The Pay Transparency Directive (EU 2023/970) has been in force for exactly one year, since 6 June 2023. Its aim is to reduce the gender pay gap through new regulations on pay transparency. The EU member states have until June 2026 to implement the directive. The Austrian legislature has not taken any action yet. However, employers should start preparing for the effects now. The new rules require HR processes and the remuneration system to be adapted, for which sufficient preparation time must be planned.
On Wednesday 29 May 2024, the Swedish Parliament voted to adopt a bill to transpose the EU Corporate Sustainability Reporting Directive into local law. The new reporting requirements will enter into force on 1 July 2024 meaning that companies will have to report pursuant to the CSRD for the first time for the fiscal year beginning after June 2024. Accordingly, all companies with a calendar year as fiscal year will have to apply the legislation for the first time for FY2025.
On 1 July 2023, a Framework Agreement entered into force to govern employees’ social security affiliation within the EU, the EEA and Switzerland. Based on this Agreement, cross-border teleworkers who work substantially from their home state can remain affiliated with the social security legislation of the state where their employer is established.
With immediate effect (from 2024), the new Growth Opportunities Act makes it more difficult to deduct interest for tax purposes for intragroup financing. The new rules apply not only to loans but also to debt-like or hybrid instruments.
On 15 May 2024, the Luxembourg Parliament adopted draft bill No. 8304 (“Law”), which aims to implement Directive (EU) 2021/1883 of 20 October 2021 on the conditions of entry and residence of third-country nationals for the purposes of highly qualified employment (“Directive”).
The primary goal of the Directive is to update the EU Blue Card rules, providing a more targeted legal migration system to address skill shortages and facilitate entry for highly qualified workers. More specifically, it provides for more flexible admission conditions for highly skilled foreign workers, notably in terms of the minimum wage threshold, enhanced rights, more favorable conditions for family reunification, and the possibility of traveling and working more easily in other EU member states.
On 16 May 2024, the government launched a consultation concerning TUPE and European Works Councils (EWCs). There are three proposals under consultation: (1) Overturn the concept of split assignment in a TUPE transfer (where an employee’s contract of employment could be split between two transferees). (2) Confirm that TUPE only covers employees, not workers. (3) Repeal the remaining post-Brexit EWC legislation, which will likely see the end of any statutory obligations to maintain an EWC in the UK.
As the UK’s Parliament has now been dissolved until the general election on 4 July 2024, most draft legislation will no longer proceed. However, some unfinished business is passed through agreement between the government and the opposition parties in what is known as the “wash up” process. These include laws on non-disclosure clauses, fair allocation of tips, additional paternity leave where the mother (or primary adopter) of a child dies, and the statutory code on fire and rehire.
Discussion of AI adoption in the workplace seems to have reached fever pitch in recent months – with good reason. In this article for IEL, we summarize the current legal framework and regulatory attitudes, and venture our insights into what employers can realistically do now to mitigate legal risk and put them in the best position with respect to future developments.
On Wednesday 29 May 2024, the Swedish Parliament voted to adopt a bill to transpose the EU Corporate Sustainability Reporting Directive (CSRD) into local law. The new reporting requirements will enter into force on 1 July 2024 meaning that companies will have to report pursuant to the CSRD for the first time for the fiscal year beginning after June 2024. Accordingly, all companies with a calendar year as fiscal year will have to apply the legislation for the first time for FY2025.
Since 18 February 2024, most parts of Regulation (EU) 2023/1542 concerning batteries and waste batteries (“Batteries Regulation”) apply in all EU Member States. The new Regulation repeals and replaces the existing Batteries Directive (2006/66/EC) and seeks to make all batteries placed on the EU market more durable, safe, sustainable, and efficient. It significantly expands the extended producer responsibility (EPR) regime created by the existing Directive by introducing more detailed mandatory design, content and conformity assessment requirements aimed at ensuring the sustainability and circularity of batteries.