The document summarizes changes to early pension, bridge pension, time credit and other employment measures from Belgium's Di Rupo I coalition agreement. Key changes include gradually increasing the minimum age and career length required for early pension from 2013-2016. Bridge pensions will also require longer careers of 35-40 years and the age will increase to 60 by 2015. Time credit can now be taken for up to 36 months for specific reasons like childcare or training.
Rollits Employment Law Breakfast Briefing March 2013Pat Coyle
Employment law presentation reviewing key developments in employment law in 2012, and looking ahead to issues which will impact upon employers and employees alike in 2013, including a focus on apprenticeships
Overview of UAE Labour Law and Employee Relations: A Practitioner’s Perspecti...The HR Observer
This document provides an overview of employment law essentials from an HR perspective in the UAE. It covers topics such as legal business structures and licenses, employment contracts, termination of employment and gratuity payments, and employee relations matters. For licenses, it describes commercial, industrial and professional licenses. It also outlines partnership, sole ownership and visa regulations. For contracts, it discusses limited, unlimited and internal employment contracts as well as termination processes. It provides details on end of service gratuity calculations for limited and unlimited contracts. Finally, it offers guidance on handling performance management, grievances, discipline, sickness, and bullying in the workplace.
These seminars are aimed at anyone who deals with employment law on a day to day basis, including HR managers and HR directors.
At these events we present an overview of what we consider to be the most significant cases decided in 2014, and what they teach about managing your workforce – together with our practical tips.
Also hear about what is coming up in 2015, and how you can get ready for what will be another busy year in employment law.
Topics that are covered include:
• changes to TUPE
• changes to flexible working
• shared parental leave
• the holiday pay cases
• equal pay audits
• social media
• zero hours contracts
• discrimination update
• what’s coming up in 2015.
FRS102 - The New Accounting Standard for UK Businesses and the Reporting Requ...David Richter
FRS 102 introduces new accounting standards for UK businesses that will impact HR departments. It requires companies to calculate accrued employee benefits like unused holiday pay and provide this information to finance. HR must also report data on employee headcounts, termination benefits and other long-term employee costs. The standard provides more guidance around classifying and quantifying employee costs for financial reporting.
HR- Slide Desk- SMC global Securities LimitedAsiyaBano5
The HR policy document outlines the company's policies on working hours, leaves, payroll cycle, dress code, and employee benefits. Key details include:
- Working hours are 9 hours per day Monday through Friday, with provisions for grace time and flexi hours.
- Employees receive 12 casual leaves and 16 privileged leaves per year.
- The payroll cycle is from the 26th to 25th of every month.
- The dress code is formal wear from Monday to Friday and casual on Saturdays.
- Employee benefits include group medical insurance, group term life insurance, provident fund, and an employee referral bonus program.
This document summarizes key aspects of the 2012 UK pension reforms introducing automatic enrollment of eligible employees into qualifying pension schemes. Major points include: employers will be required to automatically enroll eligible jobholders earning over £8,105 per year into a pension scheme and contribute a minimum amount; contribution requirements will be phased in over time, eventually reaching 3% from employers and 5% total; employers should prepare for their staging date when the requirements begin by assessing their workforce, reviewing existing pension provisions, and communicating the changes to employees.
Rollits Employment Law Breakfast Briefing March 2013Pat Coyle
Employment law presentation reviewing key developments in employment law in 2012, and looking ahead to issues which will impact upon employers and employees alike in 2013, including a focus on apprenticeships
Overview of UAE Labour Law and Employee Relations: A Practitioner’s Perspecti...The HR Observer
This document provides an overview of employment law essentials from an HR perspective in the UAE. It covers topics such as legal business structures and licenses, employment contracts, termination of employment and gratuity payments, and employee relations matters. For licenses, it describes commercial, industrial and professional licenses. It also outlines partnership, sole ownership and visa regulations. For contracts, it discusses limited, unlimited and internal employment contracts as well as termination processes. It provides details on end of service gratuity calculations for limited and unlimited contracts. Finally, it offers guidance on handling performance management, grievances, discipline, sickness, and bullying in the workplace.
These seminars are aimed at anyone who deals with employment law on a day to day basis, including HR managers and HR directors.
At these events we present an overview of what we consider to be the most significant cases decided in 2014, and what they teach about managing your workforce – together with our practical tips.
Also hear about what is coming up in 2015, and how you can get ready for what will be another busy year in employment law.
Topics that are covered include:
• changes to TUPE
• changes to flexible working
• shared parental leave
• the holiday pay cases
• equal pay audits
• social media
• zero hours contracts
• discrimination update
• what’s coming up in 2015.
FRS102 - The New Accounting Standard for UK Businesses and the Reporting Requ...David Richter
FRS 102 introduces new accounting standards for UK businesses that will impact HR departments. It requires companies to calculate accrued employee benefits like unused holiday pay and provide this information to finance. HR must also report data on employee headcounts, termination benefits and other long-term employee costs. The standard provides more guidance around classifying and quantifying employee costs for financial reporting.
HR- Slide Desk- SMC global Securities LimitedAsiyaBano5
The HR policy document outlines the company's policies on working hours, leaves, payroll cycle, dress code, and employee benefits. Key details include:
- Working hours are 9 hours per day Monday through Friday, with provisions for grace time and flexi hours.
- Employees receive 12 casual leaves and 16 privileged leaves per year.
- The payroll cycle is from the 26th to 25th of every month.
- The dress code is formal wear from Monday to Friday and casual on Saturdays.
- Employee benefits include group medical insurance, group term life insurance, provident fund, and an employee referral bonus program.
This document summarizes key aspects of the 2012 UK pension reforms introducing automatic enrollment of eligible employees into qualifying pension schemes. Major points include: employers will be required to automatically enroll eligible jobholders earning over £8,105 per year into a pension scheme and contribute a minimum amount; contribution requirements will be phased in over time, eventually reaching 3% from employers and 5% total; employers should prepare for their staging date when the requirements begin by assessing their workforce, reviewing existing pension provisions, and communicating the changes to employees.
Active Business Series - 2012 Pension Reform - March 2012nevillebeckhurst
This document summarizes key aspects of the 2012 UK pension reforms introducing automatic enrollment of eligible employees into qualifying pension schemes. Major points include: employers will be required to automatically enroll eligible jobholders earning over £8,105 per year into a pension scheme and contribute a minimum amount; contribution levels will be phased in over time up to 3% from employers and 5% from employees by 2018; employers should assess their staging date, identify who needs to be enrolled, review their current pension provisions, and communicate the changes to employees.
PPACA Update: How The Affordable Care Act Will Affect Employersgnapartners
The document discusses how the Affordable Care Act, or ACA, will affect employers in 2014 and 2015. It covers the status of the individual mandate, details of the employer mandate including the "pay or play" provisions, and how to determine if an employer is an applicable large employer subject to the mandate. It provides an overview of key deadlines and guidelines for employers to determine their responsibilities and penalties under the ACA.
The document provides an overview of how the Affordable Care Act (ACA) will affect employers, including:
1) The individual mandate and employer mandate ("pay or play") provisions are still in effect but some have been delayed, such as the employer mandate being delayed until 2015.
2) The employer mandate applies to "applicable large employers" (ALEs) defined as those with 50 or more full-time equivalent employees.
3) ALEs face penalties under the employer mandate if they do not offer affordable minimum essential coverage to their full-time employees, with different penalties for failing to offer coverage ("A penalty") versus failing to offer affordable/minimum value coverage ("B penalty").
Are You Ready for the Next Wave of Health Care Reform?Bret Clark
Practical overview of what employers should be doing to avoid ACA shared responsibility penalties; how to track full-time employees; ACA reporting requirements; analysis of developing health plan structures.
This document provides a 9-step guide for employers to prepare for upcoming automatic enrolment pension regulations in the UK. It outlines key dates when the regulations will be phased in for different sized employers, as well as the criteria for qualifying pension schemes and minimum contribution requirements for defined contribution and hybrid plans. It also discusses options for using the National Employment Savings Trust, opting in/out processes, and tax implications. Employers are advised to start preparing by establishing their staging date, assessing their responsibilities, reviewing procedures, and preparing communications.
The Voluntary Retirement Scheme (VRS) allows employees to voluntarily retire before their scheduled retirement date. Companies use VRS to reduce surplus staffing levels during economic downturns or organizational restructuring due to mergers or new technologies. The VRS guidelines stipulate that an employee must have completed 10 years of service or be over age 40 to qualify. If accepted, the employee's vacancy cannot be refilled and they cannot be rehired by the same company. While VRS can help reduce costs, it also causes uncertainty for employees and losing experienced staff can negatively impact operations. Ensuring transparency and support for remaining employees are important challenges when implementing a VRS.
The Voluntary Retirement Scheme (VRS) allows employees to voluntarily retire before their scheduled retirement date. Companies use VRS to reduce surplus staffing levels during economic downturns or organizational restructuring due to mergers, acquisitions or technological changes. The VRS guidelines stipulate that an employee must have completed 10 years of service or be over age 40 to be eligible. Implementation of VRS requires transparent communication, consideration of alternatives, and arrangement of funds. While VRS lowers staffing costs, it can increase uncertainty among remaining employees and result in the loss of talented workers.
Linklaters Alert Dutch government and social partners announce changes to emp...Martijn van Broeckhuijsen
The Dutch government and social partners reached an agreement to change employment and pensions laws. Key points of the agreement include: 1) Dismissal laws will change in 2016, with economic or illness dismissals handled by a government agency or sector committees, and performance dismissals handled in courts. 2) A mandatory two week reflection period will be introduced for mutually agreed termination. 3) Transitional allowances for dismissed employees will be calculated based on years of service and capped at €75,000 or one year's salary. 4) Publicly financed unemployment benefits will be gradually reduced to 24 months by 2016.
The document summarizes Finland's 2017 pension reform. Key points of the reform include gradually raising the earliest eligibility age for an old-age pension to 65, then linking it to increases in life expectancy. The accrual rate for pension contributions will become a uniform 1.5% throughout one's working life. A new years-of-service pension will also be introduced for those with long and physically demanding careers. The goals of the reform are to raise the effective retirement age to 62.4 years by 2025, reduce Finland's fiscal sustainability gap, and promote employment and equitable, sustainable pension funding.
The document discusses a case study of converting a defined benefit pension plan to a hybrid defined contribution plan. Key points:
- The hybrid plan design aims to replicate future benefits under a defined contribution plan while preserving early retirement subsidies, bridging benefits, and cost-of-living adjustments from the defined benefit plan.
- Employees receive replacement income from three sources: employer contributions to the hybrid plan, individual savings, and social insurance. Target replacement ratios range from 75-85% of pre-retirement income.
- The hybrid plan provides higher contribution rates for older, longer-serving "grandfathered" employees to make up for less time to accumulate savings compared to younger employees.
- Projected replacement
Belgium Introduces Changes to Employment Law RegulationsNair and Co.
Belgian Official Gazette recently published a new employment regulation outlining employment termination notice periods for both blue and white collar employees, effective 1 January 2014.
This document summarizes the key differences between Bahrain's old Labour Law from 1976 and the amended Labour Law from 2012. The amended law expands the scope of the law to include more workers such as domestic staff. It increases benefits like annual leave, sick leave, and maternity leave. It also strengthens employee protections against unlawful termination through increased termination indemnities. Non-compliance penalties were increased in the amended law as well. Dispute resolution was changed to be handled within the Labour Administration and Courts rather than through arbitration.
One of the most comprehensive and affordable Employment Law events for HR and business professionals on the North-West business calendar.
Recent and forthcoming legislation
NDAs, whistleblowing & sexual harassment
Off-payroll working (IR35)
Case Law update
Information and consultation of employees
Mental health - Legal obligations and responsibilities
Panel Q&A Your questions answered
Our Experts
Mark Hammerton is a Partner (Human Resources Practice Group) with substantial experience in employment law. He is an expert in TUPE, restructuring, whistleblowing, complex disciplinary/grievance matters, executive severance, mass equal pay claims and employment status (including agency workers).
Jenny Mann is a Senior Associate (Human Resources Practice Group) handling both contentious and non contentious matters, providing pragmatic advice to employers on a wide range of employment issues.
Chloe Themistocleous is an Associate specialising in Employment Law. She has a wealth of experience in Tribunal litigation, including claims for unfair dismissal, all types of discrimination and whistleblowing. Chloe has also successfully conducted large scale redundancy litigation cases involving up to 350 parties. In addition to her Employment Tribunal work, Chloe provides employment law and human resources advice and training to businesses
James Boffey (Trainer in Good Practice Services) is a regular at our masterclasses and always delivers highly engaging and informative sessions. This year with increased focus on wellbeing, James discussed the legal obligations and requirements for employers on mental health. James has worked with a range of public and private sector organisations across the North West and provides advice, training and support to both staff and management; improving employment relations and business performance.
This document summarizes key issues related to employee benefits for healthcare employers, including an overview of health care reform requirements. It discusses the play or pay rules and employer reporting requirements under the Affordable Care Act, including details on determining full-time employees, calculating penalties, and required reporting information. It also briefly outlines other ACA topics like 90-day waiting periods, PCORI and reinsurance fees, nondiscrimination rules, and executive compensation audits.
The document summarizes Israeli labor law, including minimum wage rates, working time limits, overtime pay, vacation and leave policies. It outlines requirements for written employment terms, travel expenses, rest breaks, night work limits, maternity leave, military leave, and dismissal procedures. The Labor Law Department at Meitar Law Offices provides representation and consultation on employment matters to large Israeli employers and multinational companies operating in Israel.
This document summarizes key aspects of the UK's automatic enrolment pension scheme. It discusses employer duties including enrolling eligible employees, minimum contribution requirements, and record keeping. It covers which employees must be enrolled, opt-out rules, and potential penalties for non-compliance. Finally, it provides guidance on using existing pension schemes and strategies for managing costs such as postponing enrollment and salary sacrifice arrangements.
Pensions and Auto-Enrolment document discusses:
1) The need for pension reforms due to increased job mobility, funding problems from final salary pensions, and an aging population.
2) The UK government's solution of requiring all employers to offer a workplace pension through automatic enrollment of eligible employees by 2018, with minimum contribution rates that increase over time.
3) Employers' responsibilities to choose a pension provider, communicate the changes, ensure compliance, and face penalties for noncompliance.
The document summarizes changes to Dutch dismissal law as of 2015, including:
- The dual dismissal system and preventive test were maintained, with the goal of focusing more on work security rather than job security.
- Compensation amounts were lowered and routes to appeal were improved to make the system fairer and simpler.
- Grounds for dismissal were expanded to include frequent sickness absence or dysfunction after improvement measures. The process for requesting dismissal permission from UWV was also streamlined.
- Record keeping requirements were strengthened to properly substantiate dismissal cases. Transition compensation rules and the chain system for temporary contracts were also revised.
The UK government is implementing pension reforms that will require employers to automatically enroll eligible employees into a qualifying pension scheme and make contributions on their behalf. Under the reforms, employers will stage when their duties begin between 2012-2018 depending on company size. Employers must put systems in place before their staging date to comply with automatic enrollment legislation.
Pensions Regulator - automatic enrolment for accountantsHenry Tapper
The document provides an overview of automatic enrolment legislation in the UK, including employer duties, progress to date, and future developments. Over 540,000 employers have completed declarations covering 25 million workers, of which 10 million were already in a qualifying pension scheme. Upcoming changes include the end of transitional arrangements for defined benefit schemes in 2017, the completion of staged employers in early 2018, and increases in minimum contribution rates that year and in 2019. The document reviews which workers must be enrolled, exceptions, qualifying earnings thresholds, and other key aspects of automatic enrolment.
Active Business Series - 2012 Pension Reform - March 2012nevillebeckhurst
This document summarizes key aspects of the 2012 UK pension reforms introducing automatic enrollment of eligible employees into qualifying pension schemes. Major points include: employers will be required to automatically enroll eligible jobholders earning over £8,105 per year into a pension scheme and contribute a minimum amount; contribution levels will be phased in over time up to 3% from employers and 5% from employees by 2018; employers should assess their staging date, identify who needs to be enrolled, review their current pension provisions, and communicate the changes to employees.
PPACA Update: How The Affordable Care Act Will Affect Employersgnapartners
The document discusses how the Affordable Care Act, or ACA, will affect employers in 2014 and 2015. It covers the status of the individual mandate, details of the employer mandate including the "pay or play" provisions, and how to determine if an employer is an applicable large employer subject to the mandate. It provides an overview of key deadlines and guidelines for employers to determine their responsibilities and penalties under the ACA.
The document provides an overview of how the Affordable Care Act (ACA) will affect employers, including:
1) The individual mandate and employer mandate ("pay or play") provisions are still in effect but some have been delayed, such as the employer mandate being delayed until 2015.
2) The employer mandate applies to "applicable large employers" (ALEs) defined as those with 50 or more full-time equivalent employees.
3) ALEs face penalties under the employer mandate if they do not offer affordable minimum essential coverage to their full-time employees, with different penalties for failing to offer coverage ("A penalty") versus failing to offer affordable/minimum value coverage ("B penalty").
Are You Ready for the Next Wave of Health Care Reform?Bret Clark
Practical overview of what employers should be doing to avoid ACA shared responsibility penalties; how to track full-time employees; ACA reporting requirements; analysis of developing health plan structures.
This document provides a 9-step guide for employers to prepare for upcoming automatic enrolment pension regulations in the UK. It outlines key dates when the regulations will be phased in for different sized employers, as well as the criteria for qualifying pension schemes and minimum contribution requirements for defined contribution and hybrid plans. It also discusses options for using the National Employment Savings Trust, opting in/out processes, and tax implications. Employers are advised to start preparing by establishing their staging date, assessing their responsibilities, reviewing procedures, and preparing communications.
The Voluntary Retirement Scheme (VRS) allows employees to voluntarily retire before their scheduled retirement date. Companies use VRS to reduce surplus staffing levels during economic downturns or organizational restructuring due to mergers or new technologies. The VRS guidelines stipulate that an employee must have completed 10 years of service or be over age 40 to qualify. If accepted, the employee's vacancy cannot be refilled and they cannot be rehired by the same company. While VRS can help reduce costs, it also causes uncertainty for employees and losing experienced staff can negatively impact operations. Ensuring transparency and support for remaining employees are important challenges when implementing a VRS.
The Voluntary Retirement Scheme (VRS) allows employees to voluntarily retire before their scheduled retirement date. Companies use VRS to reduce surplus staffing levels during economic downturns or organizational restructuring due to mergers, acquisitions or technological changes. The VRS guidelines stipulate that an employee must have completed 10 years of service or be over age 40 to be eligible. Implementation of VRS requires transparent communication, consideration of alternatives, and arrangement of funds. While VRS lowers staffing costs, it can increase uncertainty among remaining employees and result in the loss of talented workers.
Linklaters Alert Dutch government and social partners announce changes to emp...Martijn van Broeckhuijsen
The Dutch government and social partners reached an agreement to change employment and pensions laws. Key points of the agreement include: 1) Dismissal laws will change in 2016, with economic or illness dismissals handled by a government agency or sector committees, and performance dismissals handled in courts. 2) A mandatory two week reflection period will be introduced for mutually agreed termination. 3) Transitional allowances for dismissed employees will be calculated based on years of service and capped at €75,000 or one year's salary. 4) Publicly financed unemployment benefits will be gradually reduced to 24 months by 2016.
The document summarizes Finland's 2017 pension reform. Key points of the reform include gradually raising the earliest eligibility age for an old-age pension to 65, then linking it to increases in life expectancy. The accrual rate for pension contributions will become a uniform 1.5% throughout one's working life. A new years-of-service pension will also be introduced for those with long and physically demanding careers. The goals of the reform are to raise the effective retirement age to 62.4 years by 2025, reduce Finland's fiscal sustainability gap, and promote employment and equitable, sustainable pension funding.
The document discusses a case study of converting a defined benefit pension plan to a hybrid defined contribution plan. Key points:
- The hybrid plan design aims to replicate future benefits under a defined contribution plan while preserving early retirement subsidies, bridging benefits, and cost-of-living adjustments from the defined benefit plan.
- Employees receive replacement income from three sources: employer contributions to the hybrid plan, individual savings, and social insurance. Target replacement ratios range from 75-85% of pre-retirement income.
- The hybrid plan provides higher contribution rates for older, longer-serving "grandfathered" employees to make up for less time to accumulate savings compared to younger employees.
- Projected replacement
Belgium Introduces Changes to Employment Law RegulationsNair and Co.
Belgian Official Gazette recently published a new employment regulation outlining employment termination notice periods for both blue and white collar employees, effective 1 January 2014.
This document summarizes the key differences between Bahrain's old Labour Law from 1976 and the amended Labour Law from 2012. The amended law expands the scope of the law to include more workers such as domestic staff. It increases benefits like annual leave, sick leave, and maternity leave. It also strengthens employee protections against unlawful termination through increased termination indemnities. Non-compliance penalties were increased in the amended law as well. Dispute resolution was changed to be handled within the Labour Administration and Courts rather than through arbitration.
One of the most comprehensive and affordable Employment Law events for HR and business professionals on the North-West business calendar.
Recent and forthcoming legislation
NDAs, whistleblowing & sexual harassment
Off-payroll working (IR35)
Case Law update
Information and consultation of employees
Mental health - Legal obligations and responsibilities
Panel Q&A Your questions answered
Our Experts
Mark Hammerton is a Partner (Human Resources Practice Group) with substantial experience in employment law. He is an expert in TUPE, restructuring, whistleblowing, complex disciplinary/grievance matters, executive severance, mass equal pay claims and employment status (including agency workers).
Jenny Mann is a Senior Associate (Human Resources Practice Group) handling both contentious and non contentious matters, providing pragmatic advice to employers on a wide range of employment issues.
Chloe Themistocleous is an Associate specialising in Employment Law. She has a wealth of experience in Tribunal litigation, including claims for unfair dismissal, all types of discrimination and whistleblowing. Chloe has also successfully conducted large scale redundancy litigation cases involving up to 350 parties. In addition to her Employment Tribunal work, Chloe provides employment law and human resources advice and training to businesses
James Boffey (Trainer in Good Practice Services) is a regular at our masterclasses and always delivers highly engaging and informative sessions. This year with increased focus on wellbeing, James discussed the legal obligations and requirements for employers on mental health. James has worked with a range of public and private sector organisations across the North West and provides advice, training and support to both staff and management; improving employment relations and business performance.
This document summarizes key issues related to employee benefits for healthcare employers, including an overview of health care reform requirements. It discusses the play or pay rules and employer reporting requirements under the Affordable Care Act, including details on determining full-time employees, calculating penalties, and required reporting information. It also briefly outlines other ACA topics like 90-day waiting periods, PCORI and reinsurance fees, nondiscrimination rules, and executive compensation audits.
The document summarizes Israeli labor law, including minimum wage rates, working time limits, overtime pay, vacation and leave policies. It outlines requirements for written employment terms, travel expenses, rest breaks, night work limits, maternity leave, military leave, and dismissal procedures. The Labor Law Department at Meitar Law Offices provides representation and consultation on employment matters to large Israeli employers and multinational companies operating in Israel.
This document summarizes key aspects of the UK's automatic enrolment pension scheme. It discusses employer duties including enrolling eligible employees, minimum contribution requirements, and record keeping. It covers which employees must be enrolled, opt-out rules, and potential penalties for non-compliance. Finally, it provides guidance on using existing pension schemes and strategies for managing costs such as postponing enrollment and salary sacrifice arrangements.
Pensions and Auto-Enrolment document discusses:
1) The need for pension reforms due to increased job mobility, funding problems from final salary pensions, and an aging population.
2) The UK government's solution of requiring all employers to offer a workplace pension through automatic enrollment of eligible employees by 2018, with minimum contribution rates that increase over time.
3) Employers' responsibilities to choose a pension provider, communicate the changes, ensure compliance, and face penalties for noncompliance.
The document summarizes changes to Dutch dismissal law as of 2015, including:
- The dual dismissal system and preventive test were maintained, with the goal of focusing more on work security rather than job security.
- Compensation amounts were lowered and routes to appeal were improved to make the system fairer and simpler.
- Grounds for dismissal were expanded to include frequent sickness absence or dysfunction after improvement measures. The process for requesting dismissal permission from UWV was also streamlined.
- Record keeping requirements were strengthened to properly substantiate dismissal cases. Transition compensation rules and the chain system for temporary contracts were also revised.
The UK government is implementing pension reforms that will require employers to automatically enroll eligible employees into a qualifying pension scheme and make contributions on their behalf. Under the reforms, employers will stage when their duties begin between 2012-2018 depending on company size. Employers must put systems in place before their staging date to comply with automatic enrollment legislation.
Pensions Regulator - automatic enrolment for accountantsHenry Tapper
The document provides an overview of automatic enrolment legislation in the UK, including employer duties, progress to date, and future developments. Over 540,000 employers have completed declarations covering 25 million workers, of which 10 million were already in a qualifying pension scheme. Upcoming changes include the end of transitional arrangements for defined benefit schemes in 2017, the completion of staged employers in early 2018, and increases in minimum contribution rates that year and in 2019. The document reviews which workers must be enrolled, exceptions, qualifying earnings thresholds, and other key aspects of automatic enrolment.
Similar to Slides Di Rupo Measures 22 May 2012 (20)
Pensions Regulator - automatic enrolment for accountants
Slides Di Rupo Measures 22 May 2012
1. Di Rupo I coalition agreement:
Relevant changes for HR practice
Paul Windey
President, National Labour Council
Stefan Nerinckx, Partner
Employment & Benefits department at FFW Brussels
Professor of employment law at the University College Brussels
22 May 2012
1
2. Contents
• Early pension
• Bridge pensions
• Time credit
• Special social security contributions
• Summary
• Employment plan for employees aged 45 and +
• Age pyramid in cases of collective dismissal
• Joint and several liability
• Annual vacations
• Other measures provided for in Elio Di Rupo I - coalition agreement
• Tax measures – Company cars – recent legal changes
• Other individual tax measures
2
3. Early pension
• Currently, an employee with a working career of 35 years may
claim early pension as from age 60.
• The requirements for taking early pensions change on 1 January
2013:
Minimum
age Minimum Exception in case of long
Year (years) working career (years) career
2012 60 35 -
2013 60.5 38 60 if career of 40 years
2014 61 39 60 if career of 40 years
2015 61.5 40 60 if career of 41 years
60 if career of 42 years
2016 62 40
61 if career of 41 years
3
4. Early pension
• Transitional measures => 60 years continues to be possible
– Employment agreement terminated by employer serving notice period
• Notice period must start before 1 January 2012 and end (or should have ended) after
31 December 2012
– Individual (written) end-of-career agreement
• Entered into before 28 November 2011
• Not conventional bridging pension
• Individual agreement is entered into in the framework of the following sources of law:
- Work regulations: copy sent to regional labour inspectorate before 28 November 2011
- Collective labour agreement: filed with FPS Employment before 28 November 2011
- Pension regulations: in force before 28 November 2011
- legal or regulatory provisions or similar provisions
• Employees fulfil all conditions stipulated in these sources of law no later than 28
November 2011
• Examples: time credit, sabbatical, etc.
– ! Underlying documents must be sent to National Office for Pensions (RVP/ONP)
4
5. Bridge pension
• Half-time bridge pension: no new arrangements as of 1/1/2012
• Bridge pension became “unemployment scheme with payment
of a company allowance”
• General scheme: as of age 60
• Exception: as of age 58 – ‘long-term careers’
• Exception: as of age 58 – ‘physically demanding occupations’
• Different scheme for companies in difficulties or restructuring
• Changes in statutory social security benefits (pension) < 60 years (exceptions)
>< “Canada Dry” schemes
for employees who do not fulfil the age and career conditions
5
6. Bridge pension
• General scheme
– Old scheme
• Age: 60 years
• Career: 25 years – but increased gradually by Generation Pact
– New scheme
• If a collective (bargaining) agreement is entered into for the first time after
31/12/2011:
- Required length of working career as from 1/1/2012: 40 years
• If a collective (bargaining) agreement was either entered into and filed before
1/1/2012 or entered into after 31/12/2011, but is an uninterrupted continuation of
a collective (bargaining) agreement entered into and filed before 1/1/2012:
- Required length of working career:
• As from 1/1/2012: 35 years for male employees / 28 years for female
employees;
• As from 1/1/2015: 40 years for male employees / 31 years for female
employees (gradually increasing to 40 years as of 1/1/2024).
6
7. Bridge pension
• Exception 1: as from 60 years of age – long-term career
– If a collective (bargaining) agreement is entered into for the first time after
31/12/2011:
• Required length of working career:
- Male employees: 40 years as from 1/1/2012;
- Female employees: 35 years as from 1/1/2012, 38 years as from 1/1/2014, 40 years
as from 1/1/2015.
– Still as from 58 years of age, if a collective (bargaining) agreement was either
entered into and filed before 1/1/2012 or entered into after 31/12/2011 but is an
uninterrupted continuation of a collective (bargaining) agreement entered into and
filed before 1/1/2012:
• Required length of working career:
- Male employees: 38 years as from 1/1/2012, 40 years as from 1/1/2015;
- Female employees: 35 years as from 1/1/2012, 38 years as from 1/1/2014, 39 years
as from 1/1/2016, 40 years as from 1/1/2017.
• Age as from 1/1/2015: 60 years!
7
8. Bridge pension
• Exception 2: as from 60 years of age – physically demanding
occupation
– If a collective (bargaining) agreement is entered into for the first time after
31/12/2011:
• Required length of working career:
- Male employees: 40 years as from 1/1/2012;
- Female employees: 35 years as from 1/1/2012, 37 years as from 1/1/2014, 40 years
as from 1/1/2015.
– Still as from 58 years of age, if a collective (bargaining) agreement was either
entered into and filed before 1/1/2012 or entered into after 31/12/2011 but is an
uninterrupted continuation of a collective (bargaining) agreement entered into and
filed before 1/1/2012:
• Required length of working career:
- Male employees: 40 years as from 1/1/2015;
- Female employees: 38 years as from 1/1/2014, 39 years as from 1/1/2016, 40 years
as from 1/1/2017.
• Age as from 1/1/2015: 60 years!
8
9. Bridge pension
• Different schemes for companies in difficulties or restructuring:
– Company in difficulties
• Age: 52 in 2012 (increases gradually to 55 as from 2018)
2012 : 52 years 2015: 53.5 years
2013: 52.5 years 2016: 54 years
2014: 53 years 2017: 54.5 years
As from 2018: 55 years
– Company in restructuring
• Age: 55 as from 1/1/2013
• Exception : 52.5 as from 1/1/2013 (increases gradually to 55 as from 2018)
- Cumulative conditions:
• Announcement of the collective dismissal of at least 20% of all employees;
• Collective dismissal concerns either all employees of the technical operating
unit or all employees of an entire business segment (segment complet
d’activité - volledig activiteitensegment) (still to be defined);
• Technical operating unit or business segment must have existed for at least 2
years at the time of the announcement (still to be defined).
9
10. Bridge pension
• No change with regard to:
– Special scheme for those aged 56 + career of 33 years (20 years of
night work / construction business)
• valid until 31/12/2012
– Special scheme for those aged 56 + career of 40 years
• extended until 31/12/2015 (no further working activities before age 17)
– Calculating company allowance:
• (Net reference salary – unemployment benefit) / 2
– Personal social security contributions:
• 6.5% of total sum of unemployment benefit and company allowance
– Replacement obligation: up to age 60 (expected increase to 62 years)
10
11. Time credit
• Difference between time credit for
– Working time reduction (duration) and allowances
– specific reasons (36 or 48 months)/without reason
• to take care of children up to age 8 (also for adoption);
• to administer palliative care (any form of care: medical, social,
administrative, psychological);
• to assist or take care of a member of their household or family who is
seriously ill;
• to undergo training recognized by the Communities or by the sector, lasting
at least 360 hours or 27 credits a year, or 120 hours or 9 credits per quarter
or uninterrupted period of 3 months;
• to undergo education in a recognized educational institution for basic
education or training to obtain a secondary education certificate; the limit is
fixed at 300 hours a year or 100 hours per quarter or uninterrupted period of
3 months.
11
12. Time credit
• These employees are entitled to the interruption allowances (for
time credit) for a total of 36 months
– this period of 36 months is not calculated proportionally in cases of part-time time
credit,
– Periods during which interruption allowances are awarded for time credit for specific
reasons for up to 48 months (next slides) are deducted from the 36 months (with
exception of the first 12 months)
• Conditions:
– 2 years’ seniority with the current employer
– No requirement of an existing working career of 5 years as an employee!
12
13. Time credit
• Employees suspending or reducing their working time:
– to take care of their disabled child up to age 21 (at least 66% disability or suffering from a
condition leading to recognition of at least 4 points in the first pillar of the medical-social scale in
the framework of the regulations with regard to family benefits);
– to assist or take care of their child or a child who is a part of their household, who is seriously ill.
• These employees are entitled to the interruption allowances (for
time credit) for a total period of 48 months
– this period of 48 months is not calculated proportionally in case of part-time time credit,
– Periods during which interruption allowances are awarded in the abovementioned cases (for
time credit for specific reasons of up to 36 months) are deducted from the 48 months
• Conditions:
– 2 years seniority with the current employer
– No requirement of an existing professional career of 5 years as an employee!
13
14. Time credit
• Without specific reasons
– Maximum length of time credit during entire career
(allowances):
• 12 months’ full-time time credit;
• 24 months’ half-time time credit;
• 60 months’ 1/5 time credit; or
• A combination of the above
• No possibility to extend by CBA
– Conditions:
• Written notification to the employer;
• 5 years’ seniority as employee (with any employer) + exceptions;
• 2 years’ seniority with the current employer (exceptions);
• Exception: employees who have used up their right to parental leave for all children
and wanting to take full- or half-time time credit immediately after parental leave.
– Switch between schemes
14
15. Time credit (50+/55+)
• The special scheme for end-of-career time credit is maintained for
employees:
– as from 50+ (working career of 20 years) for working time reduction; as from 55+
(working career of 25 years) for the additional allowance
– Exception: age 50 for employees working in a physically demanding occupation (5
years in past, 10 years or 7 years in past 15 years), provided the occupation is on the
list of “critical occupations” (shortage of labour)
• No maximum duration applies (pensionable age at 65)
• Assimilation period for statutory pension will be different (pensions as
from 1 January 2013)
– Time credit without specific reasons
– Time credit < 60 years and ≥ 60 years
– Unemployment third period – Canada Dry
– Bridge pension < 60 years
15
16. Time credit (50+/55+)
part-time employment • Act 28/12/11
• RDs 28/12/2011
• RD 12/12/2001
20-year career 25-year career • CBA no. 77bis
No replacement • Act 3 July 1978
12 months Min. 6 months
full time (!) 80%
Min. 3 months Age 55 Age 65
50% Exceptions: for physically
demanding occupation and
3 years’ seniority Age 50 night shift
in company
5% threshold but exceptions
are possible
Benefits Inconveniences
• as of age 50 (55 years for allowance) • threshold
• 50 to 80% reduction of work • company and career seniority
• entitlement (but 5% threshold) • RVA/ONEM allowance as from age 55
• continued seniority • loss of statutory pension entitlement (part)
• no replacement
• supplementary pension (fiction?)
16
17. Alternatives: Time credit (50+/55+)
• Allowance
• Statutory pension
Age 50 Age 55 Age 60 Age 65
80/20? 50/50? 50/50?
Age 50 Age 55 Age 58 Age 60 Age 65
• end of contract (Act of 12 April 2012)
17
18. Special social security contributions
• Employer social security contributions on company allowances
under unemployment scheme, Canada Dry scheme and time
credit: significant increases
Bridge pension / Unemployment Scheme with Canada Dry
Company Allowance
Dismissal after 15/10/2009 Dismissal after Dismissal after 15/10/2009 Dismissal after 28/11/2011
and bridge pension as from 28/11/2011 and USCA and company allowance as and company allowance as
1/4/2010 as from 1/4/2012 from 1/4/2010 from 1/4/2012
< 52 50% became 55% 100%? 50% became 55% 100%?
52 - < 55 40% became 44% 95%? 40% became 44% 95%?
55 - < 58 30% became 33% 85%? 30% became 38.82% 85%?
58 - < 60 20% became 22% 55%? 20% became 38.82% 55%?
As from 60 10% became 11% 25%? 10% became 38.82% 38.82%?
Time Credit
The 32.25% percentage increases to 38.82% as from 1 April 2012, also for the current supplementary compensation on time
credit.
No social security contributions are due in the case of time credit inter alia in the following exceptions:
• the supplementary compensation is already paid prior to age 45;
• the supplementary compensation was already paid prior to 1 January 2006;
• the employee was dismissed prior to 1 October 2005;
• granted in case of thematic holidays;
• the employee is in receipt of an allowance for half-time time credit for employees over 50.
18
19. Employment plan for employees of 45 and +
• Employer’s obligation
– At the level of the technical operating unit + every calendar year before 31 March (first 2013)
– Exception: companies ≤ 20 employees
• Content:
– Measures that will be taken during the calendar year aimed at maintaining and increasing the
number of employees aged 45 and +:
• Selection and recruitment of new employees
• Skills and qualifications development (including training)
• Career development and coaching within the company
• Possibilities of horizontal transfer to switch to a position suited to the employee’s new abilities and skills
• Possibilities for adjusting working time and work conditions
• Health, safety and eliminating physical and psychosocial impediments aimed at maintaining employment
• Systems of recognition of acquired skills
• Evaluating previous calendar year’s employment plan
• Consultation
19
20. Age pyramid in the case of a collective dismissal
• Applicable in the case of a collective dismissal
– Not applicable in the case of bankruptcy, judicial winding-up or full closure of the compan
• The number of dismissals must be proportionally spread over:
– Age group < 30; age group 30 - < 50; age group ≥ 50
– Only applicable to employment agreement for undefined duration (exceptions)
• If only certain business segments or divisions are concerned: only applicabl
to the employees of those segments or divisions
• Deviation of 10% per age group is allowed
• Sanction: loss of reduction in social security contributions
• A royal decree is still expected for calculation method and coming into force
20
21. Joint and several liability
• Current system of joint and several liability for tax and social liabilities: only
applicable in the construction sector
• Extension to other ‘fraud-sensitive’ sectors and salary
– A principal who engages a contractor or a contractor who engages a subcontractor with
social security, tax and/or salary debts may be held liable for those debts and would in
have to pay them.
• In principle, liability is limited to the invoiced amount of the services.
– Avoiding liability by correctly applying the withholding duty
• The principal / contractor must withhold the following amounts from the invoiced amount (exclusive of
VAT):
- For social security debts: withhold and pay 35% to the National Social Security Office;
- For tax debts: withhold and pay 15% to the tax authorities.
– Knock-on liability: If a main contractor fails to comply with its withholding duty and cannot
settle the social security, tax and salary debts of his subcontractor, the principal will
subsequently be liable to pay the debts.
– A royal decree will enact the legislation and determine which sectors are concerned
• Explanatory Statement to the Act: meat sector, catering industry (horeca) and security services sectors
21
22. Joint and several liability
• Also applicable in international employment scenarios:
– If a Belgian principal / contractor enters into a service agreement with a foreign (sub)contractor
active in one of the sectors concerned, it may be held liable for the tax, social security and
salary debts of its (sub)contractor (if a foreign (sub)contractor sends employees to Belgium on
assignment, he must respect the minimum salary levels that apply in the sector in question).
– Also applicable to (prior) social security debts of a foreign employer/(sub)contractor who lawfully
assigns employees to Belgium?
• Recommendation: precautionary clauses in service agreement
– Automatic termination of the service agreement if the manpower inspectorate notifies the
principal / contractor that its (sub)contractor has seriously breached its duty to pay salary in time
– Covenant to respect minimum salary levels that apply in the relevant sector in Belgium
throughout the time for which the employee(s) assigned to Belgium.
• This does not rule out the joint and several liability of the Belgian principal / contractor, but allows it to recover
the amounts from the (sub)contractor afterwards.
22
23. Other measures provided in Elio Di Rupo I -
coalition agreement
• Measures against social security fraud:
– Measures against sham self-employment (proposed bill):
• the legislation of 27 December 2006 and criteria remain unchanged
+
• refutable presumption of link of subordination if several economic dependence criteria are
fulfilled
• for three sectors concerned: transport, construction, surveillance sector
• criteria: investment, responsibility for financial means, power of decision on pricing
(products), working in the contract partner’s (employer’s) premises, one and only client, no
results-driven contract, using material/tools put at the disposal of the contract partner, etc.
+ change to section 344(1) Income Tax Code (WIB/CIR) – management/consultancy
companies
– Revision of restrictions on loans of personnel (nothing specified yet)
23
24. Other measures provided in Elio Di Rupo I -
coalition agreement
• Annual vacations
• The current Belgian legislation provides for 4 weeks’ annual
vacation and the corresponding vacation pay, in the calendar year
following the calendar year of performance of the employment:
– This means that in principle employees are not entitled to vacation or
vacation pay during their first working year;
– EU-level legislation lays down that each employee is entitled to 4 weeks’
vacation on full pay during the working year;
– To comply with these rules, Belgian holiday legislation has recently been
amended: vacation pay is awarded for each 3-months working period, during
the last week of the 3-month period concerned. This vacation pay is later
deducted from the double vacation pay or leaving vacation pay.
24
25. Other measures provided in Elio Di Rupo I -
coalition agreement
• Abolition of distinction between white-collar and blue-
collar workers
• Education:
– increased penalties for non-compliance with required level (1.9%) of
investment in education
– measures for paid educational leave will be extended: increase of
maximum duration from 100/120 hours to 200 hours
• Voluntary continuation of work after age 65
25
26. Tax measures – Company cars – recent legal
changes
• Taxable benefit
– The taxable benefit in kind is 6/7 of the car’s list price, multiplied by the CO2
emissions coefficient
• Valuation
– The list price is defined
– The benefit in kind takes into account the age of the car, by multiplying the
list price by a percentage according to the time since first registration of the
car
– The reference CO2 coefficient is 5.5% for a diesel engine producing 95g/km
or for petrol, lpg and gas engines producing 115g/km;
– The benefit in kind can be reduced by the amount of personal contribution
paid by the employee
26
27. Other individual tax measures
• Withholding tax on dividends and interest & new surcharge tax
• Capital gains on shares
• Free housing for company executives
• Tax regime of stock options
• Energy-saving tax measures
• Green car premiums
• Tax reduction for service vouchers
• Increase in tax allowance
• Supplementary pensions
• Notaries and bailiffs for services
• VAT on company cars
• Increase of 30% in stock exchange tax
• ….
27
28. Questions?
This presentation (which shall be deemed to include any materials provided with the presentation) (“Presentation”) has been prepared for the recipient for information purposes only. This
Presentation summarises certain aspects of the law, but does not purport to contain complete descriptions of all arrangements. This Presentation does not purport to be all inclusive or contain
all of the information that the recipient may require. No representation or warranty, express or implied, is or will be made, and no responsibility or liability is or will be accepted by Field Fisher
Waterhouse LLP or any of its advisors as to the accuracy, adequacy or completeness of the information within this Presentation. This Presentation is not intended to form the basis of any
decision or other evaluation by the recipients and does not constitute and should not be considered as a recommendation. The information disclosed in this Presentation is confidential and
intended for the recipient only and may not be forwarded to third parties.
28