Asia Pacific Employment Law Forecast - PUBLISHED JANUARY 2020 - DLA Piper

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Asia Pacific Employment Law Forecast - PUBLISHED JANUARY 2020 - DLA Piper
Asia Pacific Employment Law
           Forecast
        PUBLISHED JANUARY 2020
Asia Pacific Employment Law Forecast - PUBLISHED JANUARY 2020 - DLA Piper
ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020

Contents
Australia                                   03

China                                       03

Hong Kong                                   04

India                                       05

Indonesia                                   06

Japan                                       07

Malaysia                                    08

New Zealand                                 09

Philippines                                 10

Singapore                                   10

South Korea                                 11

Taiwan                                      11

Thailand                                    12

Meet the team in Asia Pacific               13

About DLA Piper                             14

About DLA Piper’s Employment Group          15

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Asia Pacific Employment Law Forecast - PUBLISHED JANUARY 2020 - DLA Piper
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Australia                                                         for employees to lodge complaints, providing a
• 2020 will be the first full year of operation of                mechanism for employees to lodge complaints
  the new whistleblowing protections in Australia.                with relevant government agencies, and requiring
  The whistleblowing protections are wide-ranging                 employers to take reasonable efforts to prevent
  and permit employees and former employees to                    sexual harassment in the workplace.
  make anonymous complaints about an ‘improper
                                                                • On 31 December 2019, the Chinese tax authorities
  state of affairs’. It is anticipated that it will take some
                                                                  issued the details of the procedures and documentary
  time for employers and employees to come to terms
                                                                  requirements for annual Individual Income Tax (“IIT”)
  with the operation of the new protections but it
                                                                  filing for the first annual IIT filing in China,
  is likely that there will be a significant increase in
                                                                  i.e. from 1 March 2020 to 30 June 2020. These details
  whistleblowing claims.
                                                                  clarified the content of IIT filing, which taxpayers are
• Ongoing and heavily publicized instances of non-                subject to or exempt from tax filing, and for those
  compliance with modern awards are expected to                   subject to the tax filing, what is the content of the
  continue throughout 2020. Employers continue                    IIT filing, and the period and method of tax filing.
  to declare that, as a result of self-audits, they have
                                                                • In September 2019, the National Online Social
  uncovered failure to comply with modern awards
                                                                  Insurance Service System (“System”) was launched.
  resulting in underpayments. The regulator, the Fair Work
                                                                  The System focuses on providing nationwide and
  Ombudsman, has flagged that they intend to continue
                                                                  cross-regional social insurance public services to
  to focus on modern award compliance. In particular,
                                                                  participating persons and employers. It provides for
  that for large, sophisticated employers simply arguing
                                                                  18 nationwide social insurance services, including but
  that the underpayment was an inadvertent error will
                                                                  not limited to cross-regional social insurance transfer
  not be sufficient to avoid prosecution or to avoid the
                                                                  and qualification authentication for receiving pension
  regulator seeking the imposition of pecuniary penalties.
                                                                  insurance payments.
• Business will continue to grapple with the changes
                                                                • On 14 October 2019, the State Taxation
  to Australian employment law resulting from significant
                                                                  Administration (STA) released an announcement
  common law decisions, including those dealing with
                                                                  on “Issuing the Administrative Measures for
  casual employees and the calculation of personal
                                                                  Non-resident Taxpayers’ Entitlement to Treaty
  leave entitlements. An appeal on a decision regarding
                                                                  Benefits” (Announcement). According to the
  the calculation of personal leave by the High Court of
                                                                  Announcement, non-resident taxpayers in China are
  Australia will be heard in 2020 and will have material
                                                                  no longer required to submit supporting documents
  consequences for all employers, potentially extending
                                                                  to the tax authority in China before they can enjoy
  to calculation of other leave entitlements.
                                                                  tax benefits under the tax treaty between China
• The gig economy remains an area of interest for                 and their home countries, and the tax declaration
  legislators, including that some States and Territories         procedures are simplified. The Announcement will
  are indicating that they are considering introducing local      become effective on 1 January 2020 replacing the
  regulation to respond to the gig economy. This would            “Administrative Measures for Non-resident Taxpayers’
  cause some friction given the otherwise largely federal         Entitlement to Tax Treaty Benefits” promulgated
  approach to Australian employment law since 2009.               in 2015.

• The growth of employment class actions is also                • On 29 November 2019, the PRC Ministry of Human
  anticipated to continue in 2020, particularly in relation       Resources and Social Security issued the Interim
  to claims regarding non-compliance with modern awards.          Measures on Social Insurance Contributions
                                                                  for Hong Kong, Taiwan and Macau Residents
China                                                             (“HTM Measures”). The HTM Measures will take effect
• Drafts of the PRC Civil Code have been proposed,                on 1 January 2020. Employers in Mainland China
  which are set to be completed in 2020, and will                 are mandatorily required to make social insurance
  then be sent to the National People’s Congress for              contributions (including contributions for pension
  approval. Among other things, the draft amendments              insurance, medical insurance, maternity insurance,
  seek to provide clarity by setting out a clear definition       work injury insurance and unemployment insurance)
  of sexual harassment. This includes widening                    for their Hong Kong, Taiwan and Macau resident
  the scope to protect male employees, requiring                  (“HTM Resident”) employees.
  employers to provide an internal mechanism

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Asia Pacific Employment Law Forecast - PUBLISHED JANUARY 2020 - DLA Piper
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Hong Kong                                                      to maternity leave etc. The Bill will be introduced into
• In late 2018, the Government published draft                 the Legislative Council on 8 January 2020. We will stay
    discrimination legislation to implement the                tuned and wait for further updates.
    recommendations made by the Equal Opportunities
                                                             • The Mandatory Provident Fund Schemes Authority
    Commission following its Discrimination Law Review.
                                                               has proposed an increase in the minimum and
    The recommendations included introducing
                                                               maximum relevant income levels for mandatory
    express provisions to prohibit direct and indirect
                                                               provident fund (“MPF”) contributions. The proposal
    discrimination on the grounds of breastfeeding,
                                                               is currently under review.
    to prohibit racial discrimination and harassment
    by imputation that a person is of a particular race      • In recent years, the Government has been
    or a member of a particular racial group, and to           considering various proposals on abolishing the
    expand the scope of protection from sexual, disability     arrangement of offsetting MPF against statutory
    and racial harassment. The proposed bill is still          severance/long service payment. Under the latest
    progressing through the legislative process.               proposal, the Government will in the interim period
                                                               provide for a two-tier subsidy scheme to employers in
• The Employment (Amendment) Bill 2019 (“Bill”)
                                                               order to reduce their financial pressure in making the
    has been gazetted on 27 December 2019. Under
                                                               statutory severance/long service payments (first-
    the Bill, statutory maternity leave period will be
                                                               tier being 12 years and second-tier being 25 years),
    increased from the current 10 weeks to 14 weeks,
                                                               with the Government’s total financial commitment of
    and the rate of maternity leave pay payable to
                                                               around HKD29.3 billion. It is also proposed to set up
    eligible employees for the first 10 weeks remains
                                                               designated savings accounts to assist employers in
    unchanged (i.e. 4/5 of the employee’s average daily
                                                               saving up early for meeting their potential statutory
    wages). For the additional 4 weeks, the pay rate
                                                               severance/long service payment expenses in future.
    will be the same, however it would be subject to a
                                                               The rate of calculating statutory severance/long
    cap of HKD 36,822 per employee (which may be
                                                               service payments will remain at two-thirds of the
    adjusted from time to time) which will be subsidized
                                                               monthly wages of employees instead of half of the
    by the Government through reimbursement to the
                                                               employees’ monthly wages as previously proposed by
    employer. Certain technical amendments will also be
                                                               the last term Government. The target is to secure the
    introduced, for instance, updating the definition of
                                                               passage of the enabling legislation by the Legislative
    ‘miscarriage’ from ‘before 28 weeks of pregnancy’ to
                                                               Council by 2022, and implement the abolition of this
    ‘before 24 weeks of pregnancy’ which will entitle a
                                                               offsetting arrangement two years after the passage
    female employee whose child is incapable of survival
                                                               of the legislative amendments.
    after being born at or after 24 weeks of pregnancy

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Asia Pacific Employment Law Forecast - PUBLISHED JANUARY 2020 - DLA Piper
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India                                                        • The Transgender Persons (Protection of Rights) Bill,
• In an attempt to consolidate and simplify the                2019 has been passed by both house of parliament.
  existing multitude of labour laws in the country,            It intends to cover persons whose gender does not
  the government introduced the Code on Wages,                 match with the gender assigned to them at birth
  2019 (“Wage Code”) which was passed by both                  including a trans-man or trans-woman (whether or
  houses of parliament in July 2019 and which received         not such person has undergone a sex reassignment
  presidential assent on 8 August 2019. The Wage               surgery or such other therapy), persons with intersex
  Code will come into force on such date as may be             variations, and persons having such socio-cultural
  appointed by the Central Government by way of a              identities. The law inter alia prohibits discrimination
  notification in the official gazette. The Wage Code          against a transgender person resulting in unfair
  will subsume and replace the Payment of Wages Act,           treatment in employment, or a denial of, or termination
  1936, the Minimum Wages Act, 1948, the Payment               from employment. The bill awaits Presidential
  of Bonus Act, 1965 and the Equal Remuneration                assent and a subsequent notification of the Central
  Act, 1976. These laws inter alia relate to employee          Government to be brought into force.
  wages, manner, mode and time of payment of wages,
                                                             • On 1 November 2019, the Ministry of Labour and
  minimum wages that must be paid to employees and
                                                               Employment announced the launch of two facilities in
  bonus payments. In a step towards implementation
                                                               connection with the employees’ provident fund set up
  of the Wage Code (which awaits a notification to
                                                               under the framework of the EPF Act. An employee can
  be brought into force), the Ministry of Labour and
                                                               now obtain the Universal Account Number directly
  Employment also released the draft Code on Wages
                                                               from the Employees’ Provident Fund Organisation
  (Central) Rules, 2019 on 1 November 2019. This is
                                                               (“EPFO”) website directly, without making a request to
  yet to be notified.
                                                               the employer. Further, there will be a digital interface
• The Industrial Relations Code, 2019, which seeks to          with employers. This would enable the employers to
  replace the Trade Unions Act, 1926, the Industrial           notify the EPFO about closure of business or unpaid
  Employment (Standing Orders) Act, 1946 and the               dues (with proposal for payment). The move is likely
  Industrial Disputes Act, 1947, was introduced in             to reduce instances of perceived harassment at the
  the parliament on 28 November 2019. These laws               hands of EPFO field officers.
  inter alia relate to trade unions, unfair labour
                                                             • Per the provisions of the Factories Act, 1948,
  practices, retrenchment/termination of employees
                                                               women workers were previously allowed to work in
  and resolution of industrial disputes. This will need to
                                                               factories only between 6am and 7pm. Such hours
  be passed by both houses of parliament and receive
                                                               could be extended by a notification by the relevant
  the President’s assent before it becomes law.
                                                               state government, but only to 5am and 10pm for
• A consolidation in the making as well, the Code on           any factory or class of factories. The Government
  Social Security, 2019 tabled before the Lok Sabha on         of Karnataka released a notification dated on
  11 December 2019, seeks to replace 9 extant labour           20 November 2019 allowing women in factories
  statutes including the Employees’ Provident Fund             to work during night shifts (i.e. between 7pm and
  and Miscellaneous Provisions Act, 1952 (“EPF Act”),          6am) notwithstanding the restriction on relaxation
  the Employees’ State Insurance Act, 1948, the Payment        imposed by the above-mentioned provision. A similar
  of Gratuity Act, the Maternity Benefits Act, 1961 and        amendment is likely to be expected to the Karnataka
  the Employees’ Compensation Act, 1923. While the             Shops and Establishments Act, 1961 (applicable to
  bill introduces provisions relating to gig economy           commercial establishments and shops in the State)
  workers, fixed term employment, career centers,              this year.
  voluntary coverage under the employees’ state
  insurance framework and limitation period for social
  security related matters, it also modifies the basis of
  calculation of employees’ provident fund contribution
  and allows for different rates of such contribution by
  employees. This will need to be passed by both houses
  of parliament and receive the President’s assent before
  it becomes law.

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ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020

Indonesia                                                    been introduced as a follow-up to regulation of the
• Amendments are being proposed to Law No. 13                recruitment and utilization of foreign workers issued
    of 2003 on Manpower and Law No. 2 of 2004 on             in 2018.
    The Settlement of Industrial Relations Disputes.
                                                           • As of late 2019, all provinces in Indonesia issue
    In addition, proposals exist for a Law on the Wage
                                                             regulations on the minimum provincial wages for
    System, a Law on the Supervision of Manpower and
                                                             2020, applicable as of January 2020. The increase
    a Law on the Protection of Domestic Servants.
                                                             for the 2020 minimum provincial wages as
• The draft Omnibus Law on Job Creation was officially       determined by the Ministry of Manpower for all of
    included in the National Legislation Program of 2020     Indonesia, averages an 8.51% increase over the
    with Super Priority status and will be submitted by      figures for 2019. Further, as of late 2018, minimum
    the Government to the House of Representatives.          wages may only be implemented for employees who
    With respect to the Omnibus Law on Job Creation, the     have not yet worked for a period of 1 year for the
    Government has identified 82 laws and 1,194 articles     relevant employer. Any employees who have worked
    that will be harmonized which cover 11 clusters          for a period of 1 year or longer should be paid at a
    (one of them is Manpower).                               rate above the relevant minimum wage.

                                                           • In late 2019, in a bid to deregulate the various
Please note that no further official information exists
                                                             licensing provisions which address outsourcing
regarding the above proposals/draft and there is
                                                             (integrated into Online Single Submission (OSS)
certainly no guarantee that any of them will be issued
                                                             System), the second amendment to the regulation on
in 2020 as some of the proposals have been around for
                                                             Requirements for Transfers of Partial Work to Other
some years.
                                                             Companies (outsourcing) was issued by the Minister
                                                             of Manpower. The second amendment specifically
• In late 2019, a brand new list of available positions
                                                             addresses the content and registration of outsourcing
    which are permitted to be occupied by foreign
                                                             agreements, licensing requirements for providers and
    workers in Indonesia was recently introduced by
                                                             outsourcing employment agreements.
    the Ministry of Manpower. This new framework has

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Japan                                                        full-time employees) and short-time (previously
• New rules for the pay to dispatched or temporary           called part-time)/fixed-term employees are no longer
  works will take effect in April 2020. These rules          permissible starting from 1 April 2020. Whether a
  will require that dispatching agencies pay their           difference is unreasonable or not will be considered in
  dispatched workers on par with regular employees           light of the nature/purpose of the different treatment.
  at the receiving company. Dispatching agencies can         This follows a trend under recent court cases. For
  do this one of two ways:                                   small and medium sized companies, effective from
                                                             1 April 2020. It should be noted that these are
  (A) LABOR-MANAGEMENT METHOD                                essentially recodifications of existing requirements
  Under the Labor-Management Method,                         but will likely be more scrutinized going forward.
  the dispatching agency will need to pay remuneration,
                                                             • The new overtime work limitations come into
  including allowances, bonus and retirement
                                                               effect for small and medium sized companies
  allowances equal to or better than the average
                                                               on 1 April 2020. The new rules limit the number
  salary of employees who generally work in the same
                                                               of hours of overtime an employee can work to
  roles and have similar experience as the dispatched
                                                               45 hours per month and 360 hours per year
  workers. As the dispatched workers’ responsibilities
                                                               in principle. However, if the employer includes
  increase and as they gain experience and ability
                                                               a special provision in its labor-management
  their salary needs to be increased. Information
                                                               agreement regarding overtime and holiday work,
  regarding appropriate salaries will be available on the
                                                               an employer will not be permitted to require
  regulator’s website from time-to-time.
                                                               employees to work in excess of:

  (B) EQUAL TREATMENT METHOD                                   (i) 100 hours or more of overtime and holiday
  Under the Equal-Treatment Method, dispatching                work per month;
  agencies will still need to offer equal or better pay to
  the dispatched employees but they will need to obtain        (ii) 80 hours or more of overtime and holiday work
  this information directly from the receiving company.        on average anytime within a 2 to 6 month time
  The information that must be provided for similarly          frame; and
  situated employees includes the salary, bonus, other
  allowances, leave, holiday, training and other benefits      (iii) 720 hours per year.
  provided to employees.
                                                               The rules regarding whether companies are
• Other unreasonable differences in working conditions         identified as small or medium sizes vary depending
  between regular employees (i.e. non-fixed and                on the industry.

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ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020

Malaysia                                                     One significant change that will affect employers is
                                                             the removal of the Minister’s discretion to refer unfair
REVISED MINIMUM WAGE RATES
                                                             dismissal representations to the Industrial Court.
New minimum wage rates have been gazetted and will
                                                             The IR Bill moves the referral power to the Director
come into force from 1 February 2020. The minimum
                                                             General of Industrial Relations (“DGIR”), and the
wage rate will depend on the employee’s place of
                                                             overall policy is that almost all representations will be
work, with those working within 56 identified city
                                                             referred to the Industrial Court — the DGIR is obliged
and municipal council areas being entitled to a
                                                             to refer the representations directly to the Industrial
minimum wage of RM1,200 monthly or RM5.77 daily.
                                                             Court if he is satisfied that there is no likelihood of
The minimum wage for those outside the identified
                                                             the representations being settled. This will have a
areas is RM1,100 monthly or RM5.29 hourly.
                                                             major impact on how employers handle dismissals,
                                                             and will affect the negotiating power of the parties
AMENDMENTS TO THE DISPUTE
                                                             when discussing severance compensation or mutual
RESOLUTION PROCESS
                                                             separation agreements.
The Industrial Relations (Amendment) Bill 2019 (“IR Bill”)
was passed by Parliament in December 2019 and will
                                                             There are a host of other changes, and the aim of
come into force in 2020. The IR Bill makes numerous
                                                             the changes introduced by the IR Bill is to expedite
amendments to the Industrial Relations Act 1967, with
                                                             the dispute resolution process.
the main changes affecting the dispute resolution
process in relation to unfair dismissal claims and
                                                             INCREASE IN PAID MATERNITY LEAVE
union disputes.
                                                             The Government has announced that it proposes to
                                                             increase paid maternity leave to 90 consecutive days
                                                             (from the current 60 consecutive days) by 2021.

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New Zealand                                               HOLIDAYS ACT 2003 REVIEW
                                                          A number of problems have arisen in New Zealand
MINIMUM WAGE INCREASE
                                                          under the Holidays Act 2003, triggering a review and
From 1 April 2020, the minimum wage will increase
                                                          an interim report being released by a Taskforce in
1.20c per hour from NZD 17.70 to NZD 18.90. It is
                                                          December 2018. Due date for the final report was
expected to increase further to meet the Government’s
                                                          September 2019 but nothing has been released.
targeted minimum wage of NZD 20.00 by April 2021.
                                                          We expect this to be an on-going discussion issue
                                                          well into 2020.
PAID PARENTAL LEAVE EXTENDED
Under the Parental Leave and Employment Protection
                                                          ACTIVE LABOUR INSPECTORATE
Amendment Bill, paid parental leave will increase from
                                                          2020 is expected to see an ongoing focus by
22 weeks to 26 weeks from 1 July 2020.
                                                          New Zealand’s workplace regulator on breaches of
                                                          minimum code, the exploitation of migrant workers and
TRIANGULAR EMPLOYMENT RELATIONSHIPS
                                                          worker status (employee v contractor). Minimum wage,
From 27 June 2020, the Employment Relations Act 2000
                                                          holiday pay, wage deductions, and record keeping will
will allow employees in a “triangular employment
                                                          continue to be in the spotlight. Recent cases have seen
relationship” to bring personal grievances against
                                                          some personal liability for directors of the employing
the person who controls their work, as well as their
                                                          entity as well as the employer. The sums awarded are
employer. A triangular employment relationship is
                                                          not insignificant.
typically reflected in labour hire arrangements or the
hiring of temporary workers. In order to be able to
                                                          WHISTLEBLOWER LEGISLATION
bring a personal grievance against the person who
                                                          There has been a lot of commentary recently about
controls their work (known as the “controlling third
                                                          whistleblowers and proposed amendments to the
party”), the employee must show that the controlling
                                                          Protected Disclosures Act 2000 (the law in New Zealand
third party gets the benefit of their work; that they
                                                          that relates to whistleblowers) which are aimed at
exercise control and direction over the employee that
                                                          strengthening the protection available to whistleblowers
is similar to the control and direction an employer
                                                          in New Zealand. The current act is focused on
exercises; and the third party caused or contributed
                                                          particular types of wrongdoing (issues such as theft
to the personal grievance while the employee was
                                                          and corruption) whereas a recent study by both a
working under their direction.
                                                          New Zealand university and some Australian universities
                                                          found whistleblowers were most likely to uncover
FAIR PAY AGREEMENTS
                                                          bullying, discrimination, harassment and unfair work
The Labour Party previously committed to introducing
                                                          practices. It remains to be seen yet whether or not the
a legislative framework that allows unions,
                                                          proposed (new) New Zealand legislation will cover such
employers and the Employment Relations Authority
                                                          issues or not and whether this will be introduced in
to collaboratively produce sector specific Fair Pay
                                                          2020 or later.
Agreements that specify an extensive range of minimum
conditions. This is still ‘on the table’ in New Zealand
and there has been little progress over the last year.
Further consultation has been sought with stakeholders
over the potential design of an FPA system.

    “The quality of information provided was excellent. The team
      was able to talk through information with real-world examples
      and would not be pressured into giving an answer that I wanted
      to hear. The subject was so complex but the team guided us
      through each stage exceptionally well.”
     Employment, China – Chambers Asia Pacific 2020

                                                                                                                    9
ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020

Philippines                                                  harassment to include sexist, homophobic and
• On 26 March, 2019 the Department of Labor                  transphobic remarks whether made in person
  and Employment (DOLE) issued Department                    or online or through other information and
  Order No. 202-19 providing for the Implementing            communications technologies.
  Rules and Regulations of the Telecommuting
  Act (Republic Act No. 11165). Under the said rules,      • On May 22, 2019, the Senate approved Senate Bill
  an employer may offer a telecommuting program to           1826 otherwise known as the Security of Tenure Act.
  its employees on a voluntary basis whereby, subject        The proposed bill tightened the definition of “labor-
  to the rules of the program, the employee is given         only contracting” and sought to limit the types of roles
  the option of working from an alternative workplace        that an employer may contract out, among others.
  outside the employer’s workplace. The rules provide        This Senate Bill was consolidated with House Bill No.
  that while it is management prerogative to define          6908 passed by Congress. Notwithstanding President
  who are eligible to participate in the program as          Duterte’s campaign promise to end contractualisation
  well as the other terms and conditions regarding           of jobs (ENDO), the Office of the President
  the alternate work place, the program must ensure          communicated its veto of SB1826 and HBN6908 on
  that telecommuting employees are given the same            July 26, 2019 to the ire of the interested labor groups.
  treatment comparable to employees working at
  the employer’s workplace. The telecommuting              Singapore
  employee must not be discriminated upon in
                                                           TRIPARTITE ADVISORY ON PROVISION OF REST
  terms of rate of pay, overtime and night-shift
                                                           AREAS FOR OUTSOURCED WORKERS
  differential pay, rest days, holidays, access to
                                                           The Ministry of Manpower, the National Trades Union
  training and career development opportunities,
                                                           Congress and the Singapore National Employers
  etc., solely by reason of having opted to avail of the
                                                           Federation have jointly developed the Tripartite
  telecommuting program. DOLE has established a
                                                           Advisory on Provision of Rest Areas for Outsourced
  pilot telecommuting program in select industries
                                                           Workers which was issued at the end of 2019.
  which will run for a period of three (3) years.
  DOLE continues to monitor and evaluate the
                                                           The guidelines require employers to provide proper
  pilot telecommuting programs.
                                                           rest areas for outsourced workers and are aimed at
                                                           improving the work environment of low-wage workers
• On 7 April 2019 the Safe Spaces Act (Republic
                                                           such as cleaners and security officers.
  Act No. 11313) was signed into law which,
  among others, expanded the coverage of the old
                                                           The guidelines encourage companies which are service
  Anti-Sexual Harassment Act (Republic Act No. 7877).
                                                           buyers to provide rests areas to service workers which
  Under the old law, sexual harassment in the
                                                           (a) are accessible areas with privacy, (b) have facilities
  workplace was defined as an act “committed by an
                                                           to safekeep belongings, (c) provide access to drinking
  employer, employee, manager, supervisor, agent of
                                                           water and electrical outlets and (d) are safe, well-lit,
  the employer, teacher, instructor, professor, coach,
                                                           large, sheltered, ventilated, clean and quiet, and to
  trainer, or any other person who, having authority,
                                                           inform the workers of the same.
  influence or moral ascendancy over another in a
  work or training or education environment, demands,
                                                           FAIR CONSIDERATION FRAMEWORK
  requests or otherwise requires any sexual favor
                                                           The Fair Consideration Framework will be updated this
  from the other, regardless of whether the demand,
                                                           year to deter employers from discriminating against
  request or requirement for submission is accepted
                                                           Singaporeans when hiring and to provide stronger
  by the object of said Act.” The old law only penalized
                                                           support for employers who are committed to giving
  sexual harassment committed by a superior against a
                                                           Singaporeans a fair chance.
  subordinate; it did not recognize sexual harassment
  committed by a subordinate or a peer as a punishable
                                                           The Fair Consideration Framework was introduced
  act under the said law. The Safe Spaces Act addressed
                                                           in August 2014 and was last updated in July 2018
  that void. Under the new law, sexual harassment in
                                                           to require companies to advertise professional,
  the workplace may now be committed by a superior
                                                           managerial and executive posts if they have more than
  against a subordinate, by a subordinate against a
                                                           10 employees and for jobs that pay less than
  superior, or by peer-to-peer. The Safe Spaces Act
                                                           SGD 15,000 per month.
  likewise expanded the acts constituting sexual

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Under the Fair Consideration Framework, firms found to        • From 16 January 2020, the fully revised Occupational
be favouring foreigners in hiring are placed on an MOM          Safety and Health Act (“OSHA”) will take effect, which
watchlist and their applications for employment passes          includes the following key changes: (1) Expanded
are scrutinised more closely.                                   scope of statutory protection from “employees” to
                                                                “persons providing labor.” (2) Enhanced responsibility
RETIREMENT AGE                                                  for health and safety matters imposed on
The Prime Minister Lee Hsien Loong announced in                 representative directors of companies. (3) Increased
August 2019 that starting from 2022, the retirement age         workplace health and safety compliance burden when
will be raised from 62 to 65 whilst the re-employment age       engaging in subcontracting. (4) Increased authority
will be raised from 67 to 70 by 2030. The Government            of the MOEL to issue work suspension orders.
sector will raise the retirement and re-employment ages         (5) Increased responsibility on the project owner on
of its officers a year earlier in 2021.                         construction projects. (6) MSDS filing obligation and
                                                                non-disclosure pre-approval system. (7) Enhanced
The Government will raise the Central Provident Fund            punishment for fatal workplace accidents.
(CPF) contribution rates starting from 2021 to 2030 for
                                                              • Minimum wage for the year 2020 will be
workers aged 55 to 60 such that the contribution rate
                                                                KRW 8,590 per hour, an increase of KRW 240 from
will increase from the current 26 percent to 37 percent,
                                                                2019. The portion of the regular bonus which is in
to be on par with younger workers.
                                                                excess of 20% of the monthly minimum wage of the
                                                                year 2020 (KRW 8,590 x 209 (hours) = KRW 1,795,310)
South Korea
                                                                and the portion of the cashable welfare benefit which
• From 1 January, 2020, private businesses with 300 or
                                                                is in excess of 5% of the monthly minimum wage
  more employees, state and local governments, and
                                                                must be included in the minimum wage calculation
  public organizations will all be obligated to provide
                                                                (this calculation coverage will be gradually expanded
  their employees with paid holiday on public holidays
                                                                between 2019 and 2024).
  for Government offices. (The effective date will be
  1 January 2021 for employers with 30~299 employees,         • From 28 February 2020, the revised bill for the
  and 1 January 2022 for those with fewer than                  Enforcement Decree of the Equal Employment Act will
  30 employees).                                                become effective. This permits parents to each take
                                                                childcare leave for the same child and it shortens the
• From 1 January 2020, employees may take ‘family care
                                                                qualifying period of consecutive service for reduced
  leave’ for up to 10 days per year, to care for a family
                                                                working hours for childcare or leave of absence for
  member’s disease, accident or old age or to take care
                                                                family care from 1 year to 6 months (effective as
  of a child. Employees may also take family care leave
                                                                of 24 December 2019).
  or take a leave of absence for family care in order
  to care for his/her grandparent or grandchild (the
                                                              Taiwan
  current statute only allows family care leave or a leave
                                                              • The Labor Incident Act took effect from 1 January,
  of absence to take care of parents, spouses, children,
                                                                2020. It is a procedural rule governing matters
  or spouse’s parents).
                                                                relating to labor actions including: (1) Any payment
• From 1 January 2020, when an employee working                 made from the employer to the worker without
  in a public or private workplace with 300 or more             any statements or descriptions will be presumed
  regular employees applies for a reduction in his/her          as wages. (2) The working hours recorded on the
  working hours in relation to: family care; his/her own        worker’s timesheet are presumed to be the time
  health conditions; preparations at the age of 55 years        that the worker spent on performing duties with the
  or older for retirement; or his/her school work, then         employer’s permission. (3) If a dismissal is suspected
  the employer must allow the employee to work for a            to be unlawful, the court may order a temporary
  reduced number of hours. These reduced hours must             status quo injunction, based on the worker’s motion,
  be at least 15 hours but must not exceed 30 hours.            for continuous employment and payment of wages.
  The duration of reduced hours must not be longer              The Act also has a retroactive effect, so it applies to
  than one year, but if there is a reasonable justification     labor cases that occurred prior to the enactment.
  for a longer period, the duration may be extended
  within the limit of two additional years.

                                                                                                                          11
ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020

• The Employment Promotion Act for The Middle Aged          elderly people are those who are over 65 years old.
  and The Elderly was announced on 4 December,              (2) Employers may hire laborers over 65 years old
  2019 but the effective date is yet to be announced.       with fixed term labor contracts. (3) Employers cannot
  The key points of the Act include (1) Middle aged         treat middle-aged/elderly employees or job seekers
  people are those who are 45 to 65 years old,              differently due to their age.

     “Super prompt and responsive” and “commercially savvy.”
     Employment Australia – Chambers Asia Pacific 2020

Thailand                                                  • The employer must notify the health check-up results
Following the enactment of the Labour Protection Act        to the employee within 7 days from the results
(No.7) B.E. 2562 (2019), there has been little movement     becoming known to the employer. However, if there
in the employment sphere in Thailand.                       appears to be an adverse result to the employee’s
                                                            health, the employer must notify the employee
However, the Deputy Director General of the                 of such result within 3 days; and
Department of Labour Protection and Welfare has           • In the event there is sufficient medical evidence to
indicated that a draft bill relating to the health and      illustrate that the employee cannot continue his/her
safety of employees was passed by the Cabinet in            current role, the employer must offer a change in role
the meeting dated 29 October 2019 (“Bill”). They key        (as appropriate) by taking into account his/her health
provisions under the Bill include the following:            and safety.

• The employer must notify and arrange a health check-    Further, there is a draft Ministerial Regulation
  up for the employee within 30 days from the date        issued under the Occupational Safety, Health and
  the employee commences his/her work and annually        Environment Act B.E. 2554 (2011) (“MR”). The MR
  thereafter;                                             includes, amongst others, the application, registration,
• In the event the employee takes sick leave for          suspension and revocation of permit relating to
  three consecutive days, the employer must               occupational safety, health and environmental services
  request an opinion from a certified doctor or           (“Services”). It specifically sets out the eligibility criteria
  arrange for a health check-up for the employee          and the procedure for obtaining the Occupational
  before the employee returns to work. Please note        Safety, Health and Environment Licence (“Licence”).
  that the employer will be responsible for the costs     Further, it goes into detail regarding how the Services
  involved in the health check-up;                        are rendered under the Licence.
• The employer must keep a health record for
  each employee which contains the details of
  the health check-up and return such record to the
  employee at the end of employment;

     “Responsive, very helpful and reliable.”
     Employment Japan – Chambers Asia Pacific 2020

12
DLAPIPER.COM

Meet the team in Asia Pacific
Australia                                  Japan
            Nicholas Turner                            Lawrence Carter
            Partner                                    Partner
            Sydney                                     Tokyo
            +61 2 9286 8522                            +81 3 4550 2811
            nicholas.turner@dlapiper.com               lawrence.carter@dlapiper.com

            Clancy King                                Keiji Nasuda
            Senior Associate                           Senior Associate
            Sydney                                     Tokyo
            +61 2 9286 8677                            ++81 3 4550 6417
            clancy.king@dlapiper.com                   keiji.nasuda@dlapiper.com

China                                      New Zealand
            Johnny Choi                                Laura Scampion
            Partner                                    Partner
            Beijing                                    Auckland
            +86 10 8520 0709                           +64 9 916 3779
            johnny.choi@dlapiper.com                   laura.scampion@dlapiper.com

            Ying Li                        Singapore
            Senior Associate
                                                       Katherine Chew
            Shanghai
                                                       Of Counsel
            +86 21 3852 2131
                                                       Singapore
            ying.li@dlapiper.com
                                                       +65 6512 6046
                                                       katherine.chew@dlapiper.com
Hong Kong
            Helen Colquhoun                Thailand
            Partner
                                                       Pattama Jarupunphol
            Hong Kong
                                                       Senior Associate
            +852 2103 0840
                                                       Bangkok
            helen.colquhoun@dlapiper.com
                                                       +66 2 686 8574
                                                       pattama.jarupunphol@dlapiper.com
            David Smail
            Senior Associate
            Hong Kong
            +852 2103 0443
            david.smail@dlapiper.com

                                                                                      13
ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020

About DLA Piper

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