One of the most important responsibilities that comes with managing employees in multiple countries is maintaining compliance with employment regulations. As an employer, you need to make sure that your employment contracts and benefits are always up to date with the latest employment laws and regulations for the countries your employees are in. Here is what’s changed in the last few months.
Asia
Indonesia (guide)
A new component of separation pay for employees with indefinite contracts has been instated. Employees who resign and have at least 5 years of tenure are entitled to separation pay that is determined in their employment agreement and/or labor agreements.
Malaysia (guide)
Effective January 1, 2023, changes have been made to the Employment Act 1955, including:
- the Act now covers all employees, irrespective of salaries
- employees can now apply for flexible work arrangements, and employers have 60 days to respond with either an agreement or a reason for the rejection
- working hours have been reduced from 48 to 45 hours per week
- pregnant employees cannot be terminated during pregnancy unless there is just cause
- paid maternity leave has been increased from 60 to 98 days
- paid paternity leave has been instated for the first time, with 7 days allowed
South Korea (guide)
As of January 2023, there has been a slight increase in the National Health Insurance contribution rate for both employers and employees to 3.545% (each). There has also been an increase in the Long Term Care Insurance contribution rate for both employers and employees to 0.455% (each). The minimum wage in South Korea has been increased to WON 9,620/hr.
Taiwan (guide)
As of January 2023, the new minimum wage in Taiwan is TWD 26,400 per month or TWD 176 per hour.
Turkey (guide)
As of January 2023, changes have been made that set the minimum wage in Turkey to TRY 10,008 per month (gross). The maximum severance payment has also increased to TRY 19,982 (gross).
Europe
Belgium (guide)
Employees in companies with more than 20 people can now take up to 5 paid days for vocational training each year.
Croatia (guide)
As of January 2023, the model for family pensions has changed and there were Amendments made to the Employment Act. One includes the distinction between remote work and in-person work — if an employee is working from home full time or more than 7 days per month, their employer must provide, install, and maintain work equipment and reimburse the expenses of working from home in the amount defined in the employment agreement. Other amendments were made around probationary periods, family care, and more.
Cyprus (guide)
The minimum wage in Cyprus increased to EUR 940 per month on January 1, 2023. The maximum earnings cap for social contributions has been revised to EUR 5,005 per month.
Czech Republic (guide)
As of the beginning of 2023, several changes have been made to employment laws in the Czech Republic:
- the minimum wage has been increased to CZK 17,300 per month or CZK 103.80 per hour
- paternity leave allowances have been extended to 2 weeks and fathers on paternity leave are protected the same as mothers on maternity leave
- Discounts on insurance premiums are now applicable to employees with shorter working time who meet one of the statutory conditions (e.g., a person over 55 years of age, a person caring for a child under 10 years of age, a person with a disability, a student)
Denmark (guide)
As of mid-2022, maternity/paternity leave in Denmark has been extended to 48 weeks, at 24 weeks of leave for each parent. Some of this leave can be transferred between the parents.
Estonia (guide)
The minimum wage in Estonia has increased to EUR 725 per month and EUR 4.30 per hour.
France (guide)
As of January 1, 2023, the minimum wage in France has increased to EUR 1,709.28 per month or EUR 11.27 per hour.
Germany (guide)
As of February 2023, employers are required to record the actual working hours of their employees’ days. While the employee is the one who needs to record the hours, the employer has to provide the necessary system and verify that the employees are recording their times.
Hungary (guide)
As of January 2023, fathers are now entitled to 10 days of paid paternity leave within 2 months of the birth — half of the leave is paid at 100% of the salary, and the other half is paid at 40%. All employees can now receive 44 days of parental leave. Employees who are caring for an individual in their household for medical reasons are now entitled to 5 unpaid days off per year.
Ireland (guide)
Ireland has officially instated a sick leave entitlement for the first time this year. This is starting as 3 days per year in 2023 and gradually phasing up over a four-year period up to 10 days to help employers manage the costs. The pay for these sick days will be 70% of the regular wages, up to EUR 110 per day. The national minimum wage has also increased to EUR 11.30 per hour.
Lithuania (guide)
In 2023, the minimum wage in Lithuania increased to EUR 5.14 per hour or EUR 840 per month. Lithuania has also implemented an EU work-life balance for parents and carers. Paternity leave can now be split into 2 periods, rather than be taken all at once.
Luxembourg (guide)
As of January 2023, the minimum wage is EUR 2,837 per month. The country also introduced cultural leave this year, which is granted under certain conditions. The duration depends on the category and varies from 2 to 12 days per year.
The Netherlands (guide)
In 2023 the minimum wage increased to EUR 1,934 per month. Netherlands’ severance payments, known as transition payments, are now capped to EUR 89,000 or one year’s salary, whichever is higher. Netherlands’ Work wherever you want Act is also expected to come into effect this yer after being passed by the House of Representatives. This would make it harder for employers to reject employees’ requests to adjust their place of work.
Poland (guide)
As of January 2023, the minimum wage in Poland is PLN 3,490 and will be PLN 3,600 in July 2023. Poland also introduced a new caretaking leave of 5 unpaid days off per year.
Romania (guide)
A new type of leave (carer leave) and the possibility to take time off for family medical emergencies are now included in the Labour Code, and the minimum wage has been increased to RON 3,000 per month or RON 18 per hour.
Slovakia (guide)
As of January 1, 2023, the minimum wage in Slovakia has increased to EUR 700 per month or EUR 4.02 per hour.
United Kingdom (guide)
On April 1st, 2023, the minimum wage in the UK (known as the National Living Wage) is increasing to GBP 10.42 an hour. Statutory parental and sick leave pay has increased and the UK government is currently going through the process of “sunsetting” retained EU laws by the end of 2023.
North America
Canada (guide)
As of January 2023, several Canadian provinces have increased their minimum wages, now ranging between CAD 13 to CAD 16 per hour. These are the minimum wages in each province:
- Alberta = CAD 15/hour
- British Columbia = CAD 15.65/hour
- Manitoba = CAD 13.50/hour
- New Brunswick = CAD 13.75/hour
- Newfoundland & Labrador = CAD 13.70/hour
- Northwest Territories = CAD 15.20/hour
- Nova Scotia = CAD 13.60/hour
- Nunavut = CAD 16/hour
- Ontario = CAD 15.50/hour
- Prince Edward Island = CAD 14.50/hour
- Quebec = CAD 14.25/hour
- Saskatchewan = CAD 13/hour
- Yukon = CAD 15.70/hour
Individual states also saw changes in aspects of their employment laws.
Costa Rica (guide)
As of January 1, 2023, the social security contribution percentages for both employers and employees have been slightly revised to 26.67% and 10.67% (respectively).
Mexico (guide)
Mexico’s minimum wage increased on January 1, 2023 to MXN 207.44 per day. As of this year employees with at least one year of service are now entitled to a minimum of 12 days of paid time off per year (up from 6 days).
United States (guide)
As of January 1, 2023, the earnings cap for social security contributions has been raised to USD 160,200 per year. Individual states also saw changes in aspects of their employment laws.
Oceania
Australia (guide)
In 2023, fixed-term contracts are now limited to a maximum of 2 years with only one renewal. Employers are also now required to consider every employee’s request for flexible work, and they can only refuse it if there is a valid reason and they discuss it with the employee. This year the Australian government has introduced paid family and domestic violence leave up to 10 days per year (up from 5 unpaid days previously).
