Staying aware of payroll and employment law updates is essential for any business. This is especially true if you have moved overseas or are operating in more than one country. Similarly, suppose you’re looking to expand operations into a new country. In this case, you should make yourself familiar with the most recent developments in local labor law and payroll regulations or partner with someone who already is.
Failure to stay on top of all payroll laws being caught unaware can result in having to pay high fees or fines. It can even endanger the status of your company and its employees overseas. Remaining legally compliant at all times is key to your company’s growth and success.
The following article summarizes important updates in 2022 that may affect your payroll and employment processes in European countries.
· As of April 1st, 2022, the living wage in the United Kingdom has been raised to 9.50 pounds. The government has also increased the minimum wage to 9.18 pounds.
· The statutory pay amount for maternity, paternity, adoption, and shared parental leave has been raised to 156.66 pounds per week as of April 3rd, 2022. Alternately, this can be 90% of an employee’s average weekly earnings.
· A gender equality and diversity bill was enacted on January 1st, 2022. The bill requires business boards to meet specific quotas with a more balanced percentage of men and women appointed to managerial and supervisor roles.
· As of January 1st, 2022, a new payroll tax exemption will be effective for employers to pay employees allowances when working from home. The tax-exempt allowance amount cannot exceed 2 euros per day working from home.
· Portugal’s new remote work laws, effective January 1st, 2022, offer more protection and compensation to those working from home. The rules apply to any company with ten or more employees. Employers are expected to reimburse employees for expenses incurred while working at home, such as electricity bills or internet bills.
· Employers can also now be penalized for contacting employees outside of designated work hours. Monitoring an employee in any way while they work from home is now illegal.
· Employees working from home are also entitled to the same rights, training, compensation, and benefits as those working on site.
· Labor law reform has enabled employees in Belgium to choose a four-day workweek as of February 15th, 2022. Employees must work the same number of hours weekly but over four days. The four-day workweek may be tried out for a temporary period of six months and then extended with agreement from the employee and employer.
· Employees who work at companies with more than 50 workers are no longer required to present a medical certificate when requesting one day’s sick leave.
· Spain has introduced several new labor laws in 2022, including a new minimum wage of 1000 euros a month.
· The MECUIDA Plan, which allows for changes in work hours for those affected by COVID-19, has been extended until June 30th, 2022.
· The minimum hourly wage was increased to 10.57 euros as of January 1st, 2022.
· A new category has been added regarding employment leave allowances: ‘leave for children with chronic disease or cancer.’ Employees in such circumstances are allowed at least two days of paid leave. Employers are not allowed to count these days toward the employees’ annual leave.
· Beginning July 1st, 2022, employees are no longer required to present a physical medical certificate to apply for sick leave. Instead, the employee’s insurer will provide the certificate to the employer digitally.
· The minimum wage will increase to 12 euros by October 1st, 2022.
· Changes to Denmark’s maternity leave have allowed for an equal distribution of paid leave time for both father and mother. Each parent can receive up to 24 weeks of leave after birth. 11 of those weeks are non-transferable. This law is for all infants born after August 2nd, 2022.
· The temporary corona passport act, active since November 26th, 2021, allows employers to require employees to produce a valid corona passport or undergo a COVID-19 test. Employers must give a valid written reason that states the necessity for the test.
Payroll and employment laws are continually subject to changes. Payroll services outsourcing may be a quick and efficient way to reduce your workload per pay period and ensure compliance.
INS Global provides professional payroll outsourcing services to simplify and accelerate global payroll processes. Our advisors are experts in global mobility and provide in-depth knowledge and guidance. With INS Global, you can ensure you stay 100% compliant with all local labor regulations. We stay on-top of all laws and regulations so you don’t have to.
To stay on top of developments in your industry, contact our team of legal experts or join our newsletter today.