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The rise and fall of DEI: What employers need to know
DEI has become a societal megatrend that demands attention. While many companies made DEI initiatives a part of their business strategies, others are scaling back their efforts citing shifting priorities, economic pressures or even political and social pushback. The enthusiasm that once fueled widespread DEI adoption is now met with increased scrutiny. Some question the return on investment and the effectiveness of these programs, whole high-profile layoffs in DEI teams and budget reductions signal that the once unstoppable momentum of DEI may be encountering resistance. Yet, stepping back from DEI is not without risks. In Romania, companies deprioritizing DEI may face not only reputational damage, but also legal and employee
Navigating workplace challenges and litigation trends: dismissals and workplace harassment
As we move into 2025, we want to highlight some of the key developments in the Romanian employment dispute landscape over the past year. You can read our summaries of these key trends below, along with our thoughts on where we expect to see more employment litigation activity in the year ahead. I. Romanian market insights Two key drivers in Romania this year concerning the increased risk of employment litigation are economic uncertainty, which could lead company restructurings and related dismissals, as well as the many changes in Romanian legislation relating to whistleblowing and the prevention of discrimination and harassment at the workplace. Specifically, there are two types of employee lawsuits we expect
The legal effects of electronic signatures from the perspective of Law No. 214/2024 in Romania
On 8 October 2024, the Romanian law on the use of electronic signatures, timestamps and the provision of trust services based on these ("Electronic Signature Law") entered into force. The legislation introduces a new legal framework for electronic signatures, in close alignment with Regulation (EU) No. 910/2014 on electronic identification and trust services for electronic transactions in the internal market ("eIDAS Regulation"). Particularities of the legal effects depending on the type of electronic signature used: A. Qualified electronic signature – this is a signature created by a qualified electronic signature-creation device based on a qualified certificate for electronic signatures. While the Electronic
Changes to the Czech Labour Code applicable from 1 August 2024 and 1 January 2025
Minimum salary A new methodology for determining minimum salaries has been implemented. In line with EU legislation, from 2025 the minimum wage will be determined by an indexation mechanism and be announced by the Ministry of Labour and Social Affairs no later than on 30 September for the following year. The guaranteed salary grading (an additional “minimum” salary scaled according to the complexity of the given work) has been abolished as obsolete. Accordingly, from 1 August the only minimum salary amount which employers must adhere to is the minimum salary, determined and announced as above. The proposed (not yet approved) level of the minimum salary is 42,2 % of the average salary, i.e. CZK 20 600 for 2025
Czech Republic opens up labour market to nine countries
The Government of the Czech Republic has introduced new regulations opening up the country’s labour market to citizens of nine countries. The measures, effective from 1 July 2024, are intended as a step towards a more open and flexible labour market in the Czech Republic. Specifically, citizens of Australia, Japan, Canada, South Korea, New Zealand, Singapore, the UK, US and Israel will no longer require a work permit, employee card, intra-company transfer card or blue card to work in the Czech Republic as of 1 July 2024. The changes abolish an existing requirement for job-seekers to supply details of employment contracts, evidence of professional qualifications or education, a transfer letter and documents evidencing the
Kinstellar welcomes new Managing Associate Iva Bilinská to its employment team
Kinstellar is pleased to welcome Iva Bilinská to serve in the position of Managing Associate, covering the employment law agenda within our Prague team. Iva Bilinská brings extensive expertise and a wealth of experience to Kinstellar, particularly in the area of employment law, having practiced in this field for over a decade. A passion for her work serves as a strong motivation to grow professionally and to find innovative solutions for clients. Moreover, such a crucial specialization enables the effective tackling of even the most complex employment law problems, which makes Iva an invaluable addition to our team. Iva offers an extensive work history, including holding positions at renowned firms such as Kooperativa
Amendments to the Bulgarian Labour Code
Strengthening the home-office regime and enhancing remote workplace safety As workplaces evolve and remote work remains prevalent, amendments to the Bulgarian Labour Code have been recently adopted to reshape the regulations governing home-office arrangements and remote workplace safety standards. The amendments further address the impact of digitalisation and new technologies on work and aim to improve the work-life balance of employees. Mandatory specification of remote workplace An important change is the explicit requirement to define the exact address of the remote workplace. This is already the case in practice, also in line with the authorities’ guidelines. Better clarity in the law will further help to ensure compliance
Kinstellar announces new promotions to Counsel
February 2024 – Kinstellar is delighted to announce the promotions to Counsel of: Yerlan Akhmetov, Kuanysh Shekerbekov (Almaty, Kazakhstan), Cătălin Dinu, Cătălin Graure (Bucharest, Romania), Barnabás Sági (Budapest, Hungary), Yulia Eismont, Maksym Tesliar (Kyiv, Ukraine), Michal Forýtek (Prague, Czech Republic), Andrijana Kaštelan, Vedran Kopilović, Marija Vuchetich (Zagreb, Croatia). ALMATY Yerlan Akhmetov focuses on banking and finance, M&A and capital markets matters. Having been with the Firm for nine years, Yerlan has earned a reputation for cultivating strong client relationships, demonstrating leadership qualities and making significant contributions to our firm's success. He has played a key role
Kinstellar contributes to International Employment Lawyer's Guide to Restructuring a Cross-Border Workforce
Kinstellar is delighted to have contributed to IEL’s Guide to Restructuring a Cross-Border Workforce 2023. In 2023, cross-border restructurings increased significantly – a trend that is expected to persist in early 2024. But conducting the process fairly, and thoroughly, poses a distinct set of hurdles for multinationals. The global guide examines and provides, across 45 jurisdictions, clear answers to the key questions facing employers when conducting a restructuring, under the following areas: Reduction in workforce Restructuring/Re-or ganisation of the business Changing terms and conditions Areas to watch Kinstellar employment team covered the following jurisdictions:
Kinstellar advises Electrolux Group on the successful divestment of its Nyíregyháza factory in Hungary to Qvantum
Kinstellar is proud to announce that it has advised the Swedish appliances manufacturer Electrolux Group on the successful sale of its manufacturing facility in Nyíregyháza, Hungary, to the Swedish high-quality electric heat pumps manufacturer Qvantum for a cash consideration of EUR 38 million. The Kinstellar team was led by Barnabás Sági, Co-Head of the Budapest Real Estate service line, supported by Bertalan Ványa, Associate. The team also included Annamária Csenterics (Partner), Anna Szilágyi (Junior Associate), Judit Sós (Associate), Péter Vörös (Partner), Péter Gullai (Managing Associate), Dániel Péter (Managing Associate), and Szabolcs Szilágyi (Junior Associate).
Amendment to the Labour Code 2023
On 12 September 2023, the Chamber of Deputies approved an amendment to the Labour Code after the legislation was returned by the Senate in July with several amendments. The Chamber of Deputies, however, ultimately approved the amendment in its original wording. After it is signed by the President, the amendment will come in to effect on the first day of the calendar month following its publication in the Collection of Laws (likely still in 2023). However, certain provisions concerning agreements on work performed outside employment relationships (e.g. regarding annual leave) will take effect on 1 January 2024. Major changes pursuant to the amendment to the Labour Code: Telework arrangements
New legislative changes promote flexicurity in employment relations in Romania
The first part of 2023 continued last year's trend of substantial changes to Romanian labour legislation, which is of real interest to both employers and employees. As such, both Law no. 53/2003 on the Labour Code (“Labour Code”) and Law no. 367/2022 on social dialogue (“Law on Social Dialogue”) have undergone several changes, some aimed at clarifying legal issues identified in practice and others at promoting flexibility at work and work-life balance. In this article, we present the latest legislative changes, as well as our recommendations for their implementation. I. Amendments to the Labour Code The latest legislative amendments continue the European and national policies implemented in recent