Global Legislative Update - Law and Policy Group February 2020 - Mercer
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Law and Policy Group Global Legislative Update February 2020 By Stephanie Rosseau and Fiona Webster welcome to brighter
Global Legislative Update, February 2020
In this document
Mercer’s Global Legislative Update covers legal developments affecting retirement, health, executive rewards, talent, diversity and inclusion, and
other HR programs that impact local and/or expatriate employees. Links to developments with upcoming effective dates covered in past updates
are also included to remind employers of impending deadlines. These icons indicate whether employer action is required.
Employer action required Potential implications for employers Developments to monitor
Please note: Mercer is not a law firm and therefore cannot provide legal advice. The commentary and recommendations in this report should be
analyzed with legal counsel before any actions are taken.
Highlights .................................................................................................................................................................................................................................................... 2
Global ........................................................................................................................................................................................................................................................... 4
Americas ...................................................................................................................................................................................................................................................... 5
Asia Pacific ................................................................................................................................................................................................................................................... 11
Europe, Middle East and Africa (EMEA) ................................................................................................................................................................................................. 15
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
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Highlights
Global
United Nations Advances treaty on companies’ human rights duties
Americas
Canada Delays proposed tax changes for employee stock options
Mexico Establishes labor conciliation center and registry
Peru Requires life insurance, stronger workplace safety rules
US Federal Labor Department narrows joint employer standard
New Jersey: Employers can’t discriminate based on hair
New York: Requires study of women on boards
Asia Pacific
Hong Kong Introduces new initiatives to support the elderly and low income unemployed
Malaysia Increases in minimum wages take effect
Taiwan Clarifies taxation of employer-paid travel expenses for expat workers
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
EMEA
European Union Publishes employment and social priorities
Belgium Constitutional court annuls “cash for car” system
Finland Ends active model that reduced unemployment benefits and revises health insurance contributions
France Progress made on healthcare reforms and certain bonus payments are exempt from tax, social security
Germany Issues tax guidance on electric bicycles considered a fringe benefit
Hungary Revises minimum wage rates
Ireland Issues guidance on its EU (Supplementary Pensions Rights) regulations for 2019 and increases minimum wage
Lithuania Increases social contribution rates
Luxembourg Increases minimum wage rates
Romania Revises social security health contributions for part-time workers
Russia Requires electronic filing of employment information
Spain Increases minimum wage
United Arab Emirates Dubai International Financial Centre introduces workplace savings scheme
United Kingdom Launches consultation on pension insolvency risk model and advances paid parental bereavement leave entitlement
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
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Global
United Nations (new)
Status
Consultation is open until 29 Feb 2020
Development Career
Treaty on companies’ human rights duties advances
Companies could face criminal, civil or administrative liability for human rights violations under the terms of a proposed United
Nations (UN) multilateral treaty on human rights that is open for comments until 29 Feb 2020. Companies would have to
conduct due diligence for human rights concerns in the operation of their own business and any organization with which they
have “contractual relationships.” Companies would need to assess and monitor potential human rights impacts, prevent human
rights violations, and report publicly on the steps taken to prevent abuses. The proposal is under discussion in the UN’s open-
ended intergovernmental working group on human rights, which met in October and could finalize the treaty at the group’s
next annual meeting in 2020. Participating countries have yet to agree on the content of the proposed treaty, but companies
should carefully monitor its progress.
Resources GRIST, 14 Nov 2019
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Americas
Bermuda (upcoming effective date)
Development Wealth
• Pension scheme is revised — Key date: 2 Mar 2020
Brazil (upcoming effective date)
Development Wealth
• CNPJ imposes registration duty on pension entities — Key date: 31 Dec 2021
Canada (new)
Status
Proposal
Development Career
Proposed tax changes for employee stock options delayed
The effective date of the proposed tax changes for Canadian employee stock options has been delayed, announced the
Department of Finance in December. The changes were expected to apply to stock options granted on or after 1 Jan 2020, but
the government is still reviewing the input received from the consultation that closed in September. A new effective date and
details on how the government intends to move forward with the measure will be announced in Budget 2020.
Resources Government release, 19 Dec 2019 and GRIST, 30 Jul 2019
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Mexico (new)
Status
Currently effective
Development Career
Labor conciliation center and registry established
A new Federal Conciliation and Registration Center, established in Mexico City, will provide mandatory conciliation in certain
collective and individual disputes and will be responsible for registering unions and collective bargaining agreements. The role
and functions of the center feature in a law that took effect on 7 Jan 2020 and follows labor law reforms introduced in 2019. The
center will be operational in a year, but some functions — such as the revision of collective bargaining agreements — will start
only when the center’s registry is in place. Key functions of the center include:
• Individual and collective conciliations on matters covered by federal law, and issuance of nonconciliation and
representation certificates
• Establishment of a conciliatory and administrative management model
• Assistance to unions and employees with the election of union management boards
• Verification of employee support for collective agreements and ensuring they were properly informed about the content
• Registration of collective agreements and verification of their compliance with federal labor law — agreements that don’t
comply could be terminated
• Consideration of proposals and opinions published by the Agreement and Productivity National Committee
• Issuing fines for noncompliance with federal labor law
Resources martha.cano@mercer.com
GRIST, 21 Jan 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Peru (new)
Status
1 Jan 2020
Development Career — Health
Life insurance and stronger workplace safety rules required
Employers in Peru must enroll all employees in a life insurance policy from the start of their employment, under changes to the
life insurance law and general law on labor inspection included in an emergency decree.
Under the old law, employers had to provide employees with life insurance coverage after four years of service. A supreme
decree could allow employers to phase-in coverage for certain employees.
The labor inspection provisions — effective in January 2020 — strengthen the applicable sanctions for breaches of workplace
safety and health standards, including the possibility of criminal penalties and closure of the workplace.
Resources carmen.acosta@marsh.com
GRIST, 27 Jan 2020
US (new)
Status
Currently effective
Development Career
Joint employer standard narrowed
A new Department of Labor final rule that aims to clarify the standard for joint-employer status under the federal Fair Labor
Standards Act will likely reduce the number of situations under which the status will apply. Effective 16 Mar 2020, the rule sets
out a new four-factor balancing test that focuses on the employer’s actual — not theoretical — control over an employee’s
terms and conditions of work. The rule is largely the same as the proposed rule issued in April 2019 and comes two and a half
years after the agency rescinded informal guidance on joint employment issued during the Obama administration. This is the
first meaningful revision of the joint employer rule since 1958.
Resources GRIST, 15 Jan 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
US — New Jersey (new)
Status
Currently effective
Development Career
Employers can’t discriminate based on hair
New Jersey recently became the third state to prohibit discrimination in the workplace on the basis of hair, under legislation
signed on 19 Dec 2019. This law will “ensure people of color are free to wear their hair however they feel best represents them,”
said NJ Senator Sandra B. Cunningham, a primary sponsor of the legislation. “No one should ever be told it is ‘unprofessional’ to
embrace their culture.”
The "Create a Respectful and Open Workplace for Natural Hair Act" (CROWN Act), amends the New Jersey Law Against
Discrimination, which bars employers from discriminating against individuals on the basis of protected categories, such as race.
The CROWN Act clarifies that prohibited race discrimination includes discrimination on the basis of “traits historically
associated with race, including, but not limited to, hair texture, hair type, and protective hairstyles.” Protective hair styles
include, but are not limited to, braids, locks and twists. The CROWN Act codifies Division on Civil Rights agency enforcement
guidance from September 2019.
Resources GRIST, 16 Jan 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
US — New York (new)
Status
28 June 2020
Development Career
Study of women on corporate boards mandated
New York State will study the number of women serving on boards of directors of domestic and foreign corporations
authorized to do business in the state under legislation signed by the governor on 30 Dec 2019. The study aims to shed light on
the issue of underrepresentation of women at the highest level of organizations and “guide the development of new policies to
ensure more women have a seat at the proverbial table,” the governor said. Corporations doing business in New York must file
a statement providing the number of directors on their board and noting how many are women.
Conducted by the New York State Department of State and Department of Taxation and Finance, the study must include:
• The number of women directors and total number of directors on every corporate board
• An analysis of the change in the number of women directors from previous years
• The aggregate percentage of women directors on all boards
The legislation takes effect on 28 June 2020. The study must be published by 1 Feb 2022, and a new report published every four
years.
Resources GRIST, 23 Jan 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
US (upcoming effective date)
Development Career
• Cincinnati adopts salary history ban — Key date: 1 Mar 2020
• Oregon law protects against workplace harassment, discrimination — Key date: 1 Oct 2020
• California employers must provide sexual harassment training by 2021 — Key date: 1 Jan 2021
• Colorado’s new pay equity law takes effect in 2021 — Key date: 1 Jan 2021
Career — Health
• Connecticut enacts paid family and medical leave — Key date: 1 Jan 2021
Health
• New Jersey to mandate employers offer pretax transit benefits — Key date: 1 Mar 2020
Wealth
• FASB deliberations on retirement plan disclosures completed — Key date: 15 Dec 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Asia Pacific
Australia (upcoming effective dates)
Development Health
• Private healthcare premium increased — Key Date: 1 Apr 2020
Wealth
• Tax relief for superannuation fund mergers extended — Key date: 1 Jul 2020
• Guidance on superannuation investment fees and cost disclosures updated — Key date: 30 Sep 2020
• Australia increases consumer protection for financial products — Key date: April 2021
Career — Wealth
• Australian guidance explains modern slavery disclosures — Key date: 31 Dec 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Hong Kong (new)
Status
Proposal
Development Career — Wealth
New initiatives support elderly, low-income, unemployed
Employment-related developments featured in the “New initiatives on improving people’s livelihood,” were released by the
government on 14 January. Highlights include:
• Improvement of the retirement system. Proposed combining of the normal OALA (old age living allowance) and higher
OALA with a standard monthly payment rate of HK$3,585, and significant increase of the asset limit to HK$500,000.
• The government will pay the 5% Mandatory Provident Fund (MPF) contributions for low-income employees exempt from
making MPF contributions. The proposal will be effective upon implementation of the MPF Centralized Platform by the
Mandatory Provident Fund Schemes Authority in 2024.
• The Labour Advisory Board would propose a progressive increase of statutory holiday entitlement to 17 days for all
workers. Currently, all employees are statutorily entitled to 12 days, and certain employees are entitled to an additional five
days of general holiday. The estimated staff cost of this increase is 1.7%.
• The Labour and Welfare Bureau will consider further improving government service contract tendering to enhance
remuneration packages and protections for non-skilled employees, and increase the weighting applied to wage levels in
tender assessments to avoid "lowest bid wins."
• Due to the deterioration of economic and employment conditions, from 1 April to 31 March 2021, eligible unemployed and
underemployed individuals could apply for an additional cash allowance for up to three months
The Financial Secretary is also consulting with the public on the 2020-21 Budget, and will propose measures to "support
enterprises, safeguard jobs, stimulate the economy and improve people’s livelihoods.”
Resources margie.wong@mercer.com
GRIST, 22 Jan 2020
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India (upcoming effective date)
Development Career
• Parliament passes wage protections — Implementation dates will likely vary.
Malaysia (previously covered, newly effective)
Status
1 Feb 2020
Development Career
Minimum wage increased
Malaysia’s monthly minimum wage increased to RM1,200 in 57 major cities/municipal councils on 1 Feb 2020 — delayed from 1
Jan 2020. The monthly minimum wage remains RM1,100 in cities that aren’t listed in the government’s press release.
Resources Government release (Malay), 10 Jan 2020
New Zealand (upcoming effective date)
Development Career
New Zealand expands temporary agency employee rights — Key date: 27 Jun 2020
Singapore (upcoming effective date)
Development Career — Health
Singapore expands work injury insurance protections — Key date: 1 Sep 2020
South Korea (upcoming effective dates)
Development Wealth
• South Korea slates retirement act reforms to take effect — Key date: 30 Apr 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Taiwan (new)
Status
Currently effective
Development Career
Taxation of employer-paid travel expenses of expat workers clarified
The Ministry of Finance has clarified the conditions for claiming tax exemptions on travel expenses paid for by employers for
foreign national employees (and their dependents) working in Taiwan. To be eligible, foreign nationals must reside in Taiwan
for at least 183 days out of the year; earn more than NT$ 1.2 million; and accurately file the income tax declaration.
Resources Government release (Chinese), 20 Jan 2020
Vietnam (upcoming effective dates)
Development Career
• Labor code changes enacted — Key date: 1 Jan 2021
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Europe, Middle East and Africa (EMEA)
European Union (new)
Status
Proposal
Development Career
Employment, social priorities published
The European Commission published its 2020–2021 employment and social policy priorities, with the aim of reinforcing the
European Union (EU) Pillar of Social Rights agreed to in 2017. Proposals include a framework for paying fair minimum wages,
binding measures to ensure gender pay transparency, improved implementation of labor and environmental clauses in EU trade
agreements, and early 2021 publication of an action plan to promote the EU Pillar of Social Rights. On 14 January, the commission
launched an initial consultation on fair minimum wages with EU social partners to assess the need for further EU initiatives.
Resources GRIST, 16 Jan 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
European Union (upcoming effective dates)
Development Career
• New employment rights for posted workers approved — Key date: 20 Jul 2020
• EU's final CRD V revises remuneration principles — Key date: 28 Dec 2020
• EU finalizes law on whistleblower protections — Key date: end of 2021
• Revised EU rules will impact participating companies, employees — Key date: 1 Jan 2022
• EU law strengthens rights of “nonstandard workers” — Key date: summer 2022
Career — Health
• Work-life balance measures , including leave finalized — Key date: summer 2022
Wealth
• ESG agenda, capital markets union progress — Key date: 10 Mar 2022
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Belgium (new)
Status
Law is annulled as of 31 Dec 2020
Development Career — Health
Constitutional court annuls “cash for car” system
A 2018 law that established a mobility allowance — the “cash for car system” — has been annulled by Belgian’s constitutional
court, effective 31 Dec 2020, to allow for the introduction of new measures, as required. The system allowed employees to
exchange company cars for remuneration and receive favorable tax treatments, with the aim of reducing car usage. However,
the system was controversial for a variety of reasons — including its discriminatory application — and that it didn’t necessarily
reduce the number vehicles in use.
Unions and environmental agencies challenged the measures as unconstitutional. The court found that the system resulted in
unequal tax treatment of wages and was discriminatory because the cash benefit for car replacement was taxed more favorably
than other cash payments, restricting its eligibility to employees with access to a company car. Also, the court held that the
measures didn’t guarantee a reduction in car usage because employees could replace their company car with another vehicle.
The impact of the court’s judgment likely will be limited. Recent studies have shown that only 0.011 percent of eligible employees
took advantage of the system. The Mobility Budget, effective 1 March 2019, remains in force and allows eligible employees to
exchange their company car for an allowance to be spent on three alternative mobility solutions.
Resources dieter.valgaerts@mercer.com
GRIST, 30 Jan 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Finland (new)
Status
Currently effective
Development Career
Active model that reduced unemployment benefits ends
Finland’s active unemployment protection model was dismantled as of 1 Jan 2020, so unemployment benefits paid since then are
no longer reduced by the model. The model launched on 1 Jan 2018, to tighten the conditions for benefit eligibility and boost the
employment rate. Under the model, an unemployed person had to meet an activity condition to avoid benefit curtailment.
An unemployment benefit previously reduced under the model will be restored to its normal level. Unemployment benefits that
were due in January but accrued in 2019 are still affected by the model cuts.
Unemployed individuals still can study or participate in job searches and access employment support offered by different
agencies. Other eligibility criteria for receiving unemployment benefits remain unchanged.
Resources sirkka.linden@mercer.com
GRIST, 28 Jan 2020
Finland (new)
Status
Currently effective
Development Health
Health insurance contributions revised
The Finnish Tax Administration published updated guidance on health insurance contributions, including rate changes for 2020.
Effective 1 Jan 2020, the guide features: a 0.68% contribution rate levied on employees’ taxable income for the 2020 tax year;
employees earning €14,574 euros or more per year pay an additional 1.18% sickness insurance contribution rate; employers pay a
1.34% sickness insurance contribution rate; a 1.65% contribution applies to income from pensions and benefits; and individuals
younger than 16 years old or older than 68 are exempt from health insurance contributions.
Resources Government release (Finnish), 7 Jan 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
France (new)
Status
Currently effective
Development Health
Healthcare reforms progress
The next phase of the French government’s “100% healthcare reform” initiative took effect on 1 Jan 2020, providing full
reimbursement for the provision of reading glasses and specified dental treatments, and a reduced copayment for hearing aid
supplies. Reimbursements paid by supplementary insurance plans are capped to encourage health professionals to limit
applicable costs.
Healthcare plans should be adjusted to comply with the reform and to continue as “responsible contracts.” From 2021, the costs
for certain treatments for optical, dental and hearing aids will be fully reimbursed.
Resources amandine.marsella@mercer.com
GRIST, 21 Jan 2020
France (new)
Status
Currently effective
Development Career
Certain bonus payments exempt from tax, social security
Measures that allow employers to continue paying bonuses of up to €1,000 to eligible employees, exempt from tax and social
security, feature in an amended social security law that generally took effect on 27 Dec 2019. Eligible employees must earn less
than three times the national minimum wage over a 12-month period and the bonus must be paid by 30 Jun 2020. Employers
who pay this type of bonus must do so for all employees eligible at the time the payment is made, and they must also set up a
profit-sharing scheme for employees.
Resources amandine.marsella@mercer.com
GRIST, 21 Jan 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Germany (new)
Status
Currently effective
Development Career — Health
Tax guidance on electric bicycles as fringe benefits issued
German employers that provide electric bicycles to employees between 1 Jan 2019 and 1 Jan 2031 can treat them as fringe benefits
for tax purposes as long as certain conditions are met. The measures feature in a decree issued by the Ministry of Finance on 9
Jan 2020.
Resources Government release (German), 9 Jan 2020
Hungary (new)
Status
Currently effective
Development Career
Minimum wage rates published
Hungary has published revised minimum wage rates, effective 1 Jan 2020. The gross monthly minimum wage for full-time
workers is HUF 161,000, HUF 37,020 per week, HUF 7,410 per day and HUF 926 per hour. The guaranteed monthly minimum wage
for skilled workers is HUF 210,600, HUF 48,400 per week, HUF 9,690 per day and HUF 1,211 per hour. The 2020 rates amount to an
8% increase on the applicable wage rates in 2019.
Resources Government release (Hungarian)
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Ireland (new)
Status
Currently effective
Development Career — Wealth
EU (Supplementary Pensions Rights) regulations 2019 clarified
The Irish Pensions Authority issued guidance in November 2019 on Irish regulations (European Union (EU) (Supplementary
Pensions Rights) Regulations 2019) that came into force 13 Sep 2019 and which provide certain rights to members or prospective
members of a pension scheme if they change employers in the EU. The regulations transpose into Irish law the EU pension
portability directive 2014/50/EU that aims to ease employee mobility in the EU. The rights override any conflicting provisions
that may be included in a pension scheme’s rules.
The regulations apply only to schemes that accept new members on or after the date the directive came into force (20 May 2014).
They created the concept of an outgoing worker who moves between EU employments and effectively introduced a new ring-
fenced membership status. The new regulations represent a material change in how defined contribution occupational pension
schemes have operated in Ireland and are likely to present some challenges with respect to identifying outgoing workers and
ensuring their rights are protected in the scheme. While the Pensions Authority’s guidance note provides some suggestions for
employers and trustees with regard to fulfilling their legal obligations, the guidance is limited and doesn’t address all the
practical issues that could arise. Perhaps most importantly, the legal obligation for determining if an employee or former
employee has any entitlements under the regulations falls to the employer and trustees. Individual employees or former
employees can’t initiate this process, although they are required to engage with the process. Administrative processes must be
adapted — by employers and the scheme — to ensure that current and prospective employees are asked the appropriate
questions when they join or leave service.
Resources james.campbell@mercer.com
GRIST, 31 Jan 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Ireland (new)
Status
Currently effective
Development Career
Minimum wage increased
Ireland’s national minimum hourly wage increased generally to €10.10 up from €9.80, effective 1 Feb 2020. Different rates apply to
workers aged 18 or younger, and to those aged 19 years. For employees receiving meal and accommodation allowances from
their employer, the hourly wage includes a €0.90 meal allowance per hour worked, and a €23.86 weekly allowance for
accommodation (or €3.42 per day).
Resources Government release, 16 Jan 2020
Ireland (upcoming effective date)
Development Wealth
• Ireland updates auto-enrolment pension system implementation — Key date: expected in 2022
Lithuania (new)
Status
Currently effective
Development Career
Social contribution rates increased
The Lithuanian State Tax Inspectorate published revised social contribution rates, effective 1 Jan 2020. They include revised rates
for compulsory health insurance and state social insurance contribution rates.
Resources Government release (Lithuanian)
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Lithuania (upcoming effective date)
Development Career — Health
• Tax treatment of employee stock options changed — Key date: 1 Feb 2020
Luxembourg (new)
Status
Currently effective
Development Career
Minimum wage rates increased
Luxembourg’s monthly minimum wage rates increased, effective 1 Jan 2020 to: €2,142 (up from €2,089) for employees aged 18
years and over; to €1,714 euros (up from €1,671) for workers aged 17-18 years; to €1,607 (up from €1,567) for workers aged 15-17
years; and to €2,570 (up from €2,507) for skilled workers.
Resources Government release (French), 10 Jan 2020
Mauritius (upcoming effective date)
Development Career — Health
• Retirement gratuity fund start date delayed — Key date: 1 Apr 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Netherlands (previously covered, newly effective)
Status
Effective 1 Jan 2020
Development Health
Collective discount cut for basic health insurance
The maximum collective discount that insurers can apply to basic health insurance plans is 5% for 2020, down from 10% in 2019.
The measure aims to increase policy transparency for consumers, and the minister warned that further measures could be
introduced.
Resources Government release (Dutch), 28 Jun 2019
Netherlands (upcoming effective dates)
Development Career — Health
• Dutch government increases paid paternity and adoption leave — Key date: 1 Jul 2020
Oman (upcoming effective date)
Development Health
• Oman issues implementation rules for new health insurance scheme — Key date: mid-2020
Poland (upcoming effective date)
Development Wealth
• Poland to transfer state mandatory pension funds to individual accounts — Key date: 1 Jul 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Romania (new)
Status
Currently effective
Development Health
Social security health contributions for part-time workers revised
The tax base for calculating social security and health insurance contributions for part-time workers has changed. Effective 1 Jan
2020, contributions must be calculated using the employee’s actual salary income, not the minimum gross wage.
Resources Government release (Romanian), 30 Dec 2019
Romania (new)
Status
Currently effective
Development Career
Minimum wage rates published
Romania’s minimum gross wage increased to RON 2,230. The minimum gross wage payable to employees who have higher
education qualifications and who have one or more year’s employment experience remains unchanged at RON 2,350. The
minimum wage payable to construction sector employees also is unchanged at RON 3,000.
Resources Government release (Romanian), 16 Dec 2019
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Russia (new)
Status
Effective dates vary
Development Career — Wealth
Electronic filing of employment information required
Employees’ employment records will have to be filed electronically, and employers will be subject to new pension reporting
obligations, under changes to be phased in from 1 Jan 2021. Highlights include:
• From 1 Jan 2020, employers must electronically file employees’ employment information with the mandatory pension fund
no later than the 15th day of the month following the reporting month.
• From 1 Jan 2021, employers must notify the mandatory pension fund about employee hiring and terminations by the next
business day.
• From 15 Feb 2021, employers will have to provide information on employees who don’t submit an application for coverage
under the mandatory pension fund.
• Employers have to inform employees about the introduction of electronic filing by 30 Jun 2020, asking them to designate
whether they want their employment information to be filed in paper format, or electronically, by 31 Dec 2020. Information
will be filed in paper format if an employee doesn’t inform their employer by the deadline. Employers can electronically file
information for all employees hired after 1 Jan 2021.
• Employers must return the paper file to employees who choose to have their information filed electronically. Employees
opting for the paper format will be allowed to change their minds.
• Employers must provide employment information to terminating employees in electronic or paper format. Employees can
request their electronic information at any time.
Resources andrey.kulapov@mercermarshbenefits.com
GRIST, 23 Jan 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
Spain (new)
Status
Currently effective
Development Career
Minimum wage increased
Effective 1 Jan 2020, Spain’s monthly minimum wage increased to €950 per month — up by 5.56% on the 2019 wage. The
government said that this hike increase is the first step to increasing the minimum wage to 60% of the average salary by the end
of the current legislature.
Resources Government release, 30 Jan 2020
Switzerland (upcoming effective date)
Development Career
• Switzerland issues gender pay audit criteria and deadlines — Key date: 1 Jul 2020
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Copyright 2020 Mercer LLC. All rights reserved.Global Legislative Update, February 2020
United Arab Emirates (UAE) (new)
Status
Currently effective
Development Wealth
Dubai International Financial Centre introduces of workplace savings scheme
From 1 Feb 2020, employers based at the Dubai International Financial Centre (DIFC) must make mandatory contributions to a
funded and professionally-managed defined contribution (DC) savings plan on behalf of employees. Under the newly enacted
DIFC Employment Law Amendment Law No. 4 of 2020, this replaces the end-of-service gratuity payment regime in place since
the inception of the DIFC in 2004. As part of these changes, DIFC-based employers have until 31 March 2020 to enroll in a
“Qualifying Scheme,” which includes the default new scheme — the DIFC Employee Workplace Savings Plan (DEWS). A
consultation on the proposed changes occurred in late 2019, and details of the final DEWS scheme were released on 21 Jan 2020.
“The launch of DEWS is part of our efforts to put in place a supportive environment for talent by creating greater financial
security for employees of DIFC-based companies,” said the DIFC President.
According to the DIFC, employers must make the necessary changes to their existing human resource information systems in
order to:
• Make the mandatory contributions for eligible employees
• Deduct employee voluntary contributions from the employee’s pay
• Upload the monthly contribution files
• Transfer the relevant amount to the bank account of the DEWS master trustee for investments
Employers and employees will be able to log into the DEWS system to track contributions, investments, portfolio valuations and
request withdrawals.
Resources claudia.maldonado@mercer.com
GRIST, 28 Jan 2020
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United Kingdom (new)
Status
Consultation is open until 11 Feb 2020
Development Wealth
Consultation on pension insolvency risk model launched
The UK’s Pension Protection Fund (PPF), which underwrites insolvency risk for defined benefit (DB) schemes, launched a
consultation in December 2019 on changes to the way the risk profile for DB schemes is calculated. An individual scheme’s score
determines the annual levy it must pay to the PPF.
The PPF is moving its insolvency risk provider to Dun & Bradstreet (D&B) for levy invoices issued in the 2021/22 levy year, with the
first scores calculated using the new basis set from April 2020. Although the PPF-specific insolvency risk model currently in place
will largely be adopted by D&B, a number of changes are proposed to ensure insolvency risk scores are adjusted to match actual
insolvency experience. The PPF’s impact assessment indicates one in five of schemes will see levy increases, in particular
schemes with employers on scorecard 1 (the largest employers). For some schemes, the increase could be over 50%.
Resources vicky.yu@mercer.com
GRIST, 30 Jan 2020
United Kingdom (new)
Status
Review
Development Career
Review of off-payroll working
The UK government has launched a review into implementation of revised off-payroll working rules that will take effect in April
2020. The rules aim to ensure that someone working like an employee — but through a company — pays similar taxes to other
employees. The review is open until mid-February and asks if further steps could enhance implementation of the reforms.
Medium and large organizations in the private and third sectors will be responsible for determining their contractors’ tax status.
Resources Government release, 7 Jan 2020 and Government release, 11 Jul 2019
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UK (new)
Status
Expected 6 Apr 2020
Development Career — Health
Paid parental bereavement leave entitlement advances
Parents who suffer the loss of a child will be entitled to two weeks of paid leave in April — the UK’s Department for Business,
Energy & Industrial Strategy announced on 23 Jan 2020. Regulations for the Parental Bereavement (Leave and Pay) Act 2018 were
introduced in Parliament and subject to approval, will be effective on 6 Apr 2020. Highlights include:
• Employees will have the right to a minimum of two weeks leave if they lose a child under the age of 18 or suffer a stillbirth
from 24 weeks of pregnancy, irrespective of how long they have worked for their employer.
• Parents employed continuously in a job for six months or longer and earning above the lower earnings limit (LEL) will be able
to claim statutory pay for this period, in line with the approach for other parental entitlements, such as paternity leave and
pay. Employers would administer the pay in the same way as existing family-related statutory payments. The LEL currently is
£118 per week, but proposals before parliament would increase it to £120 per week for the tax year 2020/21.
• Leave could be taken as a single two-week block or two separate one-week blocks in the 56 weeks after a child’s death.
Resources GRIST, 3 Feb 2020
UK (upcoming effective dates)
Development Wealth
• Pension schemes face new investment and disclosure rules — Key date: 1 Oct 2020
Career
• Hourly wage increases announced — Key date: 1 Apr 2020
• GRIST — Key date: 6 Apr 2020
• Employer national insurance contributions on termination payments postponed — Key date: 6 Apr 2020
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