International governments struggle to adjust to new COVID reality. Governments across the globe found themselves in a similar predicament in 2020—how to handle the COVID-19 pandemic—and the variety of strategies have had significant impacts on companies with global operations. HR Policy Global—a new supplemental premium membership available only to HR Policy members—keeps tabs on developing HR trends globally to keep you and your teams informed.
Brexit, the EU, and the United Kingdom – many questions not yet answered: The UK and European Union delivered a last moment Christmas “gift” in the form of the long-awaited Brexit deal. For CHROs with operations in the UK and EU, the Brexit deal impacts three areas of particular interest—data transfers, European Works Councils (EWCs), and the ability to recruit and deploy staff between the UK and the EU. The Brexit deal provided up to six additional months to iron out a data transfer framework—effectively kicking the can until later in 2021. During that time, negotiators will need to hammer out arrangements to allow the free flow of data from the EU to the UK and vice-versa while complying with the myriad of data protection and privacy laws. On the topic of EWCs, not much more is clear, though on its face it might seem to be. "Brexit," as BEERG’s Executive Director Tom Hayes says, "means Brexit" and EWCs can no longer be based in the UK and UK employees now lack a legal right to sit on EU EWCs. Some additional commentary from the EU Commission, however, may be needed to affirmatively settle the matter. If companies have not already re-established their formerly UK-based EWC in a new EU member, Ireland has emerged as the prevailing selection due to the common language and legal structure.
Notably, because of Brexit the UK is no longer part of the EU’s “single jobs market.” The recruitment and deployment of staff between the EU and the UK has become much more complex because of new immigration rules and lack of provisions in the EU/UK deal for the mutual recognition of professional qualifications. “Free movement” between the EU and the UK has been ended.
Latin America: Mexico serves as the hotspot in the region with legislative negotiations aimed at banning the practice of insourcing/outsourcing in the country set to resume in early 2021. In late November 2020, Mexican President López Obrador introduced legislation to ban insourcing/outsourcing in Mexico except in government approved circumstances. At first, the government appeared poised to pass the ban by the close of 2020, but wisely has backed off to negotiate with business groups. This is an important development which HR Policy Global will monitor.
China, India, and Asia-Pacific: Regulators from Japan, to Korea, to Australia have been wrestling with how to treat gig and platform workers and how to address work-time issues stemming from the global retreat to remote work. Look for Korea and Japan to continue to monitor both these issues closely as 2021 rolls on. In India, the revised Labour Codes will begin implementation. Adopted in 2020, the India Labour Code updates were aimed at increasing the attractiveness of the country for foreign investment. Locally, however, unions have lambasted the changes. Implementation in 2021 will be important to monitor. For China, Forced Labor in its global supply chain will continue to be a controversial issue between China and the US. Biden’s administration will keep pressuring Beijing to take actions on this issue and potentially will impact sourcing practices in the region.