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.
Currently, global trends point toward pay equity, pay transparency, and increased clarity for workers around holiday and other leave pay.
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.
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.
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.
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.
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.
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.
Whether you need expertise in Employer of Record (EOR) services, Managed Service Provider (MSP) solutions, or Vendor Management Systems (VMS), our team is equipped to support your business needs. We specialize in addressing worker misclassification, offering comprehensive payroll solutions, and managing global payroll intricacies.
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!