Welcome to the October 2023 edition of the Global Employment Tax and Compliance Newsletter. This month, we have curated a selection of topics at the forefront of regulatory shifts and strategic planning across the world.
Whether you are an employer adjusting to newly minted regulations or a global employment solutions provider, this edition aims to equip you with the insights you need for operational excellence in a dynamic environment.
🇮🇹 Italy Announces Work Visa Quotas for 2023–2025
Overview
In a recent development, the Italian government has published a decree outlining the number of non-EEA workers allowed in the country for the period of 2023 to 2025. The cap is set at 450,000, with 136,000 quotas allocated for 2023 alone. This has important implications for organisations planning their staffing strategies in Italy.
Key Dates
Application Timelines
Quota Categories
The 136,000 quotas for 2023 are distributed as follows:
Seasonal Work: 82,550 quotas, focused on agriculture and the hospitality and tourism sectors, reserved for certain nationalities.
Subordinate & Self-Employed Work: 53,450 quotas, further broken down as 52,770 for employee work and 680 for self-employment.
Specific Nationalities : 25,000 quotas for nationals of designated countries, including Albania, Egypt, and India, among others.
Cooperative Agreement Countries : 12,000 quotas reserved for future cooperation agreements.
Special Categories: Specific quotas for Italian ancestry holders in Venezuela, stateless persons, refugees, family care and support services, and more.
Strategic Considerations
Planning ahead in line with these quotas can significantly streamline your immigration and staffing strategy in Italy.
🇪🇺 EU Extends Temporary Protection for War-Displaced Ukrainians Through March 2025
Overview
The European Council has agreed to extend temporary protection status for Ukrainians displaced by the ongoing war in their homeland. Initially activated on 4 March 2022, this status has now been extended through 4 March 2025, providing clarity and assurance for both affected individuals and their employers within the EU.
Key Extension Details
Extended Duration: From 4 March 2024 to 4 March 2025
Governing Directive: EU Directive 2001/55/EC
Eligibility: Specific to Ukrainians displaced on or after 24 February 2022 due to military actions.
Why Matters
This decision has immediate and significant consequences:
Categories Covered
The directive covers:
Future Considerations
The temporary protection is slated to end in March 2025. Discussions are ongoing about subsequent steps, and organisations should stay alert for updates that may impact staffing strategies.
🇬🇧 United Kingdom Issue Updated Travel Advisories for Israel
Overview
In the wake of escalating conflicts between Israel and Hamas, the United Kingdom has updated the travel advisories concerning Israel. To safeguard their citizens, government-supported flights have been organised for the repatriation or relocation to safe third countries of U.K. nationals currently in Israel.
State of Emergency
The U.K. government has announced that a state of emergency is in effect across Israel. Unexpected border closures, both air and land, are a possibility in Israel and the Occupied Palestinian Territories (OPTs).
U.K. Advisory
The U.K. government has updated its travel advice and is requesting British nationals currently in Israel to inform the government and to comply with plans for their safe exit from the country.
Why It's Important
Key Points to Note
🇦🇺 Australia – U.K. Innovation and Early Careers Skills Exchange Pilot (IECSEP)
Overview
The Innovation and Early Careers Skills Exchange Pilot (IECSEP) is an initiative designed to offer short-term employment opportunities in Australia for innovative and early-career professionals from the United Kingdom. This programme is part of the Australia-United Kingdom Free Trade Agreement (A-UKFTA).
Availability and Future Projections
Initially, there will be 1,000 visas made available during the first-year pilot of the IECSEP. This allocation will double to 2,000 visas in the second year, at which point the programme will also be reviewed.
Two Key Streams
Age: 21-45 years
Qualifications : Tertiary education required
Work Experience: At least 3 months in the current organisation
Duration: Up to one year in Australia
Age: No age limit
Expertise: Must demonstrate innovative contributions
Sectors : R&D, Renewable Energy, AI, Medical Tech, etc.
Duration: Up to three years in Australia
Application Steps
OECD Update on International Tax Reform Provided to G20 Finance Ministers (October 2023)
Understanding the Latest Multilateral Convention by the OECD/G20 Inclusive Framework on International Taxation
Highlights
The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting has released a new Multilateral Convention. This marks a significant step toward the finalisation of the Two-Pillar Solution, designed to tackle tax issues emerging from the digitalisation and globalisation of the economy.
Overview
The Multilateral Convention to Implement Amount A of Pillar One (MLC) is the latest development from the OECD/G20 Inclusive Framework, aiming to align international tax policies with 21st-century realities. It will soon be discussed at a meeting of G20 Finance Ministers and Central Bank Governors in Morocco.
What MLC Achieves
Ongoing Discussions
There is a broad consensus on most aspects of the MLC. However, a few issues are still under negotiation among a small number of jurisdictions that are constructively working to resolve them.
Financial Implications
Pillar One is expected to affect about USD 200 billion in profits annually, leading to global tax revenue gains of between USD 17-32 billion. Low and middle-income countries stand to benefit the most from this redistribution.
Developments on Pillar Two
Closing Remarks
The release of the MLC is a monumental step in modernising international tax law. It aligns closely with the Two-Pillar Solution's objectives to tackle tax complexities arising from globalisation and digitalisation. OECD Secretary-General Mathias Cormann calls it a "fundamental reform" in making international taxation fairer and more relevant in today's digital age.
🇬🇬 New Statutory Minimum Wage Rates in Guernsey Effective from 1 October 2023
Effective from 1 October 2023, Guernsey has updated its statutory minimum wage rates for adults and young persons. These changes also include adjustments to the maximum weekly 'offset' rates for accommodation and food provided by employers.
Additional Information
Entitlement : Under Guernsey Law, almost all workers are entitled to a minimum wage. The rules apply uniformly regardless of business size or if a private individual employs the worker.
🇬🇧Navigating Employment Practices Under UK Competition Law: CMA Guidance
Introduction:
The UK's Competition and Market Authority (CMA) has outlined how competition law impacts employment practices, specifically regarding wage-setting and employee recruitment and retention. The advisory is aimed to help employers stay on the right side of the law.
Risky Behaviours in Labour Markets
Preventive Measures
To avoid breaking the law, the CMA recommends that employers:
Consequences for Violation
Fines can amount to as much as 10% of a business's global annual turnover. Individuals may also face penalties, including imprisonment for up to 15 years.
Reporting
The CMA encourages reporting of anti-competitive behaviours and offers leniency options, including reduced fines and immunity from prosecution under certain conditions.
🇳🇱Dutch Senate Turns Down 'Work Where You Want' Act
The Dutch Senate has rejected the 'Work Where You Want' Act a year after its approval by the Dutch parliament. Despite its dismissal, current law mandates employers to consider requests for remote work, as outlined in the existing Flexible Working Act.
What Was the 'Work Where You Want' Act?
The rejected bill aimed to strengthen employees' rights to work remotely within the European Union. If enacted, employers would have been required to permit remote work, so long as the request aligned with reasonableness and fairness, considering all involved circumstances.
Ambitions of the Rejected Bill
The bill, formally known as the Act Working Wherever You Want, had the ambitious goal of revolutionising workplace flexibility. It was crafted to compel employers to accommodate requests from employees wishing to work remotely within the EU. The requirement for employer compliance hinged on a set of nuanced criteria, namely the balance between employer interests and employee needs, evaluated against a framework of reasonableness and fairness.
Reasons for Senate Rejection
Despite its transformative aims, the Senate struck down the bill, citing multiple concerns. The legislative body argued that the bill’s prescriptive nature would corner employers into an inflexible operational model, hampering their ability to manage business activities effectively. The Senate also questioned the potential adverse effects on employee productivity and workplace morale if the bill were enacted.
Government Commitment to Remote Work Flexibility
Despite the setback, the Dutch government has reaffirmed its commitment to enhancing remote work options. In a recent statement, it declared a vested interest in simplifying remote work conditions for employees while maintaining managerial effectiveness for employers.
Recommendations for Employers
The act could have had far-reaching implications for Dutch businesses. Employers would need to consider foreign employment law and navigate complex tax and social security issues, especially if employees sought to work from other countries. Despite the act's rejection, employers should still assess workplace adjustment requests as per the Flexible Working Act. Employers should formulate a clear hybrid working policy, including guidelines on how to handle remote work requests.
Halloween Spooktacular Feature: Navigate the "Haunted House" of Global Employment with Laughter! 🎃🌍
This Halloween, take a break from the ghouls and ghosts to dive into a different kind of adventure—the labyrinth of global employment! If you've ever felt navigating international employment laws is like walking through a haunted house 👻, you'll love our featured video, "Global Employment Adventure: The Fun & Frustration Comedy!" 🎬
From the tricks of payroll budgeting in foreign currencies 💱 to the threats of making sense out of complex employment laws 📜, this comedy video tackles it all. Think hiring contractors is the magic potion 🧙♂️ for avoiding complexity? Think again! Misclassifying workers can lead to a real witch-hunt 🚫.
But don't fret; our video introduces you to Express Global Employment, your guiding light 🌟 for compliant and headache-free global expansion.
Watch and learn how to make your employment journey more treat than trick 🍬!
Global Employment Adventure: Fun & Frustration Comedy
Wrapping Up This Spooktacular Edition 🎃👻
As we draw the curtains on this Halloween edition of our newsletter, we'd like to extend a big thank you for joining us on this global employment adventure 🌍🎬.
We hope the insights and resources we've shared, including our feature video, have been enlightening and entertaining.
As the nights grow longer, remember: global expansion doesn't have to be a haunting experience. Armed with the right information, you can turn any challenge into an opportunity 🌟. Together, let's do so to make your global employment journey more sweet than spooky! 🍬👻
