April 17-19 – 2023 Global Benefits Forum – San Diego The Global Benefits Forum, presented by Lockton People Solutions, is back! Our 2023 U.S. event will be held April 17-19 in San Diego, California. Now in its eighth year, the […]
The Slovak government recently introduced a reform to its pension system to increase retirement savings and benefits. The reform introduces several amendments to the first pillar of the retirement program, including the introduction of a new parental pension supplement, elimination changes to the normal retirement age cap, and the possibility of early retirement. Additionally, the reform introduces several changes to the second pillar of the retirement program including the automatic enrollment of first-time workers under the age of 40 and a change in the default investment option. The changes are effective 1 January 2023.
On 22 December 2022, the Dutch House of Representatives approved the draft bill of the Future of Pensions Act (in Dutch: Wet toekomst pensioenen – WTP). The legislation, which goes before the Senate in January 2023, aims to implement reforms of the Dutch supplementary pension system that were agreed upon between employers, employees, and the government in 2019. The WTP introduces several important changes, notably the obligation to provide occupational pension schemes on a defined contribution (DC) basis only instead of a defined benefit (DB) provision accrual.
If the Senate approves, the WTP will come into effect on 1 July 2023. A transition period until 1 January 2027 applies for employers and pension providers to implement the changes in consultation with the employees and/or their representatives.
On 25 November 2022, the Chinese government launched the pilot phase of a voluntary tax-favored private pension scheme under the third pillar of the country’s pension system. This new scheme aims to assist China in overcoming gaps in its current pension system as the country struggles with one of the most rapidly aging populations in the world, according to the World Health Organization.
The UK government recently announced an additional one-off public holiday on Monday, 8 May 2023, to mark the Coronation of His Majesty King Charles III, which will occur on Saturday, 6 May 2023.
With the rise of technology, work from home has been a steadily growing trend for many years. Remote working has exploded since Spring 2020 with quarantines, workplace closures and lockdowns due to the COVID-19 pandemic, at least for jobs and industries that do not always require workers to be on-site.
This abrupt worldwide shift to remote work sparked new logistical and structural legal challenges that warranted many countries to pass teleworking legislation, some of which is summarized in this article.
New teleworking legislation varies widely across the countries. While some countries introduced their first teleworking general legal framework, other countries passed more detailed measures. This article will only cover permanent teleworking legislation that has entered into effect since the beginning of the pandemic in March 2020. Temporary COVID-19 related measures, as well as proposed legislation not yet passed as of the publication of this article will not be addressed.
The United Arab Emirates (UAE) government recently introduced – for the first time – a mandatory unemployment insurance scheme. The scheme aims to protect employees who lose their jobs for reasons out of their control, by ensuring the availability of unemployment income for up to three months. The Involuntary Loss of Employment (ILOE) insurance scheme, as announced by the Minister of Human Resources and Emiratization in May 2022, came into effect 1 January 2023.
The Mexican senate recently approved a bill doubling the minimum employer-paid vacation days from 6 to 12 days after one year of service for all employees in Mexico. The change entered into effect on 1 January 2023.
Less than six months before the Turkish presidential election, Turkish President Tayyip Erdogan recently announced in a press conference that the minimum age requirement for retirement (age 58 for women and age 60 for men) will be eliminated. This change allows more than 2 million workers to retire immediately.
The Turkish government plans to introduce and approve a legislation in the coming weeks, and the changes are expected to enter into effect retroactively on 1 January 2023.
The Irish government recently approved a draft bill introducing a mandatory automatic enrollment of employees into a central government-run defined contribution pension fund.
If the bill passes, the auto-enrollment pension scheme will be effective in early 2024.
On 30 March 2022, the Malaysian Parliament passed the Employment Bill 2021 introducing several amendments to the Employment Act of 1955, including the extension of the maternity leave from 60 days to 98 days and the introduction of a seven-day employer-paid paternity leave. The new Bill entered into effect on 1 January 2023.