Work/Life: international employment news update

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Issue 72

Welcome to the latest edition of our international employment news update.

UAE to introduce flexible work permit for freelancing

The UAE is set to introduce a flexible work permit to benefit the country's economy by allowing people of all skill levels to take up freelance roles. The new permit, which is expected to be launched by the third quarter of 2023, will enable freelance workers to work flexibly within the UAE or from around the world.

Chancellor abolishes pensions cap in England

The lifetime allowance limit for pension contributions, which was previously set at GBP1 million, has been abolished in the recently announced Spring Budget. Depending on the earnings level, workers will now also be able to contribute up to 50% more to their pensions each year before being subject to tax, as the annual tax-free allowance is to be increased from GBP40,000 to GBP60,000.

Expansion of electric vehicle market across Europe

China's BYD, which is one of the world’s largest electric car manufacturers, plans to build a car factory in Hungary, with the aim of starting production for the European market in 2025. This follows the partnership announced in the final quarter of 2022, under which BYD initially sold around 100,000 electric cars to Sixt, the German car rental company, with plans to sell more in the future.

Expansion of free childcare in England to help parents return to work

Free childcare is set to be expanded for parents in England, to cover all children under five by September 2025, in a bid to help parents with young children return to work. It is estimated that this could increase revenue by up to GBP10 billion, justifying the high cost of implementation. Meanwhile the pension cap proposals reported above are criticised for not being likely to facilitate the return to work of over 50s.

French Labour Code adapted to reflect European law

Adaptations to the French Labour Code reflect two European directives providing for “work-life balance for parents and caregivers” and “transparent and predictable working conditions”. The Code now contains provisions, notably in terms of trial periods, leave for family events and written information on the essential elements of the employment relationship, to be provided to recruited employees.

Danish tax proposal may see men receive almost four times more benefit than women

A planned tax break, which will affect some of Denmark’s richest, is set to worsen the country’s gender wage gap (which is already falling behind other Nordic countries). The new tax proposal for high earners will mean that men will get a combined EUR2.33 billion in extra income this year, while women will get about EUR630 million, according to calculations by the finance ministry.

App-based drivers can be treated as contractors in California

The San Francisco Appeal Court rules that companies engaging gig workers, such as Uber and Lyft, can continue to treat workers as independent contractors rather than employees in the state of California. The court found that a labour measure "Proposition 22" was constitutional and it also removed a restriction on workers' collective bargaining rights.

Cost of living reforms in Poland

From March 2023, pensioners and retirees in Poland will see a historical increase in pensions and retirement benefits. The increase is the highest in over 30 years, with an average of 7.8% for pensions and 6.3% for disability benefits. The reform is part of the government's efforts to address the needs of vulnerable groups and reduce poverty across the country.