Lockton Global
Compliance News

Month: August 2024

Australia

Australia Introduces the Right to Disconnect After Working Hours

On 12 February 2024, the Australian Federal Parliament passed the Fair Work Legislation Amendment (Closing Loopholes No. 2) Bill 2023, which introduces, among other changes, a right for all employees to disconnect outside of working hours.

The right to disconnect will enter into effect 6 months after the legislation receives royal assent (expected soon) for businesses with at least 15 employees and 18 months after royal assent for businesses with fewer than 15 employees.

United Kingdom

The United Kingdom Eliminates the Lifetime Allowance but Adds Others

To reduce the tax complexity faced by individuals whose registered pension savings or life insurance benefits reached the Lifetime Allowance (LTA), the United Kingdom has eliminated the LTA and introduced two other allowances with more favorable tax treatment for those who exceed them. The Finance (No.2) Act 2023 removed the Lifetime Allowance charge with effect from 6 April 2023, and the subsequent Finance Act 2024 removed the Lifetime Allowance in its entirety but introduced the Lump Sum and Death Benefit Allowance (LSDBA) and the Lump Sum Allowance (LSA).

Israel Expands Employment Protections for Reservists and their Spouses

In light of the ongoing war, the Israeli government passed legislation expanding reservists’ employment protections and introducing employment protections against dismissal and discrimination for the spouses of reservists.
The new amendment is effective immediately. While most provisions apply through 31 December 2024, others apply until December 2025. The new changes may be extended further or expanded depending on the progression of the events in the region.

Belgium

Belgium Extends Employment Protections to Infertility Treatment

The Belgium government passed legislation introducing employment protections against dismissal and discrimination for male and female employees undergoing infertility treatment or engaged in medically assisted reproduction (MAR).

Amendments to the Labor Act of 16 March 1971 and the Gender Act of 10 May 2007 entered into effect on 28 April 2024.

UAE

The United Arab Emirates Introduces a New Option for End of Service Benefits

The UAE cabinet recently introduced an alternative voluntary option for private sector employers to deliver the End of Service Gratuity (EOSG) to their expatriate (non-UAE or GCC National) employees in the UAE and its free zones. The new government-sanctioned option involves externally funding a gratuity savings plan through monthly contributions that would replace the lump-sum payment calculation under the existing EOSG system. This gives interested employers the ability to move to a defined contribution model and away from a defined benefit model linked to final salary.

Japan

Japan introduces flexible work entitlements for parents with young children

The Japanese government passed legislation requiring employers to offer flexible working options to employees caring for young children and expanding existing work-life balance entitlements for working parents.

Amendments to the Childcare and Family Care Leave Act and to the Development of the Next-Generation Children Act were enacted on 24 May 2024. While most of the changes will come into effect on 1 April 2025, some provisions will be effective at a date yet to be determined by the government.

France

France Introduces Profit Sharing Mandate for Smaller Employers

On 29 November 2023, the French government passed the Profit-Sharing Act requiring companies with 11 to 49 employees to implement a profit-sharing scheme effective from 1 January 2025. This program is set to run as a five-year trial and will then be reassessed by the government to determine if the profit-sharing obligation for these smaller employers will become permanent and in what format.