In the world of work, the saying “change is the only constant” rings truer than ever. As employment legislation evolves across various countries, employers worldwide must stay informed to ensure compliance and adapt their practices accordingly.
In this blog, we’ll provide a concise overview of the key changes and updates in employment legislation from around the globe in 2023. No matter where your company operates, keeping up with these crucial developments is essential for your global expansion plans, talent acquisition strategies, employees’ well-being, and your business’s success.
Employment Law Changes 2023 – Americas
Canada
Minimum wage
Right to disconnect
A new amendment to Ontario’s Working for Workers Act requires employers with 25 or more employees to create a policy about disconnecting from work.
Employee monitoring
Ontario employers with 25 or more employees must have a written policy disclosing if and how they electronically monitor employees.
Bereavement leave
Alberta has expanded its bereavement leave to include situations when a pregnancy does not result in a live birth.
Mexico
Paid leave
Employees with one year of service will be entitled to 12 days of paid vacation, up from the previous six days, until they reach the statutory 20 days of paid vacation. From the sixth year onward, the vacation period will increase by two days for every five years of service.
Employment Law Changes 2023 – United Kingdom
Minimum wage (From April 1, 2023)
Maternity, paternity, adoption, and shared parental pay
On April 1, 2023, statutory pay for maternity, adoption, paternity, and shared parental leave increased from £156.66 to £172.48 a week.
Sick pay
Statutory sick pay will increase from £99.35 to £109.40 per week.
Flexible working
The Employment Relations Bill, currently in the House of Commons, would grant the right to request flexible working from the first day of employment rather than after 26 weeks. The bill is expected to pass later this year.
Neonatal care leave
The Neonatal Care (Leave and Pay) Bill, supported by the Government in July 2022, allows parents of babies requiring neonatal hospital care to take 12 weeks of paid leave in addition to their statutory maternity
Employment Law Changes 2023 – Europe
Ireland
Sick leave
Starting January 1st, Ireland has introduced a phased entitlement to sick leave. It begins with three paid sick days in 2023, increasing to five days in 2024, seven days in 2025, and ten days in 2026. Eligible employees must have 13 weeks of continuous service and provide a medical certificate for their absence. Sick leave pay is 70% of regular wages, capped at €110 per day.
Minimum wage
The national minimum wage has risen by 80 cents, from €10.50 to €11.30 per hour, effective January 1, 2023.
Germany
Minimum wage
In October 2022, the statutory minimum wage was increased to €12 gross per hour.
Time tracking
Starting in 2023, employers must record the start and end times of employees’ daily working hours. Employers must ensure that employees log their hours, and the method can be digital or manual.
Netherlands
Severance pay
Also referred to as a “transition allowance.” The maximum amount has been raised to €89,000 gross in 2023.
Lithuania
Minimum pay
Starting January 2023, minimum hourly wage increased to €5.14 gross, and the minimum monthly salary to €840 gross.
Paternity leave
Leaves can be divided into two separate periods rather than being taken all at once. It is available within the first year of a child’s birth (or adoption) and lasts for 30 calendar days.
Parental leave
Each parent is entitled to two months of non-transferable leave. This means that fathers can access a total of three months of leave, combining their paternity and parental leave benefits. Parental leave can be taken all at once or in parts, but both parents cannot take parental leave simultaneously.
Croatia
Work from home
When an employee works from home full-time or for more than seven days in a month, their employer must:
- Provide, install, and maintain work equipment (as defined in the employment agreement) or reimburse any related costs when the employee uses their equipment.
- Reimburse the expenses of working from home (internet, electricity, etc.) in the amount specified in the employment agreement.
Probation period
Although the maximum duration of a probationary period remains six months, new legislation introduced states that if an employee is temporarily absent (e.g., due to temporary work incapacity, maternity or parental leave, paid time leave), the probation period will be extended by the duration of the absence.
Czech Republic
Minimum wage
The Czech Republic will see an increase in minimum gross salary ranges.
For unskilled labor, the new minimum wage will be CZK 17,300 per month, while managerial or scientific roles will have a minimum wage of CZK 34,600.
Denmark
Parental leave
In 2023, Denmark’s maternity act extends parental leave to 48 weeks, with the following distribution:
- Mandatory two weeks for each parent after birth
- Eight transferable weeks for each parent, to be used before the child’s first birthday
- Nine weeks of parental leave reserved for each parent
- Five transferable weeks, to be taken before the child’s ninth
- Mandatory two weeks for each parent after birth
- Eight transferable weeks for each parent, to be used before the child’s first birthday
- Nine weeks of parental leave reserved for each parent
- Five transferable weeks, to be taken before the child’s ninth birthday
Employment contract requirements
Starting in 2023, employees must receive an employment contract within seven days of commencing their job. If any modifications are made to an existing contract, an updated contract or addendum must be provided to the employee within seven days of the changes’ effective date.
Estonia
Minimum wage
The minimum wage has been increased to €725.
France
Minimum wage
Gross hourly minimum wage has increased to €11.27.
Poland
Minimum wage
- increased to PLN 3,490 gross, with another increase expected in July to PLN 3,600
Leaves
- Employees are now entitled to two days of force majeure leave, paid at 50% of their regular salary.
- Parental leave in Poland has been extended to 41 weeks, with an additional week provided for multiple births, totaling 42 weeks.
- New caretaking leave provisions grant employees five unpaid days to care for:
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- Individuals in a shared household who require personal assistance
- Shared household members needing substantial support for severe medical reasons, including illness, injury, or emergencies
- A child, parent, or spouse in need of support
Employment Law Changes 2023 – APAC
Australia
Leave
Family and domestic violence leave increased to ten paid days.
Flexible work
Employers must respond to flexible work requests from employees within 21 days. A request can only be denied if the employer has:
- Discussed the request with the employee
- Made a genuine effort to reach an agreement with the employee on changes to their work arrangements that accommodate their circumstances
- Been unable to reach an agreement with the employee
Limitations on fixed-term contracts
The Secure Jobs, Better Pay Amendment of 2023 has introduced new restrictions on fixed-term contracts. Employers now face civil penalties for offering fixed-term employment contracts that:
- Extend beyond two years
- Can be extended or renewed, resulting in a total contract length exceeding two years
- Continue the same or substantially similar employment relationship and job responsibilities as a previous fixed-term contract, and either:
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- The combined duration of the current and previous contracts exceeds two years
- The current or previous contract includes a renewal or extension option
- The employee has previously been engaged under two consecutive fixed-term contracts
India
Minimum wage
There will be a substantial increase in the minimum wage, raising it 14.5 times to Rs 15,000 per month.
Benefits
- Implementation of new pension schemes for employees in unorganized sectors.
- The replacement of the existing Employees Provident Fund with a social security fund for all employees.
- A monthly increase of Rs 3,500 for old age and disability pensions.
- An increase in the employer’s contribution to the Employees Provident Fund from 10% to 12% of the salary.
