CMS Adonnino Ascoli & Cavasola Scamoni CMS Albiñana & Suárez de Lezo CMS Bureau Francis Lefebvre CMS Cameron McKenna LLP

CMS DeBacker CMS Derks Star Busmann CMS von Erlach Henrici CMS Hasche Sigle CMS Reich-Rohrwig Hainz

„„TTechnologechnologies ies to reduce costs of your companyto reduce costs of your company”” Employment aspectsEmployment aspects

Dr. Gábor Göndös, Senior Associate, CMS Cameron McKenna LLP

10 March 2009

CMS CAMERON MCKENNA AT A GLANCE

top ten London based international commercial law firm leading and long-established CEE practice acted for 103 of the FTSE 350 in 2007-08has over 130 equity partners and more than 750 other fee-earners

THE CMS ALLIANCE – FACTS & FIGURES

CMS – the network of independent law firms throughout Central and Eastern Europe, Western Europe, China and North America

Over 595 partners and more than 2200 fee earners worldwide

Established in Central Europe since 1990 with a presence in seven CEE countries and c 300 lawyers

With 56 offices in 28 jurisdictions we can support you wherever you are.

CMS CAMERON MCKENNA BUDAPEST OFFICE

established 19 years ago

8 partners and 50+ lawyers in the Budapest office, probably the largest law firm in Hungary

recommended in all core areas of practice by legal publications

able to conduct documentation in Hungarian, English, German and French

Dedicated employment desk of 5 professionals

Telework – the magic potion?

- Widespread in Western Europe, less so in CEE region (no court rulings available)

- Inherited paternalistic view: employees to be overseen by „Big Brother”

- Tools unavailable off-site, staff compelled to commute to/from work

- State-of-the art IT solutions enabling remote access, remote work

- Up to employers to „break new ground”

Telework – the magic potion? (cont’d)

Dedicated employment agreement for telework• Employer’s right to instruct & supervise

– Data protection (ombudsman guidelines)– Technical tools (go to my PC, web access)– Option to minimize supervisory rights (delivery-oriented)

• Cost-splitting– Maxima of the LC: costs to be borne/reimbursed by

employer– Tax issues of private use of company tools– Usage policy to be in place– Disciplinary guidelines (for tools and data protection)

Telework – the magic potion? (cont’d)

Flexi-time concept available• Key upside: no overtime remuneration

• Employee has only to „deliver”, means & efforts remain in his/her sole discretion

• Workload to respect employee’s resources & capabilities

Data privacy issues• Employer may not inspect unrelated contents

• On-the-spot visits limited and safeguarded

• Data protections tools to be provided

Telework – the magic potion? (cont’d)

Liability issues (discipline and delivery)• Work performed „out-of-sight” of the employer

• Increased liability for assets & tools

• Limitations of use

• Performance liability question unsettled (employee’s wide discretion vs. lack of employer’s instructions)

A tempting option… Let’s freelance!

Lack of tight bonds may incline parties to „shift”• Primary and secondary classification features

– Ownership of tools– Right to instruct and supervise– Discretion to allocate work time and resources– Client portfolio or financial dependency (critical)

• Devastating tax exposure– Unpaid taxes, levies plus default interests– Tax fines, surcharges– Unlawful VAT reclaims

• Employment exposure (Labour Authority and termination)

Telework-related schemes

Employees traveling globally• Maximum work time issue, time zone differences, bank

holidays

• Secondment or stand-alone employment agreement?

• Country-specific stringent provisions (salaries)

• Work permit requirements

• Hardship allowances (clear-cut policies needed)

Contacts:

Dr. Gábor Göndös Senior Associate

E gabor.gondos@cms-cmck.com

T +36 1 483 4879

CMS Cameron McKenna LLP1053, Budapest

Károlyi Mihály utca 12.T +36 1 483 4800F +36 1 483 4801

www.law-now.com

THANK YOU FOR YOUR ATTENTION!