Employment Practices

Bulgaria expands family leave entitlements

The Bulgarian government recently amended its Labour Code to extend paternity leave entitlements and introduce a right to flexible work arrangements for parents of young children and carers. The amendments align Bulgaria with the European Union Directive No. 2019/1158 on work-life balance for parents and carers.

The amendments were published in the State Gazette and became effective on 1 August 2022.

European Union

EU directive on adequate minimum wages

In an effort to enhance the adequacy of statutory minimum wages, promote collective bargaining on wage-setting, and improve access to minimum wage protections, European Union (EU) member states will be required, no later than 15 November 2024, to pass national legislation meeting new minimum requirements established by Directive 2022/2041 of 19 October 2022 (the “Directive”) on adequate minimum wages.

Puerto Rico

Puerto Rico introduces amendments to Labor Code [Updated]

On 20 June 2022, the Puerto Rico government passed Act No. 41-222, which amends certain provisions of the 2017 Labor Code to increase labor protections for private sector workers. The Act introduces many changes including the amendment of the severance payment calculation formula, vacation and sick leave accrual rules, annual bonus thresholds and meal breaks rules.

Belgium

Belgium entitles employees to bicycle allowance

Beginning 1 May 2023, employees who regularly cycle to work may claim an employer-paid allowance of EUR 0.27 per kilometer based on the recent conclusion of a Collective Bargaining Agreement (CBA No. 164) by the National Labour Council on 24 January 2023.

Switzerland

Switzerland establishes paid adoption leave

The Swiss government recently passed amendments to the Swiss Code of Obligations (“CO”) and to the Loss of Earnings Compensation Act (“LECA”), granting ten working days of government-paid adoption leave to employees who adopt children under the age of four. The leave entitlement went into effect on 1 January 2023.

Slovakia

Slovakia reforms its pension system

The Slovak government recently introduced a reform to its pension system to increase retirement savings and benefits. The reform introduces several amendments to the first pillar of the retirement program, including the introduction of a new parental pension supplement, elimination of the normal retirement age cap, and the possibility of early retirement. The reform also introduces several changes to the second pillar of the retirement program, including the automatic enrollment of first-time workers under the age of 40 and a change in the default investment option. The changes are effective 1 January 2023.

Canada

Canada introduced a new federal holiday [updated]

The Canadian government approved Bill C-5 introducing a new federal holiday called the National Day for Truth and Reconciliation to commemorate the victims and survivors of the indigenous residential schools. The new federal holiday is observed on 30 September each year, with the first being 30 September 2021.

China

China launches a new voluntary private pension scheme

On 25 November 2022, the Chinese government launched the pilot phase of a voluntary tax-favored private pension scheme under the third pillar of the country’s pension system. This new scheme aims to assist China in overcoming gaps in its current pension system as the country struggles with one of the most rapidly aging populations in the world, according to the World Health Organization.