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Mind the gap

Employment law issues seem to be rife with gaps at the moment. We have already reported on the gender pay gap, brought to the fore by the UK’s new reporting regulations for gender pay that took effect on April 6, 2017. However, it looks like we are now dealing with another gap: the skills gap that commentators believe will be one of the consequences of the UK exiting the EU. In fact, we are already seeing the effects, as potential migrant workers are reluctant to come to the UK at a time of such uncertainty. As a result, there is a significant shortage of workers to fill such typical blue collar jobs as drivers, electrician assistants and construction workers. Sectors such as healthcare, retail and construction are among those feeling the squeeze, as they are heavily reliant on EU migrant workers. A study by the Recruitment and Employment Confederation (REC) points out that EU migrants are over-represented in low-skilled jobs, filling 15 percent of them, compared with 7 percent by non-EU migrants and 78 per cent by Britons.

Furthermore, Brexit has led to curbed planned growth and investments for one in four small and medium-sized enterprises (SMEs), according to the latest “UK SME Confidence Index” from Vistage. And the shortage of workers has forced employers to raise starting salaries. According to the REC study, in August salaries increased at the fastest pace in nearly two years. This trend may not be sustainable over the long haul if it impacts too negatively on profitability and business sustainability.

In the meantime, automation and digitalization have been proposed as possible solutions to bridge the gap. However, whether replacement of people with machines is quite what voters intended back in June 2016 when the referendum took place is questionable at best.

 

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Mind the gap

H-1B blast off countdown 2017

T minus 59 days. The countdown has begun.  The date is coming.  It will be here soon.

It is the biggest event of the year in United States immigration.

Hundreds of thousands will apply, but only a lucky few will be chosen. Employers keen to recruit and employ the best and brightest talent from around the globe to meet American business needs are already gearing up.  Professionals eager to pursue their career in the United States are updating resumes and collecting diplomas and reference letters. This program is not the best way for a country to succeed, but the United States Congress continues to lack the will and wisdom to change a law almost 25 years old.

Are you ready?

April 1, 2017, is the first day that the United States Citizenship and Immigration Services agency (USCIS) will accept new H-1B specialty occupation worker nonimmigrant visa petitions by employers for foreign professionals.  It is important for global mobility and human resource managers to start work now to secure preliminary Department of Labor approvals, foreign degree evaluations, etc., to be ready to file the petition for an April 1 receipt date.

Limited supply

Only a limited number of new H-1B visas are accepted each year due to legal quota restrictions. Every year, 65,000 new H-1B visa petitions can be granted, of which 6,800 are set aside for citizens of Chile and Singapore under free trade agreements with those countries. To the extent there were unused free trade agreement H-1Bs, those are added to the quota for the next fiscal year. There is an additional allocation of 20,000 new H-1B visa petitions that can be accepted if the foreign professional in question earned a graduate degree from a university in the United States.

Not all H-1B visa petitions are subject to numerical limits. Individuals already holding H-1B visas are not counted against the quota, and petitions filed by institutions of higher education or related or affiliated nonprofit entities, nonprofit research organizations or governmental research organizations are exempt from the limits. And H-1B workers performing labor or services in the Commonwealth of the Northern Mariana Islands (CNMI) and Guam may also be exempt from the H-1B cap, provided their employers file the petition before December 31, 2019. Employers may not file a petition or an extension request for an employee more than six months before the employee’s intended start date.

Overwhelming demand

Last year, the USCIS received so many new H-1B visa petitions in the first week of April that the agency ended the application window on April 7. Approximately 236,000 new petitions were received, as compared to 233,000 in the prior year. As the regulations mandate, officers then selected—at random—which envelopes to open, and returned the rest unopened with the government filing fees. Only then did the agency begin the often long process of approving or denying the selected petitions on the merits of eligibility.

This year, the USCIS will once again receive more than it is allowed to accept. Again, the agency will randomly decide which envelopes to open and which to return unopened. The likelihood of a petition being selected in April 2017 is much lower than last year, taking into consideration the current state of the economy, the relatively low rate of American unemployment in typical H-1B specialty occupations, and the labor needs of US employers.

The countdown begins now (download dates directly into your Outlook)

T minus 59 days (February 1):  Start working with legal counsel now. Identify current and prospective employees who will need new H-1B visa petitions.

T minus 44 days (February 15):  By now, you and legal counsel should have requested the labor condition application certification from the Department of Labor.  Employers new to the process or who have not filed recently will need to create the appropriate accounts with the Department of Labor. Because the USCIS relies on Dunn & Bradstreet data (DUNS) as part of its employer background verification process, it is important for employers to create or update the company’s DUNS records to avoid inconsistencies with H-1B visa petition filings.

T minus 31 days (March 1):  Have all the required USCIS forms and supporting documents been signed and filing fee checks prepared?  There is still some time left to get last minute details completed, but this is when it gets very hectic. Government systems often become overloaded and delays at the Department of Labor for late filings are common.

T minus 1 day (March 31):  Envelopes should be properly addressed and delivered to the express service of choice with next business morning delivery instructions.

T minus 0 (April 1):  Just like at NASA ground control, this is the stage in the process where all the hard work resulted in successful delivery of the visa petition and you have to wait for the USCIS to announce whether the petition is selected or returned—usually within 3 weeks or so.

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H-1B blast off countdown 2017

The Trump wild card: what employers can expect from the new administration

Thursday, January 26, 2017
1:00 PM – 2:00 PM EST
Webinar

With Donald Trump’s election as the 45th president of the United States, and the Republican Party retaining control of both the Senate and House of Representatives, employers can expect some changes.

Join us for an engaging discussion on the Trump administration’s workplace policy priorities, their likely impacts on employers, and what you can do now to prepare for the changes to come. Among the topics to be covered are: the effect on the labor pool of proposed changes in immigration policy; the impact of Obamacare “repeal and replace” on employer-sponsored health plans; compensation issues; the future of regulations covering whistleblowing and human rights protections; the Trump NLRB; the DOL’s Fiduciary Rule; and workplace discrimination. Dentons partner Cynthia Jackson will lead a panel of Dentons lawyers as they tackle these questions and more.

Meeting agenda

Immigration outlook: labor force issues

Campaign promises to increase worksite visa audits and investigations, build a wall along the Mexico border, establish a deportation force, and place new restrictions on immigration from some majority-Muslim countries may become law. The new Administration is likely to adopt policies even before Congress acts. How will these developments impact employers who rely on business visas to hire the best and brightest from around the world? We will predict the future and provide guidance on how employers can prepare now.

The repeal of the ACA and other developments post-ObamaCare

The election of Donald Trump to the presidency, together with Republicans maintaining control of Congress has, for the first time since the Affordable Care Act’s enactment, put the law’s future in serious question. With the new Administration taking the reins of government on January 20, we will discuss the distinct possibility of the ACA’s repeal and replacement, including options for the White House and the expected congressional timeline for debating and passing legislative changes.

Compensation and other DOL regulations

The Department of Labor raced to the end of the Obama administration with a wave of regulatory activity applying to the public sector and government contractors relating to overtime, blacklists, pay equality and sick leave. Courts stalled implementation of some of the more controversial regulations. How will the new administration act in its initial days regarding the recent flurry of regulations?

Whistleblower and human rights developments

During the campaign, President-elect Trump stated that he would dismantle Dodd-Frank, repeal President Obama’s executive orders and unburden companies of excessive regulation. We will address how that will impact whistleblower and bounty hunter programs at the SEC and elsewhere, as well as laws impacting eradication of human trafficking and slavery.

The DOL’s fiduciary rule and the evolution of the NLRB under Trump

The Trump NLRB is expected to reverse recent Board decisions relating to concerted activity, joint employment, election processes and other issues favoring labor. But when will the reversals begin? This presentation will address both NLRB issues and processes during the first year of a Trump presidency. In addition, we will briefly discuss the status and likely future of the DOL’s fiduciary rule.

Workplace discrimination

The Obama administration broadly interpreted Title VII to include anti-discrimination protections on the basis of sexual orientation and gender identity. We will look at whether that trend will continue under Trump. Other current trends in anti-discrimination enforcement and litigation will also be discussed, with a focus on statements made by the President-elect and his team during the campaign and the transition.

Register Now

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The Trump wild card: what employers can expect from the new administration

UK Employment Law Round Up, Volume 1, Issue 10 – 2016


UK Employment Law Round-up

In this issue we look at recent case law decisions which have provided a useful reminder of the position when dealing with contracts tainted by illegality and taking prior disciplinary warnings into account. We also bring you up to date with the latest thoughts on calculating holiday pay, and the scope of ACAS Early Conciliation certificates. We review the new judicial assessment procedure in the employment tribunal, along with proposals to inspect corporate governance and to ask employers to disclose employed foreign nationals.

Read the full newsletter here.

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UK Employment Law Round Up, Volume 1, Issue 10 – 2016

New UK penalties for unauthorized foreign workers and their employers starting July 12, 2016

Suit in handcuffs

Effective today, July 12, 2016, employers found guilty of “knowingly” employing unauthorized foreign workers in the UK may face an increased prison term, and unauthorized foreign workers will be subject to criminal liability. This results from provisions of the Immigration Act 2016 which are aimed at further deterring workers who do not have the legal right to work in the UK from entering the nation. Provisions of the Immigration Act 2016, which take effect today, are slated to be implemented in stages over the coming months and while Brexit will certainly have implications for UK immigration law in the long-term, in the short-term our concern is with the provisions that begin to take effect today, which are as follows:

There will be an increase in the criminal penalties that may be applied to employers who employ illegal workers.

  • It is already a crime to knowingly employ an illegal worker, the penalty for which has been a fine of up to £20,000 and a prison term of up to two years. While the level of the fine remains the same under the 2016 Act, the maximum sentence upon conviction has been increased to five years in prison from the current two. In addition, experience has shown that proving that an employer knew that an employee was working illegally can be difficult. Therefore, beginning today an employer will be guilty of this criminal offence if the employer has reasonable cause to believe that an employee was working illegally. It is no longer necessary to prove that the employer actually knew this; only that he should have known it in view of the circumstances.

Illegal working will become a criminal offence.

  • Prior to today, the sanction applicable for employees guilty of working illegally is deportation, and a record of the illegality became part of the person’s immigration file. From today, working illegally will be a criminal offence subject to a sanction of up to six months in prison and/or a potentially unlimited fine. As working illegally is now a crime, any proceeds from working illegally also be subject to seizure as proceeds of crime. This provision has caused particular concern among certain human rights groups who have argued that it may lead to illegal workers feeling unable to speak out against exploitation for fear of themselves being criminally charged.

While UK employers should already be undertaking appropriate right-to-work checks, the stricter provisions that take effect today should serve as a reminder to make sure that current right-to-work checking processes are as robust as they can be.

The ever-changing landscape of UK immigration law has never been more fluid or uncertain than it will be over the coming months. We will keep you updated as matters develop.

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New UK penalties for unauthorized foreign workers and their employers starting July 12, 2016

Brexit, a global perspective in the immediate aftermath…

Brexit Immigration

Following the UK’s EU referendum, the UK has a clear mandate for exit from the European Union. There is doubt, however, about what the future may look like for the UK and its relationship with Europe or the rest of the world. It is likely that there will now be a prolonged transition period, with the next UK government needing time to plan, prepare and negotiate the UK’s future.

Some key thoughts in the meantime:

  • For UK nationals living elsewhere in the EU, and EU nationals living in the UK, there will be no immediate change. Protection of citizens already established in those states is likely to form part of negotiations between the UK and the EU.
  • Free movement of EU citizens is expected to be negotiated as a condition of any trade deal between the UK and the EU. However, if ultimately the UK decides to no longer share in the EU’s right to free movement of labor, then citizens of other member states will not enjoy an automatic right to work, travel and live in the UK. Similarly, UK citizens will not enjoy EU citizenship rights. Prior to the referendum, the UK had already made it more difficult for EU citizens to gain permanent residence in the UK. However, the UK government will be aware that imposing fundamental limits on the free movement of labor at this time could make the UK a much less attractive destination for international businesses and skilled and educated migrants.
  • Nationals of other countries working in the UK, such as from the US, should see no imminent changes. The UK government is saying that the UK is open for business on a global scale. This is an opportunity to grow and strengthen relationships across the globe. At present the UK is not seeing any large-scale recruitment freezes or job losses.
  • Trade and investment are good for the UK’s employment growth and stability. The UK government will want to keep a level playing field with the UK’s European counterparts, and look for opportunities across the globe, at this crucial time. One key area where it will want to display its good practice is data protection. Realistically, a trade deal between the UK and the EU may also mean the UK continuing to be subject to key EU legislation.
  • The UK has a body of homegrown legislation protecting UK employment law rights. The fundamental right that exists in the UK to claim unfair dismissal will not be affected by its withdrawal from Europe. The UK also had discrimination laws in place before its ascension to the EU; EU aims and legislation are so established in UK good employment practice that they are likely to remain fundamentally the same for now. While moving to a US-style system, where employees receive lower overall protection, is possible, it is unlikely in the short term, given the broader cultural change needed to accept the US norms.
  • Subject to the above, EU rights, or improvements in those rights, in the UK may eventually be diminished or lost. However, it seems likely that grand proposals will eventually be reduced to a few smaller, less significant changes. If the UK is not required to keep EU legislation in these areas as part of a broader deal, the government may review and make changes to the current position in a number of areas, such as: (i) harmonization of terms following a TUPE transfer, (ii) limits on bankers’ bonuses, (iii) working time controls, (iv) collective redundancy consultation, (v) agency workers’ rights and (vi) the absence of a cap on discrimination awards.
  • If the UK is no longer subject to the jurisdiction of the European Court of Justice, UK case law may develop in a slightly different direction. This may mean a gradual parting of ways between the UK and EU states.

On balance, it is most likely that the next government will want to preserve the status quo, at least in the short term, and wait for the dust to settle before looking for opportunities to make more fundamental and valuable changes. Dentons will keep you posted as the picture evolves.

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Brexit, a global perspective in the immediate aftermath…

Global Employment Lawyer – Volume 2, Issue 1 – November/December 2015

Global Employment Lawyer - Nov. & Dec. 2015

 

Look out, beware—it’s holiday party season!

For many companies, having an annual holiday party is part of the culture and tradition of the organization. Company holiday parties provide employees with an opportunity to socialize and celebrate together, and can certainly help boost morale and engender loyalty. At the same time, however, there are risks lurking. Depending on the type of party and the part of the world you are having it in, there are different types of risks that can come into play—and we have some tips to mitigate them.

What’s not risky? Keeping up to date on the hot topics in employment and labor issues from around the globe which could affect your business goals in those regions.

From all of your friends at Dentons, we wish you a happy, healthy and prosperous holiday season!

Read the complete issue

 

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Global Employment Lawyer – Volume 2, Issue 1 – November/December 2015

Global Employment Lawyer – Issue 3

Summer 2015

Global Employment Lawyer

The third edition of the Global Employment Lawyer provides you with practical content to keep you current on developments that effect your business goals around the globe. Our lawyers look at questions of religious accommodation as well as the unpleasant income tax consequences of temporary visas in the US; managing “difficult employees” in Canada; reducing workforce due to redundancies in China; imminent changes to Polish labor law; recruitment of non-resident foreign workers in Angola; employing foreign workers in Israel and whistleblowing in the UK.

Read more

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Global Employment Lawyer – Issue 3

New year, new employment issues

Global_Employment_Lawyer_Winter_2015

The mission of Dentons’ Global Employment Lawyer is to keep you informed of significant trends and developments in the area of global employment and labor law, wherever they take place, so that you are in a better position to make educated business decisions. Thank you for helping to make the first edition of the Global Employment Lawyer a huge success!

In this second edition of the Dentons’ Global Employment Lawyer, our lawyers examine:

  • Options for dealing with employee layoffs in China for foreign investors
  • Canada’s recent decision to require employee accommodation for childcare responsibilities
  • Restrictions under Polish law which can affect employment settlements
  • Romania’s recent decisions effecting union standing and disciplinary actions against employees
  • Specific ambiguities in Egyptian labor law on financial entitlements, employment terminations and collective dispute resolution mechanisms
  • UK’s recent employment decision potentially increasing the amount of holiday pay owed to certain overtime workers
  • Current and pending changes to US employment regulations for 2015, including laws affecting paid sick leave, anti discrimination and bullying, social media, severance and more
  • US IRS regulation Section 457A’s effect on deferred compensation for US taxpayers who work for non-US entities
  • Recap of Dentons’ client seminar on critical employment issues for multinationals

Read the complete issue

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New year, new employment issues

Employment updates from around the globe

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We are proud to offer you the initial issue of Dentons’ Global Employment Lawyer.

Whether you are an employer, human resources executive, in-house or outside counsel, mobility professional, or anyone interested in employment and labor issues around the globe, our goal is to keep you informed of trends and developments in the area of global employment law.

In this issue, our lawyers examine:

  • The task of crafting a non-compete clause under English law which is not unreasonably broad in scope, so as to be enforceable in court,  without risking unwanted commercial consequences for employers;
  • Likely changes to fixed-term employment contracts in Poland in the wake of a recent European Court of Justice determination finding them inconsistent with EU law, and some updates on key global developments in the region;
  • Recent legislation in the UAE requiring all employers in Dubai to provide employees with compulsory health care insurance;
  • Hidden US tax issues arising from new IRS regulations that consider severance payments made after signing a release potentially to be “deferred” compensation;
  • and many more topics.

Read the complete issue.

 

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Employment updates from around the globe