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New Remote Working Legislation Around the World [Updated]

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 has sparked new logistical and structural legal challenges that have warranted many countries to pass teleworking legislation, some of which are summarized in this article.

New teleworking legislation varies widely across 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.

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.

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.

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.

Chile

Chile Introduces a 40-hour Workweek and Flexible Working Hours

The Chilian government passed amendments to the Labour Code reducing the weekly working hours limit from 45 to 40 hours and introducing more flexibility in the distribution of working hours.

The amendments took effect on 26 April 2024, and will enter into force gradually over a period of five years. The workweek limit decreased to 44 hours on 26 April 2024, and will decrease further to 42 hours on 26 April 2026, and to 40 hours on 26 April 2028.