How to regulate telework to make it more efficient?
The Spain-based "think tank" Fedea has published a report with recommendations to improve the current regulation of telework. The benefits of telework for workers, companies and the economy as a whole are manifold, and it is desirable that some of these changes become permanent, making remote working a key element of the new labour market organisation. However, according to the authors, the current regulation, hastily introduced in the middle of the pandemic, establishes a complex framework, characterised by a dual regulation in which there are two very different regimes depending on whether or not teleworking time exceeds 30% of the quarterly working time.
Main conclusions of the report:
- The pre-Pandemic legislation left great freedom to the parties to design by mutual agreement this way of working under the principles of voluntariness and non-discrimination of the teleworker.
- The new regulation establishes a complex framework, characterized by a dual regulation in which there are two very different regimes depending on whether or not the teleworking time exceeds 30% of the quarterly working day.
- Below this threshold, telework is considered "unregulated" and is almost completely unregulated. Above this threshold, however, we enter the "regular" telework regime, which is subject to many restrictions that tend to increase its costs.
- In the authors' view, the risk of this dual regulation is that it tends to push telework just below the 30% threshold, not for efficiency reasons but to avoid regulation and save costs.
- To take advantage of the opportunities that telework offers, the authors propose to modify the current regulation to include the following basic principles:
- Recover a common regulation of teleworking subject to the principles of voluntariness, non-discrimination, adequate provision of company resources and compensation of costs to the worker.
- It is particularly important to eliminate the artificial 30% threshold that only manages to segment the market.
- Avoid that teleworking becomes essentially a way to reconcile work and thus increases gender segregation.
- Have a general regulation of company monitoring, time recording and digital disconnection.
- Maintain the specific regulations in force on occupational risk prevention.
Filter results
According to AFME, a clearer, more coherent, and proportionate regulatory environment, without unnecessary layers and focuses on growth and competitiveness, is keyl to increase investor confidence, unlock private capital and deepen European capital markets
According to the Center for the Governance of Change at IE University, Europeans support technological progress if it reinforces security, inclusion, and social welfare; but resist it when change feels imposed, opaque, or misaligned with their values.
According to a recent report released by CEPS, European financial regulators should adopt competitiveness as a formal secondary objective, following the precedent established by the UK's Financial Services and Markets Act 2023.
According to the OECD. SMEs and start-ups that grow rapidly contribute significantly to job creation, economic growth and competitiveness. Indeed, SMEs that grow by one-third over a three-year period, contribute about as much to job creation as large firms.
According to @McKinsey, banks must prepare for a new growth curve. Strategic precision —the ability to combine technology, capital discipline, and deep customer insight— will distinguish the leaders from the laggards.
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.
According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.
According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience
According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.
According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.
@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.