Lockton Global
Compliance News

Year: 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.

Ireland

Ireland Extends Parent’s Leave

The Irish government is extending parent’s leave from seven weeks to nine weeks. The leave period is paid by Irish social insurance for qualifying employees. The Parent’s Leave and Benefit Act 2019 (Extension of Periods of Leave) Order 2024 will enter into effect on 1 August 2024.

South Africa

South Africa Introduces a Two-Pot Retirement System

The South African parliament has recently passed legislation dividing occupational retirement contributions into two pots (referred to hereunder as components) making one-third of the funds accessible prior to retirement and the remaining two-thirds available only at retirement or death. The new system, known as the “two-pot” system, will come into effect on 1 September 2024.

Australia Increases Superannuation Contribution Rate

On 1 July 2023, the Australian government increased the Superannuation Guarantee (SG) contribution rate by 0.5% to 11% of employees’ earnings. The SG rate is scheduled to increase by 0.5% each year until it reaches 12% of employees’ earnings on 1 July 2025.

Colombia

Colombia to introduce a healthcare reform

The Lower House of the Colombian Congress recently approved a controversial government proposal (Bill 339 of 2023) to shift the financing of the healthcare system from private providers to the government.
The reform has faced political challenges and opposition, resulting in the resignation of the former Minister of Health and a reshuffling of the cabinet. Despite these hurdles, the Colombian legislature continues to debate the reform. It is still unclear if or when the bill will pass into law.