Beyond COVID-19: Crisis response or road to recovery?
Crisis response or road to recovery?
Traditional labour law is facing new challenges with the upcoming availability of flexible employment platforms (e.g. Uber/Takeaway/Deliveroo/Helpling). Society demands flexible working hours, flexible contracts and most employees are now - or in the near future - required to constantly review their skills to remain employed.
It follows from research performed by the World Economic Forum that the rise of artificial intelligence, robotics and other digital developments is displacing the primacy of human expertise in the economy.
‘The individuals who will succeed in the economy of the future will be those who can complement the work done by mechanical or algorithmic technologies, and ‘work with the machines.’
Will you still have the same job in ten years? The answer is most likely ‘no’.
As a result of rapid technology changes, such as Artificial Intelligence, autonomous vehicles, 3D printing, robotic automation, blockchain, etc., almost all current business models are affected. New technology requires companies to consider investment, restructurings and potentially mass lay-offs. The positive angle is that this may not result in an overall reduction in the number of jobs, people will require a different skillset: we need technicians.
The key question for both employees and employers is how better to anticipate the changes to the labour market to prevent ‘sudden’, ‘unexpected’ and unnecessary redundancies in the future.
In the Netherlands the role of the works council (set out in the Dutch Works Councils Act) is especially relevant in relation to changes to the labour market. This includes:
In addition to the requirement toconsult with the works council, the Dutch Civil Code (DCC) requires the employer to ensure that employees are trained to perform their tasks and responsibilities; or to continue the employment relationship in case of redundancy. There are also limitations on the ability of the employer to terminate the employment relationship based on performance if it turns out that they did not sufficiently provide the ability for improvement in the employee’s performance by training.
Dutch law therefore does seek to protect the workforce from the unavoidable market change, the question is whether these protections are sufficient.
We expect that trade union/works council consultation procedures in relation to restructuring scenario’s will, more than they do currently, focus on the mobility of employees and changes to their roles. For employees whose jobs are at risk of displacement by new technology, e.g. financial operations, accounting and auditing, health care, transport, production, etc. it will become important to be timely and well informed about any proposed future changes within the organisation and to be heard and consulted with. The following tools may be used to force the employer to consider alternatives now and to avoid unnecessary job cuts in the future:
The fourth industrial revolution should be an agenda item in most company meetings. It is time for employees to claim more insight into the long-term strategy of the board.
In May 2018, the above topics shall be part of plenary discussions at our offices in Amsterdam as part of the AI Academy. Please feel free to contact Thomas Timmermans if you are interested in attending.
Discussing restructuring topics in Australia, Canada, the UK, Germany, the Netherlands and the US.
© Norton Rose Fulbright LLP 2021