The Employment Law Review - May 2011

Editor's Preface

Over the past year we have witnessed both the beginnings of a recovery from and the continuing effects of the financial crisis that has dogged the world economy and characterised employment relations over the last several years. All signs indicate that these trends are likely to continue for the foreseeable future. The 'Year in Review' and 'Outlook' sections of nearly every chapter in this edition detail efforts by countries to address the continuing effects of the economic downturn. For example, in an apparent effort to increase competitiveness and stimulate business, and, in particular, to battle unemployment, a number of governments have made or are considering efforts to decrease financial burdens on businesses, including the costs of labour. In New Zealand, for example, recent amendments to the Employment Relations Act, including with regard to trial periods, union access and the test for unjustified dismissal, were designed to provide employers with more flexibility in making hiring and firing decisions. Similarly, proposals to implement two new working shift regimes in Costa Rica are designed to provide employers with flexibility to compete in the global market. There is also a trend, however, of cash-strapped governments strengthening certain regulatory requirements and increasing enforcement of new and existing regulations in an effort to collect much-needed funds in the form of taxes or penalties for non-compliance. The new UK Bribery Act, which was passed in 2010 and comes into force in April 2011, and China's increased scrutiny of secondment arrangements for corporate tax purposes are both excellent examples of this phenomenon. Similarly, a number of countries, including the Czech Republic, France and Ukraine, have passed, or are considering, pension reform in an effort to alleviate government budget concerns. We expect that many of the recent changes to employment regulations throughout the world, and those...