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- Everything You Need to Know about EU Battery Regulation
Batteries are an essential material in the energy transition, and the need for them from the EU has been growing rapidly in recent years. A new battery regulation was adopted on 12 July 2023 by the European Parliament and Council, to minimize the environmental impact of this exponential growth in light of new socio-economic conditions, technological developments, markets, and battery use. As an important outcome of the European Green Deal, this new law replaces the EU Batteries Directive and applies to all EU Member States in the form of a regulation. This law promotes the EU’s circular economy and zero pollution goals and strengthens the EU’s strategic autonomy. [Legislative history] The first EU legislation dealing with batteries and waste batteries, which is the EU Batteries and Accumulators Directive (2006/66/EC), was entered into force in 2006. All 27 Member States transposed it into national legislation. However, as the environmental, social and economic challenges associated with batteries in the EU continue to grow, the European Commission (EC) has proposed an updated battery law to improve on the shortcomings of the 2006 Directive. In line with the European Green Deal and the EU Action Plan for a Circular Economy, the EC has designed a new battery regulation that not only aims to regulate used batteries but also takes into account the entire lifecycle of batteries from design, production, recycling and disposal. This new regulation was first proposed in December 2020 and the new EU Battery Regulation 2023/1542 came into force on 17 August 2023 after several rounds of negotiations. Some provisions will come into force from 18 February 2024 and others will come into force in the coming years. [Application scope] [1] The regulations cover five battery types, which are classified according to their use and weight: • Portable Batteries • Electric Vehicle (EV) Batteries • Industrial Batteries, Subcategory • Light Means of Transport (LMT) Batteries • Starting, Lighting, and Ignition (SLI) Batteries These obligations and deadlines are defined for specific types of batteries, which means that battery types are subject to different requirements that require vigilance on the part of the manufacturer. Image from the article “New EU Batteries Regulation: what it means for manufacturers” https://www.ramboll.com/insights/resource-management-and-circular-economy/new-eu-batteries-regulation-what-it-means-for-manufacturers [Key changes] 1. Sustainability and safety: carbon footprint and hazardous substance restrictions All EV batteries, LMT batteries, and rechargeable industrial batteries with a capacity of more than 2 kWh must have a “clear, legible, and indelible” carbon footprint statement and labeling that identifies the amount of recycled cobalt, lead, lithium, and nickel used in the production of the battery. By 31 December 2030, the Commission should assess the feasibility of extending the carbon footprint statement requirement to portable batteries and the maximum life cycle carbon footprint threshold requirement to rechargeable industrial batteries with a capacity of 2 kWh or less. In addition, the regulation restricts the use of mercury, cadmium, and lead. 2. Supply chain management: due diligence requirements Except for SMEs, all economic operators selling batteries on the EU market are required to develop and implement a due diligence policy, in line with international standards, to address the social and environmental risks inherent in the sourcing, processing, and trading of raw and secondary materials required for battery production. In particular, economic operators must develop and clearly communicate to suppliers and the public a due diligence policy on the supply of cobalt, natural graphite, lithium, nickel, and other compounds based on listed raw materials, in accordance with recognized international standards, such as the OECD Due Diligence Guidance and the United Nations Guiding Principles on Business and Human Rights. 3. Labelling and information Digital Battery Passport: Electric vehicle batteries, LMT batteries, and rechargeable industrial batteries over 2 kWh will require a “digital battery passport” containing information about the battery model, the specific battery, and its use. More generally, all batteries will be required to have a label and QR code detailing their capacity, performance, durability, and chemistry, and displaying a “collect by sorting” symbol. Labeling changes: All batteries are required to bear the “CE” mark to demonstrate compliance with applicable EU health, safety, and environmental protection standards. The labeling of the batteries included in the device should be directly on the device, clearly visible, and easy to read. This is a departure from the current practice in countries such as the EU and Germany, where the labeling is applied to the battery itself rather than to the whole device. The labeling and information requirements will be implemented in 2026; however, QR codes will not need to be implemented until 2027. 4. Recycling - end-of-life management The legislation aims to ensure that batteries are recycled separately and of a high quality. For example, a recent change made by the Council states that battery management systems for electric vehicle batteries should include a software reset function to prevent economic operators from needing to upload different battery management system software when preparing to reuse, repurpose, or remanufacture electric vehicle batteries. This may lead to certain risks, for example for cyber security reasons. Therefore, the Regulation provides that if a software reset function is used, the original battery manufacturer shall not be liable for any impairment of the safety or functionality of the battery that may be attributable to the uploading of the battery management system software after the battery has been placed on the market. [1] https://www.ramboll.com/insights/resource-management-and-circular-economy/new-eu-batteries-regulation-what-it-means-for-manufacturers
- EU adopts landmark law “Nature Restoration Law” at plenary session of EU Parliament on 14th June
【Highlights】 The EU Parliament voted to adopt the Nature Restoration Law on 14 June 2024 at a plenary session of the EU Parliament in Luxembourg, and the Council of the EU formally adopted the Act on 17 June. As the first continent-wide, comprehensive law of its kind, the Nature Restoration Law covers the whole continent and is an important part of the EU's biodiversity strategy. The law aims to take measures to restore at least 20% of the EU's land and sea areas by 2030 and all ecosystems in need of restoration by 2050. Furthermore, it sets specific, legally binding targets and obligations for the natural recovery of terrestrial, marine, freshwater, forest, agricultural and urban ecosystems. Specific measures include the protection of pollinators and grassland butterflies, the protection of urban green spaces and the planting of at least 3 billion additional trees by 2030 across the EU. Alain Maron, Minister for Climate Transition, Environment, Energy and Participatory Democracy of the Government of the Brussels-Capital Region mentioned The EU has seized a unique opportunity to reverse biodiversity loss and to open this rapidly closing window, securing a liveable future for the generations to come. Today we also agreed on three key EU directives for circular economy and soil health in the EU: we showed our commitment to a green transition, by protecting our consumers from greenwashing, targeting food and textile waste and protecting our soils from degradation. The EU is steadily moving forward with its environmental and climate objectives and the target of achieving climate neutrality in the EU by 2050. 【Legal Analysis of Nature Restoration Law】 - The State of Nature Today Nature in the EU is severely declining. Species populations and the natural areas they inhabit are shrinking and degrading, leading to serious consequences for people and the planet. 80% of habitats are in poor condition 10% of bee and butterfly species risk extinction 70% of soils are in an unhealthy condition - The Importance of Restoring Nature Nature depends on essential interrelations between species and their habitats. It is a fine balance which ensures a healthy and well-functioning natural environment. Moreover, nature is the foundation of the world’s economy. Over half of global GDP is dependent on materials and services that are delivered by ecosystems. For example, raw materials are key for industry and construction, and genetic resources are needed in farming and medicine. Restoring nature means supporting the recovery of degraded or destroyed ecosystems by improving their structure and functions, with the overall goal of improving resilience and biodiversity in nature. Healthy ecosystems can ensure, among other things: increased agricultural productivity; greater resilience to climate change; improved biodiversity; reduced risk of floods, droughts and heat waves. - The EU Nature Restoration Rules The nature restoration law requires EU countries to develop national restoration plans. These plans should define the restoration measures required to meet the binding targets set in the law and specify the total area to be restored, as well as a timeline. The restoration plans should cover the period up to 2050. The measures should be aligned with other relevant legislation, such as rules on nature protection, renewable energy and agriculture. Examples of restoration measures include: removing non-native plants on grasslands, wetlands and in forests; rewetting drained peatlands; improving connectivity between habitats; stopping or reducing the use of chemical pesticides and fertilisers; promoting wilderness preservation. The proposed regulation requires the Commission to review and assess the application of the rules and their impacts on the agricultural, fisheries and forestry sectors, as well as its wider socio-economic effects in 2033.
- The European Commission launches the first investigation under the EU International Procurement Instrument (IPI)
The European Commission launches the first investigation under the EU International Procurement Instrument (IPI) on “Discriminatory practices in China's medical device procurement market against European companies and products” News Bulletin On April 24th, 2024, the European Commission initiated an investigation into China’s procurement market for medical devices under the International Procurement Instrument (IPI), focusing on discriminatory measures against European companies and products. The Commission’s evidence suggests that Chinese policies increasingly restrict European and foreign companies and EU products in this market, due to unfair distinctions between domestic and foreign companies, and between locally produced and imported medical devices. The Commission stated that previous concerns expressed to Chinese authorities had not been satisfactorily addressed, prompting action under the IPI regulations. Investigation Summary According to the EU Official Journal, this investigation was autonomously initiated by the EU under Article 5(1) of Regulation (EU) 2022/1031, enacted by the European Parliament and Council on June 23, 2022. The investigation targets measures and practices in China's public procurement market for medical devices, which create significant barriers for EU economic operators, goods, and services. A. Description of "Chinese Measures and Practices" by the EU: The European Commission identifies measures and practices implemented at both central and local levels in China, applicable to all entities procuring medical devices, including state-owned enterprises like public hospitals, comprising three main categories: a) Prioritizing domestic medical devices and services through: - The "Buy Chinese" policy under Article 10 of the Government Procurement Law (GPL) of the People’s Republic of China, mandates procurement of domestic goods, services, and works unless unavailable or unreasonable to obtain domestically. - The “Made in China 2025” strategy requires hospitals to procure 50% of domestic mid-to-high-end medical devices by 2020, and 70% by 2025. - The 2021 Notification No. 551 on the Review and Guidance Standards for Government Procurement of Imported Products, mandating increased domestic procurement rates for 315 products, including 178 medical devices, 137 of which require 100% domestic procurement. - The Opinions on Deepening the Reform of the Medical and Health System (State Office Issuance [2015] No. 34), requiring public hospitals to prioritize domestic medical devices, encouraging centralized procurement of high-value domestic medical devices. b) Restricting the procurement of imported goods, including medical devices, through: - The Measures for the Administration of the Procurement of Imported Goods, imposing stricter regulations for imported products compared to domestic ones, such as stringent application and approval processes, mandatory contract clauses protecting national and public interests, and offset measures favoring suppliers transferring technology to Chinese enterprises. c) Imposing conditions during centralized procurement of medical devices, leading to abnormally low bids unsustainable for profitable companies. The Commission reserves the right to investigate additional relevant measures or practices that significantly and recurrently hinder EU economic operators, goods, and services from accessing China's public procurement market for medical devices, to be elucidated during the investigation. B. Preliminary Assessment of Chinese Measures and Practices: The European Commission’s preliminary assessment indicates that Chinese measures systematically disadvantage EU economic operators, goods, and services. These measures, through prioritizing domestic products and restricting imports, significantly reduce foreign companies’ market share. Additionally, China’s support for domestic companies in centralized procurement and stringent bidding and approval procedures further exclude foreign suppliers, increasing their market entry costs and risks, and undermining a fair competitive market environment. C. Investigation Procedure and Timeline under IPI: Based on the preliminary assessment, the Commission initiates the investigation under Article 5(1) of the IPI regulation to determine if Chinese measures severely and recurrently obstruct EU economic operators, goods, and services from entering the Chinese market. The Chinese government is invited to submit its views and provide relevant information to resolve the issue through consultations with the Commission. EU member states and other stakeholders are also invited to participate in the investigation and provide information within 30 days of the notification’s publication. As per Article 5(3) of the IPI regulation, the investigation must be completed within nine months from the notification’s publication date, extendable by five months if necessary. Introduction to the International Procurement Instrument (IPI) Within the WTO framework, 22 members have signed the Government Procurement Agreement (GPA), a multilateral accord granting national treatment to member countries' companies in government procurement markets. The EU and all its member states are GPA members, with the EU further opening its government procurement market to companies from all nationalities, including non-GPA members. Overview of the International Procurement Instrument (IPI): The EU’s International Procurement Instrument (IPI), promulgated in June 2022 as Regulation (EU) 2022/1031, aims to foster fair competition in international procurement markets. The IPI’s primary goal is to eliminate procurement discrimination through dialogue, providing the European Commission with a legal framework to investigate whether measures by non-GPA members severely impair EU companies' access to those countries' government procurement markets. Investigation Procedure: The European Commission can initiate investigations autonomously or following complaints. After a preliminary assessment, if a formal investigation is decided upon, a notification is published in the EU Official Journal. The formal investigation lasts a maximum of nine months (extendable by five months), during which the EU consults with relevant parties and seeks non-EU countries' opinions. If no severe damage is found, the investigation terminates; if corrective measures or commitments are made by the third country, the investigation can be suspended. Remedial Measures: If market access barriers persist, the European Commission may implement measures such as: - Adjusting the scoring of bids from third-country companies. - Excluding certain third-country companies' bids. - Exclusion measures apply to EU procurement projects valued at €5 million or more, or concession or works contracts worth €15 million or more. Measures can target specific industries, products, services, or government entities. The IPI requires ensuring bidders cannot circumvent exclusion measures. Exclusion measures are valid for five years, and subject to review for potential continuation. Expert Insight from Sinowing Law Firm - The investigation's short initiation period leaves future developments uncertain, mainly targeting state enterprises and public hospitals, with minimal initial impact on private hospitals and enterprises. - Given the complexity of international political dynamics, lengthy investigation and regulatory cycles mean short-term substantial impacts are unlikely. Even if future policies emerge, domestic companies can mitigate them through joint ventures, local manufacturing, or collaborative labeling. - Currently, high-end foreign products hold a significant market share domestically, with medical device exports to Europe far lower than imports, suggesting a limited long-term impact on China's medical device development from the EU’s IPI investigation.
- Important Announcement: We Move to a New Office Location!
Dear Valued Clients, We are thrilled to announce that our office has relocated to a new, more spacious location in Rotterdam as of 1 May 2024. As part of our continuous growth and commitment to better serve you, we have moved to: New Address: Marten Meesweg 8 3068 AV Rotterdam The Netherlands (Link of Google Map) Our new office is conveniently located 350 meters away from the Rotterdam Alexander train/tram station. It also has ample parking, surface parking combined with underground parking garage. This strategic location offers our clients easy access, whether you're travelling by public transport or car. Please update your records with our new address. All other contact information, including phone numbers and email addresses, remain unchanged. We would like to express our gratitude for your continued support and partnership. Our team is looking forward to welcoming you to our new office space. Should you have any questions or require further assistance, feel free to reach out to us. Warm regards, Jomec China-Europe Corporate Legal Consulting Firm
- 2024 Aero Friedrichshafen Dutch Pavilion: Jomec Group Leads 20 Dutch Companies Developing Sustainable/ Electric Aviation Participating in the 2024 Germany Friedrichshafen General Aviation Exhibition
From April 17th to 20th 2024, the Aero Friedrichshafen in Germany once again became the focus of the aviation industry, while the Netherlands shone with its innovative electric aviation technology and sustainable development concept. At this grand event, Jomec Group led other Dutch general aviation companies and schools, along with American electric aviation company Ampaire and 20 other enterprises, to jointly establish the Dutch Pavilion, booth number A7-103. The aim is to showcase the latest developments in electric aviation and sustainable aviation to the world. Jomec not only organized leading companies in the Dutch aviation industry but also hosted a delegation from the Zhuhai Asia General Aviation Exhibition in China during the exhibition, introducing them to the Dutch ecosystem in electric sustainable aviation. On the second day of the exhibition, April 18th, Mr. Guo Yufang successfully hosted and organized an open panel discussion. This seminar attracted the participation of various companies attending the exhibition, engaging in in-depth discussions on the future development plans and strategies of Dutch electric aviation. The core of the Dutch Pavilion is dedicated to innovation and research. One of its highlights is the diversity of participating companies. From mature industry leaders to vibrant research institutions, each entity brings its unique perspective and expertise. Additionally, the Dutch Pavilion serves as a platform for collaboration and exchange. It provides a fertile ground for building partnerships, exchanging ideas, and promoting cross-disciplinary innovation. By bringing together stakeholders from academia, industry, and government, the Dutch Pavilion facilitates dialogue and cooperation, which is crucial for driving the development of sustainable aviation. Through this exhibition, Jomec and participating companies have established deep friendships and cooperative relationships. At the same time, Jomec actively engaged with other participating companies, exploring many potential directions for future collaboration. Let us look forward together to electric aviation not only becoming a reality but also becoming an integral part of our sustainable future.
- Something You Need to Know about the Vacation in Germany
Employees in Germany are entitled to free time during statutory holidays, the weekends and paid leave vacations. In addition, they might have the right to days off in certain circumstances like a wedding, child birth or the death of a close relative. Germany is a federal state, so statutory holiday may differ between the states and even the communes. Common federal holidays are New Year (January 1), Good Friday, Easter Monday, Labor Day (May 1), Ascension Day, Pentecost, German Unity Day (October 3), Christmas (December 25) and Boxing Day (December 26). Besides this the German states depending on their religious tradition have additional holidays like Epiphany (January 6), Corpus Christi, Assumption of Mary (August 15), Reformation Day (October 30), All Saints (November 1) and Day of Repentance and Prayer. A local holiday is the Day remembering the Peace Treaty of Westphalia in Augsburg (August 8). Sundays and Saturdays are also days off. Minimum vacations are regulated in the Federal Vacation Act (Bundesurlaubgesetz). According to § 3 Sec. 1 of this Act the minimum vacation are 24 days per year. However, as this is counted on the basis of a six working days week that no longer applies, the number has to be adjusted to a five working days week. This means that the minimum vacation is 20 days per year. Minors or disabled persons have a higher statutory vacation claim. The claim for the whole 20 days is gained after a grace period of six months of the employment. In the first six months, the employee is entitled only to 1/12th of the 20 vacation days per month. However, it is common practice that the employee does not take any vacation within the first six months. On the other hand, it is also common practice that the employment agreement or collective labor agreements provide for more than 20 vacation days per year; 30 vacation days per year are quite common. The remuneration for a vacation day is the average daily salary excluding overtime hours of the last 13 weeks before the vacation. The employee should not work for another employer during the vacation as vacation should be free time to restore the health and the strength of the employee. If the employer does not want to grant the employee the vacation according to the employee’s vacation application, the employer needs to provide business reasons. However, the employer has to grant the vacation and cannot swap it into an additional payment. The vacation needs to be taken within the year it was occurred, at the latest until March 31 of the following year. If the employment ends and the employee still has a claim for unused vacation days that cannot be taken, the employer has to pay for each open vacation day. The claim is counted for each month the employee was employed with the final year of his or her employment. So, if the employee had a claim for 24 vacation days per year and his or her employment ended on June 30, his or her vacation claim in the last year was twelve vacation days. If the employee has taken only ten vacation days from January 1 to June 30, then he or she still has an open vacation claim of two days. The employer has to pay for these two open vacation days. The employee might also be entitled to paid days off in certain circumstances. This general rule is provided in § 616 of the German Civil Code (Bürgerliches Gesetzbuch). Details are usually found in collective labor agreements, some employment agreements and case law. The death or serious illness of a spouse, a parent or child, own wedding, child birth of the wife and religious duties are considered special circumstances that entitle the employee to paid days off. About the Author: Roman C. Jüngling worked in the field of international business law as an intern, a law clerk and an attorney at law in international law firms in Germany, Poland and the USA, inter alia at Studnicki, Płeszka, Ćwiąkalski, Górski in Krakow, Gleiss Lutz in Frankfurt on the Main and Warsaw, Allen & Overy in Frankfurt on the Main, Gibson, Dunn & Crutcher in Washington DC and Baker & McKenzie in Berlin. Roman C. Jüngling was admitted as attorney at law in Frankfurt on the Main in 2007, in Berlin in 2008/2009 and between 2010 and 2023 in Nuremberg. Since 2023 he is admitted at the bar in Saxony. From 2016 until 2022 he had the title of a certified specialist in tax law (Fachanwalt für Steuerrecht). Roman C. Jüngling is a native speaker of German and Polish, and he is proficient in legal English.
- Calling for Participation to Join Dutch Pavilion of Electric Aviation at AERO Friedrichshafen 2024
Jomec Investment Group is organiszing Dutch Pavilion of Electric Aviation at AERO Friedrichshafen 2024 from April 17th to 20th. AERO. Aero Friedrichshafen is the largest general aviation Expo in Europ that takes place in April every year. The upcoming Expo is attracting some 800 companies to exhibit, and more than 30.000,- visitors will be visiting the Expo. As a Dutch investor and manager in sustainable aviation, Jomec is convinced of the leading position of the Netherlands in developing a complete eco-system of electric aviation, and it is high time to show case what we have achieved in the Netherlands and to expand our international position. Therefore, we call upon every Dutch organization involved in electric and sustainable aviation to join us in creating a vibrant Dutch Pavilion. The Dutch Pavilion presents a unique opportunity to highlight the Netherlands' leadership in sustainable aviation and demonstrate the remarkable advancements achieved by our collective efforts. By joining forces under one roof, we can amplify our impact, foster collaboration, and inspire others to join the movement toward a greener future for aviation. If you're interested in joining us at the Dutch Pavilion, please contact Yufang Guo to secure your spot and be part of this transformative experience at AERO Friedrichshafen 2024.
- A Brief Introduction of Holidays in North East Asia
Written by Yi-Ting Lin In many European countries, no matter how long an employee serves in a company, he/she is entitled to a fixed (and usually long!) term of paid holidays. However, in North East Asia, it is not the case. When an employee starts to work for a company, he/she can only enjoy a limited number of paid holidays. However, the it will increase as an employee keeps working for the same company. Here is a list of paid holidays an employee who serves in a company for one year can enjoy: How many days of paid holidays accumulated per year and the maximum number of paid holidays vary from one country to another. For example, in Hong Kong, after an employee works in a company for two years, his/her annual paid holidays will increase one day each year (e.g. an employee who stays in a company for three years can enjoy eight days of paid holidays per year; while an employee who stays in a company for four years can enjoy nine days of paid holidays per year), until it is increased to 14 days. On the other hand, in South Korea, the number will be increased at a rate of one day per two years, until it is increased to 25 days. Of course, just like other jurisdictions, what we talked about is just the minimum requirement stipulated in laws. Companies are free to give their employees more paid holidays to attract talent. In addition, unlike Europe, employees in the Mandarin-speaking region in North East Asia[1] can cash out their unused paid holidays. This probably reflects the different attitudes towards work life balance between these two regions. We also bring you to the attention that, in Hong Kong, even though employees can cash out the unused paid holidays, he/she should at least use 10 days of paid holidays per year. Those 10 days cannot be exchanged for monetary compensation. Besides paid holidays which employees can enjoy freely, there are also different rules about national holidays in different areas. Take Christmas for example, is Christmas a national holiday – which is the case in most western countries – in North East Asia? Due to the cultural difference, except for South Korea and Hong Kong, Christmas isn’t a national holiday in other jurisdictions in North East Asia. For many westerners who study or work in North East Asia, it is a big surprise for them. If they still want to fully enjoy Christmas holiday, they have no choice but to use their own paid holidays. About the Author: Ms. Yi-Ting Lin obtained her bachelor’s degree of law from National Taiwan University in 2017. During her bachelor’s, she went to the University of Groningen as an exchange student for 5 months, which triggered her interest in working in an international environment. She passed the bar exam of Taiwan at the end of 2017 and obtained the official attorneys’ license in August 2018 after several months of training. After that, she worked in THLK Partners, a boutique law firm in Taipei, as an associate, specializing in corporate laws, business laws, and financial laws. In 2021, she came to the Netherlands again to pursue the Master’s degree of International Business Law in Tilburg University, and successfully obtained her diploma in 2022. Now, she works as a legal assistant at Jomec (Rotterdam office). [1] Hong Kong, Taiwan and China.
- Holiday entitlement and statutory leave entitlement in the Netherlands
Written by Glenn C. Haulussy LL.M. If you own a business in the Netherlands and you employ staff, you must comply with the statutory regulations regarding holiday entitlement. This also applies if your business is established outside of the Netherlands and you employ workers in the Netherlands. These regulations state that employees are entitled to a minimum number of paid holiday days (statutory leave, wettelijke vakantiedagen). This means you have to keep paying your employees during their leave. How much annual leave do you give to employees? Employees are entitled to statutory leave: a minimum of 4 times the number of hours they work per week. For example, if they work 40 hours a week, they will then be entitled to 4x40=160 hours of leave per year. The amount of statutory leave is calculated proportionally for employees that work part time. You can offer employees additional leave (non-statutory leave, bovenwettelijke vakantiedagen). Sometimes, this is required under the collective labor agreement (in Dutch: CAO). Taking statutory leave You must allow your employees to take their statutory leave every year. They may choose to take this leave up until 6 months after the end of the year. After that, the hours will expire. Annual leave accrued in 2023 cannot, therefore, be taken after 1 July 2024. However, the 6-month period does not apply to employees who have reasonably been unable to take leave. You and your employee(s) may, in joint consultation, decide to extend the period under the CAO (with a maximum of 5 years). Non-statutory leave expires 5 years after the year in which it has been accrued. According to recent case law, an employer must give the employee written notice on the expiration of the statutory and non-statutory leave. Otherwise the employee is still entitled to take their leave. Payout of leave You cannot pay out the statutory leave your employee has not used, even if this is requested by the employee. The reason is that the employer is obliged to give the employee the possibility to take their statutory leave in order to give the employee the opportunity to have his necessary rest. You can pay out the unused non-statutory leave, but only if your employee agrees to this in writing. If the employee leaves your company, you must pay out any unused (statutory or non-statutory) leave. Public holidays The Netherlands has a number of official public holidays. Despite what most people think, there is no statutory obligation to give your employees leave on public holidays. Your sector's CAO or the employment contract determines if your employees can have a day off on public holidays. It is however common practice in the Netherlands that employers give their employees leave on public holidays. Your sector's CAO may state that a Christian public holiday can be substituted for an alternative religious holiday, such as Eid Al-Fitr at the end of Ramadan, or Chanukah. The public holidays in the Netherlands are: New Year's Day (1 January) Good Friday Easter Sunday Easter Monday King’s Day (27 April) Liberation Day (5 May, see also below) Ascension Day Whit Sunday Whit Monday Christmas Day (25 December) Boxing Day (26 December) Liberation Day (5 May) Although 5 May is a public holiday, many CAO’s stipulate that 5 May is a day off only once every five years (2025, 2030, et cetera). You decide whether your employees have a day off on 5 May if the CAO does not contain any terms on this subject, or if there is no CAO for your sector. Statutory leave arrangements In the Netherlands, employees can make use of various statutory leave schemes. The CAO may contain different rules. If a CAO has been declared universally binding for your sector, you as an employer should follow it. You can also make individual agreements with your employees. Every employee is entitled to statutory leaves. These statutory leave arrangements are set out in the Work and Care Act (in Dutch: Wet Zorg en Arbeid): pregnancy leave and maternity leave partner/paternity leave parental leave adoption leave or foster care leave short- and long-term care leave emergency leave and short absence leave Pregnancy and maternity leave Pregnant employees are entitled to 6 weeks pregnancy leave (before the due date) and at least 10 weeks maternity leave (after childbirth). In total your employee has a right to at least 16 weeks of leave. If, for instance, the baby is born before the pregnancy leave, the total of 16 weeks starts from the day after the birth. In some cases the maternity leave can be longer than 10 weeks. For example: If your employee takes less than 6 weeks (but no less than 4 weeks) pregnancy leave before the birth. She can add the remaining amount to her maternity leave after the birth. If the baby is born later than the due date. The employee's maternity leave begins after the actual birth. The total may therefore be longer than 16 weeks. In the case of a multiple birth, your employee has the right to at least 20 weeks leave. She also has a right to a maternity pay. Is the baby hospitalized for more than 7 days directly after birth or during the maternity leave (in Dutch)? Your employee may have a right to longer maternity leave. If the mother dies in childbirth, her partner is entitled to the maternity leave. Maternity pay Employers can apply for maternity benefit for their employee to the Employee Insurance Agency (UWV). The Agency will pay the salary either to the employer or the employee, whichever the employer prefers. Self-employed professionals Self-employed professionals are also entitled to pregnancy leave, maternity leave and an allowance. Pregnancy check-up leave Your employee is entitled to leave when she has a pregnancy check-up during working hours. Your employee does not have to take any holiday hours and the salary continues to be paid. Partner/paternity leave If the partner of an employee gives birth, the employee has a right to 1 week of parental leave for partners after the birth. This paid leave can be taken any time in the first 4 weeks after the birth of the child. During this period of leave you must continue to pay 100% of the employee's salary. Extended partner leave Partners have the right to 5 weeks unpaid leave in the first 6 months after the birth. They can also choose to take less than 5 weeks. Employees who take unpaid leave will be able to claim benefits from the UWV for up to 70% of their salary. The employee must: take the standard 1-week partner leave first; take the extra weeks' leave during the first 6 months after the childbirth; The employee can spread the leave over a longer period than 5 weeks. The employer has to agree to this. Parental leave Employees with children aged up to 8 have the right to parental leave in the Netherlands. They can get at most 26 times the number of hours they work per week. Parents get paid the first 9 of the 26 weeks parental leave. They receive a benefit from the UWV. The UWV benefit for paid parental leave amounts to 70% of the daily wage. Employees must take the paid leave in the child's first year. Employees are allowed to take this leave as soon as they start working for you. You must allow this leave. During parental leave you are not legally required to pay their salary. Unless this is agreed in the collective labor agreement (CAO) or employment contract. Adoption leave and foster leave Employees who have adopted a child or have taken in a foster child, are entitled to 6 weeks adoption or foster leave. The leave applies to both parents. They have the right to an adoption allowance or foster care benefit. Your employee must apply to you for the adoption or foster leave at least 3 weeks in advance. They may take this leave spread out over a longer period of time. You may not refuse this, unless your business will face serious problems as a result. Short-term and long-term care leave Short-term care leave (in Dutch) can be taken to provide essential care to someone who is ill or otherwise in real need. For this leave your employee must be the only person who can look after the ill person at that moment in time. You can grant short-term care leave if you employee needs to take care of: children or grandchildren partner parents or grandparents resident members of the household friends, neighbours or acquaintances, provided there is a social relation and it is plausible and logical your employee is the care giver During the period of leave, you continue to pay 70% of the employee's salary. If this is less than the minimum wage, you pay the minimum wage. If a child, partner, or parent of one of your employees is seriously (i.e. life-threateningly) ill and requires care, the employee can request long-term care leave (in Dutch). During this period of leave, you do not have to continue paying the employee's salary. Your employee must request long-term care leave from you in writing 2 weeks in advance. You can ask for information to assess the long-term care leave. Emergency leave and other short absence leave Emergency leave is intended for unforeseen personal circumstances for which an employee has to take time off immediately. For instance to make arrangements for the care of a sick family member or in the event of a death in the family. You must always grant a reasonable request for emergency leave. During this period of leave, you continue to pay the employee's salary. Emergency or short absence leave lasts as long as it is necessary to solve the urgent matter. You may ask your employee for proof that the leave was necessary afterwards. Emergency leave and short absence leave are legal leave schemes. If different arrangements have been included in the collective labour agreement, the regulations of the works council or employee representation, these arrangements apply. Special or extraordinary leave Special leave and extraordinary leave are not based on any law, but are rather provided for in a CAO, company scheme or employment contract. Some examples are: marriage (of a family member) funeral (of a family member) moving house consulting a doctor a work anniversary taking an exam activities for a (trade) union The duration of these types of leave depends on the conditions arranged in the CAO or employment contract. Unpaid leave Employees may take unpaid leave on a full-time or part-time basis in consultation with you. The employment contract will continue during the leave. Employees do not have any legal entitlement to unpaid leave. However, it is possible for the collective labor agreement (CAO) to include arrangements relating to unpaid leave. Does leave affect holiday entitlement? Holiday entitlement in the Netherlands continues to build up while an employee takes leave. You may not deduct days taken off for leave from an employee's holiday entitlement, unless the employee has extra holiday entitlement (more than 4x the number of days worked in a week) and this has been agreed in the collective labor agreement (CAO). About the Author: Glenn C. Haulussy LL.M. Attorney-at-law since 1987. Erasmus University Rotterdam. Master Private Law. Postdoctoral Company Law and Insolvency Law at Grotius Academy (University of Nijmegen). From 2005 until 1 January 2020 Glenn has been the Vice President of AEA International Network of Lawyers. As of 1 January 2020 Glenn has been appointed as Treasurer of Metropole Alliance, an international network of lawyers, accountants, tax advisers and other professional accountants. Glenn prefers to solve the issues of his clients via negotiating. Thinks in possibilities and not in problems. Glenn likes to set out a strategy in close cooperation with his clients. Believes that ICT will work productively for the law practice. His slogan: ‘It is better to have a good settlement than a great verdict’. Visit his website here: https://advocaten.org/en/
- VACATIONS ACCORDING TO THE SPANISH WORKER STATUTE
Writted by Lourdes Guivernau Aguadé, Attorney-at-law Edited and proofread by Yi-Ting Lin Annual vacations for workers in Spain are regulated in article 38 of the Workers' Statute, in collective agreements and in employment contracts. The right to vacation is a worker's right to have paid days of rest proportional to the annual days worked by the worker. The employee and the employer must agree on the dates on which the vacations are to be enjoyed, and it is not possible to exchange these for monetary compensation, regardless of whether the employee provides full-time or part-time services. The employee is entitled to 30 calendar days of vacation, or 2.5 calendar days per month worked, including Sundays and holidays, to be enjoyed, as a general rule, from January 1 to December 31 of the same year. Article 38 Workers' Statute, Annual vacations. The period of paid annual leave, not replaceable by monetary compensation, will be that agreed upon in a collective agreement or individual contract. In no case will the duration be less than thirty calendar days. The period of the holiday will be fixed by mutual agreement between the employer and the employee, in accordance with the provisions, if any, of the collective bargaining agreements on annual vacation planning; in case of disagreement between the parties, the competent jurisdiction will set the date for the corresponding enjoyment and its decision will not be subject to appeal. The procedure shall be summary and preferential. The vacation schedule shall be fixed in each company. The worker will know the dates that correspond to him/her at least two months before the beginning of the enjoyment. When the vacation period fixed in the vacation calendar of the company referred to in ITEM 3 coincides in time with a temporary disability resulting from pregnancy, childbirth or breastfeeding or with the period of suspension of the employment contract provided for in Article 48. 4 of this Law, the employee shall be entitled to enjoy the vacation on a date other than the date of the temporary disability or the date of the leave that by application of said precept corresponds to him/her, at the end of the suspension period, even if the calendar year to which they correspond has ended. The three most important points of the legal regulation of vacations are the following: 1.- The annual vacation period cannot be replaced by financial compensation. Article 38 of the workers' statute requires that their vacations must be enjoyed and not compensated with money. As is understood, it is a period of work rest that is necessary and recognized by law. It is also a prohibition that cannot be avoided by agreement of the parties, in the employment contract, or by collective agreement, and, of course, the company cannot impose it on the employee either. However, there are some exceptions. The exception is the termination of the employment contract before taking vacations. In this case, financial compensation equivalent to the vacation period not enjoyed by the worker must be included in the corresponding settlement. That is, the worker must be paid as many days of salary as the number of untaken vacation days corresponding to him/her. This amount is subject to Social Security contributions and is included in the unemployment contribution base. 2.-. Duration of vacations: The duration of vacations can be agreed in the employment contract or in the corresponding collective agreement, although it will never be less than the 30 calendar days established by the Workers' Statute. That is, agreements regarding vacations may extend their duration, but not reduce it with respect to the established legal minimum. And at this point it is necessary to clarify another question that generates many doubts. The duration of the vacation is legally fixed with reference to the year, therefore, if a worker has not worked throughout the year, he will only be entitled to the proportional part corresponding to the period worked. This is fully applicable to fixed-term contracts in which, and unless the applicable collective agreement establishes a different regulation, the vacation period will be proportional to the period of time worked. This should not be confused with the application of the vacation regime to part-time contracts or in cases of reduced working hours. We say this because it is quite common for companies to interpret that, if a worker is hired to work less hours, for example 4 hours per work day instead of the usual 8 hours, he or she should be assigned half the number of days of vacation. This is obviously not the case, because article 38 of the ET is clear in stating that the minimum duration of the vacation is 30 calendar days. Evan though the remuneration for those days is paid in proportion to the half day worked, the number of days of vacation enjoyment can never be reduced. 3.- Of the specific dates for enjoying vacations: the company and the worker must establish by common agreement these periods of enjoying vacations, and to do so, what is established in the collective agreement applicable at all times will be taken into account. The start date of the vacation must be known at least two months in advance of the start of the vacation. It may be that the collective agreement establishes a longer period for reporting vacation dates, which should be the one that will apply then. If no agreement is reached between both parties, they may go to the labor court, through an urgent and specific procedure for this purpose, in order to resolve and fix the period of enjoyment of the vacations; such judicial resolution on vacation will not be subject to appeal. In general, vacations must be taken within the year to which they correspond. According to the courts, if vacations are not taken before December 31, the right to take them expires because it is not possible to carry them to the following year. The beginning of the vacations cannot take place on a public holiday or non-working day, it must be a working day. Likewise, and as regards the calculation of the vacation period, the courts have indicated that the calculation of non-working days within the vacation period will depend on whether its duration is set in calendar days or business days. If it is set in calendar days, holidays will be counted for the purpose of vacation duration, and if business days are set, they will not be counted. About the Author: Me Lourdes GUIVERNAU, obtained a law degree in the University of Lleida (Spain) in 1993. She also holds a Master in International trade and a Master in Sports Law. She joined the Tarragona Bar in 1995. She works in international private and family law and deals with all issues related to banking law, company law, sports law, real estate law and criminal law in Spain. She works in Spanish and English. Ms. Guivernau is also president of the Sports Law Commission of the Tarragona Bar Association and is one of the professors of the Master of Access to Law practice at the Rovira i Virgili University of Tarragona. Her website: https://lancelot-lawyers.com/team/lourdes-guivernau/
- Brand Acquisition Exploration: Jomec Accompanied the Client to 2024 Ambiente Exhibition in Frankfurt
The Ambiente, held annually in Frankfurt, Germany, serves as a compass for the consumer goods industry, making it an indispensable event for global consumer goods companies. The 2024 edition of the fair took place from January 26th to 30th at Messe Frankfurt, where designers and industry professionals gathered to explore the latest design trends, innovations, and concepts in the global consumer goods arena. This event, themed around sustainable development, lifestyle and design, new work, future retail, and the digital expansion of trade, showcased hundreds of items including tableware, glassware, paper products, kitchenware, office supplies, hotel amenities, interior design, and home decor, aiming to discuss new trends and opportunities in the post-pandemic consumer goods market. Manufacturers, distributors, and brand operators from around the world were drawn to this exhibition. Accompanying our domestic clients in the smart manufacturing industry, Jomec participated in the event to assist them in exploring the latest industry trends and seeking international brand acquisition opportunities. As a corporate law firm specializing in providing comprehensive cross-border investment and merger and acquisition consulting, as well as overseas operational compliance support to investors, Jomec's professional team possesses extensive practical experience in market research, target selection, and initial contact with targets in the field of cross-border investment and mergers and acquisitions. With a precise understanding of our client's needs, we identified matching target brands, created a customized target shortlist, and accompanied them throughout the event, eliminating cross-cultural and language barriers. Located in Rotterdam, the Netherlands, Jomec is committed to providing outstanding cross-border corporate legal services to our clients. We invite clients from all sectors to choose Jomec as your cross-border legal partner, as we explore business opportunities together and create a brilliant future! For more information, please contact us by phone or email, as listed at the bottom of the page.
- China Acceded the Convention Abolishing the Requirement of Legalisation for Foreign Public Documents (The Hague Convention)
China has officially acceded to the Hague Convention Abolishing the Requirement of Legalisation of Public Documents as of 8th March 2023. This accession marks a pivotal moment in streamlining the authentication process for public documents, heralding a new era of efficiency and accessibility for cross-border transactions and legal affairs. Understanding the Hague Convention The Hague Convention, established in 1961, aims to simplify the authentication of public documents to be used abroad. Before China's accession, individuals and entities engaging in cross-border activities often faced the cumbersome process of legalisation, requiring multiple levels of authentication from both the issuing country and the receiving country's diplomatic missions. This arduous process often led to delays and increased administrative burdens. Transformation of Document Authentication in China With China's accession to the Hague Convention, the authentication of public documents is set to undergo a remarkable transformation. Public documents such as birth certificates, marriage licenses, academic transcripts, and business registrations will no longer require the traditional legalisation process involving consular stamps and endorsements. Instead, these documents will be certified with an "apostille," a standardized certificate recognized by all member countries of the Hague Convention. This streamlined approach promises expedited authentication procedures, saving time, resources, and mitigating bureaucratic hurdles. Impact on Cross-Border Scenarios The implications of China's accession to the Hague Convention extend far beyond the realm of legal formalities. Ordinary individuals, businesses, and legal entities involved in cross-border transactions and international engagements stand to benefit significantly. Here's how: Efficiency and Convenience: The simplified authentication process means quicker turnaround times for document verification, enabling smoother transactions and reducing administrative complexities. Cost-Effectiveness: By eliminating the need for multiple layers of authentication, individuals and organizations will save on associated costs, making cross-border engagements more economically feasible. Enhanced Legal Certainty: The apostille system enhances legal certainty and transparency, fostering greater trust and confidence in the authenticity of public documents across borders. Facilitated International Collaboration: With streamlined document authentication procedures, collaborations, partnerships, and exchanges between China and other member countries of the Hague Convention are poised to flourish, promoting greater global cooperation and understanding. Conclusion China's accession to the Hague Convention represents a significant milestone in the global harmonization of legal procedures and standards. By embracing the principles of efficiency, transparency, and accessibility, China reaffirms its commitment to fostering international cooperation and facilitating cross-border engagements. As we look ahead, we anticipate the tangible benefits that this historic development will bring to individuals, businesses, and institutions navigating the complexities of a rapidly evolving global landscape. Together, let us embrace this new chapter of enhanced collaboration and opportunity on the world stage.