Multi-jurisdictional Labor and Employment Law update - December 2014 Issue

 
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Multi-jurisdictional Labor and Employment Law update - December 2014 Issue
December 2014 Issue

Multi-jurisdictional Labor and
Employment Law update
Multi-jurisdictional Labor and Employment Law update - December 2014 Issue
In this issue …

                           Editorial                                                                    2

                           Bulgaria                                                                     3
                           • Updates on health and safety at work in Bulgaria

                           France                                                                       4
                           • Health and safety in France: the protection of employees’ physical and
                             psychological health

                           Italy                                                                        5
                           • The latest amendments to health and safety provisions in Italy

                           Japan                                                                        6
                           • Amendment to the Industrial Safety and Health Act in Japan:
                             employees’ stress check will become mandatory

                           Kazakhstan                                                                   7
                           • Work safety in Kazakhstan

                           Netherlands                                                                  8
                           • The Dutch work and security act

                           New Zealand                                                                  9
                           • New dawn for New Zealand health and safety legislation

                           Norway                                                                       10
                           • Health, safety and environmental regulations in Norway: responsibilities
                             of the employer for physical and mental health

                                                                                                        11
                           Peru
                           • Health and safety at work in Peru: the empowerment
                             of workers and special protection for people with disabilities

                           Spain                                                                        12
                           • Health and safety in Spain: organizing labor risk prevention

                           Ukraine                                                                      13
                           • Labor protection in Ukraine

1   Multi-jurisdictional Labor and Employment Law update
Editorial
Health and safety issues
at work have become
more and more prominent
in the workplace around
the world.
The primary concern
with respect to health
and safety issues had always been limited
to protecting the physical integrity and
health of employees mostly employed to
do manual work. Following the Industrial
Revolution, most of these health and safety
issues focused on the conditions of workers
in factories.
In the twenty-first century, we are
experiencing a radical shift in health and
safety issues towards concern for the
mental, emotional, and psychological health
of employees, as well. Indeed, the focus
of health and safety issues today is not
only on physical health for manual and
factory workers but also for all employees,
including office workers.
The growing trend of employee claims
against employers for stress, bullying and
most recently “abusive misconduct” should
cause a reasoned employer to pause and
consider the potential risks and corrective
actions required to protect the health
of its employees.

Roselyn Sands
Labor and Employment Law Leader

                                              Multi-jurisdictional Labor and Employment Law update   2
Bulgaria

Updates on health and safety                         matter seriously. A number of individuals      The license for providing intermediary
                                                     have been sentenced to imprisonment            services has been changed. It is now for
at work in Bulgaria
                                                     because it was proven that they acted          an unlimited period of time, as opposed to
The Bulgarian Labor Inspectorate has                 negligently when an employee of theirs         the previous situation where renewal was
recently indicated, in its annual report,            died during working hours.                     required every five years. A new regime
that the most common violations in the                                                              was established for intermediary agencies
                                                     Another established court practice says
employment area are those of health                                                                 providing a one-off service or services for
                                                     that the mere appointment of someone
and safety at work regulations. They                                                                a limited period of time. These will now be
                                                     to be responsible for health and safety
represent 41.3% of all violations.                                                                  subject to a notification regime instead
                                                     at work, and holding daily briefings with
More than half of them are breaches                  employees, is not enough to fulfill the        of registration.
related to the organization and                      employer’s obligations when there is
management of activities aimed at                    no real control of the workplace.
ensuring health and safety at work.                                                                  Tanya Stivasareva
                                                     At the same time, court practice
A large number of violations are                                                                     tanya.stivasareva@bg.ey.com
                                                     safeguards the basic rule of civil law.
also connected with the work facility,
                                                     When there is contributory negligence on
technological processes and the norms
                                                     behalf of the injured, the responsibility of
on occupational hygiene. Delegating
                                                     the employer shall be reduced or rejected.
activities to incompetent employees has
been identified as a major reason for this
                                                     Amendments in legislation for
high percentage of violations of health
                                                     intermediary agencies
and safety regulations.
                                                     With a view to eliminating the discrepancies
However, comparative analysis shows that,
                                                     identified by the European Commission,
each year, the relative share of companies
                                                     a bill amending the Employment Promotion
that have taken measures to eliminate
                                                     Act has been recently adopted. The
professional risk and be compliant with
                                                     obligation to register each agreement
legislative requirements increases.
                                                     between a Bulgarian intermediary
Recent court practice also indicates                 agency and a foreign employer with the
that the authorities enforcing health                Employment agency was abolished.
and safety at work issues are taking the

3   Multi-jurisdictional Labor and Employment Law update
France

Health and safety in                            would in turn increase stress and affect         no longer guarantee just the physical
                                                the psychological health of the remaining        integrity of their employees. They must
France: the protection of
                                                employees.” Ever since this decision,            also ensure that their psychological health
employees’ physical and                         companies planning restructuring within          is protected. Over the past few months,
psychological health                            their organization are wary of the manner        there have been several cases where
                                                in which they evaluate and quantify the          employers were fined under health and
Over the past few years, health and safety
                                                potential impact on individual workloads.        safety rules because they failed to protect
has been at the heart of French legislation
                                                In a recent decision, the French Supreme         an employee against the “psychological”
and case law. It has become more and
                                                Court ruled , that unless proper supervision     bullying of his colleagues.
more important as the notion of health
and safety in France has expanded to            was applied, working schemes designed
include elements that are not traditionally     around days worked as opposed to hours           Lastly, harsh working conditions have
considered to be tied to health and safety.     worked, given that they threatened the           been at the heart of a debate regarding
Indeed, the notion of health and safety has     psychological health of employees. This          French retirement pension. Indeed, it was
evolved into two ways.                          decision had a considerable impact, as           generally felt that individuals who worked
                                                most managers in France are on a working         under harsh conditions, such as individuals
The first relates to the physical health of
                                                day system. Therefore, in order to remedy        who frequently worked in contact with
employees at work. For example going
                                                this situation, employers must now set           dangerous chemicals or were exposed
beyond factory workers, in recent years,
                                                up biannual meetings with employees              to extreme temperatures, should benefit
the risks of repetitive strain injury in an
                                                whose employment contracts contain               from earlier retirement. Therefore, starting
office environment have increased.
                                                such provisions, in order to evaluate the        1 January 2015, each employee will be
The second relates to employees’                psychological impact of the employee’s           able to monitor throughout his/her career
psychological health. Not only does this        workload and avoid excessive stress              the level of harshness of the career which
seem somewhat distant from the initial          at work.                                         will then impact the age of retirement.
purpose of health and safety laws, but it
                                                In addition, the national collective
is also applied to several issues that could                                                     In conclusion, health and safety in France
                                                bargaining agreement “Syntec” has just
seem unrelated to health and safety.                                                             is becoming a very prevalent issue for
                                                been modified to allow employees a right
For instance, in a recent decision, the Paris   to “disconnection” time from their smart         companies. They must now be concerned
Court of Appeal ruled that a restructuring      phones and computers, also for the               with stress related and psychological issues
plan organized by one of France’s largest       intended effect of allowing employees to         as well as their employees’ physical health.
entertainment retail chains was illegal         psychologically “rest.”
given that: “The restructuring plan failed to
                                                The idea of psychological health is also
account for health and safety risks tied to                                                        Roselyn Sands
                                                expanding to issues tied to bullying and
the fact that the plan would potentially lead                                                      roselyn.sands@ey-avocats.com
                                                discrimination at work. Employers must
to an increase in individual workload, which

                                                                                            Multi-jurisdictional Labor and Employment Law update   4
Italy

The latest amendments                                In case of supply contracts, the party         Italian Government has assigned a leading
                                                     contracting out the work is permitted to       role to lawyers in a so-called assisted
to health and safety
                                                     replace the risk assessment form. The          negotiation procedure, “procedura di
provisions in Italy                                  form must be jointly prepared with the         negoziazione assistita da un avvocato.”
Law Decree no 69/2013, published                     contractor, by appointing a fully qualified    This negotiation attempt will be mandatory
in the Italian Official Gazette no 144               delegate in charge of the supervision and      in payment claims below €50,000. In other
on 21 June 2013, came into effect on                 coordination of the parties for the purposes   cases, the parties are not compelled to
22 June 2013. This law decree, called                of compliance with the safety at work          begin negotiations. But lawyers shall inform
“Decreto del Fare” (Decree for Action),              provisions. This appointment can only be       the client of the possibility of recourse to
aims to resolve long-standing issues that            made if the activities are characterized as    such procedure.
are considered to have held back economic            low risk in terms of accidents at work and
                                                     occupational diseases.                         It is important to highlight that, according to
growth in Italy over the past few years.
                                                                                                    the law decree, employees’ rights provided
In summary, the main measures of the                                                                by law or by collective agreements can also
                                                     Simplifications for short term
legislation that relate to employment                                                               be object of negotiation.
are the following.
                                                     employment contracts
                                                     The law decree simplifies the duties of
Safety at work and work                              employers in relation to health information
                                                                                                     Stefania Radoccia
contracted out                                       and supervision for workers hired with
                                                                                                     stefania.radoccia@it.ey.com
                                                     employment contracts for terms not
The law contains new provisions for
                                                     exceeding 50 days on aggregate per
activities with a low level of risk of
                                                     calendar year.
accidents at work and occupational
diseases. For such activities, the law
                                                     The new negotiation procedure
provides that a form of attestation may be
used. This attestation will replace the more         Law Decree no 132, of 12 September 2014,
complex evaluation document currently                introduces a new alternative dispute
prepared by employers in accordance with             resolution system. In order to reduce the
the law on safety at work.                           existing case backlog before the courts, the

5   Multi-jurisdictional Labor and Employment Law update
Japan

Amendment to the Industrial                     that will determine the details of the stress       • It
                                                                                                       will be the employer’s obligation to
                                                check system. The enforcement regulations              receive an opinion from the doctor
Safety and Health Act in
                                                and guidelines are scheduled to be                     who has conducted the meeting with
Japan: employees’ stress                        established by March 2015.                             the employee regarding the measures
check will become mandatory                     The outline of the stress check system is              that are necessary to preserve the
                                                as follows:                                            employee’s health. Based on the
In June 2014, a law to amend Japan’s
                                                                                                       doctor’s opinion, if the employee
Industrial Safety and Health Act was            • Employers will be required to conduct a              deems it necessary to take certain
enacted. One of the most important                stress check on employees working at a               measures — such as change of workplace,
amendments is the introduction of a               workplace where 50 or more employees                 change of job duties, reduction of
stress check system for employees.                are working. For the time being, stress              work hours or reduction of late-night
A stress check on employees will                  checks at workplaces where fewer than                working — the employer will need to
become mandatory by December 2015.                50 employees are working will not be                 take such measures.
Employees’ mental health has become               mandatory. But the employer shall
                                                                                                    In workplaces, employers are also obliged
a subject of growing concern in Japan.            endeavor to conduct a stress check
                                                                                                    to handle various issues related to their
Under the country’s labor and employment          on these employees.
                                                                                                    employees’ mental health. For example, if an
laws, employers can be held responsible         • The
                                                       frequency of the stress check is            employee whose overtime work per month
for their employees’ physical diseases              now being discussed, but it is expected         exceeds 100 hours requests it, the employer
or injuries and mental illnesses declared           that a stress check will be required            must set up a meeting with a company
during their employment. And employees              once per year.                                  doctor in order to give the employee
can also claim damages through Workers’
                                                • Details
                                                            of the procedures undertaken           medical guidance. This is because it is
Accident Compensation Insurance.
                                                    during the stress check will be provided        considered that working long hours can
According to figures provided by the                for in the enforcement regulations or           cause mental as well as physical illness.
Japanese Government, the number of                  guidelines to be established by MHLW.
                                                                                                    Employers could also face difficulties
claims made by workers under Workers’           • The
                                                       stress check will be conducted by           when terminating the employment of a
Accident Compensation Insurance due to              a doctor, a public health nurse or other        worker who suffers from a mental illness.
mental illness has increased in recent years.       professional that will be stipulated in the     Also, if an employee’s mental illness is
During the fiscal year from April 2013 to           enforcement regulations or guidelines           caused by over-work, a severe working
March 2014, 1409 claims for insurance               by MHLW.                                        environment or other reasons attributable
benefits due to mental illness were
                                                • Doctors
                                                             or other professionals who            to the employer, the employer could be
submitted to the labor standards inspection
                                                    conduct the stress checks on employees          liable to compensate for damage suffered
offices. This includes 177 claims due to
                                                    cannot disclose the result thereof to any       by the employee. This could include
employee’s suicide or suicide attempts.
                                                    third party, including the employers.           covering medical bills, compensating
The main objective of the mandatory                 It will be the employers’ obligation to         for loss of income or providing other
employees’ stress check system is to                provide results of the stress check to          compensation.
prevent the development of mental illness,          each employee. Consent of the employee
by helping employees to identify when               must be given before the results are
they are suffering from stress.                     shared with the employer.                         Emi Uchida
The amendments to the Industrial Safety         • Depending
                                                               on the level of stress detected       emi.uchida@jp.ey.com
and Health Act relevant to employees’               during the check and at the request of
stress checks are scheduled to come into            the employee, the employer will have
force by December 2015. The Ministry of             to set up a meeting with a doctor at
Health, Labor and Welfare (MHLW) is now             which the doctor gives medical guidance
in the process of preparing the relevant            to the employee.
enforcement regulations and guidelines

                                                                                               Multi-jurisdictional Labor and Employment Law update   6
Kazakhstan

Work safety in Kazakhstan                             of various measures set by Kazakhstan’s         or
                                                      labor legislation and obligatory for both       • A special investigation of a job-related
The Kazakh Constitution guarantees a                  employers and employees.                          accident.
safe work environment for all employees.
There are also a number of legal acts                 Depending on the factors associated with        In case of a work-related accident, among
in Kazakhstan which regulate work                     performance of work, the Kazakh legislation     other things, an employer is obliged to
safety issues as well as international                differentiates between the following types of   provide first aid to an injured employee,
treaties related to work safety, such as              working conditions:                             immediately inform his/her relatives
the Agreement on Cooperation in the                   • Normal working conditions                     and notify the relevant state authorities
Work Safety Sphere with CIS countries                                                                 and employee representatives about the
                                                      • Heavy work
and the Treaty of the International                                                                   accident, as well as initiate an investigation.
                                                      • Work in harmful (extremely harmful)
Labor Organization on Work Safety                                                                     The ordinary investigation of a job-
                                                        and/or hazardous conditions.
and Hygiene in the Production Sector.                                                                 related accident should be conducted
                                                      The type of working condition is established
Kazakh labor legislation guarantees work                                                              by the employer with the participation
                                                      by specialized companies which are
and safety at work through two avenues.                                                               of employee representatives. A special
                                                      mandated by the Ministry of Healthcare
First, it sets forth obligations with which                                                           investigation additionally requires the
                                                      and Social Development of the Republic of
employers must comply and which aim                                                                   participation of representatives of the
                                                      Kazakhstan.
to promote safety at work. Secondly,                                                                  relevant state authorities.
it gives the government the power to                  There are certain general work safety
                                                                                                      Based on the results of the investigation, a
control companies in order to ensure                  requirements that apply for all employers.
                                                                                                      commission determines the circumstances
they enforce the applicable rules.                    They include:
                                                                                                      of the accident and the degree of the
At the moment, health and safety at work              1. Conducting work safety training/             employer’s fault in the accident. Upon
is a recurrent issue for state authorities.              examination for employees specifically       completion of the investigation, the
For instance, in 2014, the Kazakhstan labor              tailored to their job                        employer has to register the accident in
authorities launched in several regions               2. Creating and updating certain documents      the register of work-related accidents
a pilot project for voluntary declaration                such as work safety instructions, training   and submit statistical reporting to the
by employers on their compliance with                    registers                                    state authorities. Moreover, an employer
work safety requirements. Employers who                                                               may be obliged to arrange for and/
                                                      3. Sending, at least once every three years,    or pay significant compensation to the
proceed with such declarations will have a
                                                         management and specialists responsible       injured employee.
reduced amount of labor inspections over a
                                                         for work safety for regular training/
period of three years.                                                                                It is worth noting that Kazakh legislation
                                                         examinations in this regard
                                                                                                      has implemented serious sanctions, both
General information on work safety                    In addition, employers with production          criminal and administrative, for employers
regulation in Kazakhstan                              facilities and which have production            who violate work safety requirements.
                                                      activities are obliged to have a work and       For instance, a work safety specialist’s
Kazakhstan’s labor legislation has set
                                                      industrial safety specialist and department     violation of work safety requirements that
forth a specific definition of the term
                                                      as well as to have their working conditions     leads to an employee’s death may lead to
“work safety.” Work safety is a system
                                                      re-established once every five years.           a maximum sentence of five years with
which aims to protect the health and safety
of employees as they perform their work                                                               a possible prohibition of employment in
                                                      Investigation of work-related                   certain positions or engagement in certain
duties. Work safety includes a variety of
                                                      accidents                                       activities for a period of up to three years.
issues and means which can be legal, social
and economic, administrative and technical,           Along with work safety issues, the              In light of the above, it is very important for
sanitary and epidemiological, medical and             Kazakh labor legislation strictly regulates     employers to make sure that they comply
preventive, recreational.                             the procedure for the investigation of          with all requirements of Kazakh work
                                                      work-related accidents. Depending on the        safety law.
Employers not only protect the health and
                                                      seriousness of an accident, an employer
safety of their employees, but ensure that
                                                      has to initiate either:
such protection is maintained through
the course of time. Work safety consists              • An ordinary investigation                      Dinara I Salikhzyanova
                                                                                                       dinara.salikhzyanova@kz.ey.com

7   Multi-jurisdictional Labor and Employment Law update
Netherlands

The Dutch Work and                                employer must inform such employees,            of sickness or invalidity, or culpable acts
                                                  no later than one month before the end          or omissions) will take place through
Security Act
                                                  of the employment contract is set to end        dissolution by the sub district court.
On 1 January 2015, part of the Dutch              by operation of law, whether or not the         In comparison with the current rules, the WWZ
Work and Security Act (WWZ) will come             employment contract will be extended            allows the possibility for appeal and appeal in
into effect. The WWZ is one of the largest        and, if so, under what conditions. This duty    cassation for both dismissal alternatives.
overhauls of Dutch labor law in the past          of notification also applies to renewals
decade. The WWZ has three main goals:             of fixed-term employment contracts. In          Transitional payment
                                                  the event that the employer fails to notify     The formula used by the sub district court
• To make laws governing termination of
                                                  the employee, or fails to do so in time,        (in Dutch: kantonrechtersformule) will
  employment contracts fairer, easier,
                                                  the employment contract will end on the         be abolished. Under the new rules, an
  quicker and less costly to apply
                                                  agreed date, but the employer will be           employee whose employment contract
• To strengthen the position of flexible          obliged to pay a maximum compensation           has been in place for two years is entitled
  workers                                         of one month’s salary to the employee.          to a transitional payment, regardless of
• To reduce the maximum unemployment                                                              the manner of dismissal. The transitional
  benefit in the hope of encouraging the        Changes from 1 July 2015                          compensation is equal to a third of the
  unemployed to find a job                                                                        monthly salary per year of service, for
                                                Successive contracts rules
                                                                                                  the first 10 years of service; and half
The modifications will take effect at three     The successive contracts rules (in Dutch:
                                                                                                  of a monthly salary per year of service
different moments: on 1 January 2015,           ketenregeling) state that successive fixed-term
                                                                                                  afterwards. The transitional payment
1 July 2015 and 1 January 2016, epending        employment contracts are converted into
                                                                                                  cannot exceed €75,000 or one year’s
on the nature of the modifications and the      employment contracts for an indefinite period
                                                                                                  salary if this is higher than €75,000.
persons affected.                               of time at a certain point. As of 1 July 2015,
                                                                                                  The transition payment must subsequently
                                                the successive contracts rules are as follows:
                                                                                                  be used by the employee for finding
Modifications applicable on                     Three fixed-term employment contracts may         other work. The employee could lose the
1 January 2015                                  be concluded within a space of two years. This    right to benefit from the payment if he
• Modifications that will be applicable on      includes interruptions of up to six months. An    commits a serious culpable act during
  1 January 2015 aim to strengthen the          employment contract for an indefinite period      his employment relationship.
  situation of employees with a fixed-term      of time is formed by operation of law under
  employment contract. According to the         either of these circumstances:                    Changes from 1 January 2016
  WWZ, employers may no longer include          • The two-year period is exceeded in the case     Limitation of the duration of
  a probationary period in a fixed-term           of two or more employment contracts.            unemployment benefits
  employment contract with a term of six                                                          As outlined above, the changes
                                                • A fourth fixed-term employment
  months or shorter. A probationary period                                                        contained in the WWZ with respect to
                                                  contract is formed.
  in such an employment contract will be                                                          the Unemployment Insurance Act aim to
  considered as null and void.                  Alteration of the dual dismissal system
                                                The two alternative paths for dismissal —         ensure that people find a new job soon after
• In addition, in principle, according to the                                                     being made unemployed. Therefore, the
                                                permission from the Dutch Labor Office
  new rules, non-compete clauses will be                                                          maximum duration of benefits under the
                                                to give notice and dissolution by the sub
  prohibited in fixed-term employment                                                             Unemployment Insurance Act will drop from
                                                district court — will continue to exist under
  contracts. However, if the employer has a                                                       38 months to 24 months. Another measure
                                                the WWZ. However, there will be one single
  substantial business interest in including                                                      that aims to ensure that the unemployed
                                                manner of dismissal mandatorily prescribed
  a non-compete clause, the clause could                                                          accept job offers as quickly as possible is
                                                by the law, depending on the reason for
  be regarded as valid if it substantiates,                                                       that all jobs qualify as suitable employment
                                                the dismissal. For dismissal on grounds
  in a written statement, the necessity of                                                        after six months of unemployment. This
                                                of (a) economic reasons or (b) long-term
  the non-competition clause.                                                                     means that people entitled to unemployment
                                                incapacity for work, dismissal will take place
• Finally, the WWZ will introduce a             by requesting permission from the Dutch           benefits will be obliged to accept all available
  notification duty for the benefit of          Labor Office to terminate the employment          jobs after six months of unemployment.
  employees with a fixed-term employment        contract. Dismissal for other reasons
  contract with a duration of six months                                                            Nicky Ten Bokum
                                                (such as a damaged working relationship,
  or more. According to this new law, the                                                           nicky.ten.bokum@hollandlaw.nl
                                                inapplicability, inability to work as a result

                                                                                             Multi-jurisdictional Labor and Employment Law update   8
New Zealand

New dawn for New Zealand                             • Each PCBU will have duties for the safety       • Review their approach to workplace H&S
                                                       of its own employees, the employees of
health and safety legislation                                                                          • Assess whether the processes and
                                                       contractors and subcontractors (to the            procedures currently in place are
New Zealand is in the midst of a once in a             degree that it can influence this) and            adequate (a gap analysis)
generation change to its health and safety             anyone else who may be affected by the
                                                                                                       • Check that directors and senior
(H&S) regime. With one in ten workers                  work. PCBUs with responsibilities for
                                                                                                         managers will receive the training and
suffering a workplace accident each year               the same workplace will be required to
                                                                                                         resources necessary for them to comply
and workplace accident costs estimated                 cooperate and coordinate compliance
                                                                                                         with their new due diligence duties
at 2% of GDP, New Zealand workers are                  efforts
significantly more likely to suffer injury or                                                          • Liaise with other involved parties to
                                                     • All directors and senior managers of
be killed at work than their Australian and                                                              establish a collaborative approach to the
                                                       a PCBU will be under a duty to take
UK counterparts.                                                                                         new overlapping, mutual H&S duties
                                                       reasonably practicable steps (or exercise
Following the tragic death of 29 miners                due diligence) to ensure compliance by          • Prepare for much wider cooperation with
in a coal mine explosion in 2010, a Royal              their PCBU with its H&S duties. Workers           workers and their representatives on
Commission of Inquiry and an Independent               will have a greater ability to participate in     H&S management
Taskforce reviewed New Zealand’s current               improving workplace H&S standards               Ahead lies a period of change for
H&S regime. They found the current                   • A radically overhauled penalty regime           New Zealand business as H&S assumes
regime to be “unfit for purpose.”                      will apply. The maximum fine for a              a more pivotal role in risk management and
                                                       business will rise from NZ$500,000              overall strategy.
A raft of changes was proposed. A new
standalone regulatory body, WorkSafe                   to NZ$3m, and courts will be able
New Zealand, commenced operations in                   to make adverse publicity orders.
December 2013. Draft legislation (the                  Directors and senior managers will face
Health and Safety Reform Bill 2013) is                 up to five years’ imprisonment and an
                                                                                                        Christie Hall
currently before Parliament. The new                   NZ$600,000 fine.
                                                                                                        christie.hall@nz.ey.com
legislation is expected to come into force           One of the challenges facing New Zealand’s
in late 2015.                                        legislators and WorkSafe is encouraging
The Bill is based on Australian Model Work           office-based businesses to prioritise H&S.
Health and Safety Act. It comprehensively            Although covered by both the current and
reforms New Zealand’s current H&S laws.              the proposed legislation, stress-related and
Major changes include:                               other psychological harm has traditionally
                                                     been addressed through New Zealand’s
• The primary duty to take reasonably                employment regime. One indicator that
  practicable steps to ensure worker                 this may be changing following WorkSafe’s
  safety will be imposed on the “person              establishment is the release in February
  conducting a business or undertaking”              2014 of WorkSafe’s guidelines for
  (PCBU). Companies, partnerships,                   “Preventing and Responding to Workplace
  sole traders, central government                   Bullying.” This comprehensive guide
  departments and local authorities will             defines workplace bullying for the first time
  generally all qualify as PCBUs                     and indicates that WorkSafe is taking an
• Safety duties will extend to all aspects of        active interest in psychological, as well as
  the supply chain. Those who commission,            physical, harm in the workplace.
  design, install, manufacture, import and
                                                     The proposed legislative changes are
  supply plant, structures and substances
                                                     already having an impact. Now is the time
  will qualify as PCBUs with safety duties
                                                     for organisations with New Zealand-based
                                                     operations to:

9   Multi-jurisdictional Labor and Employment Law update
Norway

Health, safety and                              The employer also has to ensure that             The Working Environment
                                                there is no harassment, including sexual         Committee
environmental regulations
                                                harassment, or other improper conduct in
in Norway: responsibilities                                                                      All businesses with at least 50 employees
                                                the workplace and that, as far as possible,
                                                                                                 must establish a working environment
of the employer for physical                    employees are protected against violence,
                                                                                                 committee.
and mental health                               threats and undesirable strain as a result of
                                                contact with other persons. The employer         The duties of the working environment
                                                is obliged to have a procedure for handling      committee are to make efforts to
 mployer’s responsibility for health,
E                                                                                                establish a fully satisfactory working
                                                bullying at the workplace.
safety and the environment                                                                       environment, participate in planning
The employer has primary responsibility         The employer shall ensure that measures
                                                                                                 safety and environmental work, and
for ensuring that the statutory                 to maintain a good working environment
                                                                                                 follow up developments closely in questions
requirements related to health, safety          are systematically implemented. This
                                                                                                 relating to the safety, health and welfare
and environment are implemented. The            includes systematic work on sick leave.
                                                                                                 of the employees.
Norwegian Working Environment Act
contains a general requirement that             Supervision and responsibility                   Sanctions
the working environment shall be fully          It is the employer’s duty to conduct
                                                                                                 The Labor Inspection Authority can
satisfactory when factors in the working        ongoing monitoring of the working
                                                                                                 respond to contraventions of health,
environment can influence the employees’        environment through internal control.
                                                                                                 environmental and safety legislation
physical and mental health and welfare.         It is also their duty to ensure that the
                                                                                                 with various sanctions, including orders,
The requirements that must be satisfied         work is planned and organized to meet
                                                                                                 coercive fines and notification to the police.
depend on the size and risk related             the requirements that are laid down in the
                                                                                                 Which sanction is chosen will often be a
to the enterprise.                              Working Environment Act and appurtenant
                                                                                                 matter of judgment.
                                                regulations. Employees have both the right
 equirements for the working
R                                               and obligation to participate in activities at   Whenever the law or regulation has
                                                the workplace to ensure this.                    been contravened, the gravity of the
environment
                                                                                                 contravention and the type of enterprise
According to the Working Environment            In addition, several important roles are
                                                                                                 involved will all have a bearing on the
Act, it is the responsibility of the employer   defined in the regulations that are designed
                                                                                                 choice of sanction.
to ensure that the working environment is       to ensure control and monitoring of the
fully satisfactory regarding the employees’     working environment:
physical and mental health and welfare.
The employer shall also take into account       Safety delegates                                   Sven Skinnemoen
the employees’ individual physical and          All businesses must elect a safety delegate        sven.skinnemoen@no.ey.com
psychological abilities when organizing         (alternative solutions may be agreed if the
and arranging the work of the individual.       business has fewer than 10 employees).
The workplace must be organized so              The safety delegate represents the
as to preserve the employees’ integrity         employees in all matters that are relevant
and dignity, and to enable contact and          to the working environment.
communication with other employees.

                                                                                            Multi-jurisdictional Labor and Employment Law update 10
Peru

Health and safety at work in                              hazardous work activities or any activity   The frequency at which employees
                                                          that may affect proper physical and         must take periodic medical examinations
Peru: the empowerment of
                                                          mental development.                         has changed during the last year. The
workers and special protection                                                                        original version of Law No. 29783 and its
                                                    3.Employers must establish appropriate
for people with disabilities                          mechanisms and tools for people with            supplementary regulations required that
                                                      disabilities to help them do their jobs in      periodic occupational medical examination
With the issuance of Law No. 29783, the
                                                      an adequate environment.                        took place on an annual basis. But an
Health and Safety at Work Act, a legal
                                                                                                      amendment to the law published in 2014
protection system was established in Peru           4. Employers must ensure a job transfer for       has changed the frequency to every two
in order to create appropriate mechanisms              staff who have suffered a disability that      years, unless workers perform hazardous
to ensure the health and safety of workers             prevents them from proper development          activities. In such cases, the frequency
in different labor regimes. The system also            in their original job position, as a           will be defined by the authorities in their
promotes a prevention culture against risks            consequence of a work accident or an           respective activity sectors.
arising from working activities.                       occupational disease.
                                                                                                      The change in frequency of medical
Prior to this law, health and safety at work        One of the most important aspects                 examinations is the product of reflects
in Peru was regulated by Supreme Decree             developed by the law is the active                the view of business associations, which
No. 009-2205-TR, which established a                participation of workers and work                 want to reduce the costs generated by
system with lower standards.                        unions in the management of safety                occupational medical examinations.
This law, which was the first passed by             and health at work.
                                                                                                      As a result of the issuance of Law
the current government of President                 In this regard, the law requires that             No. 29783, the company representative
Ollanta Humala, is based on the                     each company with 20 or more workers              in charge of health and safety at work is
following principles:                               must have a Safety and Health at Work             exposed to deprivation of liberty should
• Prevention: The employer must                     Committee. The committee must consist of          their negligence endanger the life or
  establish mechanisms that aim to protect          equal numbers of employer and employee            well-being of any worker.
  the health and safety of its employees            representatives.
                                                                                                      The issuance of Law No. 29783 has
  and any provider of services within               The election of workers’ representatives          already produced encouraging results.
  its facilities.                                   must be done through an electoral process         For example, the number of accidents
• Cooperation: The Government,                      led by the union with the most affiliated         in the mining industry declined by
  employers, workers and worker unions              workers. If the company does not have             approximately 18% between 2012
  must establish appropriate mechanisms             a work union, employees must organize             and 2013.
  for cooperation on safety and health              the elections.
                                                                                                      Such results are the consequence
  at work compliance.                               The Safety and Health at Work Committee           of responsible companies showing
• Integral management: The employer                 is responsible for the enforcement of             commitment to the health and safety
  must promote the management of safety             the safety and health at work policies            of their employees, and of the correct
  and health at work in its facilities.             established by the company. It is also            legal enforcement by the Peruvian
                                                    responsible for developing the company’s          labor authorities. Nevertheless, there
Furthermore, Law No. 29783 provides a
                                                    internal regulations on safety and health         is still much progress to make on health
special emphasis on the protection and
                                                    at work and for ensuring that all safety and      and safety at work standards. It is the
development of pregnant women, underage
                                                    health at work obligations are being duly         responsibility of Peruvian authorities
workers and people with disabilities. This
                                                    fulfilled by the company.                         and employers to continue to drive
special protection is manifested in the
following employer obligations:                     Among other relevant obligations set by           improvement.
                                                    Law No. 29783, companies must submit
1. Employers must transfer expectant
                                                    their workers to occupational medical
   mothers, or mothers during
                                                    examinations:                                      Jose Ignacio Castro Otero
   breastfeeding phase, to a job
   position that does not involve                   1. Before employment                               jose-ignacio.castro@pe.ey.com
   any health or security risk.                     2. During employment
2. Employers are prohibited from hiring             3. After termination of employment
   or retaining teenage workers to perform

11 Multi-jurisdictional Labor and Employment Law update
Spain

Health and safety in Spain:                        These appointed employees benefit                 building or commercial center.
                                                   from the same guarantees given to the             However, this option is not available
organizing labor risk prevention
                                                   members of the Works Council (e.g.,               for those companies obliged to
The control of the correct application of          special protection against dismissal,             constitute their own prevention service
the labor risk prevention rules in Spain may       permanence priority when collective               in the terms described in the above
lie in both the company itself as well as in       dismissals are carried) so that their             paragraph.
external agents. The size of the company,          independence towards the employer
the potential labor risks associated with          in the performance of the labor risk          5. Contracting with external
its activity and the choice made by the            prevention activities is guaranteed.             prevention service providers
employer are the three aspects that come
                                                                                                     External labor risk prevention services
into play when it comes to decide who shall     3. Implementing a company’s                          are rendered by specialized entities in
be the responsible for labor risk prevention        internal prevention service                      the following cases:
in a certain company.
                                                   The employer must constitute this                 • When the designation of one or
The law establishes five different available       service in the three following cases:               more employees is not sufficient
options which allow the employer to
                                                   • In companies employing more than                  for the correct performance of
organize the labor risk prevention service:
                                                     500 workers                                       the prevention activities and
                                                   • In companies employing more than                  the constitution of a company’s
1.		Voluntarily undertaking labor risk                                                                 prevention service is not mandatory
                                                     250 workers and having particularly
    prevention activities
                                                     risky activities                                • In companies that are compelled by
   Employers may voluntarily assume the                                                                the competent Labor Authority to
                                                   • In companies that are not included
   leading role in the labor risk prevention                                                           constitute the company’s prevention
                                                     in the two above mentioned cases
   activities provided that their companies                                                            service
                                                     but are obliged to constitute the
   employ less than 10 workers.
                                                     company’s prevention service by                 • When the labor risk prevention
   Exceptionally, they may also be in
                                                     the competent Labor Authority,                    activities are only assumed partially
   charge of the labor risk prevention
                                                     due to a series of circumstances                  by the company (the company
   in companies employing more than
                                                     such as the accident rates and the                meaning the employer himself, the
   10 workers and less than 25, provided
                                                     risks associated with the activities              designated employees or the internal
   that all their activity takes place in one
                                                     performed by the company                          prevention service)
   single workplace. This option is only
   available for the employers whose               In this latter case, the employer                 Therefore, it is possible to externalize a
   employees regularly perform their               may also decide to hire an external               part of the labor risk prevention service
   activities in the same workplace.               prevention service on the terms that              through the hiring of a specialized
                                                   will be described in paragraph five.              entity even if some labor risk
2. Appointing one or more employees                In all these cases, the employees in              prevention activities are already being
   to deal with labor risk prevention              charge of this service shall exclusively          carried out by internal agents.
   activities                                      devote themselves to it and be provided       In conclusion, Spanish labor risk
   Employers who employ less than                  with the adequate means in order to           prevention activities may be undertaken
   500 employees, or who have                      perform their activities correctly.           by different entities depending on
   “particularly risky activities”                                                               certain circumstances, such as the
   (“actividades de especial riesgo”),          4. Constituting joint prevention                 potential risk of the activities carried on
   may choose to appoint one or more               services through cooperation                  by the company or its size. However, the
   employees to deal with labor risk               with other companies                          regulation tries to be flexible allowing in
   prevention activities. The employees                                                          most cases the employer to take some
                                                   This option consists in the creation
   designated are not obliged to devote                                                          decisions concerning the way in which he
                                                   of a single prevention service whose
   themselves exclusively to labor risk                                                          wants labor risk prevention to be tackled
                                                   services are provided to different
   prevention. However, the employer                                                             in his company.
                                                   companies. It is only possible to
   must provide them with the adequate             constitute joint prevention services for
   means and the time that is necessary            companies rendering their services
   for them in order to attend their duties.       simultaneously in the same workplace,           Raul Luis Garcia Gonzalez
                                                                                                   raulluis.garciagonzalez@es.ey.com

                                                                                            Multi-jurisdictional Labor and Employment Law update 12
Ukraine

Labor protection in Ukraine                          the level of light, noise and vibration in the   The respective directives’ provisions should
                                                     workplace, and the microclimate.                 be implemented in a 3 to 10 year period
Ukraine has an extensive legal framework                                                              after the association comes into force.
in respect of health care, labor and social          Nevertheless, as a legacy of the former
protection. These issues are regulated by            Soviet Union, the Ukrainian legislation on       Analysis of existing Ukrainian regulations
the Constitution of Ukraine, the Labor Code          occupational safety concentrates mainly          and provisions of the above mentioned
of Ukraine, the Law of Ukraine “On labor             on the physical health of the employees,         directives shows that, in the coming years,
protection” and a wide range of regulatory           and the protection of specific categories        health and safety at work in Ukraine should
acts adopted in conformity with those                of employees, such as pregnant women,            improve significantly.
mentioned above.                                     single parents, young workers and those          It is also worth mentioning that decisions
                                                     with disabilities. Existing laws prescribe       of the Ukrainian courts on labor protection
Labor safety legislation has been                    mandatory health checks on a regular
developing rapidly since Ukraine’s                                                                    cases are usually favorable for the
                                                     basis for employees working in arduous           individuals rather than the enterprises.
independence in 1991. The Law of                     conditions, and for all employees under 21.
Ukraine “On labor protection,” which is                                                               Claiming compensation for physical
the fundamental document in this area,               However, the protection of employees’            damage caused by unsafe conditions at
was adopted as early as 1992. It was the             mental health is not guaranteed. This may        the workplace is fairly provided for in
first legal act within the territory of the          become a major problem because recent            Ukraine’s current legislation. However,
former Soviet Union that changed the labor           research shows that more than 57% of             claiming compensation for non-pecuniary
safety provisions derived from the Soviet            office workers in Ukraine are regularly          damages — for example, mental health
Union. Since its adoption, the law has been          working over-time, which leads to a              deterioration caused by stress — is not
modified more than 20 times, and was                 problematic work-life balance, constant          very common and might have low success
completely revised in 2002.                          stress and the deterioration of health.          rate because it is difficult for individuals to
                                                     On 16 September 2014, the Ukrainian              substantiate such claims.
According to the law “On labor protection,”
state policy in the labor safety sphere              Parliament, Verkhovna Rada, ratified the         Non-compliance with the regulatory
should be based on the following principles:         Association with the European Union,             requirements related to labor protection
prioritizing life and health protection of           which envisages close cooperation in             in Ukraine may result in the imposition
workers over economic interests, full                the social and economic spheres and,             of financial sanctions on the offending
responsibility of the employer to create             in particular, in the area of health and         enterprises and their executives. It
safe and healthy conditions of work, the             safety at work.                                  may even lead to enterprises being
establishment of single requirements on              According to the association, Ukraine            prohibited from conducting their
labor safety for all enterprises, irrespective       shall implement the provisions stipulated        activities. Additionally, according to the
of their type, and adapting work processes           by the Directives of the European                Criminal Code of Ukraine, executives of
to the capabilities of each particular               Economic Community into national                 the offending companies may be subject
employee, based on his health and                    legislation. In particular, among others,        to criminal liability of up to 10 years’
mental state.                                        Ukraine shall implement the provisions           imprisonment for violation of labor safety
                                                     of directives concerning:                        requirements that entail health damage
Additionally, the Cabinet of Ministers of                                                             to an employee death of an employee, or
Ukraine and Ministry of Health Protection            • Minimum safety and health requirements         creating a situation dangerous for life.
of Ukraine have issued a number of very                for the workplace
specific resolutions and orders concerning
                                                     • Minimum safety and health requirements
labor protection in Ukraine. These include
                                                       for the use of work equipment by                Oksana Lapii
norms limiting weight for lifting and moving
                                                       workers                                         oksana.lapii@uea.ey.com
heavy cargos by women and minors;
hygienic classification of work types, based         • Minimum safety and health requirements
on harmful and hazardous occupational                  for work with display screen equipment
factors and work stress; and labor safety            • Certain aspects of the organization of
regulations while operating a computer. For            working time
example, regulations set requirements for

13 Multi-jurisdictional Labor and Employment Law update
Contacts
Labor and Employment Law services
For further information, please contact:

Australia                                   Germany                                      Peru
Dayan Goodsir-Cullen                        Karsten Umnuss                               Jose Ignacio Castro Otero
Email: dayan.goosir-cullen@au.ey.com       Email: karsten.umnuss@de.ey.com              Email: jose-Ignacio.castro@pe.ey.com

Austria                                     Greece                                       Poland
Helen Pelzmann                              Maria Rigaki                                 Aleksandra Mazur-Zych
Email: helen.pelzmann@pglaw.at             Email: maria.rigaki@gr.ey.com               Email: aleksandra.mazur-zych@pl.ey.com

Belgium                                     Hungary                                      Portugal
Frank Ruelens                               Anett Vandra                                 António Garcia-Pereira
Email: frank.ruelens@hvglaw.be              Email: anett.vandra@hu.ey.com               Email: garcia.pereira@apml.pt

Bulgaria                                    India                                        Romania
Tanya Stivasareva                           Tarun Gulati                                 Nicoleta Gheorghe
Email: tanya.stivasareva@bg.ey.com          Email: tarun.gulati@pdslegal.com            Email: nicoleta.gheorghe@ro.ey.com

                                                                                         Russia
China                                       Italy
                                                                                         Oleg Shumilov
Jane Dong                                   Stefania Radoccia                            Email: oleg.shumilov@ru.ey.com
Email: dongj@chenandco.com                 Email: stefania.radoccia@it.ey.com
Jerry Liu                                                                                Singapore
Email: zhan.liu@chenandco.com              Japan
                                                                                         Jennifer Chih
                                            Emi Uchida                                   Email: jennifer.chih@pkw.com.sg
Denmark                                     Email: emi.uchida@jp.ey.com
Julie Gerdes                                                                             Spain
Email: julie.gerdes@dk.ey.com              Kazakhstan
                                                                                         Raul Luis Garcia Gonzalez
                                            Dinara I Salikhzyanova                       Email: raulluis.garciagonzalez@es.ey.com
Estonia                                     Email: dinara.salikhzyanova@kz.ey.com
Hedi Wahtramae                                                                           Switzerland
Email: hedi.wahtramae@ee.ey.com            Mexico
                                                                                         Sylvia Spinelli
                                            Carina Barrera                               Email: sylvia.spinelli@ch.ey.com
Finland                                     Email: carina.barrera@mx.ey.com
Riitta Sedig                                Alonso De La Pena                            Turkey
Email: riitta.sedig@fi.ey.com              Email: alonso.delapena@mx.ey.com
                                                                                         Mehmet Kucukkaya
                                                                                         Email: mehmet.kucukkaya@tr.ey.com
France                                      New Zealand
Roselyn Sands                               Christie Hall                                Ukraine
Email: roselyn.sands@ey-avocats.com         Email: christie.hall@nz.ey.com
                                                                                         Oksana Lapii
                                                                                         Email: oksana.lapii@uea.ey.com
Gabon                                       Norway
Fatima-Kassory Bangoura                     Sven Skinnemoen                              United Kingdom
Email: fatima-kassory.bangoura@ga.ey.com   Email: sven.skinnemoen@no.ey.com
                                                                                         Dan Aherne
                                                                                         Email: daherne@uk.ey.com

                                                                                    Multi-jurisdictional Labor and Employment Law update 14
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