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Global benefits insights - March 2024

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March 07, 2024

United Kingdom

Introduces the Employment Relations (Flexible Working) Act 2023

Effective from 6th April 2024, every employee will have the right to request flexible working from day one of employment.

Under the previous act, employees had to have a minimum of 6 months service before they could
request flexible working. This right will now apply from day one of employment.

The employee will no longer be tied to the single request per annum, and they will now be able to make two flexible working requests in any 12-month period, should their first be denied.¹

Under the new rule, employers are required to:

  • consult with the employee before rejecting their flexible working request
  • make a decision within 2 months of the request

There will no longer be a requirement for an employee to set out a business case in support of
their request. It remains the case that a flexible working request can be lawfully refused by the employer on one or more statutory grounds.²

Source: forbessolicitors.co.uk¹ / furleypage.co.uk²

Introduces the Carer's Leave Act 2023

Effective from 6th April 2024, employees in the UK are entitled to unpaid carer's leave.

The Carer's Leave Act 2023 entitles employees from the first day of their employment to up to one week every 12 months of unpaid leave to care for someone who relies on them for care (dependant). The dependant must have either:

  • a physical or mental illness or injury that means they’re expected to need care for more than 3 months
    a disability (as defined in the Equality Act 2010)
  • care needs because of their old age

The leave can be taken in periods of days, half days or a whole working week and notice must be given of at least twice as long as requested. For example, 2 whole days requires 4 days’ notice.

The notice period needs to be in whole days, even when half days are requested. This leave is in addition to any other leave provided when caring for dependant children.

Source: gov.uk

Introduces changes to paternity leave

A bill has been submitted for approval to offer more flexible statutory paternity leave. If approved, the regulations will take effect from 8th March 2024 for births and adoptions expected during the week of 6th April 2024.¹

The changes would apply in England, Scotland and Wales but not in Northern Ireland. The amendments allow fathers or partners will be able to take their two weeks of statutory paternity leave in either one block of two weeks, or two separate blocks of one week.

Currently, employees can take only one period of paternity leave and statutory paternity leave must be taken within the first eight weeks following birth.

Under the amended bill, leave could be taken at any time in the first year of birth or placement for adoption.²

Source: legislation.gov.uk¹ / mha.co.uk²

Increases cost of health surcharge for immigrants entering the UK

Effective from 6th February 2024, the immigration health surcharge payable has increased. This was delayed from the planned increase in January.

The surcharge must be paid in full when an applicant submits an application to enter or remain in the UK. The main rate is £1,035 per year, up from £624, and the discounted rate for students and individuals younger than 18 increased to £776 per year, up from £470.

Source: legislation.gov.uk

France

Expands the Profit-Sharing Act

Mandatory profit-sharing measures are set to expand in 2025, following a change to the national and intersectoral collective bargaining agreement (CBA).

From 1st January 2025, employers that have between 11 to 49 employees must have a profit or value-sharing agreement if their net taxable profits exceed 1% of turnover during the previous three consecutive years.¹

Previously, no profit- or value-sharing agreement was required for employers with fewer than 50 employees. This will impact around 48,000 businesses.²

Source: mondaq.com¹ / legifrance.gouv.fr²

Mexico

Increases paternity leave allowance

A bill has been passed in Mexican parliament on 12th December 2023 to propose an increase in paternity leave from the current 5 days.

If approved by the Mexican senate, paternity leave will increase to 20 days, fully funded by the employer.

For births with medical complications affecting mother or child, this leave will be increased to 30 days.

This law is set to pass in early 2024.

Source: paudal.com

Argentina

Increases contribution into statutory occupational disease fund

The increase is effective from 1st December 2023. Employers’ fixed contribution to occupational disease fund (F.E.E.P) increased for each employee increased to ARS 418.

This increase is part of the normal payroll deductions employers are required to make a on monthly basis.

Source: argentina.gob.ar

Peru

Introduces bereavement leave

Specified in measures included in Supreme Decree No. 013-2023 published on 24th December 2023, a new provision has been provided in case of bereavement.

Employees in Peru are now entitled to five calendar days of paid bereavement leave on the death of their spouse, parents, children or siblings.¹

Employees must notify their employers of the start date and duration of the bereavement leave, the reason for taking the leave, and provide documentary proof of their relationship to the deceased person.

Should the location of the deceased relative not be in the same area as the employee's workplace, the employee will be granted additional leave for travel purposes.

Proof of this is required. If it cannot be provided, the employee is required to provide a sworn statement confirming the location the death occurred.²

Source: shrm.org¹ / gob.pe²

Minimum wage increases from 1st January 2024

Brazil

Effective from 1st January 2024, the minimum monthly salary increased to BRL 1,412, which is up from the previous rate of BRL 1,320

Source: in.gov.br

Minimum wage increases from 1st February 2024

Dominican Republic

The National Wage Committee has continued with the total 19% minimum salary increase that was announced in 2023 to apply over two increases.

The first increase happened on 1st April 2023, and the second took effect in February 2024.

The minimum wage rates are:

  • large employers (with more than 151 workers): DOP 24,990 (up from DOP 24,150)
  • medium-sized companies (with 51 to 151 workers): DOP 22,908 (up from DOP 22,138)
  • small businesses (with 11 to 50 workers): DOP 15,351 (up from DOP 14,835)
  • microenterprises (up to 10 employees): DOP 14,161 (up from DOP 13,685)

Source: lexology.com

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