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Global Daily News

  • Staffing, workforce ecosystem firms invest $1.8 million in Talent Tech Labs

    Talent Tech Labs, an innovation lab focused on talent acquisition technology, announced a new $1.8 million funding round on Wednesday led by Allegis Group, Mitchell Martin Inc. and Mercer. All three companies were existing investors.“There is still much to accomplish, as it’s a sizable challenge to stay abreast with the pace of innovation happening in our field today,” said Brian Delle Donne, president of Talent Tech Labs. “We are most appreciative of the support and the confidence our backers have shown for our efforts. This funding will allow us to significantly expand from the core programs we’ve been delivering over the last few years.”New York-based Talent Tech Labs researches talent acquisition technologies and has tracked more than 1,500 technology companies in the talent acquisition space since it was founded in 2012.This new round brings Talent Tech Labs’ total funding to $4 million.Staffing provider Mitchell Martin is the original founding member of Talent Tech Labs. Workforce solutions firm Allegis Group and Mercer joined as investors in 2015. Both Mitchell Martin and Allegis Group rank on Staffing Industry Analysts recently released list of largest US staffing firms. […]

  • Private equity firm announces merger of school staffing providers

    Nautic Partners LLC, a middle-market private equity firm, announced its portfolio company Source4Teachers joined Education Solutions Services LLC. Nautic Partners called the transaction a merger.Source4Teachers ranked second on Staffing Industry Analysts’ 2016 list of largest education staffing firms in the US with estimated 2015 US education temporary staffing revenue of $150 million. The Cherry Hill, NJ-based company provides managed services to K-12 school districts, covering substitute teachers, paraprofessionals and educational support staff.“The pairing of ESS’ extensive K-12 industry experience with the management systems and field support of S4T, the largest pure-play company in the industry, will be a winning combination,” said ESS President Buddy Helton. “We are now the optimal platform to deliver outstanding support to clients nationwide. We plan to expand our geographic footprint, make accretive acquisitions, and continue to deliver excellent, hands-on service to our district partners as the company continues on its rapid growth trajectory.”Kendley Davenport, Source4Teachers’ former CEO, will remain in senior leadership.The combined company will serve nearly 300 districts across 10 states and employ approximately 40,000 educational professionals and 230 corporate staff members. The two companies together filled more than 1.2 million educator and support staff absences in the 2016-17 school year.ESS was founded in 2016 by the same management team that, in partnership with Nautic, built the education division of GCA, an outsourced provider of facilities services. Nautic sold GCA to Blackstone in 2012, and partnered with management to acquire Source4Teachers in 2015. […]

  • Survey says 71% wouldn’t apply to firms experiencing negative press

    Negative publicity can hamper the ability of companies to recruit talent, according to a survey released today by CareerBuilder. The survey found 71% of US workers would not apply to a company experiencing negative press. Female workers were much more likely not to apply to a company experiencing negative press than their male counterparts, at 79% and 61%, respectively.More than a quarter of employers, 26%, said their company has experienced negative publicity, resulting in a hit to their hiring process. Sixty-one percent of these employers report fewer job offers being accepted, fewer candidate referrals from employees and fewer job applications as a result of the negative publicity. Other negative effects to the business included lower employee morale, higher voluntary employee turnover and a decline in sales.While bad publicity may turn off candidates from applying, the survey found it rarely causes current workers to leave their jobs. Less than one in 10 workers, 6%, have left a company because of negative publicity.On the bright side, nearly four in five employers that have experienced positive press observed beneficial impacts, including: Higher morale among employees: 42% Employees were most likely to share positive things about the company on social channels: 36% Boost in sales: 36% More job applications: 32% More job candidate referrals from employees: 22% More job offers being accepted: 21% Lower voluntary employee turnover: 19% “In today’s 24/7 news cycle and social media world, earning and maintaining a good reputation can be a challenge,” said Rosemary Haefner, chief human resources officer at CareerBuilder. “It’s easier than ever before for job seekers to research potential employers. Employers that value transparency and take a proactive approach to issues or complaints will have a better chance of securing trust and loyalty and maintaining a positive reputation that can strengthen their recruitment and retention strategies.”The survey was conducted online within the US by Harris Poll on behalf of CareerBuilder among 2,369 hiring and human resource managers and 3,462 employees. It was conducted between May 24 and June 16, 2017. […]

  • US leading index rises, and jobless claims fall

    The Conference Board’s US Leading Economic Index rose 0.6% in June to a reading of 127.8 (2010 = 100), following increases of 0.2% in both May and April.“The US LEI rose sharply in June, pointing to continued growth in the US economy and perhaps even a moderate improvement in GDP growth in the second half of the year,” said Ataman Ozyildirim, director of business cycles and growth research at The Conference Board. “The broad-based gain in the US LEI was led by a large contribution from housing permits, which improved after several months of weakness.”The index comprises 10 components, including the average weekly initial claims for unemployment insurance.Separately, the US Department of Labor today reported the US four-week moving average of initial claims for unemployment insurance fell to 243,750 last week, down 2,250 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 15 fell to 233,000, down 15,000 from the previous week’s level, which was revised upward by 1,000.MarketWatch reports the number of Americans who applied for unemployment benefits sank in mid-July and hovered near a 44-year low, reflecting the healthiest job market in more than a decade. […]

  • Germany – Amadeus FiRe half-year revenue growth boosted by permanent placement

    German staffing firm Amadeus FiRe (AAD: GR) reported revenue for the six months ending 30 June 2017 of €88.7 million, an increase of 6.2% compared with €83.5 million during the same period last year.  (€ millions) H1 2017 H1 2016 Change Revenue 88.7 83.5 6.2% Gross Profit 39.2 35.2 11.3% Gross Margin 44.2% 42.2% 2.0 EBITDA 14.7 13.1 12.6% According to Amadeus FiRe, all business segments in the group contributed to the growth in revenue with the exception of Interim/Project Management. The growth in the group’s gross margin was due to a higher share of revenue from the more profitable Permanent Placement segment.The financial year 2017 had three billable working days less than the previous year overall. While the number of billable days in the first half of the year was the same year-on-year, the three fewer days in the second half of the year will have a negative impact on revenue, gross profit and earnings of around €1.5 million.Amadeus FiRe operations two divisions; Personnel Services, which includes temporary staffing, interim & project management, and permanent placements; and Training Services.Revenue by division and segment was as follows:  (€ millions) H1 2017 H1 2016 Change Temporary Staffing 60.0 59.2 1.4% Permanent Placement 14.4 10.0 44.4% Interim & Project Management 4.6 4.9 -6.7% Total Personnel Services 79.1 74.2 6.6% Training Services 9.6 9.3 2.7% Amadeus FiRe stated that the increase in the temporary staffing segment was a direct result of the higher salary level for temporary staff. The group’s Permanent Placement segment showed the biggest growth among the segments with a year-on-year growth of 44%. Amadeus FiRe states that significant growth is expected in this segment over the year.The company stated, “The shortage of qualified specialists and executives on the labour market is a major obstacle to company’s recruitment plans. The opportunity to recruit candidates through direct placement is therefore intensively taken advantage of. This is leading to a significant increase in demand in Permanent Placement.”The group added that the training segment should deliver a higher contribution to earnings in the second half of the financial year than in the first.Meanwhile, Amadeus FiRe stated that the German Act Amending the Temporary Employment Act is not expected to have “any particular effect on the 2017 financial year.”“The change will not take effect until from 2018 on account of the wording of the new law,” the group stated. “It is still too soon to estimate the extent to which the effective increase in the cost of temporary employment will lead to an adjustment in customers’ recruitment patterns.”In trading today, Amadeus FiRe traded at €78.41, up 0.81% on the day and 11.89% below its 52-week high of €88.99, set on 16 May 2017. Based on its current share price the company has a market value of €404.3 million. […]

  • Switzerland – Jobseeker confidence falls, but German-speaking region is most confident

    According to the PageGroup Confidence Index for Q2, 61% of job seekers in Switzerland did not expect compensation levels to increase. This was up from 58% in the same time last year.Jobseekers in the German-speaking region of the country were more confident about their career prospects and the Swiss job market than their counterparts in the French-speaking Swiss Romandy. The gap has widened significantly over the last 12 months, according to PageGroup.Jobseekers in the German-speaking region were almost twice as confident about the job market than their counterparts in the Swiss Romandy. The data showed that 64% of jobseekers in the German-speaking region expected conditions to improve over the next 6 months, a year-on-year increase of 23%.  In comparison, 38% of candidates in the Swiss Romandy expected job market conditions to improve, a year-on-year decrease of -11%.Overall confidence in the German-speaking region was 58%, a yearly increase of 9%, compared with a 46% confidence level in the Swiss Romandy which was a yearly decrease of 7%.Across Switzerland the majority (61%) of job seekers did not expect to increase their compensation levels or achieve a better work-life balance (67% vs 65% last year). The drop in confidence on these measures was most pronounced in the Swiss Romandy. The index showed that 44% of candidates in the German-speaking region expected increased compensation levels, a decline of 2% over the year. In comparison, 37% of candidates in the Swiss Romandy expected increased compensation levels, a decline of 12%. Moreover, 41% of candidates in the German-speaking region expected better work-life balance, yearly increase of 26%. In comparison, 31% of candidates in the Swiss Romandy expected an improved work-life balance, a yearly decrease of 17%.“Candidates understand that salary levels are often capped,” Jérôme Bouin, Managing Director, PageGroup Switzerland, said. “The majority take a pragmatic, longer term view and look for career advancement opportunities when they change jobs. This includes, for example, increased responsibilities, professional training and on-the-job development opportunities. Employers that demonstrate such development opportunities are more likely to attract top candidates”. […]

  • Ireland – Number job vacancies in first half of the year up 6%

    Collins McNicholas, an Irish recruitment firm, has seen a 6% growth in registered job vacancies in the first half of 2017 compared with the first half of 2016.The number of candidates registered with Collins McNicholas is up by 24% in the same period. Collins McNicholas states that the growth in jobs shows a buoyant job market with candidates willing to switch jobs to take advantage of more promising opportunities.“It has been a very positive start to 2017 for job creation and I expect this to continue in the second half of the year,” Niall Murray, Managing Director of Collins McNicholas, said. “Our clients are very positive about the prospects of job growth and we are seeing a very strong demand for experienced professionals in the medical device and biopharma sectors, particularly for niche engineering skills, and for software developers and finance professionals.”Figures from the Central Statistics Office, showed that the Irish unemployment rate for June 2017 was 6.3%, down from 8.3% in June 2016. The government expects the unemployment rate to fall below 5% next year.Collins McNicholas also pointed to announcements from Microsoft and Zendesk of 600 jobs and 500 jobs, respectively, as proof that demand is up for professionals, including those in tech.&nbs […]

  • EU – European Commission report shows younger generation faces a heavy burden in labour market

    A study from the European Commission showed that despite overall unemployment levels in the EU being at its lowest in nearly ten years, younger generations are bearing a particularly heavy burden.The report states that the youth in the EU tend to find it harder to find work and are more exposed to “precarious” forms of employment, including temporary contracts, which the report states may lead to less social protection coverage. They are also likely to receive lower pensions.“This annual study shows once again that we are steadily moving towards greater growth and employment,” Marianne Thyssen Commissioner for Employment, Social Affairs, Skills and Labor Mobility, said. “However, it is possible that today's youth and their children end up having a worse situation than their parents. This is not what we want. It is necessary to act quickly. With the European pillar of social rights we want to preserve and improve our social regulations and our living conditions for future generations.”Eurostat figures showed that in May 2017, the youth unemployment rate (aged 15-24) was 16.9% in the EU28 and 18.9% in the euro area, compared with 19.0% and 21.3% respectively in May 2016. The overall euro area seasonally-adjusted unemployment rate was 9.3% in May 2017, while the EU28 unemployment rate was 7.8% in the same period.The report from the European Commission also shows that, despite a steady improvement in the standard of living in the EU, young people do not benefit from the improvement in the labour market as much as older generations. In addition, over time the participation of younger age groups in labour income has declined. The report states that these challenges affect the decisions of young couples, including with regard to having children and buying a home. In turn, this can have negative consequences on fertility rates and, consequently, on the sustainability of pension systems and growth.The working-age population is projected to decline by 0.3% each year to 2060. According to the Euroepan Commission, this means that a smaller workforce will have to maintain the current path to growth. It also means that at the same time a smaller number of contributors will contribute to pension systems - in many cases with lower or irregular contributions, since they will not correspond to full-time work and / or classic work - while more pensioners will depend on them. It therefore seems that young workers today and future generations face a double burden resulting from demographic change and the need to ensure the sustainability of pension systems. The Commission states that ‘social partners can make a significant contribution to closing the gap between the youngest and older workers in order to promote a fairer labor market for both.’ This would include lifelong learning and employment protection legislation.Meanwhile, the  European Commission has also asked Spain not to fall into "complacency" and to undertake more reforms to "create jobs", reports RTVE. Spain’s unemployment rate in May stood at 17.7%, the second highest after Greece. The Commissioner for Employment and Social Affairs, Marianne Thyssen, made this recommendation during the presentation. […]

  • China – Labour Market sees increasing demand and fall in the number of jobseekers for Q2

    Zhaopin Limited, a Chinese career platform, and the China Institute for Employment Research (CIER) at Renmin University have released the CIER Employment Index Report for the second quarter of 2017. The report shows that the labour market in China is becoming more favourable for jobseekers due to increasing labour demand and a decline in the number of jobseekers.The CIER index in the second quarter of 2017 rose to 2.26, from 1.93 during the same period of 2016, indicating the labor market had improved with the economy. The CIER index tracks the ratio changes between job vacancies and job seekers in a variety of industries and cities across the country, and identifies the overall trend in China's employment market.According to the report, after the peak season for job hopping in the first quarter, many job seekers already found new jobs, which led to the decline in job applicants in the second quarter of 2017. The rising CIER index indicated that the labour market in China became more favorable for job seekers.Zhaopin's data showed that total online recruitment demand in China rose 36% year-over-year in the second quarter of 2017, compared with a 52% year-over-year growth in the first quarter of 2017.The internet/e-commerce sector was the best-performing sector in the second quarter of 2017, with recruitment demand far exceeding the number of job seekers and a CIER index of 9.06. The worst-performing sector was the Printing/packaging/papermaking sector with a CIER index of 0.35.Meanwhile, Eastern China saw the highest CIER index score of 2.03, followed by 1.76 for Central China and 1.67 for Western China. Among all regions, Central China had the fastest growth in job demand at 61% year-over-year in the second quarter of 2017.The CIER index grew for companies of all sizes year-over-year, except for micro-sized companies. Many of these micro-sized companies were start-ups. With a decline in investment this year, some start-ups were struggling to survive.Zhaopin states that the CIER index is very likely to increase significantly in the third quarter of 2017 due to strong seasonal factors. […]

  • Australia – Country’s 457 visa changes are turning away skilled foreign workers

    Australia’s recent 457 visa program overhaul is turning away skilled foreign workers, according to data from Indeed.com published in The Australian.Indeed recorded a 10% decline in clicks from foreigners on Australian job postings in June compared to April, when the Turnbull government first announced the reforms. Indeed added that the decrease seen in June reverses the trend of recent years, when search activity was greater in June than in April. “Despite the 457 visa reform’s relatively minor impact on the Australian economy, the changes could prove disruptive to certain industries and many individual businesses,” Indeed.com Asia-Pacific economist Callam Pickering, said. “There could also be a spillover effect: the high-profile nature of 457 reform may discourage foreign job seekers even in occupations that aren’t ­directly affected.”“The reforms target few tech occupations, but the more difficult path to permanent residency is likely to make Australia less desirable for skilled tech workers,” Pickering said. “These workers are in great demand globally and many will choose to go elsewhere.&rdquo […]

  • Australia – Talent Group provides full revenue trading update, expects revenue to grow 24%

    The Talent Consolidated Global Group, an Australian-based digital recruitment specialist focused on contract and permanent placement for technology professionals, expects to report an increase of 24% in revenue to AUD 457 million (USD 361 million) for the 2016/2017 financial year.The group saw increases across the board including its UK business as well as Hong Kong and Wellington.“The growth can largely be attributed to new initiatives, diversified offerings now coming online and the rollout of Talent Engage, our new technology platform for supporting and developing the contactor workforces,” Mark Nielsen, Talent APAC CEO, said. “The appointment of Juin Chan to lead the Hong Kong operation has also been instrumental in reinvigorating our Asian presence, with the development of a number of key relationships and new client wins across the region.”Total contractor numbers grew by more than 20% and the last quarter of 2017 also saw the group set a revenue record for permanent placements.In the UK and Europe, Talent said that despite Brexit, it still finished strongly, with the company’s Bristol office experiencing growth on the back of RPO and public-sector contract deals.Talent plans to establish a greater presence in Mainland Europe next year as well as expanding its US offerings.The group is independent and privately owned and operated. It was founded by Executive Chairman Richard Earl in Perth in 1995 and since then it has expanded to 16 offices across Australia, New Zealand, Asia, the UK & Europe and the US […]

  • North Korea – Government tightens conditions on recruiting workers to go abroad (Radio Free Asia)

    North Korea authorities have set strict conditions for citizens chosen to be overseas workers in an attempt to reduce the number of defectors, reports Radio Free Asia. The strict rules come after a group of restaurant workers were sent to China, but did not return. As of now, the Pyongyang residents are qualified for recruitment and those from rural areas will not be considered. North Korea has exported workers to Russia, China, Africa and the Middle East but requires them to send most of their earnings to the government. […]

Latest Research

  • 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. […]

  • Selling to the US Federal Government: Staffing Firms Seeking a Mentor-Protege Partnership: 2017 Update

    Key Findings: This report highlights 84 staffing firms that self-identified as having interest in forming a Mentor-Protégé partnership in order to contract with the US federal government. Seventeen expressed interest in acting as a mentor, and 67 firms were interested in becoming a protégé. The complete list of firms appears on pages 3 to 9 in this report. The US Small Business Administration (SBA) established the Mentor-Protégé program in order to help small, disadvantaged businesses develop and compete in the government contract marketplace. Mentor-protégé partnerships may jointly bid or form joint ventures that allow them to compete for government contracts that they would be less likely or ineligible to win as individual companies. Currently, the federal government defines a small business in the temporary staffing, direct hire or retained search industries as having three-year average gross revenue of less than $27.5 million. More information on the Mentor-Protégé program, including eligibility requirements, can be found on the SBA website at www.sba.gov.  We note that effective August 24, 2016, the SBA expanded its Mentor-Protégé program to include all types of small businesses, including woman-owned small businesses, veteran-owned small businesses, and HUBZone small businesses. Previously, the SBA only allowed protégé firms that were 8(a) certified small businesses (mainly firms that were owned and controlled by US citizens in certain minority groups.) As a result of this change, more types of Mentor-Protégé partnerships are now possible. For each firm listed in this report, we have provided the company’s headquarters location, contact name and email address, and the largest and second largest staffing sector in which the company operates. To download the full report, please select the link below: Staffing Firms Seeking a Mentor-Protégé Partnership 20170719 - You do not have permission to view this object. […]

  • Internal Staff Survey 2017: Full Report

    Key Findings:The 2017 Internal Staff Survey represents Staffing Industry Analysts’ fifth survey of the staffing industry’s internal employee population. A few key observations from the report: Where do internal staff come from? Two-thirds of internal staff were recruited from just six industries: finance/insurance (13%), business/professional services (13%), healthcare (12%), retail trade (10%), technology/telecom (10%), and restaurant/hospitality (8%). About half discovered their staffing firm through a personal recommendation. What types of training do internal staff most want? The four types of training internal staff most commonly thought would be helpful are: sales/marketing tactics, sourcing/recruiting tactics, operational processes of their firm, and social media (LinkedIn, Facebook, etc.). Additional training of interest included: IT/technical, professional certification, management, and financial/data analysis. How common among internal staff are professional certifications? Nineteen percent of internal staff had at least one certification. Among C-suite executives the share was more than double that, at 42%. The most common certification was “Joint Commission,” selected by 4.5% of respondents. This certification is used in the healthcare sector. Apart from that, the most popular general staffing certification was “ASA Certified Staffing Professional,” selected by 3.8% of respondents. What’s key to internal staff satisfaction? Leadership and work environment. Internal staff who were most satisfied in their jobs commonly cited good leadership and work environment as their top reasons; internal staff who were least satisfied in their jobs commonly cited bad leadership and work environment as their top reasons. Likewise, three of the top seven factors most correlated with high satisfaction were about management: their effectiveness as leaders, integrity, and focus on people. How much should I pay internal staff? Compensation data reported by 10,099 staffing industry professionals from 186 staffing firms in the U.S. was used to create an interactive benchmarking Excel tool. The tool reports on compensation metrics for specific staff occupations. It is available here: http://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/U.S.-Internal-Employee-Compensation-Estimator-2017-Edition To access the complete report, please select the link below: Internal Staff Survey 2017 Full Report 20170718 - You do not have permission to view this object. […]

  • Largest Retained Search: US 2017

    Key Findings We estimate that eight firms generated at least $25 million in US retained search revenue in 2016. Added together, these firms generated $1.6 billion in such revenue, accounting for 24% of the market, by our estimates. The list of eight firms can be found on page three of this report.  Market share percentages in this report were calculated by dividing each company’s revenue figure by our estimate of $6.4 billion for the US retained search market in 2016. Additional details on the methodology of this report are provided on page four. The full report can be downloaded by clicking the link below: Largest Retained Search Firms in the US 2017 Update 20170718 - 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. […]

  • 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. […]

  • 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. […]