Lockton Global
Compliance News

Year: 2023

Guernsey to mandate auto-enrollment in an occupational pension scheme [updated]

The government of Guernsey recently approved a secondary pensions policy requiring the mandatory, automatic enrollment of employees into either a government-facilitated defined-contribution scheme (Your Island Pension- YIP) or a qualified, employer-sponsored pension plan.

Contributions will start at 1% for both the employer and the employee. The contribution rate will automatically increase annually until it reaches 3.5% for employers and 6.5% for employees in 2031.

Mexico

Mexico to introduce menstrual leave

The Mexican government recently introduced amendments to the Federal Labor Law and to the Federal Law for State Workers to provide a government-paid menstrual leave of up to three days per month for all employees who menstruate, including cisgender women, transgender men, intersex, and non-binary persons.
The proposed amendments are in the initial legislative stages and have not yet been enacted.

France

France to reform its pension system

The French government recently introduced legislation aiming to reform the country’s pension system by gradually increasing the minimum retirement age from 62 to 64, as well as the number of years of insured employment needed to be eligible for a full pension from 42 to 43 years.  

To speed the passage of the controversial reform, the French government used its constitutional power to bypass the parliament vote. The reform is expected to enter into effect once its compliance with the French constitution is confirmed by May 2023.

Bulgaria expands family leave entitlements

The Bulgarian government recently amended its Labour Code to extend paternity leave entitlements and introduce a right to flexible work arrangements for parents of young children and carers. The amendments align Bulgaria with the European Union Directive No. 2019/1158 on work-life balance for parents and carers.

The amendments were published in the State Gazette and became effective on 1 August 2022.

European Union

EU directive on adequate minimum wages

In an effort to enhance the adequacy of statutory minimum wages, promote collective bargaining on wage-setting, and improve access to minimum wage protections, European Union (EU) member states will be required, no later than 15 November 2024, to pass national legislation meeting new minimum requirements established by Directive 2022/2041 of 19 October 2022 (the “Directive”) on adequate minimum wages.

Puerto Rico

Puerto Rico introduces amendments to Labor Code [Updated]

On 20 June 2022, the Puerto Rico government passed Act No. 41-222, which amends certain provisions of the 2017 Labor Code to increase labor protections for private sector workers. The Act introduces many changes including the amendment of the severance payment calculation formula, vacation and sick leave accrual rules, annual bonus thresholds and meal breaks rules.

Belgium

Belgium entitles employees to bicycle allowance

Beginning 1 May 2023, employees who regularly cycle to work may claim an employer-paid allowance of EUR 0.27 per kilometer based on the recent conclusion of a Collective Bargaining Agreement (CBA No. 164) by the National Labour Council on 24 January 2023.

Hungary

Hungary expands family leave entitlements

The Hungarian government recently passed significant employment legislation to introduce parental and carer’s leave entitlements, double the number of paternity leave days and introduce a right to request flexible work arrangements. The legislation brings Hungary into alignment with the European Union Directive No. 2019/1158 on work-life balance for parents and carers.

The amendments to the Hungarian Labor Code provisions entered into effect on 1 January 2023.

Switzerland

Switzerland establishes paid adoption leave

The Swiss government recently passed amendments to the Swiss Code of Obligations (“CO”) and to the Loss of Earnings Compensation Act (“LECA”), granting ten working days of government-paid adoption leave to employees who adopt children under the age of four. The leave entitlement went into effect on 1 January 2023.