Global Daily News

  • Global economy grows at slowest pace this year since crisis

    The global economy is slowing, and the International Monetary Fund on Tuesday lowered its economic growth forecast to 3% this year for the world, its slowest pace since the global financial crisis.“Growth continues to be weakened by rising trade barriers and increasing geopolitical tensions,” according to the IMF.“We estimate that the US-China trade tensions will cumulatively reduce the level of global GDP by 0.8% by 2020,” it said. “Growth is also being weighed down by country-specific factors in several emerging market economies, and by structural forces, such as low productivity growth and aging demographics in advanced economies.”Growth is expected to increase to 3.4% in 2020, but that is down 0.2% from a projection earlier this year.Manufacturing has been weak, according to the report. And there are some initial signs of softening in the services sector in the US and the euro area.GDP growth in advanced economies was downgraded to 1.7% for 2019.It forecast US economic growth of 2.4% this year and 2.1% next year. In Canada, economic growth is expected to slow to 1.5% this year before growing 1.8% in 2020. […]

  • TSR revenue falls 10% in fiscal Q1 amid lower average billing rates for IT consultants

    Revenue at TSR Inc. (NASDAQ: TSRI) fell 9.9% in its fiscal first quarter ended Aug. 31. The Hauppauge, New York-based company noted revenue from IT consultants fell 6.2% primarily because of lower average billing rates caused by a shift in business mix with less placements for high-end skills. Also, first-quarter revenue from non-IT workers fell 33.3% because of fewer opportunities for placements at a large customer.The overall number of consultants on billing with customers fell to 375 in the quarter from 389 in the year-ago quarter.Gross margin also narrowed. (US$ thousands) Q1 2020 Q1 2019 % change Net revenue $14,946,562 $16,580,921 -9.9% Gross profit $2,275,510 $2,596,374 -12.4% Gross margin  15.2% 15.7%   Net (loss) income attributable to TSR ($663,014) $37,795 nm “Customer demands for discounts and aggressive pricing combined with a competitive market environment have continued to apply downward pressures on gross margins,” CEO Christopher Hughes said.Selling, general and administrative expenses rose 26.5% to $3.2 million.“Selling, general and administrative expenses increased by $670,000 for the quarter,” Hughes said. “The increase in SG&A was due to an increase in professional and advisory fees of $766,000 in connection with various stockholder lawsuits and the contested proxy solicitation relating to our 2018 annual meeting, which was postponed as a result of these lawsuits and to allow additional time for the board of directors to consider the stockholder proposals to be brought before the annual meeting.”Last month, TSR announced it struck a deal to dismiss litigation and settle a dispute with an investor group. […]

  • Wipro revenue up 4% in fiscal Q2

    IT services firm Wipro Ltd. (NYSE: WIT) reported revenue rose 4% year over year in its fiscal second quarter ended Sept. 30. Gross margin narrowed, but profit rose. (Indian rupees millions) Q2 2020 Q2 2019 % change Q2 2020 (US$ millions) Revenue                 151,256                 145,410 4% $2,141 Gross profit                   43,250                   43,640 -1% $612 Gross margin percentage 28.6% 30.0%     Profit for the period                   25,612                   18,856 36% $363 Wipro reported IT services segment revenue was nearly $2.05 billion, up 2.5% when adjusted for the divestiture of the company’s Workday and Cornerstone on Demand business. The company expects IT services revenue to growth between 0.8% and 2.8% in the third quarter.“We delivered operating margins in a tight range after absorbing the impact of two months of wage hike,” CFO Jatin Dalal said. “Growth remains our priority and we remain invested for future.”Wipro has headquarters in Bangalore, India, and East Brunswick, New Jersey. […]

  • Tech skills matter more than soft skills in legal hiring

    In the legal field, hiring decisions are influenced more by candidates’ technical abilities than by the soft skills, according to 62% of legal employers in a survey by Robert Half Legal.Respondents to the survey included 200 lawyers in the US who work full time at law firms with 20 or more employees or in corporate legal departments at companies with 1,000 or more employees.The survey asked, “When evaluating professionals for open legal positions, which carries more weight: the candidate’s technical skills or his or her soft or nontechnical skills?”In their responses, 19% said they place “much greater weight on technical skills” and 43% said they place “somewhat greater weight on technical skills” for the total of 62%.While 30% were evenly split on the importance of tech skills and soft skills, just 8% placed somewhat greater weight on soft skills and only 1% placed much greater weight on soft skills.The survey also found that cybersecurity ranked as the top area of tech that candidates need to be versed in with 48% of respondents picking it as a competency that candidates need. It was followed by data analytics, with 43% of respondents citing this as an important area. […]

  • Mexico’s GDP shows weakest growth in six years during first half of 2019

    Mexico’s gross domestic product declined 0.5% in the first half of this year to its weakest growth in six years, according to a report by the Federal Reserve Bank of Dallas released Friday.The country’s GDP grew 0.1% in the second quarter after declining 1% in the first quarter.Employment in the formal sector — jobs with government benefits and pensions — declined at an annualized rate of 0.8% in August, the first contraction in 10 years.“Formal sector employment growth has been below average for the past year,” according to the report. “Total employment, representing 54 million workers and including informal sector jobs, grew 2.1% in second quarter 2019, slightly above its 10-year average of 2.0%.&rdquo […]

  • UK – Tribunal rules Capita employee was unfairly dismissed after job share was shifted to full-time

    A Sheffield Employment Tribunal has ruled that an employee who worked for Capita was unfairly dismissed and indirectly discriminated against after her employer attempted to change her job share arrangement to a full-time role.The employee, Mrs J McBride, was employed on a permanent part-time basis with Capita Customer Management Limited where she had worked since 1999 when it was known as Ventura, before it was acquired by Capita.In 2015, McBride gave birth to her third child and went on maternity leave but shortly after the child became ill and in 2017 she submitted a statutory flexible working request to her line manager, citing the continuing difficulty with the health of two of her children.That request was refused but in October 2017 her line manager told McBride that there was the possibility of a job share which she then accepted. However, McBride said that by December 2017 the job share arrangement began to be “diluted”. That was because her line manager gave McBride and her job share co-worker individual responsibility for separate projects and work streams so that there was no longer any shared responsibility for projects.According to the Tribunal, during 2017, Capita Group was experiencing a “highly turbulent time organisationally and operationally” and implemented a turnaround programme for the organisation as a whole. McBride’s line manager told the Tribunal that against this background he had to review the make-up of his team to address the requirements of the new initiative. He felt all roles within his team would need to be carried out on a full-time basis to ensure all core business hours were covered. As such, he did not think a job share would be feasible because of the risks and problems he had “apparently observed previously”. The Tribunal added that there was no evidence of these risks and problems presented.After attempting to seek alternative employment and faced with only the prospect of full-time jobs, McBride was made redundant. She then appealed her decision and subsequently presented her claim to the Tribunal on 28 November 2018. The“The claimant believed that part-time/job share could work where project workloads were allocated appropriately,” Employment Judge Little said. “She pointed out that no concerns had been raised in terms of her performance or delivery or her ability to perform the role on a part-time basis. She also pointed out that she had been told that she delivered more in part-time hours than some people delivered fulltime.Little added that “it seemed clear from the claimant’s pleaded case and from her witness statement that she was in fact contending that redundancy was a sham reason and that the real reason was either her inability to work full-time or her rate of pay.”“Necessarily informed by the matters we have considered when looking at the indirect sex discrimination complaint, we find that the decision to dismiss was outside the reasonable band,” Little stated. “We conclude that a reasonable employer would have given the job share a fair trial period, respecting the detailed plans which the two senior job-sharing employees concerned had prepared and which plan presumably had at least tacit approval from the employer.”“Further, a reasonable employer would not have reached the conclusion that the role worked most effectively “with full-time coverage” unless that reasonable employer was in possession of evidence which supported that observation or conclusion. A reasonable employer would not risk making such an important decision on the basis of impression and opinion unsupported by evidence. Whilst it would be unusual to find that circumstances which led to indirect sex discrimination did not also lead inexorably to a finding of unfair dismissal, we find that regardless of our finding in respect of the Equality Act complaint this dismissal was unfair,” Little said. […]

  • UK – TMP Worldwide acquires social media firm Carve

    TMP Worldwide, a US-based talent acquisition technology business announced that it has acquired Carve, a London-based social media firm.Financial details were not disclosed. The acquisition of Carve is TMP’s fourth acquisition this year. Earlier this month the company acquired Maximum, a recruitment marketing tech company that is based in the Netherlands.“Carve, a London social media firm, has a rich heritage of framing global social strategies that distinctly position its clients as leaders in the marketplace. The company is known for its ability to deliver forward-thinking social excellence for a range of high-profile clients,” TMP stated.Carve's product suite includes a social analytics dashboard to help clients identify trends, support decisions and drive ROI (return on investment), as well as a program to equip client leadership with the tools, understanding and confidence to create meaningful relationships on social.TMP stated that Carve's solutions complement TMP's TalentBrew recruitment marketing platform, which predicts, personalises and influences the candidate experience to help companies build and retain the right talent."Carve's social capabilities enhance our existing technology and support our vision of comprehensive talent acquisition solutions that utilise extensive data sets to solve business problems," Michelle Abbey, President and CEO of TMP Worldwide, said. "This acquisition bolsters our ability to design and deploy sophisticated social strategies, leveraging Carve's proven solutions to equip clients with a substantial competitive advantage in today's war for talent. Carve's live social dashboard delivers real-time monitoring and metrics, providing continuous ability to fine-tune campaign effectiveness. It's an end-to-end solution in the pursuit of client success."Paul Harrison, CEO of Carve also commented, "The acquisition will allow Carve to take advantage of TMP Worldwide's global network and local market expertise across North America, South America, Asia and Europe, providing scale and reach as we expand our mission of helping world-leading organizations use social to build meaningful relationships with candidates, customers, influencers and industry stakeholders."The company will continue to operate as Carve and be led by its current Chief Executive, Paul Harrison, with Darren Harris joining Carve as Managing Director. […]

  • Ireland – Seasonal and part-time jobs on the rise, hospitality sector leads the way

    The number of seasonal and part-time roles has increased by 73% in the past five years, according to data from jobs site jobs.ie.The largest rise in the seasonal and part-time jobs was seen in the hospitality sector as 39% of jobs posted were for hotels while restaurants and caterers accounted for 18%.Christopher Paye, General Manager at Jobs.ie said that as job opportunities increase, so does the competition for talent."This year alone, businesses began to advertise Christmas roles as early as the summer months. With more positions available than ever, it’s becoming an increasingly challenging environment for employers,” Paye said. “August, September and October, continue to be the busiest months for Christmas recruitment suggesting that there is value in recruiting early."Despite the increase in part-time and seasonal roles, jobs.ie found that the number of Christmas jobs available in retail has fallen back by 16% this year when compared to the same period in 2018. […]

  • Switzerland – Most jobseekers would consider interim employment: PageGroup

    The majority, or 73%, of jobseekers, would consider interim or temporary employment, according to the latest PageGroup Confidence Index for the third quarter of 2019.The Index showed that 60% of jobseekers would consider interim or temp employment to gain increased skills and experience, and 52% would do so to have the chance to become a permanent employee.At the same time, jobseekers’ confidence levels about finding a permanent job within three months dropped by -8% between Q2 and Q3 2019. Less than half of candidates, or 48%, across Switzerland, expect to find a permanent job within this period. The trend is particularly evident in the Swiss German region where 38% expect to find a job within 3 months compared with the Swiss Romande (52%).Candidate expectations declined across a number of other key confidence measures, between Q2 and Q3 2019 including, achieving work life balance (-13%), increasing compensation levels (-5%) and improving career development options (-2%).Meanwhile, overall confidence in the Swiss labour market dropped by 10%.Nicolai Mikkelsen, Executive Director of PageGroup Switzerland, commented, “In certain industries the best way to attract talent is though interim and temporary offers. Either there are not enough qualified candidates to fill available roles or candidates prefer to develop their skills across a variety of projects. This is the case, for example, in the IT and real estate sectors”. […]

  • Australia – Freelancer.com reports fastest-growing jobs in Q3

    Data analytics and virtual assistant jobs ranked among the fastest-growing jobs on Freelancer.com’s online staffing platform in the third quarter, the company reported today.The company’s report detailed all the fastest-growing and fastest-decreasing jobs posted on its platform.The number of data analytics jobs rose by 58.89% in the third quarter from the second while the number of virtual assistant jobs rose by 55.57%.Citing an outlier, Freelancer.com also noted that book-writing jobs for fiction and nonfiction rose quickly, to No. 19 among the fastest-growing list that was otherwise filled by administrative- and technology-focused jobs.Freelancer.com ended Q3 2019 with over 38 million users globally, including 660,000 users in Australia, 1.1 million users in the UK, and 4.6 million users in the US. During Q3 2019 473,000 jobs were posted globally on Freelancer.com.Here are the fastest-growing jobs on Freelancer.com in the company’s third-quarter report:   Job type Job count Q2 2019 Job count Q3 2019 % increase 1 Data Analytics                 1,114                 1,770 58.89% 2 Virtual Assistant                 7,925               12,329 55.57% 3 Microsoft Office                 2,683                 4,137 54.19% 4 Copy Typing                 6,988               10,692 53.01% 5 Transcription                 2,615                 3,981 52.24% 6 Word                 3,642                 5,512 51.35% 7 Russian                 1,371                 2,069 50.91% 8 Bookkeeping                 1,525                 2,234 46.49% 9 Email Handling                 2,134                 3,126 46.49% 10 Customer Support                 2,956                 4,229 43.06% 11 Freelance                 1,117                 1,573 40.82% 12 Data Entry               28,706               39,439 37.39% 13 Customer Service                 2,889                 3,927 35.93% 14 Data Processing               15,017               20,098 34.90% 15 Web Search               10,610               14,262 34.42% 16 Excel               23,389               31,233 33.54% 17 PDF                 3,122                 4,159 33.22% 18 React.js (Javascript interface library)                 2,653                 3,450 30.04% 19 Book Writing                 2,134                 2,766 29.62% 20 English               20,402               26,215 28.49% 21 Spanish (Spain)                 1,223                 1,547 26.49% 22 Internet Research                 2,426                 3,051 25.76% 23 Digital Marketing                 1,419                 1,774 25.02% 24 French                 2,209                 2,754 24.67% 25 BPO                 1,428                 1,777 24.44% Here are the job types where demand is declining the most quickly:   Job count Q2 2019 Job count Q3 2019 % decrease Job Type 1 C++ Programming                 8,060                 7,574 -6.03% 2 Civil Engineering                 1,041                     970 -6.82% 3 Arduino (open-source platform)                 1,814                 1,688 -6.95% 4 Adobe Flash                 1,270                 1,175 -7.48% 5 Machine Learning (ML)                 2,910                 2,683 -7.80% 6 Research Writing               14,444               13,228 -8.42% 7 Database Programming                 1,521                 1,390 -8.61% 8 Swift                 2,291                 2,091 -8.73% 9 Programming                 1,425                 1,298 -8.91% 10 Statistics                 2,361                 2,142 -9.28% 11 PCB Layout                 1,317                 1,191 -9.57% 12 Mathematics                 2,712                 2,451 -9.62% 13 Electronics                 3,499                 3,147 -10.06% 14 Objective C                 3,388                 3,032 -10.51% 15 Shopping Carts                 1,398                 1,250 -10.59% 16 Microsoft Access                 1,034                     914 -11.61% 17 Computer Security                 1,240                 1,094 -11.77% 18 Network Administration                 2,159                 1,901 -11.95% 19 Report Writing                 6,791                 5,955 -12.31% 20 Engineering                 4,764                 4,148 -12.93% 21 Electrical Engineering                 3,960                 3,444 -13.03% 22 Statistical Analysis                 1,664                 1,422 -14.54% 23 Algorithm                 3,270                 2,782 -14.92% 24 Mechanical Engineering                 2,605                 2,093 -19.65% 25 Matlab and Mathematica                 3,322                 2,531 -23.81% […]

  • India – Metro cities see share of delivery job searches plunge: Indeed

    The leading Indian metro cities of Bengaluru, Mumbai, New Delhi and Hyderabad together saw 24% of all delivery job searches nationally between September 2018 and August 2019, a 16% drop from the previous year, according to data from job site Indeed.In the previous year (between October 2017 and September 2018), these cities saw 40% of all delivery job searches nationally. Bengaluru, which was leading in terms of job searches last year, has seen the number of job searches drop by almost one third. City Increase in job searches between Sep 2018 and Aug 2019 Increase in job searches between Oct 2017 and Sep 2018 Bengaluru 5% 14% Mumbai 8% 10% New Delhi 4% 10% Hyderabad 7% 6% Share of national total 24% 40% The metro cities of Bengaluru, Mumbai, New Delhi and Hyderabad together held a national share of 19% of all job postings for delivery roles, between September 2018 and August 2019.Previously, these cities held a share of 27% of all job postings nationally (between October 2017 and September 2018). Indeed reported a drop of 8% in this share, possibly indicating the shift of these job roles to other cities. City Increase in job postings between Sep 2018 and Aug 2019 Increase in job postings between Oct 2017 and Sep 2018 Bengaluru 4% 4% Mumbai 3% 8% New Delhi 9% 12% Hyderabad 3% 3% Share of national total 19% 27% Indeed also found that jobseeker interest in delivery jobs continues to remain higher than the number of available job postings for such roles.The average monthly salary (based on Indeed data) for delivery roles however, remains largely consistent; the monthly average salary for the role was calculated as INR 15,531 (USD 216.98) (between September 2018 and August 2019); compared to the monthly average of INR 15,772 (USD 220.40) previously (between October 2017 and September 2018).Sashi Kumar, Managing Director, Indeed India, commented, “With the emergence of several internet service companies that cater to various consumer demands – be it food ordering, online shopping or simply delivering goods from one place to another – job opportunities for delivery roles have emerged in many markets. Even as metro cities see a decline in job seeker interest as well as availability of job openings for delivery roles, with more companies finding greater visibility and achieving more penetration in tier II and III markets (tier II and tier III cities), it follows that the requirement and availability of these job roles too has shifted to these newer markets.&rdquo […]

  • Asia Pacific – Majority view workplace AI and automation positively: PersolKelly

    The Asia Pacific workforce has a positive perception of automation and AI while the majority of employees and hiring managers believe it will increase work efficiency and productivity, according to a report from PersolKelly.PersolKelly’s report found that 68% of employees and hiring managers in Asia Pacific believe AI and automation will increase work efficiency while 67% believe it will make their job easier. Meanwhile, 63% believe it will make them more productive and perform at their job better while 57% believe it will improve the company’s bottom line.The report also found that automation and AI are gaining presence in APAC organisations. Between APAC markets, China and India lead the way in adoption of AI and automation while Taiwan, Hong Kong, Australia and South Korea are lagging behind in adoption.Looking ahead, 68% of APAC employees and hiring managers believe that the 25% or less of the workforce would be replaced by automation and AI in the next two years. […]

  • Australia – Non-profit family organisation to back-pay workers after breaching workplace laws

    North Queensland organisation Catalyst Child and Family Services Ltd will back-pay workers approximately AUD 200,000 (USD 135,200) after breaching Australia’s workplace laws.The registered not-for-profit organisation has entered into a court-enforceable undertaking with the Fair Work Ombudsman after self-disclosing that it had underpaid up to 200 current and former employees.Catalyst Child and Family Services provides residential care services for children and young people in the care of the Queensland Government’s Department of Child Safety, Youth and Women, primarily in the Cairns and Townsville regions.The organisation alerted the regulator earlier this year after a review found it had underpaid overtime rates, allowances for shift, on-call and sleepover allowances and made errors in classifying employees since it began operating in 2013.The affected employees were mainly social services workers, including care workers in youth and residential homes.Fair Work Ombudsman Sandra Parker said that a court-enforceable undertaking was appropriate as the organisation had self-disclosed the underpayments and expressed a strong commitment to back-paying workers and overhauling workplace practices.“Catalyst Child and Family Services has not only breached workplace laws, it has let down committed employees that form the backbone of its organisation and fallen short of community expectations,” Parker said. “They must provide evidence of having developed systems and processes to ensure future compliance.”“The Fair Work Ombudsman will closely monitor compliance with the court-enforceable undertaking and will not hesitate to litigate if there are breaches,” Parker added.Under the terms of the court-enforceable undertaking, Catalyst Child and Family Services must fund a Fair Work Ombudsman-approved external auditor to quantify the underpayments since 2013 and rectify all underpayments and superannuation within 12 months.The organisation must also fund three audits of payment practices over the next two years and rectify any underpayments discovered.Under the undertaking, they must also apologise to affected workers; display public, workplace and online notices detailing its breaches and information about employee entitlement and complete online courses for employers. […]

Latest Research

  • SIA New Orders Index: September 2019 Update

    SIA New Orders IndexThe SIA New Orders Index was 45 in August, suggesting growing demand levels for the US staffing industry. The index was up slightly from the last reading of 40 in June.The index reflects the net percent of staffing firms in SIA’s Pulse Survey that reported an increasing trend in new orders during the past three months. The index is a diffusion index with possible values ranging from -100 to 100, and is calculated as the percent of firms reporting an increasing trend minus the percent reporting a decreasing trend. Index values above zero suggest net growth in new orders for the industry. In August, 58% of staffing firms reported an increasing trend in new orders, 13% indicated a decreasing trend, and 29% reported a stable trend.The accompanying graph shows the SIA New Orders Index values since 2012, when data collection began. During this period, with the US economy expanding, the index has generally stayed above 30, with broadest growth experienced during 2014-2015. Looking at the more recent past, the index maintained robust levels during most of 2018, a trend that has largely continued this year. […]

  • SIA Staffing Index: September 2019 Update

    SIA Staffing IndexThe SIA Staffing Index was 30 in August, suggesting moderate breadth of year-over-year revenue growth in the US temporary staffing industry. The index value was down from the reading of 35 in June, and well below the recent peak of 48 reached in February. The index indicates the net percent of temporary staffing firms that reported positive revenue growth in SIA’s Pulse survey, calculated as percent of firms reporting growth minus percent of firms reporting decline. The SIA Staffing Index is a diffusion index with possible values ranging from -100 to 100, and index values above zero suggest expansion across the industry.The accompanying graph shows the SIA Staffing Index values over the past decade. Consistent with the economic cycle, the index has moved from negative values in 2009 to a pattern of growth during the economic expansion. After some slower patches in 2016 and 2017, the index has indicated robust growth across the industry in 2018, with a trend of decelerating expansion evident so far this year.More information about SIA research surveys can be found here. […]

  • The Talent Crunch: Recruiting and Retention Strategies in a Tight Labor Market

    Sponsored by Netspend  Job openings in the U.S are at all-time highs, while unemployment rates are at record lows, creating a massive labor shortage. Companies are struggling to attract and retain top talent in a cost efficient way, impacting their efforts to be successful and keep their competitive edge. How is your company addressing this “Talent Crunch”?Join Netspend and Staffmark industry experts in this insightful webinar that took a deep dive into innovative ideas to compete in the current job market, lower turnover rates, drive employee retention and improve cost efficiencies. Staffmark shared how the talent crunch is impeding their efforts and how they are addressing it. Netspend unveiled research from their recently commissioned study with the American Payroll Association, demonstrating ways companies have adapted their payroll processes to improve recruiting and retention and meet the needs of a diverse, multi-generational workforce. Moderator:Adrianne Nelson, Senior Director Global Membership Products, CCWP, Staffing Industry Analysts Speakers:Andrew Garner, Vice President for Commercial Prepaid, NetspendCarla McKelvey, SVP of Talent Engagement and Culture, Staffmark GroupDownload Presentation (PDF)Select the play button to begin viewing. […]

  • Engineering Growth Assessment Globally

    Global engineering staffing generated $34 billion in revenue in 2018, based on SIA estimates, representing 16% of the total global professional staffing market. Europe accounts for approximately 44% of global revenue while a third of engineering staffing is derived from the US, where we forecast revenue to grow a 4% in 2019 and 3% 2020 to match our projections for the global engineering staffing market. Despite the stable growth forecast, a host of underlying trends are shifting in a market that has become increasingly complexSector demand remains strong and is underpinned by secular trends including the expansion and cross-pollination of engineering skillsets spurred by the growth of new technology, the fierce competition for a narrowing pool of talent and the increasing attractiveness of the flexible staffing model for engineering projects. Bill rate growth is accelerating as a result of the shortage of engineering workersIn many respects, as we look ahead, 2020 can be expected to offer more of the same demand drivers: rapid technological change, candidate shortages, greater adoption of the digital processes that are reshaping engineering and, quite possibly, greater political and economic uncertainty.The 5 sections of this 49 page report further explore dynamics in engineering staffing and workforce solutions, to inform industry stakeholders and support their strategic planning initiatives.To download the complete report, please click the link below: EngineeringGrowthAssessmentGlobally 20191010 - You do not have permission to view this object. […]

  • Middle East and Africa Legal Update Q3 2019

    In this report, we round up the legal developments affecting the workforce solutions ecosystem across Middle East & Africa in Q3 2019:KenyaEmployers must register with new National Employment AuthorityUnited Arab EmiratesEnd of service gratuity system replaced with savings schemeLegal 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.To download a pdf copy of this update, click below: MEA Legal Update_Q3_20191016 - You do not have permission to view this object. Kenya Employers must register with new National Employment AuthorityOn 26 June 2019, the National Employment Authority (NEA) published a notice pursuant to the Employment Act, No. 11 of 2007 (the Employment Act) requiring employers in Kenya to submit returns regarding their employees.The NEA launched in May 2019 under the National Employment Authority Act 2016. Its main purpose is to provide a comprehensive institutional framework for employment management, enhancement of employment promotion interventions and increasing access to employment for the youth, minorities and marginalised groups.The Employment Act requires all employers with more than 25 employees to keep a record of their employees’ details, including: full name, age, sex, occupation, date of employment, nationality and level of education, and file a return for each calendar year ending 31 December. Employers are required to register with NEA and then file the return using the available template.NEA gave employers a grace period of up to 8 July 2019 to file a return for the period 1 January 2018 to 31 December 2018. Failure to file the return attracts a fine of up to KES 100,000 (USD 954) and/or a six months jail term.The Employment Act also requires an employer with at least 25 employees to notify the Director of Employment when a vacancy arises. A vacancy is deemed to have occurred when: an employer creates a post to be filled by an employee or decides to engage one; or an employee terminates or has his employment terminated by the employer and the employer abolishes the office. An employer must notify the employment service office when a vacant post is filled, or where a post has been abolished before being filled. This notification is required to be made within two weeks of the filling or abolition of the post. An employer is also required to notify the nearest employment service office of the termination of every employment and of each lay-off of a person within two weeks of the termination or lay-off.Whilst the Employment Act provides that the above notices should be made to the “employment service office”, the notice published by NEA provides that, in addition to the employee returns, notifications in relation to any vacancies and/or terminations as set out above should also be made to NEA. United Arab Emirates End of service gratuity system replaced with savings schemeFollowing updates to the Dubai International Financial Centre (“DIFC”) employment laws, the DIFC has announced proposals to replace the End of Service Gratuity (“EoSG”) regime with the DIFC Employee Workplace Savings Scheme ("DEWS").DEWS is a workplace savings plan for expatriate employees working in the DIFC. It will replace the current end-of-service benefit entitlement from 1st January 2020. The scheme will not include UAE nationals or GCC nationals who are accruing a social security benefit. However, they could choose to make voluntary contributions.As of 1 January 2020, all employers in the DIFC will be required to pay monthly contributions on behalf of their employees into the DEWS. Employees may (at their discretion) also make their own contributions into the scheme.  Employers failing to comply with their obligations will be subject to a fine and other sanctions. The employer contribution rates depend on the employee’s length of service calculated from the date they started employment: for members with less than 5 years’ service - 5.83% for members with 5 years’ service or more - 8.33% Employees will also be permitted (but not obliged) to make their own payments into DEWS.  Such payments will be made via payroll.  Whilst an employee is employed by their employer in the DIFC they will be unable to withdraw from the DEWS, it is only when they change employer or leave the employment of a DIFC based entity, that they will be able to withdraw funds.Under the EoSG system, employees who leave the employment of the DIFC employer inside their first 12 months of employment have no entitlement to EoSG payments. The DEWS makes no such exceptions.  Contributions are earned from the first day of employment and are not limited or otherwise varied by the reason for termination.It is anticipated that outside of the DEWS, employers will be able to establish their own qualifying schemes, the rules of which are yet to be fully announced. Further details of the DEWS scheme and the changeover from EoSG are available on the DIFC website.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. […]

  • Europe Staffing Co. Survey 2019 Findings

    Key Findings: This insight contains the initial findings of the 2019 Staffing Company Survey for staffing firms primarily operating in Europe. It includes the complete survey questions and summary statistics. Additional detailed reports will follow this summary report. The survey was conducted in the summer of 2019 and reflects the opinions of 54 staffing firms. Data includes: client contract terms; staffing company participation in online staffing; web and app enabled technology; internal staff benefits; sources of revenue; priorities and investments; referral bonuses; wages paid to temporary workers; and recruiting tactics. To access the complete report, please select the link below: EU Staffing Company Survey 2019 Initial Findings 20191015 - You do not have permission to view this object. […]

  • Engineering Growth Assessment Globally

    Global engineering staffing generated $34 billion in revenue in 2018, based on SIA estimates, representing 16% of the total global professional staffing market. Europe accounts for approximately 44% of global revenue while a third of engineering staffing is derived from the US, where we forecast revenue to grow a 4% in 2019 and 3% 2020 to match our projections for the global engineering staffing market. Despite the stable growth forecast, a host of underlying trends are shifting in a market that has become increasingly complexSector demand remains strong and is underpinned by secular trends including the expansion and cross-pollination of engineering skillsets spurred by the growth of new technology, the fierce competition for a narrowing pool of talent and the increasing attractiveness of the flexible staffing model for engineering projects. Bill rate growth is accelerating as a result of the shortage of engineering workersIn many respects, as we look ahead, 2020 can be expected to offer more of the same demand drivers: rapid technological change, candidate shortages, greater adoption of the digital processes that are reshaping engineering and, quite possibly, greater political and economic uncertainty.The 5 sections of this 49 page report further explore dynamics in engineering staffing and workforce solutions, to inform industry stakeholders and support their strategic planning initiatives.To download the complete report, please click the link below: EngineeringGrowthAssessmentGlobally 20191010 - You do not have permission to view this object. […]

  • Trends in Digital Credentialing

    There is a strong need for those who have to source and hire talent to efficiently identify and credential candidates in order to quickly and safely fill open positions. Companies such as Recruit, Workday, Kelly Services and PwC have been actively investing in blockchain-based credentialing technology development and/or partnering with blockchain companies. Some of them are working on enabling blockchain-based resume databases. Quite a few technology start-ups are developing credentialing solutions that use blockchain to facilitate credential verification and access, while having consumers store and own their verified credentials. Blockchain enthusiasts, start-ups and tech giants such as Microsoft, IBM, and other vertical industry leaders are trying to create an open, interoperable digital identity ecosystem.• Although blockchain has been widely perceived as immutable, secure and private, it does have inherent security risks and limitations with regards to privacy protection. For readers new to blockchain, a Blockchain 101 is provided in the Appendix of this report and we recommend you read this before reading the rest of the report. To download this report please click below: Trends in Digital Credentialing 20191009 - You do not have permission to view this object. […]

  • Asia Pacific Legal Update Q3 2019

    In this report, we round up the legal developments affecting the workforce solutions ecosystem across the Asia Pacific region in Q3 2019:Australia Proposed amendments to SA labour hire licensing scheme            Work Health and Safety Guidelines for labour hire businesses and hosts  Controversial decision on personal / carers leave calculation of a “day”    India      Federal minimum wage code passed        Consolidated labour code clarifies the meaning of ‘contract labour’ When are contract labourers deemed direct employees of the principal employer? Japan    Guidelines for dispatch workers equal pay issued              New Zealand     New rights for labour hire employees     Philippines          President vetoes bills altering rules on contracting           South Korea       Fair Hiring Procedures Act extended to the private sector        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.To download a pdf copy of this update, click below:    Asia Pacific Legal Update Q3_20191016 - You do not have permission to view this object. Australia 1.  Proposed amendments to SA labour hire licensing schemeThe Labour Hire Licensing Act 2017 (SA) commenced on 1 March 2018 introducing a mandatory licensing regime for entities providing labour hire workers in South Australia. It was suspended for a time when the incoming Liberal government indicated they intended to repeal the legislation. However, they were unable to secure sufficient votes in the Legislative Council to repeal it entirely.Consumer and Business Services (CBS) announced on 7 June 2019 that they would recommence accepting applications for labour hire licenses from 14 June 2019. However, on 24 September 2019, the State Government announced its intention to amend the existing labour hire laws, following concerns about the scope and application of the licensing scheme in its current form.As it stands, from 1 November 2019, unlicensed labour hire service providers will face substantial penalties for operating without a licence. Businesses engaging workers via an unlicensed labour hire service provider also face penalties.The Government is seeking to narrow the scope of the scheme to apply to labour hire providers operating within industries where workers are at a greater risk of exploitation due to the low-skilled, labour intensive nature of the work that they are engaged to undertake: Horticulture processing Meat processing Seafood processing Cleaning Trolley collection The proposals are still going through the legislative process, but should the legislation pass, some businesses that have already applied for a licence may no longer require a licence. Consumer and Business (CBS) will provide updates to all licence applicants as the proposed changes go through the legislative process. 2.  Work Health and Safety Guidelines for labour hire businesses and hostsIn August 2019, Safe Work Australia published a guide for persons conducting a business or undertaking (“PCBUs”) involving the supply of workers (labour hire PCBUs) to work for another business or undertaking (host PCBUs) on complying with their health and safety duties under the model Work Health and Safety (WHS) laws.All Labour Hire PCBUs and Host PCBUs have a primary duty of care to reasonably ensure the health and safety of labour hire workers, and this obligation cannot be transferred or contracted out to another person.The guide highlights that Labour Hire and Host PCBUs must communicate with each other and share information to ensure compliance with workplace health and safety laws, in particular: Potential hazards/risks and their control measures; Compliance with minimum workplace health and safety standards and legal requirements; Safe work methods and training requirements; Arrangements for facilitating assessments of worker's needs; and Policies and procedures, as well as roles in response to an incident. Both Host and Labour Hire PCBUs are required to be proactive in managing hazards and risks and to review these when circumstances change, such as a change in work process or a change in the physical environment.Safe Work Australia points out that in most jurisdictions, the labour hire PCBU (not the host PCBU) is responsible for providing workers’ compensation to the worker. However, there are exemptions to this. Labour hire and host PCBUs should work together to coordinate return to work arrangements and support workers through the return to work process. It is important to understand and comply with your workers’ compensation obligations, as penalties can apply. 3.  Controversial decision on personal / carers leave calculation of a “day”In August 2019, the Full Bench of the Federal Court handed down a decision regarding the meaning of a ‘day’ for personal/carers leave under the Fair Work Act 2009 (Cth). The Act provides that employees are entitled to 10 days of paid personal/carers leave per year.The decision in Mondelez v AMWU [2019] FCAFC 138 arose in relation to Mondelez employees who worked 36 hours per week, averaged over a 4-week cycle and in 12 hour shifts. Mondelez provided the employees with 96 hours of personal/carers leave per year of service, but this only entitled them to take eight 12-hour shifts off work as personal/carer’s leave.The Minster for Jobs and Industrial Relations intervened in the case to argue that the expression “10 days” should be understood as a reference to a particular number of hours of personal/carer’s leave. The dissenting judge, O’Callaghan J, agreed and found that personal/carers leave should accrue based on ordinary hours to ensure that employees working the same overall hours accrued the same amount of leave. The majority of the Federal Court found that the employees were entitled to ten periods of 12‑hour shifts each year as personal/carers leave, which equates to 120 hours per annum.On 16 September 2019, the Attorney-General announced that the Federal Government will seek leave, in the High Court, to appeal the decision, because it has sparked confusion and uncertainty around the way personal and carers leave entitlements should be calculated.The Attorney-General’s statement said that “Prior to the decision in Mondelez v AMWU and Ors, employers and employees all understood that full-time staff who worked a 38-hour week were entitled to accrue 76 hours of personal leave each year, based on the number of ordinary hours they worked over a normal two-week period. That had been the situation that existed for decades, and it was meant to remain the situation when Labor introduced the Fair Work Act in 2009, which changed the wording of the provisions regarding how leave was to be accrued to ‘10 days’ per year”.The decision is of concern for employers, many of whom have payroll systems that accrue personal/carers leave based on the number of ordinary hours an employee works, and on a pro-rata basis for part-time employees. Of particular concern are the entitlements of employees, including those in flexible service industries, who work varying rosters with different shift lengths. In addition, many part-time employees may now be entitled to more leave than their current accrued balance, following this decision. Any appeal to the High Court will be closely watched, but in the meantime, employers concerned about calculating personal /cares leave should take independent legal advice. India 1.   Federal minimum wage code passedIn September 2019 the Indian Parliament India passed the Code on Wages Bill, 2019 ("the Bill"). The Bill enables the federal government to fix minimum statutory wages for millions of workers.With the Code on Wages Bill, the labour ministry plans to streamline the definition of wages by amalgamating four related statutes: Minimum Wages Act, 1948; Payment of Wages Act, 1936; Payment of Bonus Act, 1965; and Equal Remuneration Act, 1976. Currently, 12 different labour laws define wages differently.The Bill allows the provision of minimum wages, as well as timely payment of wages, to cover all employees in both the organised as well as unorganised sectors. The unorganised sector includes labour-intensive industries and small businesses employing less than ten workers in total.The Bill provides for the federal government to set national minimum rates for wages, as well as the minimum wages in certain sectors (such as railways and mining). State governments will fix the minimum wages for their regions, which cannot be lower than the national minimum wage (or “floor”) set by the federal government. However, the federal government may set different national minimum wages for different parts of the country.The Bill specifies that the minimum wages must be revised every five years, and the overtime rate must be set at twice the standard wage rate across the country. The Bill also enhances the applicable penalties. The employer may now be punished for a failure to comply with duties to make payments due to employees with a fine of up to INR 50,000 (USD 705.33). For any other failure, employers may be fined up to INR 20,000 (USD 282.13).The Code on Wages is the first in the series of four labour codes (see 2. below) that the government is working on to rationalise its 44 labor laws and improve the ease of doing business in the country. 2.   Consolidated labour code clarifies the meaning of ‘contract labour’In a move to consolidate the laws on occupational safety and health, welfare facilities and working conditions in relation to employees and workers, the Code on Occupational Safety, Health and Working Conditions, 2019 (OSH Code) was introduced in the Lok Sabha on 23 July 2019. The proposed legislation seeks to replace 13 statutes, which are – Factories Act, 1948 (Factories Act); Contract Labour (Regulation and Abolition) Act, 1970 (CLRA); Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 (ISMW Act); Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (BOCW Act); Mines Act, 1952 (Mines Act); Dock Workers (Safety, Health and Welfare) Act, 1986; Plantations Labour Act, 1951 (Plantations Labour Act); Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 (Working Journalists Act); Working Journalists (Fixation of Rates of Wages) Act, 1958; Motor Transport Workers Act, 1961 (Motor Workers Act); Sales Promotion Employees (Condition of Service) Act, 1976 (Sales Employees Act); Beedi and Cigar Workers (Conditions of Employment) Act, 1966 (Beedi Workers Act); and Cine Workers and Cinema Theatre Workers Act, 1981 (Cine Workers Act). Applicability. The OSH Code will apply to all establishments, meaning (a) a place where any industry, trade, business, manufacture or occupation is carried on and employing 10 or more workers, (b) a factory, motor transport undertaking, newspaper establishment, audio-video production, building and other construction work or plantation employing 10 or more workers, and (c) a mine or a dock. At present, the threshold for the applicability of the relevant laws varies from one or more employee to 20 or more employees.Definition of ‘contract labour’. The OSH Code defines the term 'contract labour' to mean a workman who has been hired by a contractor in or in connection with the work of an establishment. This is the existing definition under the CLRA, but the OSH goes on to exclude from its scope any worker who is regularly employed by the contractor for any activity of his / her establishment and the employment of such worker is governed by mutually accepted standards of the conditions of employment.This exclusion is intended to clarify the scope of 'contract labour' and would likely exclude the employees of outsourced service providers. This is in response to the number of obligations imposed on the principal employer in respect of contract labour by law, including ensuring the provision of amenities and payment of wages to such workers, making contributions towards employees' provident fund on behalf of such workers etc. Therefore, the principal employer will not be liable towards  contract workers who are employed by the contractor regularly to perform activities on behalf of the contractor’s business, but will have responsibility only towards those workers who are hired to perform work for the principal employer.Welfare facilities. The OSH Code imposes the responsibility of providing welfare facilities to the contract labour on the principal employer. This is a change from the current framework where such responsibility is placed on the contractor.Registration. An employer is not permitted to engage employees if its’ establishment is unregistered, or its registration has been cancelled. The OSH Code also provides for a common registration for an establishment instead of separate registrations under the current laws.Licensing. Under existing laws, the validity period of a ‘contractor’ license is prescribed under state-specific rules, which vary greatly. The OSH Code provides for a uniform validity period of 5 years. However, within the said period, if the contractor wishes to increase the number of contract workers, he will be required to apply for renewal of the license.Deemed employment. Under the OSH Code, it is expressly provided that where any establishment employs contract labour through a contractor who has not obtained a license, the contract labour engaged shall be deemed to be employed by the principal employer. The provision is not new but helps to clarify when contract labour will be deemed to be employed by the principal (see below for a recent case on the existing law). Inevitably it requires establishments to be thorough while exercising due diligence as regards the contractors engaged by them.The OSH Code covers many other aspects of employment law, and Khaitan & Co provide further details. The OSH Code is being debated in Parliament, but concerns have been raised about safety provisions in specific sectors and the discretion given to state parliaments to make detailed regulations. 3.  When are contract labourers deemed direct employees of the principal employer?A contract labourer is defined by the Contract Labour (Regulation and Abolition Act), 1970 as one who is hired in connection with the work of an establishment by a principal employer through a contractor. While a contractor is the supplier of contract labour for the organisation, a principal employer is the person responsible for the control of the establishment.In a recent ruling, Bharat Heavy Electricals Limited vs Mahendra Prasad Jakhmola & Ors (Civil Appeal No. 1799-1800 of 2019), the Supreme Court of India reiterated the basic tests to be applied in determining whether contract labourers can be classified as direct employees.Bharat Heavy Electronics Limited ("BHEL") entered into an agreement with a contractor to engage contract labourers in its factory at Haridwar in North India. BHEL terminated the employment of certain contract labourers, following which the contract labourers applied to the Labour Court at Haridwar, seeking reinstatement. The Labour Court ruled in favour of the contract labourers, basing its analysis on the fact that BHEL exercised supervision, superintendence and administrative control over them.In BHEL's appeal, the Uttarakhand High Court upheld the Labour Court's ruling, holding that as the contract labourers were performing duties identical with BHEL's regular employees, they were under the command, control and management of BHEL, and the contract with the contractor was a sham. BHEL appealed this decision to the Supreme Court.The Supreme Court stated that the tests for determining whether contract labourers are the direct employees of the principal employer are: (i) whether the principal employer pays the salary instead of the contractor; and (ii) whether the principal employer controls and supervises the work of the employee."The Supreme Court referred to the earlier case of International Airport Authority of India v. International Air Cargo Workers' Union ((2009) 13 SCC 374) in which the Supreme Court held that "If the contract is for supply of labour, necessarily, the labour supplied by the contractor will work under the directions, supervision and control of the principal employer but that would not make the worker a direct employee of the principal employer, if: (i) the salary is paid by a contractor; (ii) the right to regulate the employment is with the contractor; and (iii) the ultimate supervision and control lies with the contractor. The principal employer only controls and directs the work to be done by contract labour, when such labour is assigned to him. But it is the contractor as employer, who chooses whether the worker is to be assigned/ allotted to the principal employer or used otherwise. In short, a worker being the employee of the contractor, the ultimate supervision and control lies with the contractor as he decides where the employee will work and how long he will work and subject to what conditions. Only when the contractor assigns/sends the worker to work under the principal employer, the worker works under the supervision and control of the principal employer, but that is secondary control. The primary control is with the contractor."In the present case, the contract labourers were being paid salaries by the contractor, and not by BHEL. Further, the second test was not met as BHEL was merely exercising secondary control over the contract labourers. Therefore, the Supreme Court set aside the judgment of the Uttarakhand High Court and the Labour Court's award.This case serves as a useful reminder to principal employers of how the tests for deemed employment will be applied. The contract between the employer and the contractor should explicitly lay down the rights and obligations of the principal employer and the contractor. For instance, who shall pay the employed contract labourers and ensuring that the ultimate supervision and control over the contract labourers rests with the contractor. Japan Guidelines for dispatch workers equal pay issuedIn July 2019, Japan’s Ministry of Health, Labor and Welfare issued guidelines for calculating pay for temp workers under the ‘Equal Pay for Equal Work’ regulations which were passed in 2018 as part of the “Work Style Reform” legislation. The Ministry issued the new rules to labour bureaus across Japan, in preparation for the regulation to take effect in April 2020.Temporary or “dispatch” workers are limited to a three-year term for each individual worker. Wages are usually determined based on job type, duties and location. Under the Equal Pay for Equal Work regulations, staffing agencies must provide a certain level of compensation to dispatch workers or conclude a labour-management agreement (an “Article 36 Agreement” under the Labour Standards Act) covering the statutory requirements.The Ministry’s guidelines oblige companies to pay fair wages to temporary staff according to their skills. Under the assumption that skills improve over time, the Ministry set these wage standards according to how long the person is employed at the same workplace. It was reported that the guidelines called for pay for temps to rise by 16% after one year and 31.9% in the third year, compared with the worker's starting wage, but this is unconfirmed.Increases will apply to dispatch workers whose work/skill levels develop with experience. For those who continue to do the same level of work over the years, their hourly wage will remain the same. When workers are dispatched to a new workplace, the wage may be lower because each employer sets their own wages for their dispatch positions. Under these new guidelines, the starting wage at a new workplace must not be lower than the worker has been paid previously. Any increases should correspond to the permanent employees doing the same job.Although the guidelines are mandatory, there is, as yet, no penalty for not complying. There are a number of details that still need to be clarified. New Zealand New rights for labour hire employeesThe Employment Relations (Triangular Employment) Amendment Bill (“Triangular Employment Bill”) received Royal Assent on 27 June 2019, to be enacted in law in 12 months’ or earlier if another date is appointed by Order in Council.The Triangular Employment Bill provides 16 new clauses to be inserted into the Employment Relations Act 2000 (the Act) which recognises the position of employees who work under the direction of someone who is not their employer. This will include those engaged through labour-hire companies and “temp” agencies.The Employment Relations Act 2000 will be amended to introduce the concept of a “controlling third party”, being a person or organisation who: has a contract or other arrangement with an employer under which an employee of the employer performs work for the benefit of the person or organisation; and exercises, or is entitled to exercise, control or direction over the employee that is similar or substantially similar to the control or direction that an employer exercises, or is entitled to exercise, in relation to the employee. Both an employee and employer may now apply to the Employment Relations Authority or the Employment Court to join a controlling third party to a personal grievance proceeding. Where a controlling third party is to be joined to a proceeding, the Authority or Court must consider whether to direct the employer, employee, and controlling third party to use mediation to resolve the personal grievance.The Authority or Court may also require a controlling third party to contribute to any remedies awarded to an employee to the extent that the controlling third party has caused or contributed to the employee’s grievance. This includes reimbursement for lost wages and the payment of any compensation for hurt and humiliation and/or the loss of any benefit. Philippines President vetoes bills altering rules on contractingSenate Bill No. 1826 (SB 1826), or the bill on the Security of Tenure and End of Endo Act of 2018, which proposed several changes to the Labour Code’s provisions on employment relationships and contracting arrangements was vetoed by the President on 26 July 2019.SB 1826, and its equivalent proposed by the House of Representatives HB 6908, were the product of a concerted effort on the part of labour groups to put an end to certain unfair labour practices. In particular, the practice of “Endo” (end of contract) dismissals where employers terminate workers’ employment after five months to circumvent permanent employment status that is deemed to arise after six months employment with the same employer.Another popular proposal was to restrict further the practice of labour-only subcontracting, which is illegal in certain circumstances. The existing definition in Department Order 174 of 2017 (DO 174) prohibits labour-only subcontracting in two situations where:1)     The contractor does not have substantial capital or investment and the contractor’s employees are performing activities which are directly related to the main business operation of the principal; or2)     The contractor does not exercise control over the performance of the work of its employees.SB 1826 and HB 6908 proposed amending this by precluding businesses from engaging the services of contractors for activities directly related to their businesses as a stand-alone prohibition. The revised definition would have prohibited labour-only contracting where:1)     The contractor does not have substantial capital or investment; OR2)     The contractor’s employees are performing activities which are directly related to the main business operation of the principal; or3)     The contractor does not exercise control over the performance of the work of the employees recruited and placed.SB 1826 granted a power to determine whether an activity is “directly related to the main business operation of the principal” to the appropriate Industry Tripartite Council, or the Secretary of Labour and Employment (DOLE Secretary) in consultation with the National Tri-partite Industrial Peace Council (NTIPC). But, as SB 1826 did not provide any limitation or describe the standard for making such determination, the discretion given to these bodies in exercising the power was arguably very broad.These amendments to the existing law led to business bodies condemning the changes. However, this did not entirely explain the President’s veto as he had been a vocal advocate of the reforms.The practice of contracting out ‘jobs’ as opposed to labour is not prohibited, but job-contractors must be licensed. SB 1826 had also provided new requirements for licensing job-contractors. The job-contractor would have had to prove that:1)       It is an expert or specialist in the work contracted out, by demonstrating that it employs the necessary competent professionals or skilled workers or that it has a proven track record in its’ field of specialisation;2)       It has the financial capacity to carry on its contracting business based on relevant factors such as the number of its employees and the nature of its business;3)       It has the tools and equipment which are reasonably necessary to perform the job contracted out, as opposed to the current requirement of a mere general provision of tools and equipment.Despite the President’s veto, these issues have not gone away and both sides, representing labour and business, remain polarised. So, it seems unlikely that this will be the end of the matter, but for now, the definition of labour-only subcontracting remains unchanged, and the practice of “endo” continues. Herbert Smith Freehills clarifies the criteria for compliance with the law on contracting in Department Order 174 of 2017 (DO 174) which continues to be enforced by the Philippines Department of Labour and Employment (DOLE). South Korea Fair Hiring Procedures Act extended to the private sectorOn 17 July 2019, amendments to the Fair Hiring Practice Act (“FHPA” also known as the "Blind Hiring Act") introduced new restrictions on hiring practices for private sector employers with 30 or more full-time employees.The amendments prohibit such employers from engaging in improper solicitation, coercion, or pressure in connection with hiring decisions and prohibit offering or accepting any gift, entertainment, or other thing of pecuniary value in connection with any hiring decision. The Improper Solicitation and Graft Act already prohibits improper solicitation and illegal acceptance of money, goods, or services, in connection with hiring or otherwise. However, it only applies to government officials, and certain private-sector workers who are deemed quasi-public, for example, teachers and journalists. Until now, there has been no law generally prohibiting private companies from engaging in corrupt hiring practices.First-time offenders who violate the prohibition on corrupt hiring practices are subject to an administrative fine of up to KRW 15 million (USD 12,458) and repeat offenders may be subject to a fine of up to KRW 30 million (USD 24,916).The amendments also prohibit such employers from requesting personal information from job applicants if such information is unrelated to the performance of the role which the applicant is expected to perform. For example, employers may not request details of the applicant's height, weight, hometown, assets, family members, or marital status, unless such information is necessary for business purposes. Also, the employer cannot request or compel applicants to provide supporting documents containing such information.First-time offenders who violate these new prohibitions are subject to an administrative fine of up to KRW 3 million (USD 2,491), second-time offenders are subject to a fine of up to KRW 4 million (USD 3,322), and repeat offenders are subject to a fine of up to KRW 5 million (USD 4,152).Employers should review their hiring processes and provide training and guidelines for existing employees involved in the hiring process to ensure compliance with the new FHPA requirements.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. […]

  • Engineering Growth Assessment Globally

    Global engineering staffing generated $34 billion in revenue in 2018, based on SIA estimates, representing 16% of the total global professional staffing market. Europe accounts for approximately 44% of global revenue while a third of engineering staffing is derived from the US, where we forecast revenue to grow a 4% in 2019 and 3% 2020 to match our projections for the global engineering staffing market. Despite the stable growth forecast, a host of underlying trends are shifting in a market that has become increasingly complexSector demand remains strong and is underpinned by secular trends including the expansion and cross-pollination of engineering skillsets spurred by the growth of new technology, the fierce competition for a narrowing pool of talent and the increasing attractiveness of the flexible staffing model for engineering projects. Bill rate growth is accelerating as a result of the shortage of engineering workersIn many respects, as we look ahead, 2020 can be expected to offer more of the same demand drivers: rapid technological change, candidate shortages, greater adoption of the digital processes that are reshaping engineering and, quite possibly, greater political and economic uncertainty.The 5 sections of this 49 page report further explore dynamics in engineering staffing and workforce solutions, to inform industry stakeholders and support their strategic planning initiatives.To download the complete report, please click the link below: EngineeringGrowthAssessmentGlobally 20191010 - You do not have permission to view this object. […]

  • Trends in Digital Credentialing

    There is a strong need for those who have to source and hire talent to efficiently identify and credential candidates in order to quickly and safely fill open positions. Companies such as Recruit, Workday, Kelly Services and PwC have been actively investing in blockchain-based credentialing technology development and/or partnering with blockchain companies. Some of them are working on enabling blockchain-based resume databases. Quite a few technology start-ups are developing credentialing solutions that use blockchain to facilitate credential verification and access, while having consumers store and own their verified credentials. Blockchain enthusiasts, start-ups and tech giants such as Microsoft, IBM, and other vertical industry leaders are trying to create an open, interoperable digital identity ecosystem.• Although blockchain has been widely perceived as immutable, secure and private, it does have inherent security risks and limitations with regards to privacy protection. For readers new to blockchain, a Blockchain 101 is provided in the Appendix of this report and we recommend you read this before reading the rest of the report. To download this report please click below: Trends in Digital Credentialing 20191009 - You do not have permission to view this object. […]

  • Directory of Suppliers to Staffing Firms 2019 - October Update

    The Directory provides a comprehensive range of solutions and services that staffing firms may require to operate their businesses more efficiently and  effectively. 24 different categories ranging from advisors & consultants to payroll funding and back office technologies. Over 1,100 vendors spanning over 60 countries globally. New to this update the addition of the Recruitment Marketplaces category.   To download the complete report, please select the following link:  Directory of Suppliers to Staffing Firms 2019 - October Update - You do not have permission to view this object. […]