Employment Law

Globe

Cross-border telecommuting and employee benefits: What employers need to know

Global telecommuting creates new opportunities for companies to tap into and develop diverse talent, but it often comes with unanticipated challenges. Employers should audit these arrangements to ensure compliance and duty of care issues are accounted for in their policies. This article focuses on the impact of cross-border remote working on employee benefits and additional issues that also require consideration such as host country legislation, payroll, social security, and employment protections.

Israel

Israel Introduces a Health Insurance Reform

The government of Israel recently introduced a health insurance reform establishing a comprehensive Private Medical Insurance (PMI) framework that creates a uniform structure for basic health policy.
The new circular entered into effect on 1 May 2023.

UAE

UAE Passes Amendments to Emiratization Framework

The United Arab Emirates (UAE) government had previously introduced legislation increasing the number of UAE nationals who are working in the private sector by increasing quotas under its existing Emiratization framework. All private sector employers with at least 50 employees will be required to increase Emiratis’ proportion in the workforce to at least 10% of the workforce by 2026.

The Emiratization requirements which entered into effect on 30 June 2023 increased the Emiratization quota from a 2% to a 4% Emiratization quota.

European Union

EU Enacts Pay Transparency Directive to Address Equity

European Union (EU) Directive 2023/970 on pay transparency (the “Directive”) which entered into force on 6 June 2023, requires each EU member state to pass legislation enacting the requirements as outlined in the Directive by 7 June 2026.
The goal of the directive is to further reduce or eliminate gender pay inequity within the EU through measures aimed at countering gender pay discrimination, through the collection and disclosure of pay gap data, compensation for those who have suffered pay discrimination, and penalties against employers for violations.

Netherlands

The Netherlands to reform its pension system [updated]

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.
The WTP will come into effect on 1 July 2023. A transition period until 1 January 2028, previously 1 January 2027, applies for employers and pension providers to implement the changes in consultation with the employees and/or their representatives.

Ireland

Ireland expands family leave entitlements

The Irish government passed the Work Life Balance and Miscellaneous Provisions Act 2023 which introduces a right to request flexible working arrangements, five days of government-paid domestic violence leave, and five days of unpaid carer’s leave (called “serious medical care leave”).
The Bill is currently in its third reading before the Irish parliament and is expected to enter into force in the near term (the exact date is yet to be determined).

Uruguay

Uruguay Passes Sweeping Pension Reforms with the Creation of a Common Pension System

The government of Uruguay has passed legislation (Law No. 20130) creating a new Common Pension System (Sistema Previsional Común) which modifies many aspects of the existing statutory pension arrangements, including increasing the state pension age, allowing retirees to continue working, and requiring greater participation in the mandatory individual account scheme. As with other countries around the world, Uruguay has recognized the rising pressure of an aging population on state-funded retirement benefits, and these modifications aim to encourage people to work longer and to reduce financial liabilities on the public system.

Netherlands

The Netherlands abolishes discounts on medical premium: What’s next for employers?

The Dutch government decided at the beginning of 2023 to eliminate the premium discounts that were historically available to group health insurance plans, known locally as collectives (collectiviteitskorting). This has left some employers reconsidering the value of a group plan and whether they should consider offering other benefits to offset the loss of the premium discount.