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The Impact of Millennials from an Employment Law and Benefits Perspective

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Presenters & Creators:

Luís Almeida Caneiro, Espanha e Associados (Portugal - TAGLaw)
Paul Beard, Alexander Beard Group (United Kingdom - TAG-SP)
Naureen Hussain, Clarkslegal LLP (Reading, England - TAGLaw)
Danielle Muller, Rassers Advocaten (Netherlands - TAGLaw)

During the main conference sessions we will discuss how millennials and the generation gap are impacting our firms. In this session we will discuss and address how millennials impact our clients and prospective clients. The injection of talented millennials into the workforce has changed the way clients recruit, train and retain employees. Additionally, the benefits that were important to “the greatest generation” might not always strike a chord with millennials. What are the legal implications and concerns that lawyers need to communicate to their clients in regards to millennials (e.g. independent contractor versus employee)? What benefits can a client offer their millennial employees to have an advantage in the competitive market for talent? How are various jurisdictions adjusting to the new workforce in regards to taxation and pension implications? These questions and more will be answered in an interactive discussion with TAGLaw and TAG Alliances colleagues from around the world.

Published in: Recruiting & HR
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The Impact of Millennials from an Employment Law and Benefits Perspective

  1. 1. Spring International Conference | May 2-4, 2016 LISBON
  2. 2. The Impact of Millennials an Employment Law and Benefits Perspective May 4th 2016
  3. 3. Generations at work Baby boomers Millennials Generation X Traditionalists
  4. 4. 0 20 40 60 80 2015 2020 2025 Percentage of millennials in the workforce https://www.usa.gov/statistics
  5. 5. FASTER CAREER ADVANCEMENT CAREER ADVANCEMENT
  6. 6. FREQUENT FEEDBACK REVIEWS
  7. 7. PEOPLE FIRST INCREASINGLY THE LEADERS OF TODAY
  8. 8. GIVE BACK AMBITION BEYOND PROFIT
  9. 9. ONE FOOT OUT THE DOOR LOYALTY CHALLENGE
  10. 10. FLEXIBLE WORK SCHEDULE AND WORK PLACE FLEXIBILITY
  11. 11. ATTRACT, RETAIN AND MANAGE MILLENNIALS
  12. 12. ONE SIZE DOESN’T FIT ALL SOLUTIONS
  13. 13. EMPLOYMENT LAW INSTRUMENTS MANAGEMENT SOLUTIONS
  14. 14. PROFESSIONAL RANK CAREER ADVANCEMENT / REVIEW
  15. 15. SHIFT FOCUS FROM CASH BONUSES ONE FOOT OUT THE DOOR
  16. 16. TRAINING ONE FOOT OUT THE DOOR
  17. 17. PERMANENCE AGREEMENT ONE FOOT OUT THE DOOR
  18. 18. EXEMPTION FROM A WORK SCHEDULE FLEXIBILITY
  19. 19. COMPENSATORY TIME OFF FLEXIBILITY
  20. 20. CONCENTRATED WORK SCHEDULE FLEXIBILITY
  21. 21. TELEWORKING FLEXIBILITY
  22. 22. THANK YOU OBRIGADO
  23. 23. www.espanhaassociados.pt
  24. 24. Dutch Employment Law ‘Millennials proof’? TAGLaw Lisbon 2016 Employment & Labour Specialty Group Danielle Muller
  25. 25. 20th Century Pag 25 Dutch employment law originates from beginning of 20th century: industrial revolution and emergence of socialist workers’ movement Resulted in: statutory protection of employees against suppression and exploitation by employers
  26. 26. 20th Century Pag 26 Ultimate goal for a worker: permanent (= open-ended) employment contract Strong position for Unions: terms of employment in binding collective bargaining agreements
  27. 27. Employment contracts Compulsory statutory law 2 types of employment contracts: - permanent (=open-ended) contract: dismissal procedure necessary to terminate - fixed term contract: terminates automatically by operation of the law Pag 27
  28. 28. Employment contracts Legal assumption a person who has been working for another person or corporation every week*) or 20 hours or more every month for at least 3 consecutive months, is assumed to be an employee with a permanent contract. *) regardless the amount of hours Pag 28
  29. 29. 21st Century Hundred years later prevailing political view still: permanent contract is the best thing. January 1st, 2015 Work and Security Act (Wet Werk en Zekerheid) entered into effect. One of the goals: less flexibility. A permanent contract for all employees as soon as possible. Pag 29
  30. 30. Less flexibility Pag 30 How? Limited use of fixed term contracts Fixed term employment contract will automatically convert into a permanent employment contract if: -  a chain of fixed term employment contracts covers 24 months or more; or -  a chain of three fixed term employment contracts is continued.
  31. 31. Result: counter effect Pag 31 Employers hesitant with permanent contracts: -  high level of protection against dismissal -  high costs of employment: obligation to pay salary during first 2 years of sickness, statutory severance payment after 24 months of service Daily practice: -  dismissal of flexworkers after 24 months -  huge increase of self-employed / independent contractors
  32. 32. Self-employed/Independent contractors Hiring self-employed/independent contractors is tricky: - civil law disputes about classification of the relationship - tax issues System works though: wish for flexibility prevails over risks Pag 32
  33. 33. Self-employed/Independent contractors Pag 33 But government not happy. May 1st, 2016 New weapon into ‘fight’ to discourage flexibilty: Decree making employer and independent contractor equally responsible for paying income tax and social premies (instead of sole responsibility independent contractor)
  34. 34. Millenials Millennials: - different view on employment relationship - different desires. - above all want more freedom, more flexibility. Millenials change jobs more frequently and they live longer. Pag 34
  35. 35. Millenials Increase of demand for starters in especially ICT, sales and engineers and technicians à i.e. the Millennials Expectation: in 2025 Millennials will have approx. 75% of all jobs Pag 35
  36. 36. Challenges Is employment contract still the Holy Grail? Being an independent contractor suits a part of Millennials better than straitjacket of permanent employment contract. Employment contract 2.0 should reflect: - flexibility for employer ànd employee (hours, terms and conditions, etc.) - certain level of security/protection of employee. Pag 36
  37. 37. Philosophical Will it change? Important factor still: the Unions. They have much political influence. But for how long? Unions loose ground among work force. Majority of members is 55+. Young people are not interested in Unions (individualization of society). Pag 37
  38. 38. Philosophical Pag 38 My view: Unions should let go the idea of permanent contract as the ‘holy grail’ and negotiate broad range of terms and conditions of employment and general budgets. Employer and employee must be able to pick those terms and conditions that suit them best.
  39. 39. Questions? Any questions? Thank you! Pag 39
  40. 40. Contact details Danielle Muller Sophiastraat 22-28, 4811 EM Breda muller@rassers.nl Postbus 3404, 4800 DK Breda T: +31(0)76 5136136 F: +31(0)76 5222552
  41. 41. Millennials and Benefits Bram Bogaard Managing Director Europe “Challenges in a changing world”
  42. 42. Alexander Beard Interna9onal Benefits Bram Bogaard Managing Director Europe We assist interna4onal clients with the design, implementa4on and the administra4on of Employee Benefit programs and strategies for their European based opera4ons
  43. 43. Interna9onal Context Netherlands 1,9 mln jobs at mul9na9onal companies Of which 0,9 mln at foreign companies 2/3 of revenue in the Netherlands is earned by mul9na9onals
  44. 44. Social Security The social security system of the Netherlands is based on social insurances and supplementary income support provisions. The main principle of the system of the Netherlands is that all members of society must be able to play an equally ac9ve role in society
  45. 45. Social Security Na4onal Social Security For all ci9zens Paid by income taxes Employee social insurance schemes For all employees Paid by employer taxes
  46. 46. "Best country in the world to be sick" Old age pension (Un) employment Disability/Health system
  47. 47. Old age pension State pension provided for all ci9zens at age 67 95% of employers have addi9onal corporate pension plans - Mandatory pension funds - Social partners decide on level - DB plans - Li^le influence individual employee
  48. 48. (Un) employement -  75% of last earned wage for the first two months -  70% therea`er depending on individual circumstances. -  Maximum of 36 months. The number of succeeding employment contracts for a fixed term is limited to three. The total dura9on of fixed term contracts is limited to two years. If the dura9on of the contracts or the number of fixed contracts exceeds the legal limit, the employment contract will automa9cally become a contract for an unlimited term.
  49. 49. Disability The employer is required by law to con9nue to pay at least 70% of the salary for a period of 104 weeks, during the first 52 weeks of which the amount of the salary must be at least equal to minimum wages. Most Collec9ve labour agreements provide top up obliga9on to 100% first year/70% second year. Large reintegra9on obliga9ons employer
  50. 50. Disability A`er 104 weeks the employee falls under social security. Benefit depends on last earned wage and remaining working capacity
  51. 51. Health Basic Health insurance is compulsory for all residents of the Netherlands. Premium paid by employer taxes and individual premium to health insurance company
  52. 52. Millennials and Benefits
  53. 53. Millennials and Benefits
  54. 54. Millennials and Benefits
  55. 55. Millennials and Benefits Current system is not flexible - Collec9ve labour agreements - Focus on unlimited contract term - Historically strong union presence - Extensive legal requirements - Tax legisla9on limits flexibility
  56. 56. Solu9on Flex Benefits
  57. 57. Thank you Flex Benefits

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