rates and we believe that we are well positioned to generate solid above-market revenue growth in the future.” Revenue by segment (US$ thousands) Q2 2017 Q2 2016 % change Apex $502,500 $453,700 10.7% Oxford $150,800 $154,400 -2.3% Permanent placement revenue (US$ thousands) Q2 2017 Q2 2016 % change Apex $11,200 $12,300 -10.0% Oxford $22,100 $21,400 3.6% Consolidated $33,300 $33,700 -1.4% Gross margin by segment   Q2 2017 Q2 2016 Apex 29.9% 30.5% Oxford 41.6% 41.4% Average bill rates   Q2 2017 Q2 2016 Apex $57.81 $55.97 Oxford $100.14 $103.58 Consolidated $63.23 $62.45 GuidanceOn Assignment estimates third-quarter revenue of $660.0 million to $670.0 million, an increase of 4.9% to 6.5%. Share price and market capShares in On Assignment fell 3.31% in early afternoon trading today to $50.00. The company had a market cap of $2.64 billion, according to Yahoo. […]

  • Impellam revenue increases in first half of year

    UK-based staffing and workforce solutions provider Impellam Group plc reported revenue for the first half of this year rose 2.4%, affected by challenging conditions in its UK specialist staffing and healthcare businesses. (£ millions) Half-year 2017 Half-year 2016 % change Half-year 2017 (US$ millions) Revenue £1,077.0 £1,052.0 2.4% $1,396.7 Gross profit £140.1 £139.0 0.8% $181.7 Gross margin 13.0% 13.2%     Profit for the period attributable to owners of the parent company £10.5 £14.9 -29.5% $13.6 Revenue by segment for United Kingdom and North America (£ millions) Half-year 2017 Half-year 2016 % change* Half-year 2017 (US$ millions) Managed services-UK, Europe and Australasia £496.3 £498.1 -0.4% $643.6 Specialist staffing-UK, Europe and Australasia £399.6 £403.7 -1.0% $518.2 Managed services-North America £99.9 £85.2 6.6% $129.6 Specialist staffing-NA America £111.2 £95.7 2.2% $144.2 * Change is in constant currency “Managed services - North America” revenue rose 6.6% on a constant currency basis, and “specialist staffing - North America” revenue edged up 2.2% in constant currency.In the US, managed services was affected by a small number of client losses. In specialist staffing, gross profit growth in the technology and clinical sectors — up 10.9% and 7.0% respectively — was offset by a 12.7% decline in the automotive sector.Impellam’s global managed services brands include Bartech, Comensura, Guidant Group and others. The company’s specialist staffing divisions include Blue Arrow, Coresaff Services, Bartech, SRG, Tate and others. Quote“During the first half of 2017 we have seen our managed services businesses across the world, aimed largely at the contingent workforce, continue to perform in line with expectations; with customer retention at 94% (based on our largest 50 customers), a record number of new programs in implementation and a strong sales pipeline,” said CEO Julia Robertson. “In North America, our managed services and onsite programs continue to perform well with a higher than planned win ratio, although H1 was impacted by the timing of wins over losses.” Share price and market capImpellam shares closed down 7.22% at £648.50, and the company had a market cap of £32.65 billion, according to Yahoo. […]

  • ADP’s PEO revenue rises 16% in fiscal Q4; PEO worksite employees up 12%

    PEO revenue rose 16% at ADP (NASD: ADP) in the company’s 2017 fiscal fourth quarter ended June 30. The Roseland, NJ-based firm provides other services, including paycheck processing. Total revenue rose 6% to $3.06 billion in the quarter, up 7% on an organic basis; however, net earnings declined.Average worksite employees paid by PEO services increased 12% for the quarter to approximately 485,000. (US$ millions) Q4 2017 Q4 2016  % change PEO revenue $886.4 $763.6 16% Revenues other than interest on funds held for clients or PEO $2,073.7 $2,037.3 2% Interest on funds held for clients $104.7 $97.3 8%         Total company revenue (including non PEO) $3,064.8 $2,898.2 6% Net earnings $265.8 $282.0 -6% Quote“We finished the year in line with our expectations, including solid organic revenue growth of 7% benefitting from continued strong performance of our PEO,” President and CEO Carlos Rodriguez said. “We move into fiscal 2018 with confidence in our long-term strategy and will continue to invest in product, service, and sales to advance the value we create for clients and capture market opportunities.” Fiscal-year results (US$ millions) FY 2017 FY 2016 % change PEO revenue $3,464.3 $3,056.5 13% Revenues other than interest on funds held for clients or PEO $8,518.1 $8,234.0 3% Interest on funds held for clients $397.4 $377.3 5%         Total company revenue (including non PEO) $12,379.8 $11,667.8 6% Net earnings $1,733.4 $1,492.5 16% GuidanceFor its full 2018 fiscal year, ADP forecasts its PEO services revenue to rise 11% to 13% and its total revenue to rise 5% to 6%. Share price and market capShares in ADP rose 4.26% in early afternoon trading today to $110.58. The company had a market cap of $49.40 billion, according to Yahoo. […]

  • Jobless claims average unchanged, but initial claims jump 10,000

    The US four-week moving average of initial claims for unemployment insurance was 244,000 last week, unchanged from the previous week’s average, according to seasonally adjusted numbers released today by the US Department of Labor. The previous week’s average was revised upward by 250.The four-week moving average decreases the volatility of the weekly numbers. Total initial claims for unemployment insurance for the week ended July 22 rose to 244,000, up 10,000 from the previous week’s level, which was revised upward by 1,000.Reuters reports the number of Americans filing for unemployment benefits rebounded from a three-month low last week, but remained below a level consistent with a tightening labor market. Claims have been volatile in recent weeks as automakers shut assembly plants for annual retooling. Some manufacturers are extending their summer shutdowns to manage excess inventory from declining sales, and economists say this could be throwing off the model used by the government to strip out seasonal fluctuations from the data, causing swings in the weekly numbers. […]

  • World – Robert Half Q2 revenue and profits decline

    Second-quarter revenue at professional staffing firm Robert Half International Inc. (NYSE: RHI) fell 0.9% on a same-billing day, constant-currency basis, to $1.30 billion in 2017 from $1.34 billion last year. (USD thousands) Q2 2017 Q2 2016  % change Q2 2017 constant currency (same billing days) Net service revenue 1,308,428 1,344,160 -2.7% -0.9% Gross margin 538,438 556,993 -3.3%  N/A Net income 80,316 91,616 -12.3%  N/A The company experienced sluggish hiring in the US but saw better performances from its international operations. Robert Half have 325 staffing locations worldwide, including 83 locations in 17 countries outside the United States.“Second-quarter revenues for the company were strongest internationally, but we also were pleased with the quarter-over-quarter, sequential performance of our domestic staffing operations,” Chairman and CEO Harold Messmer Jr., said. “Every US staffing line of business reported higher sequential revenue growth this year than the same period a year ago.”Revenue growth broken down by segment was as follows: (USD thousands) Q2 2017 Q2 2016 % change Q2 2017 constant currency (same billing days) Accountemps 439,734 460,242 -4.5% -2.8% OfficeTeam 244,369 246,391 -0.8% 0.8% Robert Half Technology 157,832 168,605 -6.4% -5.1% Robert Half Management Resources 156,361 156,845 -0.3% 1.9% Robert Half Finance and Accounting 112,653 113,439 -0.7% -- Protiviti 197,479 198,638 -0.6% 1.1% Revenue growth by geography and temp/perm was broken down as follows: Year-over-year revenue growth rates (constant currency, same billing day)       2016   2017     Q1 Q2 Q3 Q4 Q1 Q2 Global             Accountemps 8.3% 6.5% 4.9% -0.8% -3.3% -2.8% OfficeTeam 3.7% 0.6% -1.3% -3.0% -2.6% 0.8% Robert Half Technology 6.2% 0.9% -1.4% -3.4% -5.2% -5.1% Robert Half Management Resources 7.7% 9.4% 3.7% -1.3% 0.8% 1.9%               Temporary and consultant staffing 6.7% 4.5% 2.1% -1.8% -2.8% -1.6% Permanent placement staffing 8.6% 2.1% -4.5% -4.9% -3.1% 1.4%               United States             Temporary and consultant staffing 7.3% 3.5% 0.6% -3.5% -5.6% -3.5% Permanent placement staffing 11.6% 2.7% -5.0% -8.1% -7.6% -1.6%               International             Temporary and consultant staffing 4.5% 8.9% 8.8% 5.3% 9.4% 6.4% Permanent placement staffing 2.0% 0.8% -3.4% 2.9% 8.4% 8.7% US temporary staffing and consulting revenue fell 3.5% at Robert Half and permanent placement staffing edged down 1.6% following falls in prior quarters. However, international temporary and consulting staffing revenue rose 6.4% in the second quarter and international permanent placement revenue rose 8.7%.For the six months ended 30 June 2017, net income was $159 million (-9.1%), on revenues of $2.60 billion, down from the six months ended June 30, 2016 where net income was $175 million, on revenues of $2.65 billion.Looking forward, management said that it expects hiring activity in the U.S to improve in the forthcoming periods, backed by GDP growth and that it would continue to invest in technology innovations to better serve customers.The Q2 results failed to meet consensus expectations and, in trading yesterday, Robert Half International shares closed at $44.24, down 7.45% on the day and 13.22% below its 52-week high of $50.98, set on 4 January 2017. Based on its current share price the company has a market value of $5.63 billion. […]

  • UK – Impellam revenue up 2% despite UK challenges

    UK recruitment firm Impellam Group (IPEL: LSE) reported revenue for the six months ended 30 June 2017 of £1.07 billion, an increase of 2.4% compared with £1.05 billion during the first half of 2016. (£ millions) H1 2017 H1 2016 Change Revenue 1,077.0 1,052.0 2.4% Gross Profit 140.0 139.0 0.8% Operating Profit 15.4 22.0 -30.0% Revenues and gross profit were impacted by challenging conditions in the group’s UK Specialist Staffing and Healthcare businesses. Gross profit for H1 2017 was down 3.7% on a like-for-like basis. Like-for-like changes for the first half were not announced for revenue or operating profit.The sharp decline in operating profit was attributed to challenging conditions in the UK Specialist markets, the impact of off-payroll working legislation (IR35) in the UK Doctors and Nursing market, increased investment in both IT and the integrating and upgrading of US finance operations. The company stated that actions have been taken to reduce cost to best protect financial performance and significantly improve the conversion of gross profit to adjusted operating profit in the second half of the year.Revenue broken down by segment was as follows: (£ millions) H1 2017 H1 2016 Change Managed Services – UK, Europe and Australasia 496.3 498.1 -0.4% Specialist Staffing – UK, Europe and Australasia 399.6 403.7 -1.0% Managed Services – North America 99.9 85.2 6.6% Specialist Staffing – North America 111.2 95.7 2.2% Inter-segment revenues -30.0 -30.7 N/A Impellam stated that the Managed services businesses in the UK, US, Australia and the Middle East performed in line with expectations, with spend under management increasing by 4.7% to £2.07 billion and 16 new business wins under implementation in H1.  The group added that Healthcare Managed Services continued to perform well in the UK and Australia amid a “turbulent market.”For the group’s Managed Services UK, Europe and Australasia, gross profit increased by 0.7% to £29.8 million (2016: £29.6 million). In Specialist Staffing UK, Europe and Australasia, gross profit decreased by 4.3% to £69.4 million (2016: £72.5 million).US Managed Services gross profit increased by £2.1 million to £24.3 million (2016: £22.2 million). Meanwhile, US Specialist Staffing gross profit increased by £1.9 million to £16.6 million (2016: £14.7 million)."During the first half of 2017 we have seen our Managed Services businesses across the world, aimed largely at the contingent workforce, continue to perform in line with expectations; with customer retention at 94% (based on our largest 50 customers), a record number of new programmes in implementation and a strong sales pipeline,” Julia Robertson, Chief Executive Officer of Impellam, said.“In particular Guidant, Comensura and Lorien in the UK have all delivered strong H1 performances. We continue to win new business in the competitive Healthcare managed services market in the UK as we work with the NHS to provide them with visibility, control and cost savings, and likewise in Australia,” Robertson said.“Our Specialist Staffing businesses, particularly in the UK, have proved less resilient to the unpredictable climate and economy we are experiencing,” Robertson said. “Outside the UK, market conditions are more favourable.”“Whilst we continue to invest in our growing Specialist Staffing markets, actions are in place to reduce headcount and other areas of the cost base to protect the financial performance of this segment,” Robertson said.“In North America our Managed Services and Onsite programmes continue to perform well with a higher than planned win ratio, although H1 was impacted by the timing of wins over losses.  Investment in Managed Services continues in line with increased demand from our customers who recognise the benefits of a high retention proposition, where the focus on controlled talent acquisition is paramount to commercial success,” Robertson said.Looking forward, Robertson commented, “While trading conditions remain challenging, particularly in the UK Specialist Staffing and UK Healthcare Markets, our Managed Services businesses are continuing to perform well across all our geographies. The remainder of the year will see the benefit of our cost reduction actions, our implementations of new Managed Service programmes and our strong sales pipeline. These, combined with the normal uplift in H2 due to the seasonal nature in some of our businesses, means that we expect to see a significantly improved performance in the second half of the year.”In trading today, Impellam Group traded at £647.00, down 7.44% on the day and 7.76% above its 52-week low of £600.40, set on 4 August 2016. Based on its current share price the company has a market value of £351.60 million. […]

  • France – Robust international and domestic performances fuel Synergie revenue growth

    French staffing firm Synergie (SDG: PAR) reported revenue for the second quarter of €580.8 million, up 14.9% compared to the same period last year.  (€ millions) Q2 2017 Q2 2016 Change International 284.4 239.6 18.7% France 296.4 265.9 11.5% Total 580.8 505.5 14.9% Synergie surpassed the billion-euro threshold for the first time for a half-year period during H1 2017.The group stated that after factoring in the number of working days, activity levels improved further in the second quarter and outperformed its markets in several of the countries in which it operates.The group's growth outside of France was up 20.5% in H1, boosted by southern Europe (+29.8 % over six months) and the Benelux countries (+13.7 %), with all other geographical areas also registering growth.Synergie stated that at the start of the third quarter, more than 70,000 employees were placed daily with clients, a new record. These performances result both from investments made (recruitment of consultants, stronger presence in targeted growth sectors, training programmes, etc.) and developments on the markets in which the group operates.Looking forward, Synergie is actively studying new acquisitions to speed up its growth, especially internationally, with the objective of achieving turnover of over €2.2 billion over the current financial year, and a net improvement of its profitability.In trading today, Synergie traded at €39.30, up 0.82% on the day and 18.13% below its 52-week high of 48.00, set on 26 June 2017. Based on its current share price the company has a market value of €949.63 million. […]

  • UK – Supreme Court rules employment tribunal fees unlawful

    The UK Supreme Court ruled that fees for employment tribunals introduced by the government in 2013 are unlawful and the government will have to repay up to £32 million to claimants.Trade union Unison stated that the fees, which could reach up to £1,200, prevented workers from accessing justice. They pointed to statistics that showed 79% fewer cases were brought over a period of three years since the fees were introduced.“The Government is not above the law, but when ministers introduced fees they were disregarding laws many centuries old, and showing little concern for employees seeking justice following illegal treatment at work,” Unison general secretary Dave Prentis said. "These unfair fees have let law-breaking bosses off the hook these past four years, and left badly treated staff with no choice but to put up or shut up."We'll never know how many people missed out because they couldn't afford the expense of fees."The Supreme Court also found that the tribunal fees were indirectly discriminatory because a higher proportion of women would bring discrimination cases.“This is a massive win for working people. Congratulations to UNISON for doggedly pursuing this case,” Trades Union Congress General Secretary Frances O’Grady said. “The result shows the value of working people standing together in trade unions. Too many low-paid workers couldn’t afford to uphold their rights at work, even when they’ve faced harassment or have been sacked unfairly.”“Tribunal fees have been a bonanza for bad bosses, giving them free rein to mistreat staff. Any fees paid so far should be refunded as soon as possible,” O’Grady said.Recrruitment and Employment Confederation Chief Executive Kevin Green also commented, “Fair treatment at work and equal access to justice is the foundation of a modern, successful labour market. The government needs to think again about its management of the tribunal system. As we predicted at the time, the imposition of these fees deterred too many people from seeking redress against bad corporate behaviour. However, Ministers must keep in mind that the system wasn’t perfect before and that significant backlogs of cases and too many vexatious claims caused unjust delays for legitimate complainants. They need to strike a balance where workers’ rights are protected and compliant businesses are not burdened by having to address spurious cases.”Justice minister Dominic Raab stated that the government would cease taking fees for employment tribunals immediately and start processing reimbursements for claimants, dating back to 2013. […]

  • India – Info Edge invests $1.8 million in two minority investments

    Info Edge India Ltd, the Indian job board, has invested a total of INR 115 million (USD 1.8 million) in two companies. The job board invested INR 80 million (USD 1.25 million) in Green Leaves Consumer Services and INR 35 million (USD 0.55 million) in Wishbook Infoservices through its wholly-owned subsidiary.The group stated that the objective of the investment is to diversify its presence into a new line of business within the internet services industry.Green Leaves Consumer Services provides on-demand in-home beauty services through placing an online request. After the investment, the aggregate shareholding owned by Info Edge is a 49.37% stake in Green Leaves Consumer Services."The aggregate shareholding of the company (Info Edge) in Wishbook would be 21.88 per cent on fully converted and diluted basis," Info Edge said. Wishbook specialises in information technology services. The company runs a business which offers "Wishbook Catalog App", allowing catalog distribution from manufacturers to distributors to wholesalers to retailers and allowing the salespersons to show catalogs & take orders.No further details were disclosed. […]

  • India – Union Cabinet approves wage code bill

    India’s union cabinet cleared a new wage code bill which will ensure a minimum wage across all sectors by integrating four labour related laws.The Labour Code on Wages Bill would combine the Minimum Wages Act, 1948, the Payment of Wages Act, 1936, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976.The proposed legislation is expected to benefit more than 40 million employees across the country.The new minimum wage norms would be applicable for all workers regardless of their pay. At present, the minimum wages fixed by the central government and states are applicable to workers getting up to INR 18,000 (USD 280.80) pay monthly. Once approved by the Parliament, a universal minimum wage for all industries and workers would be guaranteed, including workers receiving a monthly pay higher than INR 18,000 (USD 280.80) […]

  • China – Hays continues expansion in China with opening of Shenzen office

    International recruitment firm Hays has opened a new office in Shenzen which brings the total number of offices in China to six.The number of cities in Greater China that Hays operates in includes Beijing, Guangzhou, Hong Kong, Shanghai and Suzhou.“The decision to expand Hays’ presence into Shenzhen is a logical step in our overall business growth strategy for Greater China,” Simon Lance, Managing Director of Hays Greater China said. “Shenzhen is the location for the headquarters of a number of home-grown multinational high-tech companies and is also to home to mainland China’s first SEZ (Special Economic Zone). Shenzhen’s close proximity to Hong Kong and continuing growth in high-tech industries, financial services, foreign trade and export sectors, will ensure it continues to be a critical labour market for the future. We are excited to expand our service offering in Southern China to Employers and are looking forward to working with our Clients and Candidates over the coming years.”Initially, the Shenzhen office will focus on banking, human resources, IT & digital, manufacturing & operations and supply chain. Hays already supports candidates and notable clients in the Shenzhen area from their office in Guangzhou, however the company states that the opening of a standalone office will further strengthen their effectiveness and efficiency in the city. […]

  • India – Government bans driverless cars to protect jobs (BBC)

    India’s Minister for Road Transport and Highways and Shipping Nitin Gadkari has said that driverless cars will not be allowed in India because it will not promote technology that comes at the cost of jobs, reports the BBC. Gadkari added that while India was short about 22,000 commercial drivers, the government was working on opening 100 training facilities in order to recruit 5,000 more professional drivers over the next few years. "In a country where you have unemployment, you can't have a technology that ends up taking people's jobs," Gadkari said. However, he added that he would not rule out the idea of a policy change in the future. A number of businesses such as Uber, BMW and Tesla are testing driverless cars across the US, South Korea, Germany and other countries. […]

Latest Research

  • Largest IT Staffing Firms in the United States: 2017 Update

    Key Findings We estimate that 43 firms generated at least $100 million in US information technology temporary staffing revenue in 2016. Added together, these firms generated $18.0 billion in such revenue, accounting for 63% of the market, by our estimates. The complete list of 43 firms can be found starting 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, we reserve the right to adjust data for the sake of consistency. Therefore, for all firms in this report, revenue shown should be considered an estimation by Staffing Industry Analysts. Market share percentages in this report were calculated by dividing each company’s revenue figure by our estimate of $28.6 billion for the US IT temporary staffing market in 2016. Overall, we believe that this list is accurate and can be used appropriately to get a “big picture” reading of the US IT 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. Three firms are included on this year’s ranking that did not appear in last year’s report: NTT Data, Principle Solutions Group, and V-Soft Consulting. Additional details on the methodology of this report are provided on page seven. Please select the following link to download the full report: Largest IT Staffing Firms in the US 20172107 - You do not have permission to view this object. […]

  • Largest Office Clerical Staffing Firms in the United States: 2017 Update

    Key Findings We estimate that 14 firms generated at least $100 million in US office/clericaltemporary staffing revenue in 2016. Added together, these firms generated $7.6 billionin such revenue, accounting for 42% of the market, by our estimates. The complete listof 14 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 firmwith a higher rank provides better service or more value to its shareholders. Staffing firms varied in degree of financial transparency, and even when forthcomingwith information, we reserve the right to adjust data for the sake of consistency.Therefore, for all firms in this report, revenue shown should be considered anestimation by Staffing Industry Analysts. Market share percentages in this report were calculated by dividing each company’srevenue figure by our estimate of $18.2 billion for the US office/clerical temporarystaffing market in 2016. Overall, we believe that this list is accurate and can be used appropriately to get a “bigpicture” reading of the US office/clerical temporary staffing industry landscape.However, as transparency and availability of information from staffing companies canvary from one year to the next, this year’s estimates may not be comparable to thoseof previous years in all cases. For that reason, we did not display prior year revenueestimates 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 Office Clerical Staffing Firms in the US 20172107 - You do not have permission to view this object. […]

  • Largest Industrial Staffing Firms in the United States: 2017 Update

    Key Findings We estimate that 35 firms generated at least $100 million in US industrial temporary staffing revenue in 2016. Added together, these firms generated $22.5 billion in such revenue, accounting for 69% of the market, by our estimates. The complete list of 35 firms can be found starting 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, we reserve the right to adjust data for the sake of consistency. Therefore, for all firms in this report, revenue shown should be considered an estimation by Staffing Industry Analysts. Market share percentages in this report were calculated by dividing each company’s revenue figure by our estimate of $32.5 billion for the US industrial temporary staffing market in 2016. Overall, we believe that this list is accurate and can be used appropriately to get a “big picture” reading of the US industrial 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. Four firms are included on this year’s ranking that did not appear in last year’s report: Accurate Personnel, AllStaff, Hospitality Staffing Solutions, and MVP Staffing (Personnel Staffing Group). Additional details on the methodology of this report are provided on page six. Please select the following link to download the full report: Largest Industrial Staffing Firms in the US - 20170721 - You do not have permission to view this object. […]

  • Companies Looking to Acquire Staffing and Workforce Solutions Firms: 2017 Update

    Key Findings This report details the preferences of 208 staffing firms regarding the type of acquisition target that they would be most interested in pursuing. Firms provided their top three preferences regarding market segment and target geography, along with the name and email address of the best person to contact for those interested in selling a firm that matches the stated criteria.  The full list of companies appears on pages 7 through 26 of this report, with a table of contents on page 3.In analyzing the full list of company preferences as a whole, we observe that healthcare and IT staffing were by far the most popular choices for target segments, with nearly half of the companies reporting either one or the other as a first preference. 150 firms indicated the United States as a first choice target geography. Among the five possible US region choices, the Midwest was selected most frequently, followed by the Northeast, Southeast, West and South.  Germany was the most frequently targeted geography outside of the US, followed by Australia, Europe-other, United Kingdom and India.   In addition to sharing top segment and geographic preferences, 54 firms also provided open-ended comments regarding their target criteria for an acquisition. Please select the link below to download the full report. Companies looking to acquire workforce solutions firms 20170719 - You do not have permission to view this object. […]

  • An Overview of the German Staffing Market: 2017 Update

    • According to the Federal Employment Agency (Bundesagentur für Arbeit/BA) there was an average of 990,792 temporary workers per month throughout 2016, the highest average on record.• The Act on the Transfer of Employees (Arbeitnehmerüberlassungsgesetz or AÜG) was passed in 1972 regulating the commercial transfer of workers. Amendments to the AÜG came into force on 1 April 2017 reintroducing a maximum duration for the assignment of an individual temporary worker to a client.• Germany ranked as the joint 9th most attractive staffing market in 2017 in SIA’s ranking of over 60 staffing markets. The German market may be less mature than others in Continental Europe (it was only deregulated in the 1990’s), but it has grown into the second largest staffing market in the region. It is currently a favoured destination for staffing firms wishing to expand abroad. Professional staffing segments such as IT, Finance & Accounting, and Engineering, are the typical sectors of choice for foreign companies entering this market (see page 14).• This report should be read in conjunction with our ‘Largest Staffing Firms in Germany 2017’ report (to be released in late July 2017)To download a full copy of the report, click below: An Overview of the German Staffing Market 20170721 - You do not have permission to view this object. […]

  • Largest Staffing Firms in Belgium: 2017 update

    We estimate that the Belgian staffing market was worth €7 billion in 2016 and increased by +7% compared with 2015. The market is fairly consolidated and is dominated by Randstad, with a market share of 18%. Recruit’s local subsidiary, USG people is the second largest staffing firm (10% of market share), followed by House of HR (6.4%), Adecco (6.2%) and ManpowerGroup (5%). Together, these firms account for 45% of the market. Overall the Top 40 firms accounted for 86% of the market in 2016. Firms with revenues in the €20 million to €60 million range clearly outperformed the rest of the market. We have ranked companies by revenue, 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. The complete list can be found from page six onwards. Our definition of staffing and the methodology for this report can be found on page eight. To download a copy of the report, click below: Largest Staffing Firms Belgium 20170720 - You do not have permission to view this object. […]

  • Companies Looking to Acquire Staffing and Workforce Solutions Firms: 2017 Update

    Key Findings This report details the preferences of 208 staffing firms regarding the type of acquisition target that they would be most interested in pursuing. Firms provided their top three preferences regarding market segment and target geography, along with the name and email address of the best person to contact for those interested in selling a firm that matches the stated criteria.  The full list of companies appears on pages 7 through 26 of this report, with a table of contents on page 3.In analyzing the full list of company preferences as a whole, we observe that healthcare and IT staffing were by far the most popular choices for target segments, with nearly half of the companies reporting either one or the other as a first preference. 150 firms indicated the United States as a first choice target geography. Among the five possible US region choices, the Midwest was selected most frequently, followed by the Northeast, Southeast, West and South.  Germany was the most frequently targeted geography outside of the US, followed by Australia, Europe-other, United Kingdom and India.   In addition to sharing top segment and geographic preferences, 54 firms also provided open-ended comments regarding their target criteria for an acquisition. Please select the link below to download the full report. Companies looking to acquire workforce solutions firms 20170719 - You do not have permission to view this object. […]

  • Middle East

    In this report, we round up the legal developments affecting the workforce solutions ecosystem in Middle East & Africa in Q2 2017: Israel: Duty to notify candidate that employment is temporary Agreement shortens the working week and extends rights for new parents South Africa: Temporary services employees are deemed to be employees of the client Intermediary is the deemed employer  To download a pdf copy of this update click below: MiddleEastAfrica_LegalUpdate_Q2_20170714 - You do not have permission to view this object. 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. Israel Duty to notify candidate that employment is temporaryThe Labour Court recently ruled that employers have a duty to inform prospective employees that the job that is offered to them is temporary and could be terminated at the end of a brief period, irrespective of their performance.The case (Labour Dispute 19330-10-11, Kochava Kashani v Arnon(Paz) 1985 Ltd) concerned an employer in the tourist industry, which recruited an employee during the tourist season. At the end of the tourist season, the employer terminated the employment contract due to redundancy. The court awarded the employee damages due to a breach of the duty to notify the employee before engagement that the job being offered was temporary.The court ruled that in cases in which an employer is aware of facts that could influence the candidate's decision to accept employment on the terms being offered, the employer must divulge these facts to the candidate. In the absence of other information, a candidate is entitled to assume that if he or she carries out the job satisfactorily, he or she can remain in employment indefinitely. Accordingly, an employer that knows in advance that the employment offered is of limited duration, but does not disclose this to the candidate, breaches the duty of good faith provided for by Section 12 of the Contracts Law 1973.The severity of the breach is affected by the extent to which the employer knew or should have known of circumstances which would exacerbate the damage caused to the employee. Examples cited by the court included a candidate who resigns from another job to take up the employment, and an employee who waives IP rights on the basis of an expectation of indefinite future employment with the new employer.If employment is for a fixed or temporary period employers must inform the prospective employee of this fact. A failure to do so could lead to a claim for damages. Agreement shortens the working week and extends rights for new parentsFrom 1 July 2017, the provisions of a new general collective agreement (the "Agreement") come into force, shortening the work week. The Agreement was signed by the Presidium of Business Organisations (which includes the Manufacturers' Association and a list of bodies representing various employers in the commercial sector) and the New General Workers' Union (the Histadrut).The main provisions regarding the reduction in the work week are as follows: The length of the work week is shortened by one hour, from 43 working hours per week to 42 hours. The shortening of the work week will be effected through the reduction of one hour's work on a specified day of the week. The exact day of the week will be based on the demands of work and, to the extent possible, taking into consideration employee requests and their needs. Employees asked to work during the "deducted" hour due to work needs will be paid in accordance with the overtime provisions for this hour. The hourly wage will be calculated on the basis of 182 working hours per month (rather than the current calculation which is based on 186 hours per month). Where work is carried out in shifts, the employer may set the hours for each shift and the shift schedule based on work needs and in a manner suitable for the shortening of the work week. The provisions of the Agreement do not detract from existing beneficial agreements and arrangements in various workplaces and do not apply to those who are exempt from the Hours of Work and Rest Law, 5711-1951 (the "Law").It is further provided that the parties should conduct negotiations between themselves in order to try to achieve an alternative arrangement for shortening the work week through extending the weekend to include intermittent Sundays. To the extent that this is achieved, it will replace the aforementioned agreements. The Agreement also contains provisions on night work, the extension of maternity leave and expands the rights of the spouse of a new mother.For the Agreement to take effect the parties to the Agreement must approach the Minister of Labour, Welfare, and Social Services in order to obtain approval to the arrangements set out in the Agreement. Similarly, the parties may approach the Minister with an application for the issuance of an extension order to apply the provisions of the Agreement to all employees and employers in the market. South AfricaThe 2014 amendments to the Labour Relations Act, 1995 (LRA), improved the standing of "non-standard" employees including Temporary Employment Services (TES) providers (more commonly known as a labour broker) employees. TES employees are employees procured by a service provider to do work for a client company, where the service provider is regarded as the primary employer. The position of employees of TES providers and the provisions of the amended LRA were considered in a series of decisions set out below. Temporary services employees are deemed to be employees of the clientUnder s198A(3)(b)(i) an employee engaged by a TES to render services at a client, who is not performing a “temporary service” for the client, is deemed to be an employee of that client and the client is deemed to be the employer.A “temporary service” is defined as work for a client by an employee for a period not exceeding three months, or as a substitute for an employee of the client who is temporarily absent, or in a category of work and for any period of time which is determined to be a temporary service by a collective agreement concluded in a bargaining council, a sectoral determination or a notice published by the Minister.In a decision in 2015, the Labour Court in Assign Services (Pty) Ltd v CCMA and Others[2015] 11 BLLR 1160 (LC) held that both the TES provider and the client company were jointly and severally liable for any action taken against either or both of them by the employee. The client company was considered to be an employer of the employee only for the purposes of the Act, and not for the purposes of any contractual rights between the provider and TES. Furthermore, the TES provider could never be relieved of its obligations towards the employee simply because the client company was also deemed to be an employer.However, on appeal (NUMSA v Assign Services (Pty) Ltd and Krost Shelving and Racking (Pty) Ltd), on 10 July 2017, the Labour Appeal Court (LAC) found that, once the deeming provision kicks in, the TES falls out of the picture and the client is the sole employer.The LAC considered closely the meaning of the term ‘’temporary service’’ and found that s198A (1) placed emphasis on the nature of the services and not the person rendering the service or the recipient of the service, to determine who the employer of the placed worker is. The court found that a placed worker, earning under the earnings threshold, who does not render a temporary service, is not an employee of the TES, but in terms of s198A(3)(b)(i) is deemed to be the employee of the client and the client is deemed to be the employer of the worker.The LAC found that the sole employer interpretation did not ban the operations of a TES. It, however, regulated the TES by restricting it to genuine temporary employment arrangements in line with the purpose of the amendments to the LRA. The TES remains the employer of the placed employee and is responsible for its statutory obligations only until the employee is deemed the employee of the client.The court concluded that the intention of the amendment was to upgrade temporary service employees to standard employment and free vulnerable workers from atypical employment by the TES. It found that there was no sense in retaining the TES for an indefinite period if the client has assumed all the responsibilities that the TES had before the expiration of the three-month period. The TES was the employer only in theory and an unwarranted ‘’middle man’’ adding no value to the employment relationship.In terms of this judgment, the employment relationship between the placed worker and the client arises by operation of law, independent of the terms of any contract between the placed worker and the TES.Assign Services is likely to appeal this decision to the Constitutional Court which would have the effect of staying the LAC Judgment. Until such time as an appeal is heard the contrary decision of the inferior Labour Court would stand: that s198(2) of the LRA placed beyond doubt that a TES was the employer of the placed workers for the purposes of the LRA and that nothing in the deeming provision invalidated the contract of employment between the TES and the placed workers.The final outcome of this case will be keenly watched by employers who use TES employees. The decision of the LAC makes it clear that the services of TES employees must only be used as a “temporary service” within the meaning in s198 LRA. Employers should therefore review their use of TES employees and ensure they are compliant with the provisions of the LRA. Intermediary is the deemed employer                         In another case brought under the provisions of section 198 of the LRA, the Commission for Conciliation, Mediation and Arbitration (“CCMA”) has provided clarity on the issue of deemed employment in circumstances where multiple contractors are used. Section 198 provides that employees of a TES who earn less than a specified threshold amount and who have been assigned to a client for more than three months will be deemed to be employees of the client.The matter before the CCMA involved Shoprite, one of the largest food retailers in Africa. Shoprite established seven distribution centres (“DCs”) in South Africa initially using a combination of TES provider employees and its own employees to operate the DCs. Shoprite then entered into a service level agreement (“SLA”) with ADfusion Contract Management Services (“ADfusion”), to manage the logistical operation of its DCs and seconded those employees involved in the day-to-day logistical operations to ADfusion. ADfusion contracted with various TES providers to provide it with employees to perform its obligations under the SLA with Shoprite.The TESs’ employees referred a dispute in terms of section 198D of the LRA to the CCMA, seeking a determination that they were employees of Shoprite, in order for them to receive the same conditions of employment as the Shoprite employees. After conciliation failed to resolve the dispute, it was referred to arbitration.The arbitration proceeded on the basis that the requirements of section 198A LRA had been met and that the employees in this case were the employees of the client. However, the question was: who was the client – Shoprite or ADfusion?The employee applicants argued that very little had changed since the introduction of the new arrangement. They continued to work in the same place and perform the same duties as they had previously. Although ADfusion had placed certain managers in the DCs, they still reported to Shoprite managers, who issued instructions and held meetings. They contended that everything ADfusion did was on behalf of Shoprite, and submitted that the arrangement was a sham to avoid giving them the same conditions of employment as those accorded to Shoprite employees.The employee applicants attempted to invoke the provisions of section 200B of the LRA, which provides “For the purposes of this Act and any other employment law, ‘employer’ includes one or more persons who carry on associated or related activity or business by or through an employer if the intent or effect of their doing so is or has been to directly or indirectly defeat the purposes of this Act or any other employment law.”Shoprite argued that the management of DCs did not form part of Shoprite’s core business. Due to the enormous scale of Shoprite’s DCs, ADfusion did not immediately assume total control but this happened in a phased approach. ADfusion’s running of the distribution centres led to an increase of 40% in efficiency.Shoprite further argued that, in order for section 200B to be triggered, the employee applicants had to prove that the arrangement was a simulated transaction or a sham, however, they failed to advanced facts that it was a stimulated transaction.The CCMA’s commissioner found that, by concluding the SLA with ADfusion, Shoprite sought to achieve a legitimate objective i.e., to improve the efficiency of its DCs, and that there was, accordingly, a rational commercial purpose for conclusion of the SLA. There had been no attempt to defeat the objects of the LRA and ADfusion – not Shoprite – was therefore the client.As a consequence, ADfusion was the deemed employer of the applicant employees.This case indicates that in situations where the end client employs an intermediary to manage the TES providers and their employees, it is the intermediary that will be the deemed employer, provided the arrangement is not a sham or designed to avoid such liability. […]

  • Companies Looking to Acquire Staffing and Workforce Solutions Firms: 2017 Update

    Key Findings This report details the preferences of 208 staffing firms regarding the type of acquisition target that they would be most interested in pursuing. Firms provided their top three preferences regarding market segment and target geography, along with the name and email address of the best person to contact for those interested in selling a firm that matches the stated criteria.  The full list of companies appears on pages 7 through 26 of this report, with a table of contents on page 3.In analyzing the full list of company preferences as a whole, we observe that healthcare and IT staffing were by far the most popular choices for target segments, with nearly half of the companies reporting either one or the other as a first preference. 150 firms indicated the United States as a first choice target geography. Among the five possible US region choices, the Midwest was selected most frequently, followed by the Northeast, Southeast, West and South.  Germany was the most frequently targeted geography outside of the US, followed by Australia, Europe-other, United Kingdom and India.   In addition to sharing top segment and geographic preferences, 54 firms also provided open-ended comments regarding their target criteria for an acquisition. Please select the link below to download the full report. Companies looking to acquire workforce solutions firms 20170719 - You do not have permission to view this object. […]

  • Digital Disruption and the Staffing Industry

    • The Fourth Industrial Revolution started in 2011 powered by cyber-physical systems. Cyber-physical systems are computer-based algorithms, tightly integrated with the internet, deeply intertwined, and harnessing a range of exciting technological advances such as artificial intelligence, robotics, 3D printing, virtual/augmented reality, the Internet of Things, cloud computing, self-driving cars, predictive analytics, quantum computing, Blockchain, and big data. Evidence suggests that, whereas new technology was a net job creator in the past, it could now be a job destroyer.• Robots have begun to perform a range of administrative tasks far removed from their more primitive forebears working on the production line while artificial intelligence is doing work across a variety of roles that used to be done by humans. This creates both opportunities and threats for staffing firms.• The impact of automation on your business requires considerable forethought and planning:‒ While some jobs will be lost, others will, undoubtedly be created. The future promises unheard of swathes of jobs within IT, alternative energy and global commerce. In addition to new types of jobs, we will also see increasing demand for certain pre-existing roles.‒ Staffing firms will need to consider the way their services will be delivered, determining what should be automated and what shouldn’t. While it’s highly unlikely the staffing industry will become completely automated, there are activities where the effectiveness and cost of machine power is becoming compelling.‒ Staffing firms should consider the advantages of harnessing machine power to empower their employees and, thereby, provide a better-quality service to their clients.• Employment legislation will inevitably have to evolve to meet the challenge caused by the growth of robotics and artificial intelligence.Click the link below to download the full report:  Digital Disruption and the Staffing Industry 20170713 - You do not have permission to view this object. […]

  • Asia Pacific Legal Update Q2 2017

    In this report, we round up the legal developments affecting the workforce solutions ecosystem in Asia Pacific in Q2 2017: Australia             Licensing for the labour hire industry      National minimum wage increases from 1 July                  New temporary skill shortage visa to replace 457 visa     Payroll provider accessorily liable for employer’s contravention of award              China    New policy on employment of foreigners Japan    Overtime regulations strengthened plus equal pay for dispatch workers  Extension of child care leave       Tighter regulations for transfer and collection of personal information Philippines New guidelines governing contracting Vietnam             New mandatory work permit system To download a pdf copy of this update click below: AsiaPacific_LegalUpdate_Q2_20170711 - You do not have permission to view this object. Australia Licensing for the labour hire industryThe Queensland Government recently introduced the Labour Hire Licensing Bill 2017 into Parliament. When enacted, the Queensland Bill will introduce Australia's first licensing system for the labour hire industry. However, the Victorian government has also announced its intention to introduce a licensing scheme for labour hire providers in its response to the recommendations of the Victorian Inquiry into Labour Hire and Insecure Work, which reported in October 2016.The Queensland Bill provides that a person who wants to provide 'labour hire services' will need a licence to do so. ‘Labour hire services' is broadly defined to mean supplying to another person a worker to do work, regardless of: whether or not the worker is an employee of the provider; whether or not a contract exists between the worker and provider; whether the worker is supplied to another person directly or indirectly, and whether the work done is under the control of the provider. Regulations will be introduced to limit the scope of the definition where the supply of a worker is not a dominant purpose of the business of the provider.Providing labour hire services without a licence, or entering into an arrangement with a labour hire provider who does not have a licence, will incur a maximum penalty of AUD 378,450 (USD 287,645) for a corporation in Queensland. Entering into an 'avoidance arrangement' will also carry a maximum penalty of AUD 378,450 (USD 287,645) for a corporation.Licences have a maximum one-year term and will need to be renewed annually. If the licence applicant is a corporation, each individual concerned with the management of the corporation (not limited to directors), must be a 'fit and proper person,' and the corporation must be financially viable. The licence can be granted subject to conditions.The Queensland Bill has been referred to the Finance and Administration Committee (Committee) for examination. The Committee is due to report on the Bill by 24 July 2017.Meanwhile, the Victorian Department of Economic Development, Jobs, Transport and Resources has been consulting with stakeholders to develop the structure of a licensing scheme for Victoria and to determine what industries should be regulated. National minimum wage increases from 1 JulyMinimum wages increased by 3.3 per cent from 1 July 2017 following a decision by the Fair Work Commission (FWC) to increase the national minimum wage and award rates as well as transitional arrangements for reductions to penalty and Sunday rates for workers in the retail, pharmacy, fast food and hospitality sectors. This amounts to an increase from the previous national minimum hourly rate of AUD 17.70 (USD 13.45) to AUD 18.29 (USD 13.90), or a weekly rate of AUD 694.90 (USD 528.16). Transitional arrangements for penalty and Sunday rates were also introduced from 1 July 2017 in the hospitality, fast food, retail and pharmacy sectors.Further details are provided by PwC Australia. New temporary skill shortage visa to replace 457 visaFollowing the announcement of Prime Minister Malcolm Turnbull in April 2017, that the Subclass 457 visa for foreign workers was to be abolished, details of the new temporary visa restricted to critical skills shortages were published.The 457 visa, which allowed foreigners to live and work in Australia for up to four years, will be replaced with the ‘Temporary Skill Shortage Visa’ (TSS Visa). The new visa programme will comprise two streams – short-term and medium-term – and will be underpinned by more focused occupation lists that are responsive to skill needs and regional variations across Australia. Full implementation of the new visa programme is to be completed by March 2018.Short-term visas will be issued for two years, while medium-term visas will be issued only for more critical skills shortages and for up to four years. Both streams will include mandatory labour market testing with limited exemptions; a new non-discriminatory workforce test; mandatory criminal history checks; a market salary rate assessment and a new two-year work experience requirement. There will be tightened English language requirements for the medium-term stream.The new TSS visa will also include a strengthened training obligation for employers sponsoring foreign skilled workers to provide enhanced training outcomes for Australians in high-need industries and occupations.While the majority of changes will be implemented over the coming 12 month period, the list of occupations has been reviewed and the number of occupations that 457 applicants may fall under has been reduced since 19 April 2017.As part of the announcement, the Government has also noted that there will be some changes introduced to eligibility requirements for permanent employer sponsored visas: tightened English language requirements a requirement for visa applicants to have at least three years’ work experience applicants must be under the maximum age requirement of 45 at the time of application a requirement to pay a contribution to the Skilling Australians Fund, and employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold (TSMIT) set at AUD 53,900 as at 12 April 2016. Increased visa application charges apply across the board for a number of visa applications with effect from 1 July 2017. Payroll provider accessorily liable for employer’s contravention of awardUnder the Fair Work Act 2009 (Cth) ("FWA") employers must pay employees in accordance with any applicable modern award under the FWA. The FWA also provides that a person may be taken also to have contravened that provision if he or she had been in any way, by act or omission, directly or indirectly, knowingly concerned in or party to an offence. This person is referred to as an "accessory" and will be "accessorily liable" if they have "actual knowledge" of the contravention or offence, or were found to have "wilful blindness". This will be the case where there is evidence of a person's knowledge of suspicious circumstances coupled with the person's deliberate failure to make inquiries which may have confirmed those suspicions. In the case of Fair Work Ombudsman v Blue Impression Pty Ltd [2017], the Fair Work Ombudsman ("FWO") commenced proceedings against the respondent employer, Blue Impression Pty Ltd, the owner of a fast food chain, and the employer's accountant, Ezy Accounting 123 Pty Ltd. The FWO alleged that the employer had not paid some of its employees the minimum hourly rate of pay and penalty rates in accordance with the applicable modern award. It was alleged that the accounting firm was involved in and accessorily liable for several of the employer's contraventions of the Fair Work Act 2009 (Cth) ("FWA"). The FWO alleged that the accounting firm had known about the contraventions but that it had continued to process the pay of one of the employees, knowing that it was less than the applicable award rates. The employer made full admissions of the alleged contraventions of the FWA. The accounting firm, however, denied liability and argued that it had been the employer's responsibility to ensure that the amounts paid to employees were paid in accordance with the applicable award. The firm agreed that it had been notified of the FWO allegations, that it had corresponded with the FWO and an employment law expert in relation to these allegations and that it had not updated its payroll system. In reaching his decision, the judge was satisfied that the accounting firm was willfully blind as they knew that the employer was underpaying its employees because it knew the employees' rates in its payroll system were not sufficient to allow the employer to comply with the obligations imposed on it by the applicable award. The firm had been notified of the FWO proceedings against the employer and the entitlements of the employees under the award.  Accordingly, Judge O'Sullivan held that the accounting firm was accessorily liable for the employer's contraventions. This case is a warning to payroll service providers and accounting firms that they should not ignore or be ‘wilfully blind’ to an employer's contraventions of the FWA. If they do ignore misdemeanours, they may be held to be accessorily liable to an employer's breach if the court finds that the employer has contravened the FWA. In this case, the evidence against the accounting firm was clear on its face—the accounting firm had known about the employer's contraventions and had done nothing to ensure that its employees were paid in accordance with the applicable modern award. China New policy on employment of foreignersA new Work Permit Policy (Policy) is being implemented in China.  The Policy had been initially implemented from October 2016 to March 2017 through a pilot program in a number of regions including Shanghai, Beijing, Tianjin, and Shenzhen.  Nationwide implementation of the Policy commenced on April 1, 2017.Previously, foreign workers in China were classified as either (i) foreign employees eligible for an “Employment Permit,” or (ii) foreign employees eligible for an “Expert Permit.” These two permits are now combined into one “Work Permit” that will be assigned to foreign applicants through the issuance of identification (ID) cards with unique ID numbers. Each ID card will belong to one foreign individual for life. Foreign employees with existing work permits may elect to maintain their existing permits until their expiration dates or may convert them to new Work Permits.Foreign applicants for a Work Permit will be divided into three categories based on a scoring system. Credits will be assigned to applicants for Work Permits based on their education, background, salary level, age, time spent working in China, and Chinese language fluency. Many cities now operating under the policy have issued local standards for the scoring system.Category A applies to high-end foreign talent, such as foreigners selected by China’s talent-import plan, those with internationally recognised awards, leading figures in the science and technology industry, and successful entrepreneurs.  There is no limit to the number of foreigners in this category who may receive Work Permits.Category B applies to foreign professionals. Examples include workers who hold a bachelor’s (or higher) degree and have two years of full-time experience related to the work to be performed. The number of foreigners in this category who may receive Work Permits will vary depending on market demand.Category C applies to the remaining types of foreign workers, who are typically non-technical or service workers hired on a temporary or seasonal basis. The number of foreigners in this category who may receive Work Permits is significantly restricted and subject to a quota.The implementation process for the Policy is in its early stages.  Employers should pay close attention to the changing application rules and procedures, and be mindful that when hiring foreign workers in different parts of China the rules will be different. Japan Overtime regulations strengthened plus equal pay for dispatch workersThe Ministry of Health, Labour and Welfare (MHLW) has strengthened overtime-related regulations and their enforcement. On 28 March 2017 the Action Plan for the Realisation of Work Style Reform was published and has since been adopted by the government. A number of related bills are expected to be tabled before the National Diet in 2017.The action plan aims to introduce an overtime regulation with accompanying penalties to address the culture of long working hours. Under the existing legislation, if an employer concludes a so-called '36 agreement' pursuant to the Labour Standards Act with its employees regarding overtime with special conditions, it can engage the employees in unlimited overtime. A survey conducted by the Japanese Ministry of Health, Labour and Welfare found that approximately one in four Monday-to-Friday employees was found to be working in excess of four hours of overtime per day.In principle, overtime will be limited to 45 hours per month and 360 hours per year. Except in special circumstances, penalties can be imposed on employers whose employees exceed these limits in violation of the act. Overtime cannot exceed 720 hours per year (i.e., an average of 60 hours per month) in any case, including where a 36 agreement has been concluded or special circumstances apply.In addition, where employees' workloads are temporarily increased within the 720-hour limit, their overtime hours must be: capped at a monthly average of 80 hours (including holiday overtime) for periods between two and six months; and less than 100 hours (including holiday overtime) for any single month. The exceptions to the rule that limits overtime to 45 hours per month and 360 hours per year can be applied a maximum of six times per year.An expert panel, which will include labour and management representatives, will be established to promote widespread use of the interval system. Under this system, employers must make efforts to ensure a minimum interval between the end of one working day and the start of the next.In following the 'equal pay for equal work' principle, the action plan also aims to align the treatment of regular and non-regular employees, which in turn is expected to improve the working conditions of non-regular employees. The government published the Draft Equal Pay for Equal Work Guidelines in December 2016. In addition to a base salary, the draft guidelines include various other benefits, welfare initiatives and safeguards for balanced and uniform education and training. In order to implement the provisions of the action plan, the Worker Dispatch Act will need to be amended.In light of the action plan, employers will need to review their working hours arrangements, particularly their management of overtime in 2017. Employers will also need to consider their use of dispatch workers and the impact of paying them the same pay and benefits as comparable employees. Extension of child care leavePopulation levels in Japan have stagnated in recent years and are beginning to decline. Japan’s population is projected to fall below 90 million by 2060, with elderly people making up nearly 40% of that number. To address the projected rapid decline in the size of the labour force, the Japanese government is aggressively promoting a work-life balance.The amendment to the Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave (Law no. 76 of 1991)("Act"), etc. was enacted on March 31, 2017. Starting in October 2017, this amendment will allow for a worker to extend the period of child care leave until his or her child reaches two (2) years of age, if the child is unable to enter into a nursery school. Until the amendment takes effect in October, the Act allows for a worker to extend the leave period until a child reaches one and a half (1.5) years of age. Tighter regulations for transfer and collection of personal informationThe amended Act on the Protection of Personal Information (the "Amended APPI"), published on 9 September 2015, which became fully effective on 30 May 2017, tightens regulations for the collection and transfer of personal information.The Amended APPI also abolishes the exemption for small businesses and introduces the category of “sensitive personal information” that is subject to more stringent rules around data processing. A new, independent, regulatory authority, the Personal Information Protection Commission (“PPC”) was established in January 2016 to oversee the implementation and enforcement of the Act.Under the Amended APPI, if a business operator adopts an "opt-out" method whereby data subjects must proactively opt-out of allowing their personal data to be transferred to a third party, the business operator is required to disclose to the PPC, and the public or to the data subject the (i) the provision of personal data to a third party and its purpose of use, (ii) the specific personal data to be transferred, (iii) the method of transfer, and (iv) the opt-out request method, among others. The PPC will then publish this information on its website. The "opt out" option is not be available for sensitive personal information or for offshore transfers.If personal information is to be transferred to an entity outside Japan, the Amended APPI specifically provides that a business must obtain the prior consent of any data subject, where the data is transferred in the course of:(i)                  an offshore transfer by way of merger or business transfer,(ii)                the joint use of personal data by several entities; and(iii)               outsourcing the processing of personal data,unless the foreign country is considered to have adequate measures in place to protect the personal data under the enforcement rules of the Amended APPI, or unless the third party receiving the personal data has established adequate standards for privacy protection.The amendments to the APPI bring Japan’s legal protections for personal data into line with the European Union’s (EU) “white list” of countries that are recognized as having comprehensive data protection. Businesses with operations in Japan should review and update their policies and processes relating to the collection and use of personal data. Employers handling sensitive personal data or transferring personal data to a country outside Japan, should have a process for obtaining consent from the individuals whose data is being collected. US-based companies, in particular, should take care to put in place protections for personal data that is transferred to the US, as the US is not considered by the EU as having adequate protection without additional measures being taken.Further information is provided by Littler Mendelson© 2017.   Philippines New guidelines governing contractingThe Department of Labor and Employment (DOLE) has issued Department Order No. 174, series of 2017 (DO 174), providing a new set of guidelines to govern contracting and subcontracting.DO 174 identifies two arrangements that constitute labour-only contracting, which is prohibited under the law. The first type is when (a) the contractor does not have substantial capital, or it has not invested in tools, equipment, machinery, supervision, work premises; and (b) the contractor's employees are performing activities which are directly related to the main business of the principal. The second type is when the contractor does not exercise the right of control over the performance of the work of its employees.While many provisions of the previous guidelines governing contracting and subcontracting were maintained, the most significant changes introduced by DO 174 include: The registration fee of contractors has been increased to 100,000 and the effectivity of the certificate of registration has been decreased to two years. The capitalization requirement of contractors has also been increased to 5,000,000. Contracting out work through an in-house cooperative, which merely supplies workers to the principal, is a prohibited form of employment arrangement. Prohibition on requiring the contractor's employees to perform functions that are currently being performed by regular employees of the principal. The mandatory provisions in a service agreement between a principal and contractor have been reduced. It is no longer a requirement to include provisions on: (a) Net Financial Contracting Capacity; (b) ensuring compliance with all the rights and benefits of the employees under the Labour Code; and (c) the obligation of the contractor to directly remit the relevant contributions to the Social Security System, Employees Compensation Commission, Philippine Health Insurance Corporation, and the Home Mutual Development Fund.The termination of a service agreement between a principal and a contractor does not automatically result in the termination of the employment of the contractor's employees.Companies that engage the services of contractors should review DO 174 and take appropriate legal advice to ensure that its service contractors are compliant with the new guidelines. It is important to review contracting arrangements to ensure that employers are not engaged in labour-only contracting or other prohibited forms of employment arrangements. Vietnam New mandatory work permit system The Vietnamese Ministry of Labour, Invalids and Social Affairs has been transitioning to a new online work permits application system since April which was piloted in Dong Nai and Vung Tau City. Under the new online system, which aims to reduce processing time for work permits from seven business days to five business days, company representatives will be required to complete immigration applications and upload scanned copies onto the system instead of filing manual submissions of paper applications.As of 1 July 2017, this system is mandatory in Hanoi and will be introduced nationwide. The effective dates for other cities in Vietnam have not yet been announced though these are expected to follow in the coming weeks. Manual submissions will no longer be accepted at the relevant Labour Department offices after the cut-off date. […]

  • VMS Market Developments: Part 2

    In 2016, the Vendor Management System (VMS) market represented $138bn spend under management and grew by an estimated 15% globally, driven primarily by demand in Europe and Asia Pacific as programs expand internationally. The US still dominates the global market, representing a 67% share. As outlined in Part 1 of this report, the VMS market has been steadily expanding geographical capability as well as offering increased functionality to support workers sourced through services contracts (Statement of Work and Outsourced services) which is growing at approximately twice the rate of the overall VMS market. Utilizing the VMS functionality to support SOW services now represents approximately 33% of the total VMS market in terms of spend under management. ERP and FMS integrations continue to develop which are changing the way processes are supported and the way businesses engage with VMS tools.A total of 18 VMS providers submitted sufficient data to qualify for inclusion in this report.Click the link below to download the full report: VMS Market Developments - Part 2 20170707 - You do not have permission to view this object. […]