In this issue of Bird & Bird's Frontline APAC, we will look back at the significant changes that came into effect in the last quarter across Australia, Hong Kong, the People's Republic of China (PRC) and Singapore.
Our Case Update examines an Australian decision in which the Fair Work Commission took a tough stance on legal representation.
We will also look at recent legal updates which include:
The Fair Work Commission (FWC), Australia's employment and industrial relations tribunal has, in two recent decisions, rejected Qantas' right to be represented by external legal representatives in proceedings involving the airline.
The Fair Work Act 2009 (the "Act") and the FWC's ethos are based on efficiency and fairness and it is those factors which most heavily influenced the Commission's decisions in these cases.
By Kristy Peacock-Smith and Leila Moddel
A reminder for organisations with Workplace Gender Equality reporting obligations i.e. non public sector with 100 or more employees, that the deadline for reporting is 31 May 2018. The Workplace Gender Equality Agency (WGEA) released statistics for the previous reporting year in February 2018. The key gender pay gap statistics are:
On 16 April 2018, the Labour Hire Licensing Act 2017 (Qld) (the "Act") came into effect as the first of its kind in Australia. The Act aims to protect those working under labour hire agreements from exploitation and to restore confidence in the labour hire industry.
This issue is not unique to Queensland, with similar Bills being tabled in Victoria and South Australia.
The Act is a response to industry concerns over 'sham-contracting', whereby employees are not treated as such and are instead contracted via a third party as a means of employers avoiding their obligations to pay various employee entitlements.
By Pattie Walsh, Stephanie Wong and Sarah Blennerhassett
On 17 May 2018, the Legislative Council passed the Employment (Amendment) (No.2) Ordinance 2018 (the "Amendment Ordinance"). The Amendment Ordinance was gazetted on 25 May 2018.
The Amendment Ordinance empowers the Labour Tribunal to make an order for reinstatement or re-engagement, if such remedy is requested by employees following unlawful or unreasonable dismissal, without the need to obtain the employer's agreement if the Labour Tribunal takes the view that making such order is appropriate and practicable.
If an employer fails to reinstate or re-engage the employee as required by the Labour Tribunal's order, the employer will need to pay a further sum to the employee, which is three times the employee's average monthly wages, subject to a cap of HK$72,500. This amount is in addition to the statutory termination payments and compensation payable to the employee. If an employer wilfully and without reasonable excuse fails to pay this further sum, this will constitute a criminal offence.
The Amendment Ordinance will come into force on a day to be appointed by the Secretary for Labour and Welfare and notice of its commencement will be published in the Gazette.
According to recent press reports, controversial plans to abolish the Mandatory Provident Fund (MPF) offset mechanism are moving forward. At present the mechanism allows employers to offset their contributions made to the MPF against statutory severance and long-service payments on termination and therefore greatly reduces the costs of termination for employers and reduces the pay out to the employee. In a signal that the Government plans to move forward with the proposal, in March this year, the Hong Kong Welfare Chief stated that the Government was finalising its preliminary proposal regarding abolition of the mechanism.
It is estimated that the cost to abolish the offset mechanism could be in excess of HK$15 billion. The high cost, (which is anticipated to increase the longer the process takes), is a result of the Government's plan to subsidise companies paying the long service and severance payments over a 10 year period. The Hong Kong Financial Secretary stated that the Government would "consult major stakeholders in coming up with a proposal acceptable to those involved as soon as possible."
By Ying Wang and Lorraine Sun
In March, the National People's Congress (NPC) approved the State Council Institutional Reform Plan of 2018. As part of the overhaul, three new departments, the Ministry of Veteran Affairs, the State Medical Security Administration and the State Immigration Administration, were established; these departments are of particular relevance to employment in China.
From 1 April 2018, the statutory minimum wage of Shanghai has increased by 5.2% to RMB 2,420 per month. The hourly rate has been increased from 20 yuan to 21 yuan per hour.
In addition, the average monthly salary (used for the purposes of calculating social insurance and severance payments) has been adjusted. The figure now is RMB 7,172, and accordingly, the minimum monthly contribution to social insurance is RMB 4,279 (comprising RMB 449.4 for the employee and RMB 1,347.9 for the employer), and the maximum monthly contribution is RMB 21,396 (RMB 2,246.7 for the employee and RMB 6,739.8 for the employer). The Employee and the Employer contribute 10.5% and 31.5%, respectively, to the social insurance.
On 4 April 2018, the State Council executive meeting decided on measures to further lower enterprise costs, among which, the following are employment related:
These measures are expected to collectively lower enterprise costs by RMB 300 billion (USD 47.6 billion) annually.
By Seow Hui Goh, Susan de Silva, Rachel Lim and Shu Yi Chye
Significant changes to the Employment Act (EA) were announced in Parliament in March 2018. Details of the amendments are likely to be made public later this year, and these amendments are expected to become law by 1 April 2019 (the "Effective Date").
The key major changes are:
More details on these upcoming changes are set out below.
Three new tripartite standards have been released recently, covering (i) unpaid leave for employees' unexpected care needs; (ii) contracting with self-employed persons; and (iii) age-friendly workplace practices.
7 June 2018
Employment Essentials Part 6 – Exiting Poor Performers
8:00am – 9:30am
13 June 2018
Employment Essentials Part 4 – Wage Remuneration Issues
12:30am – 2:00pm