Global Employment Tax and Compliance Newsletter. October 2024

Welcome to the October Edition of the Global Employment Insights Newsletter

As global markets and regulations evolve, so do the complexities facing international employers. This month’s newsletter delivers the insights you need to stay informed and ready to navigate these shifts, from new directives in the EU to employer duties in the UK and growing opportunities in Kazakhstan’s emerging tech landscape.

We aim to cut through the noise in every edition and provide clear, actionable updates and strategic guidance. Whether it’s the implications of the latest employment law changes or the best approach to market entry, our October edition equips you to make informed, resilient decisions as you grow your global presence.

European Union 🇪🇺: New Directive on Working Conditions for Platform Workers

The Council of the EU has adopted a new directive to improve working conditions for platform workers. Approved on 14 October 2024, the directive requires digital labour platforms to grant workers an employment status that accurately reflects their work arrangements.

Key Requirements

• Employment Status Alignment: Platforms must classify workers according to their actual work arrangements, ensuring that platform workers receive the rights and protections aligned with their employment status.

Timeline: The directive is expected to enter into force soon, and EU Member States will have two years to implement the changes.

Action Required for Employers: Employers should prepare to review and, if necessary, adjust the employment status of platform workers to meet compliance standards as each Member State adopts the directive.

France 🇫🇷: Updates on Employee Saving Schemes and Diversity Surveys

Employee Saving Schemes and Pensions: A decree issued on 6 July 2024 provides detailed guidelines for the “value sharing” law from November 2023.

Key changes include new cases for early use of profit-sharing funds, specific clauses for profit-sharing agreements, and a requirement for a public “country-by-country” declaration in the BDESE. Starting in 2025, companies with 11+ employees must implement a value-sharing scheme.

Diversity at Work: The French Data Protection Authority (CNIL) has issued draft guidelines for diversity measurement surveys. Recommendations include limiting data collection, excluding sensitive information (e.g., ethnicity, race), and ensuring anonymity and voluntary participation.

CNIL also outlines GDPR compliance requirements, including legal basis, information disclosure, and third-party survey management.

Italy 🇮🇹: New Measures on Fixed-Term Contracts, Hiring Incentives, and Absenteeism

Italy has introduced several legislative updates impacting employment conditions, including compensation for unlawful fixed-term contracts, hiring incentives for young and disadvantaged women, and proposed rules on resignation due to absenteeism.

Key Updates

• Compensation for Unlawful Fixed-Term Contracts: Under Law Decree No. 131/2024, published on 16 September 2024, if a fixed-term contract is deemed unlawful, it will be converted to a permanent one. If more significant damages are proven, the affected employee may also receive compensation for damages beyond 12 months’ salary.
• Hiring Incentives: From 1 September 2024 to 31 December 2025, employers hiring individuals under 35 who have never held a permanent job will be eligible for a 100% social contribution exemption, capped at €500 per month (or €650 in specific southern regions) for up to 24 months. Similarly, employers hiring women unemployed permanently for at least 24 months will receive a 100% social contribution exemption, capped at €650 per month for a maximum of 24 months.
• Resignation Due to Unjustified Absence: A draft law currently under review proposes that employees absent without justification for a period specified in their applicable NCBA or exceeding 15 days will be considered voluntarily resigned and thus ineligible for unemployment benefits.

Timeline: The hiring incentives are active until 31 December 2025, while other legislative changes are effective immediately or under parliamentary discussion.

Employer Actions

Employers should ensure compliance with the new rules on fixed-term contracts and consider the social contribution exemptions when hiring eligible individuals. It is also advisable to monitor developments on the absenteeism draft law.

Netherlands 🇳🇱: Lift of Enforcement Moratorium on Pseudo Self-Employment

The Dutch Tax Authorities will lift the enforcement moratorium on pseudo self-employment (schijnzelfstandigheid) from 1 January 2025. This change increases the risk for organisations that use self-employed individuals (zzp’ers) in roles that could be reclassified as employment under tax and civil law.

End of Moratorium: From January 2025, agreements with self-employed individuals may face reclassification as employment contracts, removing the previous tax-related protection from enforcement.

Employer Actions

Employers should:

1. Map Self-Employed Workforce: Identify all self-employed persons working within the organisation in the Netherlands.
2. Risk Assessment: Evaluate whether current contracts could be at risk of reclassification.
3. Review Contract Renewals: For high-risk contracts, consider renewal terms beyond 1 January 2025 and assess the contractual basis for continued engagements.

Timeline: The moratorium will end on 1 January 2025, with full enforcement resuming from this date.

United Kingdom 🇬🇧: New Employer Duty to Prevent Workplace Sexual Harassment

The UK has introduced legislation requiring employers to take reasonable steps to prevent sexual harassment in the workplace. If an employer fails to meet this duty, employment tribunals may apply a compensation uplift of up to 25% in successful claims.

Additionally, the Equality and Human Rights Commission (EHRC) is updating technical guidance on preventing sexual harassment, which is expected to take effect alongside the new legislation.

Key Requirements

• Preventative Duty: Employers must assess harassment risks, strengthen policies, and prioritise effective prevention.
• Updated Guidance: EHRC’s updated guidance on harassment prevention will replace the need for a standalone statutory Code of Practice with changes incorporated into the statutory Employment Code of Practice.

Employer Actions

Employers should conduct risk assessments, review harassment prevention policies, and implement comprehensive training by 26 October 2024 to comply with the new duty.

Non-Compliance Penalties

Non-compliance could result in compensation uplifts of up to 25% in tribunal awards and potential enforcement actions by the EHRC.

United Kingdom 🇬🇧: Expanded Family-Related Rights for Parents and Carers

New UK legislation introduces enhanced rights for parents and carers, providing additional protections and new types of leave. Key changes include extended redundancy protections, carer’s leave, neonatal leave, and a more flexible structure for paternity leave.

Key Provisions

• Extended Redundancy Protection: Employees on maternity, adoption, or shared parental leave will have extended redundancy protection for up to 18 months after the birth or placement, including protection for pregnant employees who have informed their employer of their pregnancy.
• Carer’s Leave: One week of unpaid leave per year for employees to provide or arrange care for dependants with long-term care needs.
• Neonatal Leave: Parents of a child receiving neonatal care can take up to 12 weeks of leave (one week for each week the child is in care) with statutory pay.
• Flexible Paternity Leave: Paternity leave can now be taken as a single period of one or two weeks or as two separate, non-consecutive one-week periods within the child’s first year. Notice periods for taking paternity leave have also been shortened.

Timeline: Implementation is expected to be phased across 2025, with carer’s leave and extended redundancy protection expected to take effect by 6 April 2025. Employers must update family-related policies and procedures to comply with the new rights as they are introduced.

United Kingdom 🇬🇧: Employment Rights Bill Introduced with Key Workplace Reforms

The UK government published the long-awaited Employment Rights Bill on 10 October 2024, just 100 days after Labour took office.

This bill, accompanied by supporting documents and factsheets, outlines significant proposed reforms in employment rights. Many details will be further clarified through secondary legislation, which will undergo consultations.

Key Areas of Focus

• Support for Low Earners: Consultation on replacement rates for Statutory Sick Pay (SSP) for low earners.
• Collective Redundancy and Fire-and-Rehire: Proposed remedies for issues arising in collective redundancy and fire-and-rehire cases.
• Zero-Hour Contracts: Potential application of zero-hour contract regulations to agency workers.
• Trade Union Reform: Consideration of new measures related to trade union operations.

Timeline: Ongoing consultations began on 21 October 2024, with additional consultations and legislation expected in the coming weeks.

Qatar 🇶🇦: New Law Prioritises Hiring Qatari Nationals in the Private Sector

Qatar’s new Law No. 12 of 2024 mandates that private-sector employers prioritise hiring Qatari nationals and the children of Qatari women over expatriates. This applies to private companies, excluding Qatar Energy affiliates and petroleum firms.

Key Employer Requirements

• Prioritise Qataris: Expat hiring is allowed only if no suitable Qatari candidates are available.
• Qatarisation Plan: The Ministry of Labour will set quotas and oversee hiring practices, requiring employers to report job openings and new hires twice yearly.
• Compliance: Penalties for non-compliance include fines, restrictions on immigration services, and public disclosure.

Timeline: Expected enforcement around March 2025.

Saudi Arabia 🇸🇦: Key Labour Law Amendments to Enhance Worker Conditions

The Saudi Council of Ministers has approved substantial amendments to the Labour Law, effective 19 February 2025, to improve working conditions and support Saudi Vision 2030 goals. Key updates are as follows:

Main Amendments

• Expanded Definitions: New terms include specific definitions for resignation and manpower activities.
• Compensatory Leave: Employers can now provide compensatory leave instead of overtime pay.
• Resignation Process: New rules clarify resignation for employees on fixed-term contracts.
• Contract Adjustments: Revised probation guidelines and updated employment terms for foreign workers.
• Leave Entitlements: Enhanced rights for maternity, parental, and bereavement leave.
• Contract Termination: Bankruptcy and a modified notice period for indefinite contracts are added as a valid reason for termination.
• Disciplinary Rules: Updated guidelines on disciplinary actions.

Employers Actions

Review and update employment contracts, leave policies, and disciplinary procedures by February to ensure compliance.

UAE 🇦🇪: Expanded Emiratisation Compliance and Timelines for Private Sector

Recent updates have expanded the scope and compliance timelines for employers in the UAE’s Emiratisation initiative, which aims to boost Emirati employment in the private sector.

Key Requirements

• Increased Hiring Quotas: Private companies with 50+ employees must raise Emirati hires in skilled roles by 2% annually, achieved through a 1% increase every six months, aiming for a 10% Emirati workforce by 2026.
• Extended Scope: As of July 2023, private sector establishments with 20-49 employees in 14 key sectors must hire at least one Emirati in 2024 and another in 2025.

Employer Actions

• Review Recruitment Processes: Employers must ensure access to Emirati job seekers, enrol in the Nafis scheme, and leverage government support initiatives to meet targets.

Non-Compliance Penalties

• Companies failing to meet quotas face fines of 7,000 AED monthly per unmet Emirati position and restricted MOHRE system access.
• Smaller establishments in key sectors (20-49 employees) face fines of 96,000 AED for missing 2024 targets and 108,000 AED for 2025.

For further guidance, visit the MOHRE website.

UAE 🇦🇪: New Health Insurance System for Private Sector Employees and Domestic Workers

The UAE Cabinet has approved a nationwide health insurance system requiring employers to cover private sector employees and domestic workers without health insurance. This requirement takes effect on 1 January 2025.

Key Requirements

• Employer-Provided Health Coverage: Employers must provide health insurance for all registered employees and domestic workers when their residency permits are issued or renewed.

Employer Actions

Employers should budget for and arrange health insurance for eligible employees by January 2025 to comply with the regulation. The new regulation does not specify penalties for non-compliance, but current fines in Abu Dhabi and Dubai range from AED 300-500 per month per individual.

United States 🇺🇸: Federal Ban on Non-Compete Clauses Awaits Enforcement

The Federal Trade Commission (FTC) approved a Final Rule on April 23, 2024, to ban non-compete agreements for workers, including senior executives, across the U.S. The rule, published on May 7, 2024, aimed to take effect on September 4, but enforcement has been delayed due to a court order issued on August 20, 2024, while the FTC considers an appeal.

Key Requirements

• Ban on New Non-Competes: Employers who enter into new non-compete agreements with workers after the rule’s effective date are considered to be engaging in an unfair method of competition.
• Existing Agreements: Non-competes with non-executive employees will become unenforceable, while those with senior executives—defined as employees earning more than $151,164 annually in policy-making roles—may remain enforceable.

Employer Actions

Employers should closely monitor ongoing legal developments around the rule and seek legal guidance to assess potential impacts and prepare necessary adjustments.

Timeline: The effective date is pending further legal proceedings.

People’s Republic of China 🇨🇳: Gradual Delay of Statutory Retirement Age and Extended Marriage Leave in Zhejiang Province

China has enacted fundamental changes in retirement and marriage leave policies, affecting national and regional employment practices.

Key Provisions

• Gradual Delay of Statutory Retirement Age: Starting 1 January 2025, the retirement age will increase incrementally by one month every four months for most employees. For female employees with a current retirement age of 50, the delay will be one month every two months until they reach 55. The target ages are 63 for men and 58 or 55 for women, depending on their roles.
• Minimum Pension Contribution Period: Beginning in 2030, the minimum contribution period for basic pension eligibility will rise from 15 to 20 years, with a gradual six-month increase annually.
• Flexible Early and Delayed Retirement Options: With mutual agreement, employees meeting contribution requirements can retire up to three years early or delay retirement up to three years after the statutory age.
• Extended Unemployment Insurance Benefits: For individuals within a year of the statutory retirement age, unemployment insurance benefits will extend until retirement age, with pension contributions covered by the unemployment insurance fund during the transition.
• Early Retirement for Special Occupations: Employees in high-risk roles, such as high-altitude or physically demanding jobs, may qualify for earlier retirement.

Zhejiang Province Extended Marriage Leave: Effective immediately as of 27 September 2024, employees in Zhejiang Province are now entitled to 13 days of marriage leave, an increase from the previous three days.

Singapore 🇸🇬: SkillsFuture JobSeeker Support Scheme for Retrenched Employees

Starting 1 April 2025, Singapore will launch the SkillsFuture JobSeeker Support scheme to provide temporary financial assistance to eligible citizens who become unemployed due to retrenchment, business closure, or termination due to illness or injury. The scheme will expand to include Singapore Permanent Residents in Q1 2026.

Eligibility Criteria

• Must be a Singapore citizen (or Singapore Permanent Resident from Q1 2026).
• Unemployment must be due to involuntary reasons, such as retrenchment or business cessation.
• Prior employment of at least 6 months within the 12 months preceding the application.
• Active job-seeking efforts, including job applications, career workshops, or relevant training.
• No prior payouts from the scheme in the last 3 years.

Financial Support

Eligible individuals can receive up to SGD6,000 over 6 months. Payouts begin at SGD1,500 in the first month and decrease over time, capped at the participant’s prior monthly salary. Support ends upon re-employment, and participants are restricted from reapplying within 3 years of their last payout.

Action Required for Employers: Employers may consider this scheme when advising retrenched employees on available financial support options.

100 Questions to Master Global Hiring: Your Guide to Smart Growth

100 Questions to Master Global Hiring by Acumen International is your toolkit for navigating the challenges of global expansion. This guide is designed to prompt the questions that matter most when entering new markets—helping you think through critical areas like compliance, market entry, and local employment laws before they become obstacles.

Instead of ready-made answers, this guide offers questions that reveal potential blind spots, encourage strategic thinking, and help you tailor your approach to each unique market. Whether you’re considering new regions or managing an international team, these questions will help you uncover the insights needed to build a compliant, adaptable workforce and ready to support your growth.

For anyone looking to expand wisely, this article provides a clear path through the complexities of global hiring, making it essential to read as you plan your next steps.

Local Entity vs. Global EOR: Which is Right for Your Expansion?

As global business becomes less about physical assets and more about talent, companies face a pivotal decision: Should they establish a local entity in each market or take a leaner approach with a Global Employer of Record (EOR)?

This article from Acumen International explores both strategies, providing insights to help businesses weigh costs, control, and flexibility. For companies looking to fully commit to a market, establishing a local entity offers advantages like deep local integration, eligibility for tax incentives, and direct operational control.

However, it demands a substantial investment and carries complex exit risks, especially in markets with strict labour laws.

On the other hand, the Global EOR model supports a faster, lower-risk entry. With a Global EOR, businesses can “rent” a compliant employment infrastructure, allowing them to quickly onboard talent across borders, test new markets, and pivot without a local entity setup's legal and financial complexities.

This model suits companies seeking flexibility and scalability, particularly in uncertain or multiple markets.

The article’s checklist provides essential questions for choosing the right approach for any business exploring international growth. With clear, actionable insights, this guide is a valuable tool for leaders deciding how to expand globally while effectively managing risks and resources.

Transforming Global Employment: Trusted Advisor Approach

Stuart Creasey explores how global employment solutions evolve from transactional services to strategic partnerships. Drawing from Acumen International’s over 20 years of experience, he highlights that successful international workforce management requires more than technology — it relies on human expertise and a nuanced understanding of each market.

The article outlines principles that guide Acumen’s approach to global expansion. It focuses on aligning closely with client goals, addressing local compliance challenges, and planning proactively for long-term resilience. These insights offer companies a path to establish and sustain a strong international presence, supported by thoughtful, hands-on guidance.

Kazakhstan as Central Asia’s Innovation Hub: A Guide to Growth Opportunities

Kazakhstan is fast emerging as Central Asia’s tech and innovation hub, with government initiatives fostering a pro-innovation environment to diversify its economy beyond oil and gas. Programs like “Digital Kazakhstan” and the establishment of the Astana Hub and the Astana International Financial Centre (AIFC) are paving the way for startups, attracting investment, and nurturing a digital economy.

Kazakhstan’s strategic location between Europe and Asia makes it a key player in the “Digital Silk Road,” enabling access to markets in China and nearby regions.

Major developments, such as Kaspi.kz’s expansion into Turkey, showcase the potential for local tech companies to grow regionally and globally. Sectors like fintech, AI, health tech, and SaaS are seeing increased investment, and government-backed initiatives like Tech Orda aim to build a strong tech talent pipeline.

For companies looking to tap into Central Asia’s growing digital landscape, this guide offers a practical overview of Kazakhstan’s opportunities, investment trends, and the strategic role of a flexible EOR model in easing market entry and expansion.

Global Payroll Calculator – Your Precision Tool for Global Employment Cost Analysis

The Global Payroll Calculator (GPC) offers a solution for instantly calculating employment costs across 190+ countries, streamlining your global hiring strategy and ensuring cost-effective decisions.

Key Features & Benefits for International Hiring

• Instant Cost Calculations: Quickly determine total employment costs, factoring in real-time tax rates and benefits for local and foreign talent in 190+ countries.
• Precision & Clarity: Achieve precise payroll calculations with detailed breakdowns of all payroll variables, ensuring transparency and preventing unexpected costs.
• Cross-Country Comparisons: Use GPC to instantly compare employment costs between countries, helping you identify the best locations for hiring.

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