Key Employment Law Updates and Trends Across the Globe
Are you up to date with emerging employment laws? As we navigate through significant global changes in employment law, it's crucial for employers and HR professionals to stay on top of the latest trends and regulatory updates. (Or, you can always save yourself time and money by partnering with a Global Employer of Record like TCWGlobal!)
Here are a few of the major global payrolling trends to be aware of.
Quick Overview Summary
- United Kingdom Holiday Pay and Equality Definitions
- Canada’s Standards for Remote Workers and Termination Rights
- Australia’s Commitment to Superannuation and Gender Equity
- New Zealand’s Fairer Leave Calculation Methods
Currently, global trends point toward pay equity, pay transparency, and increased clarity for workers around holiday and other leave pay.
European Union: Proactive Pay Transparency
The European Union has taken a significant step with the adoption of the EU Pay Transparency Directive in April 2023, set to be enforced starting in 2026. This directive aims to bolster gender pay transparency and requires employers in EU countries to maintain and disclose salary data. Although the directive's enforcement is a few years away, many employers are already taking proactive steps by enhancing transparency in job listings and salary data management.
United Kingdom: Enhancements in Holiday Pay and Equality Definitions
There are changes to the rate at which holiday pay, including allowing the “roll up” of holiday pay into the worker’s wages for some workers, specifically those with irregular hours and seasonal workers. The proposal indicates that rolled up holiday pay must be at least 12.07% of the worker’s pay.
This will not change the reference period for other statutory leave such as sick or maternity leave. There have also been amendments to the Equality Act of 2010 including a change to the definition of disability, which will now reference a person’s ability to fully participate in working life on an equal basis with other workers, rather than their ability to carry out day to day activities.
Canada: New Standards for Remote Workers and Termination Rights
The Canada Revenue Agency has provided a new policy for determining a remote worker’s province of employment for payroll purposes, wherein the worker will change the province from the employer’s location “where the worker is paid” to the employer’s location “where the worker is reasonably considered attached.”
New termination entitlements for federally regulated employers (effective February 1, 2024) included changes to the notice period required and a requirement to provide a statement of benefits outlining the worker’s right to vacation benefits, wages, severance pay and other benefits arising out of employment which must be provided either no later than two weeks before the termination, or if payment in lieu is provided, no later than the date of termination.
Starting January 4, 2024, employers in rail transportation, banking, telecommunications, and broadcasting saw changes to the Hours of Work Provisions surrounding unpaid breaks, rest periods between shifts, notice requirements for work schedule and shift changes. The exemptions vary by industry and the worker’s position.
Australia: Commitment to Superannuation and Gender Equity
Effective January 1, 2024, the National Employment Standards included a right to superannuation contributions, which makes unpaid or underpaid superannuation enforceable under the Fair Work Act by more employees. Effective April 2024, there is now mandatory reporting on Gender Equity to governing bodies, new data reporting requirements and a new reporting requirement specific to sexual harassment or discrimination on the grounds of sex under the Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Act.
New Zealand: Fairer Leave Calculation Methods
Improvements to the Holiday’s Act include new methods that employers must use for calculating the amount of leave entitlement used by a worker when they take leave, new leave pay and formulas that provide greater clarity on what is used in the calculations, and new eligibility tests for Family Violence, Bereavement, and Sick Leave. All these changes are to provide greater transparency to workers.
Puerto Rico: Addressing Domestic and Economic Violence
Changes to Act 54 on Domestic Violence will require employers to update their Domestic Violence in the Workplace policies to include “economic violence” defined as conduct that is aimed at undermining the victim’s present or future financial capacity, economic stability, or secure housing. This can be perpetrated in many ways and may include interference with a victim’s employment or business. Additionally, Fair Labor Standards Act (FLSA) updates regarding salary level exemptions are likely to impact workers in Puerto Rico as well.
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We also help you navigate employment contracts, tax compliance, workforce flexibility, and risk mitigation, all tailored to your unique business requirements. Contact us today at tcwglobal.com or email us at hello@tcwglobal.com to discover how we can help your organization thrive in today's dynamic work environment. Let TCWGlobal assist with all your payrolling needs!
