View the latest regulatory updates and legal changes from around the globe. Our dedicated experts in 170+ countries have complied a list of the most relevant updates to keep you informed and aware of the changes that may affect your business.
Stay Informed with the Latest Regulatory Updates
June 2022 - Regulatory Updates
The following changes have been made to Austria tax law:
Current amounts of annual tax credits and differentiation between tax credits and deductions have been updated in Austria’s tax law.
Tax Filing & Payment Procedures
Taxpayers with an annual income exceeding EUR 12,000 in more than one employment relationship, consecutive employment relationships, or only from one pension fund, must file a tax return with the wage tax deducted from the employee’s tax liability.
The following changes have been made to Croatia employment law:
Neither the employer, nor the employee, is required to give notice of extraordinary dismissal. The dismissal can only occur within 15 days of learning the facts under which the dismissal is based.
Grounds for Termination
Considering all the circumstances and interests of both parties, an extraordinary dismissal may be granted when continuing employment is not possible due to a severe breach of employment obligations.
Suspension of Employment Contract
Croatian employers can suspend an employee’s employment contract while a decision on dismissal is pending with the works council.
The following changes have been made to Hong Kong tax law:
A deduction for the contributions paid to the Voluntary Health Insurance Scheme (VHIS) policy has a limit of HKD 8,000 (Hong Kong dollars), including qualifying annuity premiums and tax-deductible MPF (Mandatory Provident Fund) voluntary payments, both of which are capped at HKD 60,000 annually.
Taxation of Payments in Kind
Tax rules in Hong Kong treat in-kind benefits that are convertible into money as taxable income, including education, holiday, club, and car benefits. This includes employee liabilities that the employer releases and these benefits are assessed based on the amount paid by the employer for them.
Tax Filing & Payment Procedures
Tax on salaries is not withheld at source, and employees are responsible for paying their taxes and filing returns with the Inland Revenue Department.
Indonesia has made significant updates to its tax laws. It includes deductions employees are entitled to, such as occupational expenses up to IDR 6,000,000 (Indonesian rupiah) up to 5% of gross income.
Grounds for Termination
Vietnam’s law governing the Grounds for Termination has been updated. It states that employees can be dismissed unilaterally by their employer if they fail to perform the work according to the criteria for assessing their performance. In addition, an employer can dismiss an employee for illness or an accident with a duration of 12 consecutive months in cases of indefinite-term employment contracts, for six consecutive months in cases of fixed-term contracts between 12 and 36 months, or more than half the specified period for contracts with a fixed-term of less than 12 months.
May 2022 - Regulatory Updates
Belgium has made important updates to its minimum wage laws. Beginning in April 2022, the age and seniority tiers for calculating minimum wage for the private sector have been eliminated. The change will remain effective through 2026.
Life & Disability Insurance
Beginning April 1, 2022, monthly disability pension for those with at least 90% disability and 71% – 90% disability have increased. Coefficients for persons who became disabled due to work accidents were also increased.
The following changes have been made to Canada employment law:
Employees are permitted to sue employers for constructive dismissal when the workplace environment resulted in mental distress.
Grounds for Termination
Employers are responsible for notifying employees of the forfeiture of stock options upon employment termination.
COVID-19 vaccinations are mandatory for employers in the federal air, rail, and marine transportation sectors.
Prohibition of Harassment
As a result of Caplan v. Atlas, 2021 ONSC 670, internet harassment can be punishable by injunction, content removal, and the offender can be sued for monetary reimbursement. This protection extends to employees and employers.
Grounds for Termination
Germany’s law governing the Grounds for Termination have been updated with a list of legal reasons for which an employment contract can be terminated. The update includes a “behavioral” category, which means carrying out activities that prevent recovery despite being unable to work, disclosure of trade and business secrets, deliberate manipulation of control and stamping devices, unexcused absence, and refusal of contractually owed benefits.
Ireland’s Employment Wage Subsidy Scheme (EWSS), which was put in place during the pandemic to pay wages to employees who have been laid off, has been extended to May 31, 2022.
The following changes have been made to Netherlands tax laws:
Effective January 1, 2022, study costs and other educational expenses are no longer deductible.
Taxation of Payments in Kind
On January 1, 2022, a specific exemption was established that permits employers to reimburse employees for costs incurred because they are working from home. The exemption includes up to a maximum of 2 Euros per employee, per each day working from a home office. As a result, employers do not have to withhold payroll taxes on these amounts. This specific exemption will apply even if the employee works from home only part of the day.
April 2022 - Regulatory Updates
Changes to Superannuation Rules
The percentage for the Super Guarantee (SG) will increase from 10 to 10.5% on July 1, 2022. The percentage will rise to 11% on July 1, 2023. Also beginning on July 1, 2022, employers must pay superannuation to eligible employees who earn less than AUD 450 per month.
According to the Canadian Labor and Employment law, temporary layoffs can last more than 13 weeks in any period of 20 consecutive weeks, or less than 35 weeks in any period of 52 consecutive weeks. Layoffs that last longer than 35 weeks in any period of 52 consecutive weeks enables the employer to terminate employment.
In Canada, an employer who dismisses an employee must provide severance pay if the employee worked for 5 years or more. This regulation applies to companies with a payroll of at least CAD $2.5 million or if the company begins the termination process and the employee is one of 50 or more employees who have their employment severed within a 6-month period.
New Wage Code Update
Originally planned to be implemented in April 2021, India’s New Wage Code is now expected to take effect in April 2022. Changes include:
- Shift to the four-day workweek where employees will have to work for 12 hours on those four days
- Contribution to of employees to their Provident Fund (PF) will increase but monthly in-hand salary will be reduced
- Tax on HRA is expected to rise
In Singapore, an employer that terminates an employment contract with no plan to fill the vacancy is presumed to have retrenched the employee.
Family Related Leave
According to Singapore’s Employment Act, eligible working parents of a child that is a Singapore citizen are entitled to 6 days of paid childcare leave in addition to 6 days of unpaid infant care leave per year. Parents of non-citizens are entitled to 2 days of childcare leave a year.
Increase to Minimum Monthly Salary
On August 30, 2021, Singapore’s government accepted recommendations from the Tripartite Workgroup on Lower-Wage Workers with new rules that become effective in September 2022 and 2023. The changes include:
- Minimum monthly salary for Employment Pass applicants will be increased from 4,500 Singaporean dollars (SGD) to 5,000 SGD.
- The minimum salary for S pass applicants will increase from 2,500 SGD to 3,000 SGD.
- Applications submitted on or after 1 September 2022 will be subject to the new salary thresholds, and employers must meet these requirements for renewal applications by September 2023.
March 2022 - Regulatory Updates
The Central Bank of Chile has updated its monthly tax unit value. For example, the monthly tax unit for March 2022 is set to CLP 55,537. This unit changes every month and is determined by the Central Bank of Chile according to inflation.
Minimum Age and Protection of Young Workers
According to recent changes, working hours of minors under 18 years of age cannot exceed 30 hours per week, and must be distributed over a maximum of 6 hours per day during the school year.
National Retirement Scheme
Employee contribution for Disability and Survival Insurance has increased from 1.53% to 2.21%.
According to Chilean employment law, written contracts are mandatory. There are no provisions or guidance on implied or verbal contracts.
According to recent changes, if the mother died during childbirth or during the period of maternity leave after it, her remaining leave is transferred to the father or to whomever custody of the minor was granted.
Foreign citizens studying in Chile are required to obtain a student resident visa that allows studying in higher education or specialized centers. The permit is valid for a maximum of 1 year (except in the case of scholarship holders, in which it can be granted for the duration of the scholarship) and is renewable until the completion of the studies.
Temporary Employment Contracts
An employer can hire temporary workers from temporary services agencies by submitting a written contract. This contract must include the rights and duties of hired employees, along with reasons for hiring temporary workers, jobs for which they are hired, their duration and agreed fee. If the worker continues to provide services after the contract expiration, it will be transformed into an indefinite term. Temporary workers hired for more than 30 days in a year are entitled to annual leave.
South Korea has set a new minimum wage of KRW 9,160 for 2022.
According to the amended Labor Standards Act of South Korea, standard work hours are 40 hours per week or 8 hours per day. An employer can extend work hours in a particular week or day to the extent that average work hours per week, over a period of two weeks, do not exceed the 40 hours and work hours in any week shall not exceed 52 hours or 12 hours in a day.
Fixed-Term & Specific-Purpose Contracts
According to the new law, there is no notice required to dismiss employees who are hired for a fixed term contract lasting less than 6 months.
According to South Korea’s Labor Standards Act, the term of a labor contract cannot exceed 1 year, except in cases where no term is fixed, or a term is fixed as necessary for the completion of a certain project. Additionally, it is mandatory to give a notice of at least 1 month to dismiss permanent employees.
The new law states that the only mandatory paid holidays in South Korea are weekly time off (typically Sunday) and Labor Day (May 1). Employers are not required to provide leave on public holidays, but most organizational policies designate public holidays as paid. Employers must pay 50% wage premium to employees working on holidays up to 8 hours, and 100% wage premium to those working more than 8 hours.
For a worker who suffers from an occupational injury or disease, an employer shall provide necessary medical treatment at their expense or bear the corresponding expenses. Additionally, the employer must pay an employee who is under medical treatment for occupational injury or disease, a compensation for suspension of work equivalent to 60% of his or her average wages during the period of his or her medical treatment.
Switzerland has updated its maternity leave benefits. According to the changes, the employer must, whenever possible, offer pregnant employees who work between 8:00pm and 6:00am equivalent work during day hours (between 6:00am and 8:00pm). This obligation also applies for the period between the 8th and 16th week after delivery. Additionally, a pregnant woman’s working day cannot exceed 9 hours, even if the employment contract allows it. Pregnant women must have the option to lie down and rest during the day, in a separate room.
The new law grants 10 days of paternity leave to employees. This leave can be taken within 6 months of birth and can be taken in full weeks or on a day-to-day basis. Compensation is paid for income lost while on paternity leave as 80% of the average earned income before the birth of the child, up to a maximum of CHF 196 (Swiss Francs) per day.
In an employee’s first year of service, their entitlement to sick pay is limited to 3 weeks. After the first year, this entitlement is extended based on the number of years in service. Employees must submit a medical certificate to their employers no later than on the third day of illness to receive the benefit. The duration of leave varies among cantons: in the canton of Zurich, for instance, sick pay is due for 30 days in the first year of service and 90 days in each subsequent year.
The United Kingdom has increased its minimum wages for 2022. Effective from April 1, 2022, the hourly minimum wage (or the National Living Wage) will increase by 6.6%, from GBP 8.91 to GPB 9.50. The Apprentice rate will increase from GBP 4.30 to GBP 4.81.
February 2022 - Regulatory Updates
As of February 2022, the following changes have been made to Germany’s Income Tax and Work from Home Mandate:
- Income Tax changes: Germany has updated the minimum annual income that is subject to taxation. According to the new legislation, the solidarity charge is only applicable to those who make at least 61,700 Euros annually.
- Work from Home Mandate Extended: The German Infection Protection Act has extended the work from home mandate until March 19, 2022.
January 2022 - Regulatory Updates
As of January 2022, the following changes have been to Work Permits and Right-to-Work Checks in the United Kingdom:
- Tier 2 visas have been replaced by the Skilled Worker Visa
- Covid changes to right-to-work checks will remain in place until April 2022
From 6 April 2022, employers will no longer be able to accept physical biometric cards for right-to-work checks. Instead, they will need to use the online service to confirm a worker’s legal status