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Global Pwc Employment Law Network Newsletter www.pwc.com Global PwC employment law network newsletter May 2018 Click to launch Introduction We are pleased to present the first Global PwC Employment Law Network newsletter, bringing you updates on what’s happening in different countries across the PwC network. In addition, you will also find a ‘Focus on…’ section highlighting the main employment laws in different countries. In this edition, you will see that we are focussing on Australia, China, Germany, the Netherlands and the UK. We hope you find the newsletter interesting and insightful. Please contact anyone mentioned in the newsletter, or your normal PwC contact, if you have any queries or would like to discuss anything further. Global PwC employment law network newsletter May 2018 PwC Introduction Part 1 Contents Argentina Ireland Australia Italy Belgium Japan Brazil Madagascar China The Netherlands Cyprus Norway Denmark Romania Finland The Russian Federation France South Africa Germany Ukraine Hungary United Arab Emirates India The United Kingdom Part 2 Focus on employing people in Australia Focus on employing people in China Focus on employing people in Germany Focus on employing people in the Netherlands Focus on employing people in the UK Global PwC employment law network newsletter May 2018 PwC Contents Part 1 Global PwC employment law network newsletter May 2018 PwC 1 Argentina Recent modifications on Labor and Social Security Legislation There have been relevant changes in the Social Security System that • Progressive reduction of VAT Tax Credit derived will be in force since February 2018. These modifications will take from social security contributions (currently that credit place on a gradual basis and will be completed by January 2022. does not apply to companies in the City of Buenos Aires or Most important changes are as follows: territory surrounding this city). • Unification of Social Security rate in 19,5% (currently there two Also Labor Contract Law was modified increasing the age at which rates in force: general rate at 17,5% and special rate at 20,7% that the employer might terminate the labor relationship of an employee apply for companies whose main activity is commerce or services without severance payment to 70 years. This does not mean a that invoice in the average of the last three years more than AR$ compulsory increase on the age to get a retirement benefit that will 48.000.000 - approx. USD 2.400.000-). remain at 65 for men and 60 for women. • Minimum amount not subject to Social Security Contributions of AR$ 12.000 (USD 600) monthly per employee (currently that amount is AR$ 2.400/USD 120). For further details, please contact: Marcelo Brandariz T: +5411 4850 4546 M: +5411 3114 5122 E: [email protected] Global PwC employment law network newsletter May 2018 PwC 2 Australia Protecting Vulnerable Workers – Amendments to the Fair Proposed Modern Slavery Laws Work Act 2009 In December 2017, a government Inquiry into establishing a The Fair Work Amendment (Protecting Vulnerable Workers) Act Modern Slavery Act in Australia recommended that Australia 2017 (Cth) introduced a number of significant amendments to the should adopt legislation to combat modern slavery, comparable to the Fair Work Act 2009 (Cth) (FW Act) from September 2017. These United Kingdom’s Modern Slavery Act 2015. As part of its 49 changes included enhanced liabilities regimes for franchisors and recommendations, the Inquiry suggested introducing legislation holding companies in relation to their franchisees and subsidiaries which established an independent Anti-Slavery Commissioner, respectively. The amendments also introduced a new class of ‘serious transparency through mandatory supply chain reporting for entities contraventions’ which carry significantly higher civil penalties for operating in Australia, support for victims through a national breach of the FW Act, new record keeping requirements and offences compensation scheme and improved criminal justice responses to and increased information gathering powers of the Fair Work modern slavery. It is apparent that the introduction of modern Ombudsman (FWO). A more detailed review of the amendments can slavery legislation has bipartisan support within federal parliament be found here: https://www.pwc.com.au/legal/assets/legaltalk/new- and it is likely that legislation will be passed later this year. changes-fair-work-act-12sep17.pdf Introduction of labour hire licence requirements For further details, please contact: Some State governments have sought to address the issue of worker Bryony Binns exploitation through regulating labour hire agents. On 1 March, a new T: +61 (2) 8266 1107 labour hire licensing regime commenced in South Australia, requiring M: +61 (0) 408 706 174 that regulated providers are licensed from 1 September 2018. The E: [email protected] Queensland equivalent is commenced operation on 16 April 2018, and it is anticipated that the Victorian scheme (presently in the form of a bill) will pass shortly. Global PwC employment law network newsletter May 2018 PwC 3 Belgium As from January 1, 2018, employers can distribute (part of) their profit amongst their employees via a so-called ‘profit premium’ The profit premium allows employers to distribute (part of) their The introduction of the profit premium is subject to the profits amongst their employees under a specific and advantageous following conditions: tax and social security regime. The awarding of the profit premium • The profit-sharing premium has to be awarded to all employees. does not grant employees any voting rights in the company. • The total amount of the profit premiums granted per tax year may The employers can choose between an identical profit premium not exceed 30% of the total gross wage sum. (each employee is entitled to an equal amount or to an equal percentage of his/her remuneration) or a categorised profit premium • The profit premium may not be introduced to replace or convert (differentiation between different categories of employees, whereby another element of the employee's remuneration to which the the amount of the profit premium is dependent on an allocation key employee is entitled on the basis of the individual or collective based on objective criteria, such as function, seniority, etc.). labour agreement, regardless of whether or not the element is subject to social security contributions. For further details, please contact: Bart Elias T: +32 (0)3 259 3156 M: +32 473 91 06 02 E: [email protected] Global PwC employment law network newsletter May 2018 PwC 4 Brazil A significant reform of Brazilian labour law entered into force on November, 2017 The new legislation changed several procedural rules and labor rights, such as: Outsourcing – The companies allow the hiring of specialised service Termination – Possibility of employment agreement termination providers in all activities, including their core business activity. by mutual consent, in which case: (i) The 40% indemnity on the Employers may not dismiss outsourced workers and rehire them in FGTS would be reduced to 20%; (ii) Prior notice would be reduced by less than 18 (eighteen) months. half, to at least fifteen (15) days; (iii) The employee may withdraw The service provider shall be entitled to the same working conditions 80% of the FGTS and (iv) May not have access to as employees of the hiring company, such as meals; healthy insurance unemployment insurance; and meals; Vacation – May be enjoyed in up to 3 (three) periods, one of them Withdrawing Partner – Partners who withdraw from the with at least 14 (fourteen) days and the remaining ones not less than company will only be liable for labor obligations if the labor lawsuit is 5 (five) consecutive days each. filed within two (2) years of the registration date of his or her For further details, please contact: departure. If the corporate change creates any type of fraud, the withdrawing partner will be jointly liable for any labor debt; Fernando Loeser Home-office work setting – Working in a home-office setting T: +55 (11) 3879 2802 must be included in the individual employment agreement, which M: +55 (11) 98244 7118 will contain information on who will be responsible for the E: [email protected] acquisition, maintenance and supply of the technological equipment and infrastructure necessary to provide remote work; Compensation – The customary amounts paid as general Wellington Ferreira allowances, food allowances (except cash payments), travel T: +55 (11) 3879 2889 accommodation and bonus do not include the employee's M: +55 (11) 99788 5093 remuneration and do not constitute the calculation basis for E: [email protected] assessment of any labor and social security charges. Global PwC employment law network newsletter May 2018 PwC 5 China Tax bureau fully in charge of social insurance premiums collection Along with the plan to combine the State Administration of Tax with • Communicate with employees to seek cooperation for potential local tax bureaus from the provincial level, the tax authority in China back payment of underpayment, if any identified; will be gradually in charge of tax and non-tax collections by the end of • For employees from overseas countries, China employer should 2018. As a result, the premiums collection of the statutory pension comply with social insurance contribution obligations as it is insurance, the basic medical insurance, unemployment insurance, explicitly required in most cities; and maternity insurance and work injury insurance would be under
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