View from the EU: Future of Work Legislation

Belgium has recently introduced a series of labor market reforms, agreed upon by the country's multi-party coalition government. In response to the challenges posed in the last two years, a significant portion of the proposal attempts to address the blurred lines between professional and personal lives for workers.

Putting the reforms into law and practice could take months, as the draft legislation must pass multiple readings by federal lawmakers before being legislated.

Noises Off

Workers would be given the right to silence work devices and put off any work-related messages after hours without repercussions. Belgian Prime Minister Alexander de Croo announced that the aim is "to be able to make people and businesses stronger."

In January, public sector employees implemented this practice and extended this to the private sector under the reform proposal.

Flex Schedules By Request

Contributors in the gig economy will also receive stronger legal protections under the new rules, while full-time employees will be able to work flex schedules on request. Employers must provide legitimate reasons for any refusal.

The proposed term for a flex schedule is six months, with the option to continue the arrangement or opt for a return to a 5-day workweek at the employee's discretion.

Workers who must be onsite and engaged in shift work will also be given the same option. For any shift changes, companies would be required to provide schedules with at least 7 days lead time.

The new law would apply to all employers with more than 20 employees. Employers will be expected to negotiate with trade unions to include the right to disconnect in collective agreements.

Gig Workers

The reform package sets clearer rules for defining who is and who is not self-employed, examining Uber and delivery services.??Five criteria are shared for deciding whether a gig worker should be considered an employee.

Insurance against work-related injuries is included in the proposal.

Implications

Classification is a slippery slope. Belgian leadership might want to rewind to the case of Microsoft and the lawsuit with contingent workers in 1990. The IRS ruled that Microsoft misclassified certain workers as independent contractors. Following this ruling approximately 10,000 current and former contingent workers sued Microsoft for benefits, including past value that was not provided. Participation in the lucrative stock-purchase plan at that time was another component of the suit. The payout by Microsoft was $97M.

There could be opposition from the private sector regarding productivity and cost concerns, particularly with the consistency required to keep production lines moving in a normal environment. This concern is magnified in an era of supply-chain challenges.

As the government has already initiated the disconnect rule for its own employees, this reform could backfire if not passed. Consider the case of Portugal and its new work-from-home laws. Companies are not allowed to contact staff after working hours, and must subsidize their home gas, electric, ad internet bills. Employers are also forbidden from using tracking software to check up on what employees are doing.

Critics in Portugal including employment lawyers have said the law is badly written and the related rules are ambiguous and unfeasible. With these efforts from lawmakers still being in the early stages to respond to the pandemic, they could create backlash. Fines for breaking the law can reach almost 10€ for each violation.

A common-sense approach is needed. Working across time zones with clients will often require contact after normal business hours. When there is a machinery breakdown on a production line, calling in an expert to fix the problem doesn't fit neatly into business hour timeframes. There are many other examples that could be shared. The public sector operates differently from the private sector. By creating a one-size-fits-all playbook, continuing to allow flexible options will create more headaches for employers. This could have the opposite effect on better working from home arrangements.

Laws made in the name of progression have to be investigated and enforced. Perhaps a more realistic approach would be to define the rules based on industry sectors and keep negotiations between employers and employees. Cultural differences are an intangible but influential factor in how these decisions will be reached.