Lockton Global
Compliance News

Employment Practices

South Africa

South Africa Proposes the Creation of a Universal Healthcare System Financed by Employees

On 12 June 2023, the National Assembly of the South African Parliament passed the National Health Insurance (NHI) Bill (the “Bill”). The Bill aims to establish a universal healthcare system supported by a National Health Insurance Fund (the “Fund”). As it stands, the Fund is expected to be financed by monthly employee payroll contributions and through general tax increases.

The Bill has advanced to the next stage and has been referred to the National Council of Provinces (NCOP) for review and possible revisions. Once final, the Bill will be sent to the President for assent.

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.

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.

Turkey eliminates retirement age requirement [updated]

Less than six months before the Turkish presidential election, Turkish President Tayyip Erdogan recently announced in a press conference that the minimum age requirement for retirement (age 58 for women and age 60 for men) will be eliminated. This change allows more than 2 million workers to retire immediately.

The Turkish government plans to introduce and approve legislation on early retirement without meeting the age requirement in the coming weeks.

France

France to reform its pension system

The French government recently introduced legislation aiming to reform the country’s pension system by gradually increasing the minimum retirement age from 62 to 64, as well as the number of years of insured employment needed to be eligible for a full pension from 42 to 43 years.  

To speed the passage of the controversial reform, the French government used its constitutional power to bypass the parliament vote. The reform is expected to enter into effect once its compliance with the French constitution is confirmed by May 2023.