Employment Law, Government & Legislation

Around the world

Interesting snaphsot of developments from around the world. Note the increase in the average monthly salary in Shanghai, which is important for employers as it determines the basis for redundancy pay. As in Germany, redundancy (or severance) pay is based on the montly salary multiplied by the years of service. In Germany, however, its all based on case law and decisions of the Employment Supreme Court. In China, its based on statute.

Also interesting is the respective statistic from the Shanghai Labour Buerau as to the key issues in employment disputes. The list shows disputes about remuneration and termination are common, which is hardly surprising. But it also mentions disputes about ‘high temperature allowance’, which indicates that the main employers are in the industrial area, and that work conditions must be pretty hard.

Note also Japan’s novel solution to the long fixed term employee problem. As in New Zealand, fixed term employees may become permanent employees if the employer has no valid, genuine business reasons for the fixed term. In Japan, the law now presumes that this is the case if an employee has been on a fixed term contract for longer than 5 years, though there are exceptions.

And France now requires employers to try and find a buyer before a business is closed down. For a country with such a strong socialist background and current government, such law can hardly come as a surprise.

And Switzerland has decided not to introduce a minimum wage of $25 (almost NZ$30) per hour. Probably the main reason is that already 90% of Swiss workers earn more than that. Compare that to NZ, where the minimum wage currently stands at NZ$14.25.

Any questions?

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