Staying on top of employment compliance across borders is no easy task. With regulations continuously evolving, companies that operate globally face the complex task of monitoring updates across multiple jurisdictions.
To simplify things, we've put together this roundup of recent changes AND upcoming developments across the ever-expanding list of countries we serve at Boundless. By outlining these changes in one place, we hope to help you benchmark your compliance infrastructure against the latest local standards. Consider this both an informational resource and a prompt to take action where needed.
Status: In effect
Employees taking certain types of parental leave now have protection from redundancy for at least 18 months. This means that if their position becomes redundant, they must be offered priority for any suitable alternative roles within the company. However, if there are no appropriate vacancies, they can still be made redundant. Previously, this protection was only applicable during maternity, adoption, or shared parental leave periods.
This new level of protection begins on the day the employer is first informed of the pregnancy and lasts for 18 months after the child's birth. For adoptive parents, this protection extends 18 months from the date of adoption. In cases where a parent takes at least six weeks of shared parental leave, protection is in place for 18 months following the child's birth.
Status: Expected to come into effect October 26th 2024
Later this year, the Worker Protection (Amendment of Equality Act 2010) Bill will boost the protection workers have against sexual harassment. This new law will require employers to take "reasonable steps" to stop sexual harassment from occurring. If a tribunal finds that an employer failed to do this, they can increase the compensation awarded by as much as 25%.
This new preventative duty is comprehensive. Employers must take reasonable steps to prevent sexual harassment from any source, including not just colleagues but also third parties such as customers, clients, or members of the public.
What does reasonable steps mean?
At this time, it is not precisely defined what “reasonable steps” employers must take. The government has stated that additional guidance will be published later to clarify this for employers. The Equality and Human Rights Commission (EHRC) also plans to publish a Code of Practice later this year.
Status: Date pending
The Paternity Leave (Bereavement) Act has been passed, introducing important changes to the Employment Rights Act 1996. This new law guarantees that paternity leave (PL) is available to bereaved partners from the very first day of their employment, regardless of how long they've been with their employer.
As such, the Act eliminates the prerequisite of a minimum 26 weeks of employment for a mourning partner to access PL if a newborn's mother passes away. This right also extends to cases of adoption and surrogacy, and bereaved fathers/partners can now take PL even after having utilised shared parental leave.
Status: In effect
Denmark's recently implemented Time Registration Law makes it compulsory for all employers in Denmark to provide a system for employees to track their working hours. The primary goal of this law is to ensure that both employers and employees adhere to existing regulations surrounding daily and weekly rest periods, as well as the maximum number of hours that can be worked in a week.
While the law does not specify the exact design of the time-tracking system, it mandates that the system must be "objective, reliable, and accessible." This means that it should be a fair and accurate method that allows each employee to independently measure their own daily working hours.
Status: Expected to come into effect January 2025
Ireland is launching a new pension auto-enrolment scheme early next year. This scheme will automatically enrol individuals who meet certain criteria: they must not currently have a pension scheme, earn over €20,000 annually, and be aged between 23 and 60.
A significant advantage for employees is the contribution structure. For every €3 an employee contributes, their employer will also contribute €3, and the State will add an additional €1. This means a total of €7 will be added to the employee's pension account for every €3 they put in. (Employees have the option to opt-out after six months.)
What does this mean for employers?
This is a mandatory scheme for all employers. You must ensure your payroll system can handle enrolment instructions, calculate contributions, and make payments to the National Automatic Enrolment Retirement Savings Authority (NAERSA).
You'll be required to match employee contributions up to a maximum of 6%, subject to an earnings threshold of €80,000. Employer contributions will be tax-deductible.
Failure to comply with auto-enrolment obligations can result in penalties and even prosecution. If you don't make the required contributions for your employees, you could face fines and be forced to make back payments with interest.
For comprehensive information, the Irish government has provided a detailed employer guide outlining the actions, costs, and terms of the auto-enrolment scheme.
Status: Pending
In an effort to stimulate economic growth, Portugal is proposing the reintroduction of tax breaks specifically for skilled foreign workers. The new legislation, if approved, would offer a flat 20% tax rate on both salaries and
professional income for individuals in designated "high value-added" occupations.
This move represents a reversal of policy after the previous government eliminated similar tax incentives last year, citing concerns about fairness in the tax system and the impact on housing prices.
It's important to note that this revised scheme will maintain the tax breaks for salaries and professional income but will exclude pensions, dividends, and capital gains from these benefits.
Status: Expected to come into effect 26th August 2024
Australia is set to introduce a "right to disconnect" law that empowers employees to refuse work-related communication outside of their normal working hours. This new right, outlined in the Fair Work Act 2009 (Cth), grants employees the legal right to decline monitoring, reading, or responding to any contact (or attempted contact) from their employer or a third party outside their regular work hours, unless such refusal is deemed unreasonable.
How you can prepare
The law aims to strike a balance between employee well-being and business needs, with the "reasonableness" of refusal determined on a case-by-case basis, considering various factors.
While the term "contact" is not explicitly defined in the law, it is expected to cover mediums such as calls, texts, emails, messaging services (like Teams or WhatsApp), and any other attempts to engage with employees outside of work.
Employers can proactively prepare for this change by reviewing and updating their employment contracts, implementing clear policies regarding out-of-hours contact, and ensuring that recruitment policies transparently communicate expectations about communication outside of normal work hours.
A recent legal case in Australia has sent a strong message to employers about the potential consequences of misclassifying workers. An employer was fined nearly $200,000 for incorrectly categorising employees as independent contractors and for delaying wage payments. This case serves as a stark reminder that accurately classifying workers is not only a legal obligation but also crucial for protecting the rights of vulnerable workers.
Status: In effect
Chile has kicked off a multi-year transition to a reduced standard work week through its newly implemented "Ley de 40 horas" (Law 21.561). As of April 2024, the maximum allowable weekly hours for Chilean workers are reduced from 45 to 44 hours, without a cut to their pay.
This initial 1-hour reduction marks the first milestone in a phased journey over the coming years with the ultimate target being a 40-hour work week by 2028. The legislation also ushers in greater flexibility around shift scheduling. With an employee agreement, companies can now distribute working hours over 4, 5 or 6 days without requiring Labour Inspectorate approval.
In essence, the law paves the way for Chilean employers to test out alternative arrangements like a 4-day week with 10-hour days and 3 rest days. This added flexibility provides opportunities to explore schedules that promote healthier work-life balance for both businesses and staff.
With frequent regulatory shifts across borders, remaining compliant as an international employer can be challenging, especially for rapidly growing companies. As an Employer of Record, Boundless has you covered. Our team handles in-country compliance as part of our premium global employment solution, so you can focus on doing what you do best: building your business.
If you have any questions about the updates outlined above or want to discuss our personalised Employer of Record services, don't hesitate to get in touch with our team.
We're here to support you and ensure you remain compliant, no matter the changes ahead.
