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IR Notes 141 — 6 May 2020
www.irshare.eu
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A question for…
Tamas Gyulavari, Professor of Labour Law and Head of the Labour Law
Department at Pázmány Péter Catholic University, in Budapest
In
the context of the corona virus crisis, the Hungarian
government has taken several measures to increase the
flexibility of labour law. Can these changes be regarded as
a violation of EU labour law? During
the pandemic, which is referred to as the ’State of Danger’, the
legislative philosophy of the Hungarian government is to strengthen
the employer’s unilateral powers to act, and to allow the employer
to disregard any legal or contractual regulations applicable. These
legislative changes, which were not requested by the employers’
organisations, were issued by Government decrees, based on the
Enabling Act granting the government special powers for an unlimited
period of time. Under this law, the employer enjoys enhanced
prerogatives entitling it to order employees to work from home for
the duration of the ’State of Danger’. At the same time, the
employer can also unilaterally set a 24‑month reference period for
the purpose of calculating working time or can extend the existing
working time reference period to a new total of up to 24 months. As
a result, the length of the working week may vary between 0 and 60
hours over this period, without requiring a collective agreement to
be reached. However, the most significant change is the freedom to
derogate from the requirements of the Labour Code by mutual
agreement between the employer and the employee. This means that any
rule contained in the Labour Code can be waived by agreement between
the parties, whether for the employee’s benefit or to the employee’s
disadvantage. This rule clearly sets aside the public policy rules
enshrined in the Labour Code, whereby any agreement reached between
the parties can override the provisions of the Labour Code and of
collective agreements only if it is in the employee’s favour (in
melius derogations). However, at the present time, most
provisions of the Labour Code do not allow any derogations. This
return to 19th century freedom of contract means that the
parties can avoid the application of any labour law provisions, for
instance those implementing EU law or constitutional rights. This
concept is therefore unconstitutional, and also violates EU labour
law. Social partnership and collective bargaining have not been
strengthened by any legislative measures. On the contrary,
collective bargaining is prohibited in certain fields, such as the
setting of the 24‑month reference period, where any derogation by
collective agreement is prohibited. Consequently, the government is
empowering only the employer, or alternatively mutual agreement
between the parties, to resolve any problems arising. However, this
clearly places a greater burden on employees’ shoulders.
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Lead
story
Teleworking
comes to the aid of a locked-down Europe
“It’s only my personal impression and it applies primarily to my country
(Luxembourg), but it seems we’ve made more progress with teleworking in one week
than we have throughout recent years”, says Gabriel Di Letizia, BNP Paribas EWC
secretary, with feeling. ”The Axa group was one of the first actors to protect its
employees by resorting to teleworking, worldwide: 90% of its locked-down employees
were allowed to work from home”, explains Patricia Nunez, deputy secretary of the
Axa group EWC. “This was one of the first measures implemented at European level”,
says Guy de Trazegnies, EWC secretary at Orange. “We quickly switched over to an
operation based entirely on teleworking, with almost 97% of our employees working in
this way”, says Patrick David, EWC secretary at Dassault Systèmes. At Worldline “98%
of the workforce is teleworking”, comments Marie Lopez, the group’s head of
industrial relations. At reinsurer Scor, the figure is even higher: 100%. Will the
post‑Covid-19 period witness the advent of teleworking, seen as an ideal solution
for guaranteeing a healthy work-life balance, combatting climate change (with less
office space and transport use needed) and above all for protecting ourselves
against exposure to the virus? Whatever the reality, our perception of teleworking
is undergoing radical change and it is destined to play an important role in future.
However, the European Agency for Safety and Health at Work emphasises that the
teleworking going on in the Covid-19 environment does not represent ideal working
conditions (see below). Patrick David comments that “this situation, in which
everyone is teleworking in a locked-down environment alongside their family or close
friends, is proving more complicated than we might think”, and he highlights a
variety of different situations “where we will need time to take stock and assess
the risks”. “Even though teleworking colleagues are granted a certain amount of
freedom to look after their children and carry out domestic tasks”, notes Denis
Suire, deputy secretary of the GSK European Works Council, “their workload remains
the same, in other words too great”. As a result, some companies have tried to make
these emergency teleworking arrangements sustainable. Axa has set up a programme to
provide assistance for employees in the form of telemedecine and psychological
support. It has launched a global “Checking” survey to gather employees’ reactions.
Scor is conducting weekly surveys to measure its employees’ work-life balance.
Orange has set up hotlines providing psychological support. None of the EWC
secretaries or managers questioned by IR Notes envisages a rapid return to
office-based working. At Scor, all staff will continue to telework until 30 June.
Gabriel Di Letizia explains: “officially, BNP Paribas management is talking about a
‘resumption of business’ and not a ‘return to working on site’”. At SAP, there will
be no “easing of lockdown before the beginning of June” and management plans to have
no more than 30% of the workforce based on site, so that the return to work can
proceed safely”, with staff working on alternating rotas (this is also what Scor
plans to do). “No more than 10% of the workforce will be coming back to work on
site”, says Patricia Nunez, speaking on behalf of the Axa EWC. And all of this is
based on the assumption that there will be enough masks and signage, and enough
workspace laid out appropriately”.
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1. European
Union
Social
update
Preparing for a return to work :
On 24 April, the European Agency for Safety and Health at Work
(OSHA-EU) published guidelines to be followed in the context of the Covid-19 crisis,
particularly with regard to returning to work after a period of confinement (COVID-19:
Back to the workplace – Adapting workplaces and protecting workers). This
advice will be updated at regular intervals. The document emphasises that worries
linked to going back to work and exposure to the virus, and having to adapt to
changes to the job “may well result in stress and mental health problems”. Moreover,
given that many employees are becoming teleworkers for “the first time” as a result
of the Covid-19 crisis, and “their working environment is likely to be deficient in
many aspects compared to their workplace”, OSHA-EU is also offering advice on how
“to minimise the risks to workers who have not been able to prepare their home
workplace properly”.
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Case law
Self-employed independent contractor or
employee? : After a British court asked it to rule on how
the employment relationship between a parcel delivery company and a courier should
be classified, the Court held that a person cannot be deemed a worker if he is
afforded discretion to: 1° use subcontractors or substitutes to perform the service
which he has undertaken to provide; 2° accept or not accept the various tasks
offered by his putative employer, or unilaterally set the maximum number of those
tasks; 3° provide his services to any third party, including direct competitors of
the putative employer; 4° fix his own hours of ‘work’ within certain parameters and
to tailor his time to suit his personal convenience rather than solely the interests
of the putative employer. It notes that the independence of the courier “does not
appear to be fictitious and, second, there does not appear, a priori, to be a
relationship of subordination between him and his putative employer”, without
casting doubt on the reality of these flexible arrangements. This decision was
issued by means of an order, because the Court argued that the solution could be
“clearly deduced” from its existing case-law. However, it would have been desirable
for the case to give rise to a landmark ruling, in order to enlighten the national
courts on how to deal with disputes linked to the platform economy (CJEU
22 April 2020, case C‑692/19, B. v. Yodel Delivery Network).
- Homophobic statements constitute
discrimination in terms of recruitment policy: An
Italian lawyer stated on the radio that he did not wish to recruit anyone who
was homosexual or have them working at his practice. He was ordered to pay
10,000 euros to an association that defends LGBTI rights. As it did in its
Asociata Accept ruling (CJEU,
25 April 2013, case C-81/12, Asociata Accept), the Court of Justice
emphasised that statements implying the existence of a homophobic recruitment
policy are included within the notion of “conditions for access to employment
[…] or to occupation”, as protected by Directive 2000/78/EC, even if they are
made by a person who does not have legal capacity to recruit employees, provided
that the link between those statements and the employer’s recruitment policy is
not hypothetical. The very essence of the protection afforded by that directive
would become illusory if these statements fell outside the material scope of
that directive because they were made in the context of an entertainment
programme, or because they constitute the expression of a personal opinion (CJEU,
23 April 2020, case C-507/18, Associazione Avvocatura per i diritti
LGBTI and press
release issued by the Court).
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Sectoral
social dialogue
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Trade
unionism
- Occupational disease : The
European Trade Union Confederation and its ten affiliated federations have sent
a letter
to the European Commissioner for Jobs, Nicolas Schmit, asking for Covid-19 to be
recognised as an occupational disease, so that better compensation schemes can
be established to assist with healthcare costs and the consequences of the
disease for people who become contaminated at their workplace (see EPSU
press release).
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2. Member
States
Germany
- Virtual works council meetings :
A bill is being presented to amend Article 129 of the Law on
Company Formation (BetrVG), so that meetings can be held and resolutions passed
by means of conference calls and videoconferencing, subject to certain
conditions, up to 31 December 2020. This derogation also applies to European
Works Councils, SE Works Councils and special negotiating bodies.
>
See also: a summary
of the measures taken by the German government to combat Covid-19 in mid-April.
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France
Preparations for easing of lockdown :
A national
protocol on easing lockdown has been published to help companies get back to
work from 11 May onwards, while at the same time protecting the health of their
employees. This protocol supplements the 48
occupation-specific guides prepared in conjunction with the social partners
(see press
release).
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Italy
- Protocol on health and safety at work :
A decree
dated 27 April, sets out details of how the economy can start up again.
A protocol agreement negotiated with trade unions and employers’ organisations
describes the precautions to be taken, how shared work spaces are to be laid
out, and how work is to be organised. Sector-specific agreements have been
negotiated in the construction sector and in the transport and logistics sector
(see CGIL press
release).
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3.
Companies
European
works councils
Fair treatment : Following an
extraordinary meeting with management, the Air
France KLM European Works Council issued a declaration
concerning the “catastrophic” impact of the Covid‑19 crisis on the company. Members
call upon management to take measures that are fair, “to show a social face towards
each and every employee in the Group” and to ensure that all employees who are in
contact with customers are protected.
- Temporary select committee:
On 24 April, a temporary select committee, derived from the special
negotiating body that concluded the agreement on the Coca-Cola European Partners
EWC, met with management to take stock of the situation regarding the Covid-19
pandemic. This temporary body was set up at the request of the SNB’s members,
and will remain in existence until the European Works Council can hold a plenary
meeting to elect a select committee in due form.
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Transnational agreements
A common social protection base :
the management of the French energy group Engie (177,000 employees) was
already in the process of negotiating a global framework agreement with the global
union federations IndustriALL Global Union, PSI and IBB, and decided to implement
with immediate effect one chapter of the future agreement establishing a common
social protection base (see IndustriAll
press release). In a declaration
approved by the three organisations, the group announces: 1° the launch of a
programme providing full coverage of employees’ hospitalization costs related to
Covid 19 and of a minimum of 75% of their hospitalization costs, whatever their
pathology. 2° The introduction of life insurance cover equivalent to 12 months’
gross salary, in respect of all deaths that have occurred since the beginning of the
Covid 19 crisis (see Engie press
release).
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Corporate
Social Responsibility
OECD Complaint linked to Covid-19 :
On 17 April, four French trade-union federations submitted a
complaint to the French OECD National Contact Point, made against the call centre
group Teleperformance (310,000
employees), which works for suppliers such as Apple, Google and Amazon. The Uni
Global Union federation, which is critical of the fact that workers are being put at
risk due to the Covid-19 pandemic, points out that “this is the first
Covid-19-related complaint filed under the OECD Guidelines for Multinational
Enterprises” (see UNI Global Union press
release). “Teleperformance’s inadequate, slow response to the coronavirus
crisis has put thousands of workers at risk at the time of a deadly pandemic,” said
Christy Hoffman, General Secretary of UNI Global Union, which has been battling for
several years to persuade Teleperformance to negotiate a global framework agreement.
In response, on 27 April, the group published a press
release, explaining that it is “mobilized to fully protect its employees,
thanks to work-at-home solutions and all of the measures taken to ensure strict
compliance with hygiene and social distancing rules”. It emphasises that the number
of staff working from home has risen from 5,000 at the end of 2019 to 155,000 in
April this year (66% of the group’s workforce). In another press
release, management quotes a statement
approved by Teleperformance’s European Works Council on 1 April, applauding “the
measures taken”. “As far as actions taken within the European Union are concerned,
management has responded appropriately” confirms EWC secretary Stephan Sielemann.
“Even though there may have been some problems at local level, rapid progress has
been made. You can’t simply introduce work-at-home arrangements for all employees
from one day to the next.”
- Protection for supermarket
workers: Multinational food retailers Auchan, Carrefour, Casino and El Corte Inglés have signed
a declaration with the Uni Global Union federation, in which they commit to work
with it in order to protect supermarket workers and customers during the
Covid-19 pandemic (see press
release issued by UNI Global Union).
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Trade
unionism
Negotiations on European Works Councils and SNBs
: following the Joint
European Trade Union Federations’ Recommendations to EWC/SE Coordinators and
worker representatives on SNBs, EWCs and SEs, which were issued in early
April, the European Trade Union Federations have now published a second set of recommendations
on How to deal with negotiations involving EWC/SE and SNB (text also
available in Dutch,
Swedish,
Czech).
In the context of the Covid-19 crisis, these federations are laying down two rules:
1° No negotiation meeting should take place via phone or videoconference. Instead,
meetings should be postponed until face-to-face meetings are once more allowed. 2°
Members should either request that meetings be postponed or that negotiations be
suspended (see also EPSU press
release).
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4. Studies
and reports
Undeclared work :
On 2 April, the European Commission published a
report
on enhancing cooperation between Member States within the framework of the European
Platform for tackling undeclared work. It was established in 2016, and will soon
include the new European Labour Authority, in the form of a working group. Including
the ELA in its work should provide “increased impetus to tackle undeclared work more
effectively and transform it into declared work, contributing to fair working
conditions, fair competition and fair mobility for the benefits of workers, the
economy and society at large.”
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