European Labor Law Updates: Key Developments You May Have Missed – JD Supra

 

Report on European Labour Law Developments and Alignment with Sustainable Development Goals

This report outlines recent developments in European labour law, analyzing their implications for multinational employers through the lens of the United Nations Sustainable Development Goals (SDGs). The updates focus on enhancing worker protections, promoting equality, and ensuring fair employment practices, directly contributing to SDG 8 (Decent Work and Economic Growth), SDG 5 (Gender Equality), and SDG 10 (Reduced Inequalities).

1. Working Time Regulations and SDG 8

Upholding Decent Work through Fair Working Hours

Adjustments to working time and overtime rules across Europe reflect efforts to balance economic demands with the protection of labour rights, a core tenet of SDG 8 (Decent Work and Economic Growth), specifically Target 8.8, which advocates for safe and secure working environments.

• Belgium: A temporary law increases the voluntary overtime limit to 120 hours, providing flexibility while impacting the work-life balance central to decent work principles.
• France: A Court of Cassation ruling places the burden of proof for overtime on employers, reinforcing the need for transparent and reliable time-tracking systems to protect workers’ rights under SDG 8.
• Greece: Proposed legislation allowing a 13-hour workday, with overtime premiums, raises considerations regarding Target 8.8 by potentially extending working hours while offering compensatory arrangements.
• Netherlands: A court ruling mandated the inclusion of irregular hours allowances in holiday and sick pay calculations, ensuring fair remuneration and aligning with EU directives that support the principles of decent work.

2. Collective Agreements and Institutional Frameworks

Strengthening Labour Rights in Cross-Border Operations (SDG 8 & SDG 16)

Judicial clarifications on the application of collective agreements in cross-border contexts are crucial for building effective and accountable institutions (SDG 16) that protect labour rights (SDG 8).

1. Austria: The Supreme Court ruled that foreign employers without an Austrian branch are not bound by Austrian collective agreements, clarifying the legal framework for cross-border employment and its impact on worker protections.
2. Liechtenstein: The transposition of Directive (EU) 2019/2121 into national law ensures that employee participation rights are protected during cross-border mergers and divisions, safeguarding labour rights during corporate restructuring in line with SDG 8.

3. Dismissal Protection and Job Security

Enhancing Protections for Decent Work (SDG 8)

Strengthened dismissal protection measures contribute directly to achieving full and productive employment and decent work for all (Target 8.5) by ensuring job security and fair termination procedures.

• Austria: The Supreme Court extended dismissal protection to employees working remotely for foreign employers under Austrian law, provided an Austrian establishment exists. This ruling strengthens job security in the context of modern, cross-border work arrangements.
• France: The Court of Cassation affirmed that employers must provide necessary training before dismissing an employee for incompetence, reinforcing the employer’s role in employee development and promoting stable employment, a key aspect of SDG 8.

4. Fixed-Term Work and Equality

Combating Precarious Employment and Reducing Inequalities (SDG 8 & SDG 10)

Recent rulings on fixed-term contracts aim to prevent their misuse, reduce precarious employment (SDG 8), and ensure equal treatment, thereby contributing to the reduction of inequalities (SDG 10).

• Cyprus: An appellate court ruling classified successive fixed-term contracts for permanent needs as indefinite, protecting workers from precarious employment situations.
• Germany: A draft law eases the use of fixed-term contracts for post-retirement work, aiming to provide flexibility for older workers while amending rules that previously restricted such arrangements.
• Lithuania: A regional court ruling affirmed that while successive fixed-term contracts may be permissible in specific contexts like healthcare, abusive renewals without objective justification are prohibited, upholding protections against precarious work.
• Portugal: The Supreme Court of Justice nullified collective agreement clauses that assigned lower categories to fixed-term workers, reinforcing the EU principle of equal treatment and directly supporting SDG 10 (Reduced Inequalities).

5. Parental Leave and Gender Equality

Advancing Work-Life Balance and SDG 5

Expanded parental leave rights are critical for promoting gender equality (SDG 5) and recognizing unpaid care work (Target 5.4), enabling better work-life balance for all parents.

1. Belgium: A new law extends parental leave rights to long-term foster parents, promoting equality and recognizing diverse family structures.
2. France: The Constitutional Council clarified paternity leave rules for same-sex couples, confirming entitlement for a female spouse with legally recognized parentage, which contributes to the evolving legal framework around family leave.
3. Spain: The extension of maternity leave to 19 weeks and the provision for eight weeks of paid parental leave directly implement EU Directive 2019/1158, significantly advancing work-life balance and gender equality goals.

6. Platform Work and the Future of Decent Work

Defining Employment Status in the Gig Economy (SDG 8)

Judicial decisions regarding platform workers are pivotal in determining whether the gig economy aligns with the principles of decent work under SDG 8, particularly concerning worker classification and access to labour rights.

• France: The Court of Cassation upheld the self-employed status of Uber drivers, highlighting their legal independence and aligning with national law designed to regulate platform work.
• Portugal: Conflicting rulings from the Oporto Court of Appeal demonstrate the fact-dependent nature of classifying platform couriers, underscoring the legal complexities in ensuring decent work within the gig economy.

7. Transfer of Undertakings

Protecting Employee Rights During Business Transitions (SDG 8)

Clarifications on employer liability and employee rights during a transfer of undertaking ensure that workers are protected, upholding the principles of job security and fair treatment central to SDG 8.

• France: The Court of Cassation ruled that employees can claim unpaid overtime from their former employer after a transfer, ensuring that workers’ financial rights are preserved through business transitions.
• Malta: The Industrial Tribunal affirmed that a transfer of undertaking is not a valid ground for dismissal without economic, technical, or organizational reasons, protecting employees from unjust termination.

8. Additional Regulatory Developments

Promoting Fair Labour Practices and Secure Work Environments

Further legislative proposals and judicial actions across Europe continue to shape the landscape of labour law in alignment with SDG principles.

• Germany: A proposed law would require businesses to adhere to collective bargaining agreements to qualify for federal contracts, promoting fair wages and working conditions (SDG 8).
• Netherlands: Proposed changes to the highly skilled migrant program, including higher salary thresholds, impact policies related to migration and labour markets, relevant to SDG 10.
• Sweden: The Labor Court’s application of the Pregnant Workers Directive with direct effect provided compensation to teachers excluded from work, reinforcing protections for vulnerable workers and advancing SDG 5 and SDG 8.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on Europe’s evolving labor law landscape directly addresses and connects to several Sustainable Development Goals (SDGs). The primary goals identified are:

• SDG 8: Decent Work and Economic Growth: This is the most central SDG, as the entire article focuses on labor laws, working conditions, employee rights, and fair employment practices. Issues such as working hours, overtime, dismissal protection, fixed-term contracts, collective agreements, and the rights of platform workers are all core components of the decent work agenda.
• SDG 5: Gender Equality: The article touches upon this goal through its discussion of parental and maternity leave policies. These policies are crucial for promoting work-life balance and ensuring women’s full and effective participation in the workforce. The application of the Pregnant Workers Directive also falls under this goal.
• SDG 10: Reduced Inequalities: This goal is relevant in the context of ensuring equal treatment and rights for all workers, regardless of their contract type or employment situation. The rulings on fixed-term workers receiving the same rights as permanent employees and the protection of employee rights during cross-border corporate restructuring address inequalities within the labor market.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, several specific SDG targets can be identified:

1. Under SDG 8 (Decent Work and Economic Growth):
   • Target 8.8: Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment. This target is extensively covered. The article details new laws and court rulings aimed at protecting labor rights across various domains:
     • Dismissal Protection: Austria and France have strengthened rules protecting employees from unjust termination, including requiring employers to provide training before dismissing for incompetence.
     • Working Time Regulations: France’s requirement for employers to maintain reliable records of working hours and Greece’s proposed legislation on overtime pay protect workers from exploitation.
     • Precarious Employment: Rulings in Cyprus, Lithuania, and Portugal clarify and reinforce the rights of fixed-term workers, preventing abuse of temporary contracts and ensuring they are not treated less favorably than permanent employees. The legal debates around platform work in France and Portugal also relate to protecting workers in new forms of employment.
     • Migrant Workers: The Netherlands’ plan to tighten its highly skilled migrant program is directly related to the regulation of migrant work environments.
   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. This target is addressed through the principle of equal treatment. The Supreme Court of Justice in Portugal’s ruling that collective agreement clauses assigning lower categories to fixed-term workers are null and void is a direct implementation of the principle of equal pay and conditions for work of equal value. Similarly, the Dutch court ruling to include irregular hours allowance in holiday and sick pay ensures fair remuneration.
2. Under SDG 5 (Gender Equality):
   • Target 5.4: Recognize and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies and the promotion of shared responsibility within the household and the family as nationally appropriate. This target is supported by the developments in parental leave policies. Spain’s extension of maternity leave and remuneration for parental leave, and Belgium’s introduction of parental leave for foster parents, are social protection policies that support caregivers and promote work-life balance. The application of the Pregnant Workers Directive in Sweden also reinforces protection for working mothers.
3. Under SDG 10 (Reduced Inequalities):
   • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality. The legal frameworks discussed in the article serve as social protection policies aimed at reducing inequality. Liechtenstein’s law protecting employee participation rights during cross-border mergers ensures that workers are not disadvantaged by corporate restructuring. Rulings in Portugal and Cyprus that guarantee equal treatment for fixed-term workers are policies that directly combat inequality within the workforce.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article does not mention official SDG indicators by their numerical codes, but it provides numerous examples of qualitative and quantitative measures that can serve as implied indicators for tracking progress:

• Legal and Regulatory Frameworks: The existence and enforcement of the laws and directives mentioned are primary indicators.
  • Example: The transposition of Directive (EU) 2019/2121 into national law in Liechtenstein is an indicator of progress in protecting workers’ rights during corporate restructuring (Target 8.8).
  • Example: Germany’s proposed Federal Collective Bargaining Compliance Act is an indicator of policy adoption to strengthen collective bargaining (Target 8.8).
• Judicial Rulings and Enforcement: The number and nature of court decisions that uphold labor rights serve as indicators of the legal system’s effectiveness.
  • Example: The French Court of Cassation’s ruling that employers must provide training before dismissing for incompetence is a specific indicator of strengthened dismissal protection (Target 8.8).
  • Example: The Portuguese Supreme Court’s ruling against discriminatory clauses for fixed-term workers is an indicator of the enforcement of equal treatment principles (Targets 8.5 and 10.4).
• Specific Policy Metrics: Quantifiable changes in social protection policies can be used as direct indicators.
  • Example: The increase in voluntary overtime hours in Belgium (from 100 to 120) is a quantifiable indicator related to working time flexibility (Target 8.8).
  • Example: The extension of maternity leave in Spain from 16 to 19 weeks and the provision of 8 weeks of remunerated parental leave are clear, measurable indicators of progress towards work-life balance policies (Target 5.4).
• Overtime Premiums and Remuneration Rules: Specific pay rates and calculation methods are indicators of fair pay.
  • Example: The proposed 40% premium for overtime pay in Greece is a quantitative indicator of fair compensation for extra hours worked (Target 8.8).
  • Example: The Dutch court ruling to include irregular hours allowance in holiday and sick pay calculations is an indicator of comprehensive and fair remuneration (Target 8.5).

4. Table of SDGs, Targets, and Indicators

SDGs	Targets	Indicators (as identified in the article)
SDG 8: Decent Work and Economic Growth	8.8: Protect labour rights and promote safe and secure working environments for all workers, including those in precarious employment.	Existence of laws on dismissal protection (Austria, France). Requirement for employers to maintain reliable working time records (France). Judicial rulings preventing the abuse of successive fixed-term contracts (Cyprus, Lithuania). Legal clarification on the employment status of platform workers (France, Portugal). Legislation protecting employee rights during transfers of undertakings (Malta, Liechtenstein). Proposed law mandating adherence to collective agreements for federal contracts (Germany).
	8.5: Achieve decent work for all… and equal pay for work of equal value.	Court rulings voiding collective agreement clauses that discriminate against fixed-term workers (Portugal). Judicial decisions requiring the inclusion of allowances (e.g., for irregular hours) in holiday and sick pay calculations (Netherlands).
SDG 5: Gender Equality	5.4: Recognize and value unpaid care and domestic work through social protection policies and promotion of shared responsibility.	Quantifiable extension of maternity leave duration (Spain: from 16 to 19 weeks). Provision of remunerated parental leave (Spain: 8 weeks). Expansion of parental leave rights to new groups (Belgium: foster parents). Application of the Pregnant Workers Directive to protect employees (Sweden).
SDG 10: Reduced Inequalities	10.4: Adopt policies, especially wage and social protection policies, and progressively achieve greater equality.	Court rulings affirming the principle of equal treatment for fixed-term and permanent workers (Portugal). Laws ensuring employee participation rights are protected in cross-border corporate restructuring (Liechtenstein). Judicial affirmation that permanent needs cannot be met with successive temporary contracts, reducing precarity (Cyprus).

Source: jdsupra.com