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Roundup of 2023 Employment Legislation Changes

Posted on  Feb 14, 23 by Irina Dzhambazova
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Running a global, remote-based organisation carries a raft of HR compliance responsibilities, which derive directly from local employment and labour laws. To make matters even more complicated, many regulations are amended every new calendar year, and companies are expected to stay on top of new rulings. We have rounded up all the key changes and updates that have come into place in 2023 so far or will do so in the next few months.

Employment legislation changes in Ireland

Sick leave

From January 1st, the entitlement to sick leave in Ireland commences. This is being brought in on a phased basis, starting with up to 3 paid sick days per year in 2023, increasing to 5 days in 2024, 7 days in 2025 and 10 days in 2026. Employees with 13 weeks of continuous service will be eligible and must provide a medical certificate for the days of absence. The pay rate for these sick days is 70% of normal wages up to a maximum of €110 per day.

Minimum wage

From 1 January 2023, the national minimum wage has increased by 80c from €10.50 per hour to €11.30 per hour.

Employment legislation changes in Germany

Minimum wage

The statutory minimum wage has increased to €12 gross per hour.

Time tracking

From 2023, employers must record the beginning and end of an employee's daily working hours. It is no longer sufficient to provide a system merely as an option. The employer must verify that the employee records their working hours. While mandatory, the form in which it takes place isn't specified and could be digital or manual.

Employment legislation changes in Canada

Minimum wage

Several provinces have increased the mandated minimum wages.

Ontario

The minimum wage has increased to $15.50 per hour.

British Columbia

British Columbia's minimum wage has increased to $15.65 per hour.

Saskatchewan

The minimum wage increased to $13.00 per hour. It will further increase to $14.00 per hour on October 1st.

Manitoba

The minimum wage increased to $13.50 per hour with an intention for a further increase to $14.15 on April 1st

Quebec

The minimum wage rose to $14.25 an hour.

New Brunswick

The minimum wage in New Brunswick is $13.75 per hour.

Newfoundland

The minimum wage in Newfoundland is $13.70 per hour.

Nova Scotia

The minimum wage has increased to $13.60 per hour.

Prince Edward Island

The minimum wage has increased to $14.50 per hour.

Right to disconnect

According to a new amendment in the Working for Workers Act in Ontario, employers with 25 or more employees must implement a policy regarding employees disconnecting from work.

Employee monitoring

All employers in Ontario with 25 or more employees must have a written policy disclosing whether and how they electronically monitor their employees.

Bereavement leave

The entitlement to bereavement leave in Alberta is also extending to cover cases when a pregnancy ends other than in a live birth.

Employment legislation changes in the UK

Minimum wage

On April 1st, the minimum wage is increasing to £10.42 an hour.

Maternity, paternity, adoption and shared parental pay

On April 1st, statutory maternity, adoption, paternity and shared parental pay rises from £156.66 to £172.48 a week.

Sick pay

On April 1st, statutory sick pay increases from £99.35 to £109.40 weekly.

Flexible working

An employment relations bill is currently sitting in the House of Commons that will grant the right to request flexible working from day one of employment instead of the current right, which kicks in after 26 weeks of employment. The bill is expected to pass.

Neonatal care leave

A new Neonatal Care (Leave and Pay) Bill received Government backing in July 2022, which allows parents with babies requiring neonatal hospital care to take 12 weeks of paid leave in addition to their statutory maternity or paternity leave. If passed in its current form, the right will be available from the first day of employment, will apply to parents whose babies are admitted to a hospital up to the age of 28 days and will apply to babies who need to stay in the hospital for a continuous period of at least seven days.

Employment legislation changes in The Netherlands

Flexible work

The Work wherever you want Act is expected to come into force in 2023. The Act is yet to be passed by the Dutch First Chamber. Under this Act, a request by an employee to work from their place of residence (within the EU) or from another suitable workplace from which work is already habitually performed for the employer will only be able to be refused by the employer on the grounds of compelling business or service interests.

Severance pay

In the Netherlands, severance is defined as a 'transition budget' to ease the search and transition to a new role. Employees are entitled to it if either the employer initiated the termination or, in the case of a fixed-term contract, decided not to extend it. The only exception is if they did so due to seriously culpable employee actions. The cap for the severance pay has been increased to €89,000 gross in 2023.

Employment legislation changes in Australia

Family and domestic violence leave

From February 1st, employees are entitled to ten days of paid family and domestic violence leave per annum, as opposed to the current five days of unpaid leave.

Flexible working

Employers must now consider and respond to every employee's written request for flexible work within 21 days. They can only refuse the request if they have:

  • discussed the request with the employee
  • genuinely tried to reach an agreement with the employee about making changes to the employee’s working arrangements that would accommodate the employee’s circumstances
  • not been able to reach an agreement with the employee

Fixed-term contract limitation

While previously there was no limitation to fixed-term contracts, in 2023, the Secure Jobs, Better Pay Amendment introduced a civil penalty for employing an employee on a fixed-term employment contract that:
  • is for a period of longer than two years
  • either could be extended or renewed for a period that, in total across all contracts, exceeds two years
  • continues the same, or substantially similar, employment relationship and work duties as a previous fixed term contract, and either:
    • the contract and previous fixed-term contract would exceed two years in length
    • the contract or previous fixed-term contract contains a right of renewal or extension
    • the employee has previously been engaged under two consecutive fixed-term contracts.

Employment legislation changes in Lithuania

Minimum wage

The minimum hourly wage increases to €5.14 gross, and the minimum monthly salary to EUR 840 gross.

Paternity leave

From 2023, paternity leave can be split into two parts rather than needing to be taken all at once. Paternity leave is granted to parents within the first year after a child is born (or adopted). The duration of paternity leave is 30 calendar days.

Parental leave

In 2023, Lithuania is introducing legislation around parental leave, according to which each parent is entitled to two months of leave, which cannot be transferred to the other parent. This means that fathers will be entitled to three months of leave, combining their paternity and parental leave entitlements. The parental leave might be used all at once or in parts. Both parents cannot take parental leave at the same time.

Employment legislation changes in Croatia

Work from Home

When an employee is working from home full time or more than seven days in one month, from 2023 their employer must:
  • provide, install and maintain work equipment (defined in the employment agreement) or reimburse any related costs when the employee uses their equipment
  • reimburse the expenses of working from home (internet, electricity…) in the amount defined in the employment agreement

Probation Period

While the maximum duration of a probationary period is still six months, according to new legislation brought in 2023, if the employee was temporarily absent (i.e. due to temporary work incapacity, maternity or parental leave, paid time leave), the probation period is prolonged for the duration of temporary absence.

Employment legislation changes in the Czech Republic

Minimum wage

As of 2023, the minimum gross salary ranges in the Czech Republic are increasing to CZK 17,300 monthly (for unqualified work) and CZK 34,600 (for managerial or scientific roles).

From January 1st, the entitlement to sick leave in Ireland commences. This is being brought in on a phased basis, starting with up to 3 paid sick days per year in 2023, increasing to 5 days in 2024, 7 days in 2025 and 10 days in 2026.

Employment legislation changes in Denmark

Parental leave

The Danish maternity act increases the parental leave in Denmark in 2023 to 48 weeks to be taken in the following structure:
  • Two weeks after birth are obligatory for per parent
  • Eight weeks (transferable) for each parent, which have to be used before the child’s first birthday
  • Nine weeks of parental leave is earmarked for each parent
  • Five weeks (transferable) can be taken before the child’s ninth birthday

Employment contract

From 2023, employees must be provided with an employment contract no later than seven days after the start of their employment. In case of any changes to an existing contract, the employee must be provided with an updated contract/an addendum to the contract no later than seven days after the effective date of the changes.

Employment legislation changes in Estonia

Minimum wage

The minimum wage is increasing to €725.
From 2023, employers must record the beginning and end of an employee's daily working hours. It is no longer sufficient to provide a system merely as an option. The employer must verify that the employee records their working hours. While mandatory, the form in which it takes place isn't specified and could be digital or manual.

Employment legislation changes in France

Minimum wage

The amount of gross hourly minimum wage has increased to €11.27 (€1,709.28 monthly, i.e. a net amount of €1,353.07).

Employment legislation changes in Mexico

Paid time off

From 2023, workers who have one year of service will be entitled to 12 days of paid vacation (used to be six) until they reach 20 days of paid vacation as per the statutory rules for increases. As of the sixth year, the vacation period will increase by two days for every five years.

Employment legislation changes in Poland

Minimum wage

On January 1st, the minimum wage in Poland increased to PLN 3,490 gross. Another increase is expected on July 1st when the mandated minimum wage will reach PLN 3,600 gross.
From 2023, workers who have one year of service will be entitled to 12 days of paid vacation (used to be six) until they reach 20 days of paid vacation as per the statutory rules for increases. As of the sixth year, the vacation period will increase by two days for every five years.

Caretaking leave

In 2023, Poland introduced a new caretaking leave that entitles employees to five unpaid days for taking care of the following:

  • people living in a shared household who require personal care
  • people living in a shared household that need significant support for serious medical reasons, such as illness, injury or emergency
  • a child, parent, or spouse who needs support

Force Majeure leave

Polish employees are entitled to two days of force majeure leave, paid at 50%.

Parental leave

The parental leave is extending to 41 weeks (42 weeks in the case of multiple births).

A helping hand on the road to local compliance

Whatever your circumstances, it pays to be on the front foot when it comes to local compliance in countries where you have employees in 2023. Your team will thank you for it, and you’ll avoid the risk of nasty legal and reputational problems further down the line. Refer to any of our country guides for more in-depth local employment information.

At Boundless, we’re here to support you on your compliance journey, providing the tools and local knowledge you need to compliantly employ people, wherever you operate.

Through our Employer of Record model, we help global employers go beyond the basics and adopt best-practice employment principles wherever they operate. So if you want to start the New Year with a renewed compliance push, get in touch with us today.

The making available of information to you on this site by Boundless shall not create a legal, confidential or other relationship between you and Boundless and does not constitute the provision of legal, tax, commercial or other professional advice by Boundless. You acknowledge and agree that any information on this site has not been prepared with your specific circumstances in mind, may not be suitable for use in your business, and does not constitute advice intended for reliance. You assume all risk and liability that may result from any such reliance on the information and you should seek independent advice from a lawyer or tax professional in the relevant jurisdiction(s) before doing so.

Written by Irina Dzhambazova

Irina Dzhambazova is the editor of this publication and leads many of the marketing efforts behind Boundless. Previously she crafted stories at SaaStock and Dublin Globe and travelled the world capturing case studies of companies using the Kanban Method. Throughout this experience, she was almost always "the remote worker" and knows a thing or two about the potential and challenges of this way of working.

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