Lawyers International Network for Employees and Executives (LINEE)

Employment Contracts

Paternity Leave in France: Extended Time for Fathers of Newborns

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In France, fathers of newborn infants were granted paid leave for the birth of a child 20 years ago; previously, the law entitled them only to three days’ leave financed by their employer.

Since 2002, fathers have been entitled to employer-funded paid time-off. Paternity and childcare leave applies to biological fathers, regardless of their family situation, or employees (“second parents”) who live with the mother of a newborn child whose biological father does not request such leave. During this period, the French social security system compensates the employee and his employment contract is suspended.

Paid Time Off

For the past 20 years, paternity leave was limited to 11 calendar days or 18 days for multiple births, while the three days of employer-funded leave remained unchanged. Effective July 1, 2021, paid time-off increased from 11 to 25 calendar days for a single birth on or after that date and from 18 to 32 days for multiple births. Read more.

Dismissal of a Senior Manager in Spain

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Senior executives have a special employment relationship with their employer that is governed by the specific provisions of Royal Decree 1382/1985, of August 1, 1985, which regulates the special employment relationship of senior management executives.

As stated in the regulation’s preamble, the nature of this relationship is characterized by the mutual trust that must exist between the two parties, arising from the unique position that the senior executive accepts within the company in terms of powers, authority, and responsibilities.

This is why the main element that shapes the content of this specific relationship is the idea of agreement; nonetheless, the regulation has made a point of defining the causes and effects of terminating this type of contract. Read more.

The Prohibition of Employment Dismissals in Italy Following the August Decree

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The severe economic crisis caused by the coronavirus emergency has placed national governments at a crossroad, forcing them to determine whether it is more appropriate to protect the needs of entrepreneurs or workers. The first choice would allow employers to exercise provisions in Italy regarding an employee’s dismissal if a company is in economic difficulty. In the second scenario, the government could defend employees by adopting measures to stem what, in times of economic hardship, can be considered a natural increase in the unemployment rate.

Faced with this issue, the major industrialized countries have not moved in a single direction. Within Europe, it is possible to distinguish between countries such as Germany and the United Kingdom that have decided not to impose any prohibition on dismissal, and nations with a more “socialist” tradition such as France and Spain that have instead placed limitations on firing employees (without, however, providing any ban on redundancies in the strict sense).

Considered in this framework, Italy appears isolated. Since the beginning of the pandemic, the Italian government has chosen to proceed with freezing layoffs for economic reasons until 17 August 2020, with the enactment of the “Cura Italia Decree.” Read more.

Labor & Employment Considerations in Italy Post-Brexit

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On 31 January 2020, the UK officially left the European Union. In the next year, some of the UK’s labor and employment policies will change, posing new considerations for employers and employees alike. Until 31 December 2020, the UK will be in a “transition period” where current EU legislation will still apply until the UK has negotiated new agreements with the EU. This document outlines how employment rights for UK citizens living in Italy will be impacted both during and after the transition period.

Italian Immigration and Visa Requirements

British citizens wanting to work in Italy should be aware of the imminent changes to immigration and visa processes that will soon occur. During the Brexit transition period, it is suggested by the UK government that UK citizens living in Italy make sure their passports are valid and registered with their local Italian municipality.

Different registration documents exist depending on one’s status within Italy, and British citizens should obtain the documents that best define their status in Italy. These types of documents are below: Read more.

Non-Competition Clauses and Preliminary Contracts in Germany

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High-level performers significantly contribute to their employer’s business. Because of this, employers frequently include non-competition clauses in employees’ preliminary employment contracts to control their behavior and activities after they leave the company.

With post-contractual non-competition clauses, companies aim to protect themselves against the risk that departing employees who later work for competitors might use valuable knowledge about operations, trade secrets, financial information, or important business contacts to gain an advantage.

Enforceability of Non-Competition Agreements in German Labor Courts

In Germany, labor tribunals carefully check preliminary contracts to determine whether non-competition clauses overly restrict employees from pursuing their careers or professional activities, but that doesn’t mean such agreements are unenforceable. Read more.

In France, Is a Driver or a Delivery Person Paid Via a Digital Platform Considered an Employee of That Company?

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As the “gig economy” spans the globe and more people earn money through online services and app-based enterprises, the distinction between independent contractor and employee is becoming less clear. We look at cases in France that spotlight the issue.

Act I – Take Eat Easy

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Photo Credit: LP/Jean Nicholas Guillo

In November 2018, the French Supreme Court (Cour de Cassation) determined for the first time whether an employment contract existed between a deliveryman and Take Eat Easy, a company with a web platform and smartphone application that connects restaurants and customers. Bicycle couriers pick up the meals from local restaurants and deliver them to the customers that ordered them online. A delivery person alleged he was an employee of Take Eat Easy and brought an action before the French Labor Court (Conseil de Prud’hommes) to claim employment benefits.

The French Labor Court and later the French Appeals Court (Cour d’Appel) ruled that no employment contract existed and that the delivery person was not an employee. The case was then appealed to the FrenchSupreme Court, which looked at two important factors. Read more.

Freedom of Dismissals Under Italian Statutory Law

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Due to their role as alter ego of the employer, in Italy, executives are subject to different and less protective statutory rules compared to regular employees. This difference is quite evident in the legislation about dismissals.

In fact, while Italian statutory law generally provides that in order to dismiss an employee the employers must prove that they have fair reason to dismiss them, – when it comes to executives the employer is not obliged to provide proof of just cause. This means that, as a rule, executives can be dismissed freely (otherwise referred to as an ad nutum dismissal).

Moreover, if the dismissal is based on a very serious reason which is able to break the “bond of trust” between the employer and the executive (in Italian this concept is referred to as ‘giusta causa’ or ‘just cause’) then the employer is exempt from giving the executive a period of notice and is also exempt with paying the executive a sum in lieu of notice. Read more.

A Clarification on the Termination of Agency Contracts for Sales Agents in Italy

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Currently, Italian Law provides for two very different ways of calculating severance payments for agents. The first method is governed by the Italian Civil Code and the second method is regulated by National Italian Economic Collective Agreements.

The first calculation method, which is governed by the Italian Civil Code, is outlined in Article 1751 – which has been modified by EU Directive 653/1968. This article stipulates that at the moment the employment/agency relation is terminated – the employer must pay the agent/sales representative an indemnity if the following circumstances exist:

  • the agent has provided new customers to the employer or has noticeably developed business with already existing customers in a way that the employer will continue to profit or take advantage of this business after the employment relationship is terminated
  • the payment should be fair, considering the loss of commissions the agent will suffer.

Paragraph 3 of Article 1751 also requires that a Judge will quantify the severance payment, considering the maximum amount possible established by the present article: Read more.