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Employment Law

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.

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.

United Kingdom

United Kingdom Spring Budget 2023

The UK government recently announced changes in pensions, childcare, universal support scheme, and employee share plans, among others, as part of the Spring Budget 2023 to remove obstacles to participation in the workforce.

UAE

UAE introduces mandatory unemployment insurance scheme [Updated]

The United Arab Emirates (UAE) government recently introduced – for the first time – a mandatory unemployment insurance scheme. The scheme aims to protect employees who lose their jobs for reasons out of their control, by ensuring the availability of unemployment income for up to three months. The new Involuntary Loss of Employment (ILOE) insurance scheme, which was announced by the Minister of Human Resources and Emiratization in May 2022, came into effect 1 January 2023.

Poland

Poland expands family leave entitlements [updated]

The Polish Government introduced a bill that expands parental leave entitlements and introduces a right to flexible work arrangements for parents of young children and carers, as well as
carers leave and emergency leave for all employees.

The amendments aim to align Poland with the European Union Directive No. 2019/1158 on work-life balance for parents and carers.

The Bill is in the initial legislative stages and still needs to be passed by both houses of the Polish parliament and signed by the President before it becomes law. The exact implementation date is not yet known.

Spain

Spain introduces menstrual leave [updated]

The Spanish parliament recently passed new legislation introducing multiple changes to menstrual and reproductive health legislation including a government-paid temporary sick leave for female employees who suffer severe menstrual pain. The new leave (also called “menstrual leave”) may be taken for as long as needed so long as the temporary medical incapacity is approved by a doctor.

The legislation will enter into effect three months after its publication in the Official Gazette (the exact publication date is still yet to be determined).