Asia Pacific Employment Law Forecast - PUBLISHED JANUARY 2020 - DLA Piper
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Asia Pacific Employment Law
Forecast
PUBLISHED JANUARY 2020
ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020 Contents Australia 03 China 03 Hong Kong 04 India 05 Indonesia 06 Japan 07 Malaysia 08 New Zealand 09 Philippines 10 Singapore 10 South Korea 11 Taiwan 11 Thailand 12 Meet the team in Asia Pacific 13 About DLA Piper 14 About DLA Piper’s Employment Group 15 2
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Australia for employees to lodge complaints, providing a
• 2020 will be the first full year of operation of mechanism for employees to lodge complaints
the new whistleblowing protections in Australia. with relevant government agencies, and requiring
The whistleblowing protections are wide-ranging employers to take reasonable efforts to prevent
and permit employees and former employees to sexual harassment in the workplace.
make anonymous complaints about an ‘improper
• On 31 December 2019, the Chinese tax authorities
state of affairs’. It is anticipated that it will take some
issued the details of the procedures and documentary
time for employers and employees to come to terms
requirements for annual Individual Income Tax (“IIT”)
with the operation of the new protections but it
filing for the first annual IIT filing in China,
is likely that there will be a significant increase in
i.e. from 1 March 2020 to 30 June 2020. These details
whistleblowing claims.
clarified the content of IIT filing, which taxpayers are
• Ongoing and heavily publicized instances of non- subject to or exempt from tax filing, and for those
compliance with modern awards are expected to subject to the tax filing, what is the content of the
continue throughout 2020. Employers continue IIT filing, and the period and method of tax filing.
to declare that, as a result of self-audits, they have
• In September 2019, the National Online Social
uncovered failure to comply with modern awards
Insurance Service System (“System”) was launched.
resulting in underpayments. The regulator, the Fair Work
The System focuses on providing nationwide and
Ombudsman, has flagged that they intend to continue
cross-regional social insurance public services to
to focus on modern award compliance. In particular,
participating persons and employers. It provides for
that for large, sophisticated employers simply arguing
18 nationwide social insurance services, including but
that the underpayment was an inadvertent error will
not limited to cross-regional social insurance transfer
not be sufficient to avoid prosecution or to avoid the
and qualification authentication for receiving pension
regulator seeking the imposition of pecuniary penalties.
insurance payments.
• Business will continue to grapple with the changes
• On 14 October 2019, the State Taxation
to Australian employment law resulting from significant
Administration (STA) released an announcement
common law decisions, including those dealing with
on “Issuing the Administrative Measures for
casual employees and the calculation of personal
Non-resident Taxpayers’ Entitlement to Treaty
leave entitlements. An appeal on a decision regarding
Benefits” (Announcement). According to the
the calculation of personal leave by the High Court of
Announcement, non-resident taxpayers in China are
Australia will be heard in 2020 and will have material
no longer required to submit supporting documents
consequences for all employers, potentially extending
to the tax authority in China before they can enjoy
to calculation of other leave entitlements.
tax benefits under the tax treaty between China
• The gig economy remains an area of interest for and their home countries, and the tax declaration
legislators, including that some States and Territories procedures are simplified. The Announcement will
are indicating that they are considering introducing local become effective on 1 January 2020 replacing the
regulation to respond to the gig economy. This would “Administrative Measures for Non-resident Taxpayers’
cause some friction given the otherwise largely federal Entitlement to Tax Treaty Benefits” promulgated
approach to Australian employment law since 2009. in 2015.
• The growth of employment class actions is also • On 29 November 2019, the PRC Ministry of Human
anticipated to continue in 2020, particularly in relation Resources and Social Security issued the Interim
to claims regarding non-compliance with modern awards. Measures on Social Insurance Contributions
for Hong Kong, Taiwan and Macau Residents
China (“HTM Measures”). The HTM Measures will take effect
• Drafts of the PRC Civil Code have been proposed, on 1 January 2020. Employers in Mainland China
which are set to be completed in 2020, and will are mandatorily required to make social insurance
then be sent to the National People’s Congress for contributions (including contributions for pension
approval. Among other things, the draft amendments insurance, medical insurance, maternity insurance,
seek to provide clarity by setting out a clear definition work injury insurance and unemployment insurance)
of sexual harassment. This includes widening for their Hong Kong, Taiwan and Macau resident
the scope to protect male employees, requiring (“HTM Resident”) employees.
employers to provide an internal mechanism
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ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020
Hong Kong to maternity leave etc. The Bill will be introduced into
• In late 2018, the Government published draft the Legislative Council on 8 January 2020. We will stay
discrimination legislation to implement the tuned and wait for further updates.
recommendations made by the Equal Opportunities
• The Mandatory Provident Fund Schemes Authority
Commission following its Discrimination Law Review.
has proposed an increase in the minimum and
The recommendations included introducing
maximum relevant income levels for mandatory
express provisions to prohibit direct and indirect
provident fund (“MPF”) contributions. The proposal
discrimination on the grounds of breastfeeding,
is currently under review.
to prohibit racial discrimination and harassment
by imputation that a person is of a particular race • In recent years, the Government has been
or a member of a particular racial group, and to considering various proposals on abolishing the
expand the scope of protection from sexual, disability arrangement of offsetting MPF against statutory
and racial harassment. The proposed bill is still severance/long service payment. Under the latest
progressing through the legislative process. proposal, the Government will in the interim period
provide for a two-tier subsidy scheme to employers in
• The Employment (Amendment) Bill 2019 (“Bill”)
order to reduce their financial pressure in making the
has been gazetted on 27 December 2019. Under
statutory severance/long service payments (first-
the Bill, statutory maternity leave period will be
tier being 12 years and second-tier being 25 years),
increased from the current 10 weeks to 14 weeks,
with the Government’s total financial commitment of
and the rate of maternity leave pay payable to
around HKD29.3 billion. It is also proposed to set up
eligible employees for the first 10 weeks remains
designated savings accounts to assist employers in
unchanged (i.e. 4/5 of the employee’s average daily
saving up early for meeting their potential statutory
wages). For the additional 4 weeks, the pay rate
severance/long service payment expenses in future.
will be the same, however it would be subject to a
The rate of calculating statutory severance/long
cap of HKD 36,822 per employee (which may be
service payments will remain at two-thirds of the
adjusted from time to time) which will be subsidized
monthly wages of employees instead of half of the
by the Government through reimbursement to the
employees’ monthly wages as previously proposed by
employer. Certain technical amendments will also be
the last term Government. The target is to secure the
introduced, for instance, updating the definition of
passage of the enabling legislation by the Legislative
‘miscarriage’ from ‘before 28 weeks of pregnancy’ to
Council by 2022, and implement the abolition of this
‘before 24 weeks of pregnancy’ which will entitle a
offsetting arrangement two years after the passage
female employee whose child is incapable of survival
of the legislative amendments.
after being born at or after 24 weeks of pregnancy
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India • The Transgender Persons (Protection of Rights) Bill,
• In an attempt to consolidate and simplify the 2019 has been passed by both house of parliament.
existing multitude of labour laws in the country, It intends to cover persons whose gender does not
the government introduced the Code on Wages, match with the gender assigned to them at birth
2019 (“Wage Code”) which was passed by both including a trans-man or trans-woman (whether or
houses of parliament in July 2019 and which received not such person has undergone a sex reassignment
presidential assent on 8 August 2019. The Wage surgery or such other therapy), persons with intersex
Code will come into force on such date as may be variations, and persons having such socio-cultural
appointed by the Central Government by way of a identities. The law inter alia prohibits discrimination
notification in the official gazette. The Wage Code against a transgender person resulting in unfair
will subsume and replace the Payment of Wages Act, treatment in employment, or a denial of, or termination
1936, the Minimum Wages Act, 1948, the Payment from employment. The bill awaits Presidential
of Bonus Act, 1965 and the Equal Remuneration assent and a subsequent notification of the Central
Act, 1976. These laws inter alia relate to employee Government to be brought into force.
wages, manner, mode and time of payment of wages,
• On 1 November 2019, the Ministry of Labour and
minimum wages that must be paid to employees and
Employment announced the launch of two facilities in
bonus payments. In a step towards implementation
connection with the employees’ provident fund set up
of the Wage Code (which awaits a notification to
under the framework of the EPF Act. An employee can
be brought into force), the Ministry of Labour and
now obtain the Universal Account Number directly
Employment also released the draft Code on Wages
from the Employees’ Provident Fund Organisation
(Central) Rules, 2019 on 1 November 2019. This is
(“EPFO”) website directly, without making a request to
yet to be notified.
the employer. Further, there will be a digital interface
• The Industrial Relations Code, 2019, which seeks to with employers. This would enable the employers to
replace the Trade Unions Act, 1926, the Industrial notify the EPFO about closure of business or unpaid
Employment (Standing Orders) Act, 1946 and the dues (with proposal for payment). The move is likely
Industrial Disputes Act, 1947, was introduced in to reduce instances of perceived harassment at the
the parliament on 28 November 2019. These laws hands of EPFO field officers.
inter alia relate to trade unions, unfair labour
• Per the provisions of the Factories Act, 1948,
practices, retrenchment/termination of employees
women workers were previously allowed to work
and resolution of industrial disputes. This will need to
in factories only between 6am and 7pm. Such
be passed by both houses of parliament and receive
hours could be extended by a notification by
the President’s assent before it becomes law.
the relevant state government, but only to 5am
• A consolidation in the making as well, the Code on and 10pm for any factory or class of factories.
Social Security, 2019 tabled before the Lok Sabha on The Government of Karnataka released a notification
11 December 2019, seeks to replace 9 extant labour on 20 November 2019 allowing women in factories
statutes including the Employees’ Provident Fund to work during night shifts (i.e. between 7pm and
and Miscellaneous Provisions Act, 1952 (“EPF Act”), 6am) notwithstanding the restriction on relaxation
the Employees’ State Insurance Act, 1948, the Payment imposed by the above-mentioned provision. A similar
of Gratuity Act, the Maternity Benefits Act, 1961 and amendment is likely to be expected to the Karnataka
the Employees’ Compensation Act, 1923. While the Shops and Establishments Act, 1961 (applicable to
bill introduces provisions relating to gig economy commercial establishments and shops in the State)
workers, fixed term employment, career centers, this year.
voluntary coverage under the employees’ state
insurance framework and limitation period for social
security related matters, it also modifies the basis of
calculation of employees’ provident fund contribution
and allows for different rates of such contribution by
employees. This will need to be passed by both houses
of parliament and receive the President’s assent before
it becomes law.
5ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020
Indonesia been introduced as a follow-up to regulation of the
• Amendments are being proposed to Law No. 13 recruitment and utilization of foreign workers issued
of 2003 on Manpower and Law No. 2 of 2004 on in 2018.
The Settlement of Industrial Relations Disputes.
• As of late 2019, all provinces in Indonesia issue
In addition, proposals exist for a Law on the Wage
regulations on the minimum provincial wages for
System, a Law on the Supervision of Manpower and
2020, applicable as of January 2020. The increase
a Law on the Protection of Domestic Servants.
for the 2020 minimum provincial wages as
• The draft Omnibus Law on Job Creation was officially determined by the Ministry of Manpower for all of
included in the National Legislation Program of 2020 Indonesia, averages an 8.51% increase over the
with Super Priority status and will be submitted by figures for 2019. Further, as of late 2018, minimum
the Government to the House of Representatives. wages may only be implemented for employees who
With respect to the Omnibus Law on Job Creation, have not yet worked for a period of one year for the
the Government has identified 82 laws and relevant employer. Any employees who have worked
1,194 articles that will be harmonized which cover for a period of one year or longer should be paid at
11 clusters (one of them is Manpower). a rate above the relevant minimum wage.
• In late 2019, in a bid to deregulate the various
Please note that no further official information exists
licensing provisions which address outsourcing
regarding the above proposals/draft and there is
(integrated into Online Single Submission (OSS)
certainly no guarantee that any of them will be issued
System), the second amendment to the regulation on
in 2020 as some of the proposals have been around for
Requirements for Transfers of Partial Work to Other
some years.
Companies (outsourcing) was issued by the Minister
of Manpower. The second amendment specifically
• In late 2019, a brand new list of available positions
addresses the content and registration of outsourcing
which are permitted to be occupied by foreign
agreements, licensing requirements for providers and
workers in Indonesia was recently introduced by
outsourcing employment agreements.
the Ministry of Manpower. This new framework has
6DLAPIPER.COM
Japan full-time employees) and short-time (previously
• New rules for the pay to dispatched or temporary called part-time)/fixed-term employees are no longer
works will take effect in April 2020. These rules permissible starting from 1 April 2020. Whether a
will require that dispatching agencies pay their difference is unreasonable or not will be considered in
dispatched workers on par with regular employees light of the nature/purpose of the different treatment.
at the receiving company. Dispatching agencies can This follows a trend under recent court cases. For
do this one of two ways: small and medium sized companies, effective from
1 April 2020. It should be noted that these are
(A) LABOR-MANAGEMENT METHOD essentially recodifications of existing requirements
Under the Labor-Management Method, but will likely be more scrutinized going forward.
the dispatching agency will need to pay remuneration,
• The new overtime work limitations come into
including allowances, bonus and retirement
effect for small and medium sized companies
allowances equal to or better than the average
on 1 April 2020. The new rules limit the number
salary of employees who generally work in the same
of hours of overtime an employee can work to
roles and have similar experience as the dispatched
45 hours per month and 360 hours per year
workers. As the dispatched workers’ responsibilities
in principle. However, if the employer includes
increase and as they gain experience and ability
a special provision in its labor-management
their salary needs to be increased. Information
agreement regarding overtime and holiday work,
regarding appropriate salaries will be available on the
an employer will not be permitted to require
regulator’s website from time-to-time.
employees to work in excess of:
(B) EQUAL TREATMENT METHOD (i) 100 hours or more of overtime and holiday
Under the Equal-Treatment Method, dispatching work per month;
agencies will still need to offer equal or better pay to
the dispatched employees but they will need to obtain (ii) 80 hours or more of overtime and holiday work
this information directly from the receiving company. on average anytime within a 2 to 6 month time
The information that must be provided for similarly frame; and
situated employees includes the salary, bonus, other
allowances, leave, holiday, training and other benefits (iii) 720 hours per year.
provided to employees.
The rules regarding whether companies are
• Other unreasonable differences in working conditions identified as small or medium sized vary depending
between regular employees (i.e. non-fixed and on the industry.
7ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020
Malaysia One significant change that will affect employers is
the removal of the Minister’s discretion to refer unfair
REVISED MINIMUM WAGE RATES
dismissal representations to the Industrial Court.
New minimum wage rates have been gazetted and will
The IR Bill moves the referral power to the Director
come into force from 1 February 2020. The minimum
General of Industrial Relations (“DGIR”), and the
wage rate will depend on the employee’s place of
overall policy is that almost all representations will be
work, with those working within 56 identified city
referred to the Industrial Court — the DGIR is obliged
and municipal council areas being entitled to a
to refer the representations directly to the Industrial
minimum wage of RM1,200 monthly or RM5.77 daily.
Court if he is satisfied that there is no likelihood of
The minimum wage for those outside the identified
the representations being settled. This will have a
areas is RM1,100 monthly or RM5.29 hourly.
major impact on how employers handle dismissals,
and will affect the negotiating power of the parties
AMENDMENTS TO THE DISPUTE
when discussing severance compensation or mutual
RESOLUTION PROCESS
separation agreements.
The Industrial Relations (Amendment) Bill 2019 (“IR Bill”)
was passed by Parliament in December 2019 and will
There are a host of other changes, and the aim of
come into force in 2020. The IR Bill makes numerous
the changes introduced by the IR Bill is to expedite
amendments to the Industrial Relations Act 1967, with
the dispute resolution process.
the main changes affecting the dispute resolution
process in relation to unfair dismissal claims and
INCREASE IN PAID MATERNITY LEAVE
union disputes.
The Government has announced that it proposes to
increase paid maternity leave to 90 consecutive days
(from the current 60 consecutive days) by 2021.
8DLAPIPER.COM
New Zealand HOLIDAYS ACT 2003 REVIEW
A number of problems have arisen in New Zealand
MINIMUM WAGE INCREASE
under the Holidays Act 2003, triggering a review and
From 1 April 2020, the minimum wage will increase
an interim report being released by a Taskforce in
1.20c per hour from NZD 17.70 to NZD 18.90. It is
December 2018. Due date for the final report was
expected to increase further to meet the Government’s
September 2019 but nothing has been released.
targeted minimum wage of NZD 20.00 by April 2021.
We expect this to be an on-going discussion issue
well into 2020.
PAID PARENTAL LEAVE EXTENDED
Under the Parental Leave and Employment Protection
ACTIVE LABOUR INSPECTORATE
Amendment Bill, paid parental leave will increase from
2020 is expected to see an ongoing focus by
22 weeks to 26 weeks from 1 July 2020.
New Zealand’s workplace regulator on breaches of
minimum code, the exploitation of migrant workers and
TRIANGULAR EMPLOYMENT RELATIONSHIPS
worker status (employee v contractor). Minimum wage,
From 27 June 2020, the Employment Relations Act 2000
holiday pay, wage deductions, and record keeping will
will allow employees in a “triangular employment
continue to be in the spotlight. Recent cases have seen
relationship” to bring personal grievances against
some personal liability for directors of the employing
the person who controls their work, as well as their
entity as well as the employer. The sums awarded are
employer. A triangular employment relationship is
not insignificant.
typically reflected in labour hire arrangements or the
hiring of temporary workers. In order to be able to
WHISTLEBLOWER LEGISLATION
bring a personal grievance against the person who
There has been a lot of commentary recently about
controls their work (known as the “controlling third
whistleblowers and proposed amendments to the
party”), the employee must show that the controlling
Protected Disclosures Act 2000 (the law in New Zealand
third party gets the benefit of their work; that they
that relates to whistleblowers) which are aimed at
exercise control and direction over the employee that
strengthening the protection available to whistleblowers
is similar to the control and direction an employer
in New Zealand. The current act is focused on
exercises; and the third party caused or contributed
particular types of wrongdoing (issues such as theft
to the personal grievance while the employee was
and corruption) whereas a recent study by both a
working under their direction.
New Zealand university and some Australian universities
found whistleblowers were most likely to uncover
FAIR PAY AGREEMENTS
bullying, discrimination, harassment and unfair work
The Labour Party previously committed to introducing
practices. It remains to be seen yet whether or not the
a legislative framework that allows unions,
proposed (new) New Zealand legislation will cover such
employers and the Employment Relations Authority
issues or not and whether this will be introduced in
to collaboratively produce sector specific Fair Pay
2020 or later.
Agreements that specify an extensive range of minimum
conditions. This is still ‘on the table’ in New Zealand
and there has been little progress over the last year.
Further consultation has been sought with stakeholders
over the potential design of an FPA system.
“The quality of information provided was excellent. The team
was able to talk through information with real-world examples
and would not be pressured into giving an answer that I wanted
to hear. The subject was so complex but the team guided us
through each stage exceptionally well.”
Employment, China – Chambers Asia Pacific 2020
9ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020
Philippines harassment to include sexist, homophobic and
• On 26 March 2019 the Department of Labor transphobic remarks whether made in person
and Employment (DOLE) issued Department or online or through other information and
Order No. 202-19 providing for the Implementing communications technologies.
Rules and Regulations of the Telecommuting
Act (Republic Act No. 11165). Under the said rules, • On May 22, 2019, the Senate approved Senate Bill
an employer may offer a telecommuting program to 1826 otherwise known as the Security of Tenure Act.
its employees on a voluntary basis whereby, subject The proposed bill tightened the definition of “labor-
to the rules of the program, the employee is given only contracting” and sought to limit the types of roles
the option of working from an alternative workplace that an employer may contract out, among others.
outside the employer’s workplace. The rules provide This Senate Bill was consolidated with House Bill No.
that while it is management prerogative to define 6908 passed by Congress. Notwithstanding President
who are eligible to participate in the program as Duterte’s campaign promise to end contractualisation
well as the other terms and conditions regarding of jobs (ENDO), the Office of the President
the alternate work place, the program must ensure communicated its veto of SB1826 and HBN6908 on
that telecommuting employees are given the same July 26, 2019 to the ire of the interested labor groups.
treatment comparable to employees working at
the employer’s workplace. The telecommuting Singapore
employee must not be discriminated upon in
TRIPARTITE ADVISORY ON PROVISION OF REST
terms of rate of pay, overtime and night-shift
AREAS FOR OUTSOURCED WORKERS
differential pay, rest days, holidays, access to
The Ministry of Manpower, the National Trades Union
training and career development opportunities,
Congress and the Singapore National Employers
etc., solely by reason of having opted to avail of the
Federation have jointly developed the Tripartite Advisory
telecommuting program. DOLE has established a
on Provision of Rest Areas for Outsourced Workers
pilot telecommuting program in select industries
which was issued at the end of 2019.
which will run for a period of three (3) years.
DOLE continues to monitor and evaluate the
The guidelines require employers to provide proper
pilot telecommuting programs.
rest areas for outsourced workers and are aimed at
improving the work environment of low-wage workers
• On 7 April 2019 the Safe Spaces Act (Republic
such as cleaners and security officers.
Act No. 11313) was signed into law which,
among others, expanded the coverage of the old
The guidelines encourage companies which are service
Anti-Sexual Harassment Act (Republic Act No. 7877).
buyers to provide rest areas to service workers which
Under the old law, sexual harassment in the
(a) are accessible areas with privacy, (b) have facilities
workplace was defined as an act “committed by an
to safekeep belongings, (c) provide access to drinking
employer, employee, manager, supervisor, agent of
water and electrical outlets and (d) are safe, well-lit,
the employer, teacher, instructor, professor, coach,
large, sheltered, ventilated, clean and quiet, and to
trainer, or any other person who, having authority,
inform the workers of the same.
influence or moral ascendancy over another in a
work or training or education environment, demands,
FAIR CONSIDERATION FRAMEWORK
requests or otherwise requires any sexual favor
The Fair Consideration Framework (the “FCF”) was
from the other, regardless of whether the demand,
updated in January 2020 to impose harsher penalties
request or requirement for submission is accepted
on employers found to be engaging in discriminatory
by the object of said Act.” The old law only penalized
practices such as favouring the hiring of foreigners
sexual harassment committed by a superior against a
over Singaporeans.
subordinate; it did not recognize sexual harassment
committed by a subordinate or a peer as a punishable
Employers who are found to exhibit discriminatory
act under the said law. The Safe Spaces Act addressed
practices will be barred from applying for new work
that void. Under the new law, sexual harassment in
passes for a minimum of 12 months and a maximum of
the workplace may now be committed by a superior
24 months, up from the prior maximum of six months.
against a subordinate, by a subordinate against a
Additionally, such employers will also be prohibited
superior, or by peer-to-peer. The Safe Spaces Act
from renewing any existing employment passes whilst
likewise expanded the acts constituting sexual
they were previously able to renew such passes prior
10DLAPIPER.COM
to the update. Given that most work passes are for reduced number of hours. These reduced hours must
a two or three year duration, one-third to half of the be at least 15 hours but must not exceed 30 hours.
work passes cannot be renewed for a 12 month ban The duration of reduced hours must not be longer
whilst up to all work passes cannot be renewed for a than one year, but if there is a reasonable justification
24 month ban. In addition, the Ministry of Manpower for a longer period, the duration may be extended
(the “MOM”) will prosecute errant employers or key within the limit of two additional years.
personnel who make false declarations that they have
• From 16 January 2020, the fully revised Occupational
considered all candidates fairly. Employers convicted of
Safety and Health Act (“OSHA”) will take effect, which
a false declaration under the Employment of Foreign
includes the following key changes: (1) Expanded
Manpower Act will face imprisonment of up to 2 years,
scope of statutory protection from “employees” to
or fine of up to SGD20,000 or both.
“persons providing labor.” (2) Enhanced responsibility
for health and safety matters imposed on
RETIREMENT AGE
representative directors of companies. (3) Increased
The Prime Minister Lee Hsien Loong announced in
workplace health and safety compliance burden when
August 2019 that starting from 2022, the retirement age
engaging in subcontracting. (4) Increased authority
will be raised from 62 to 65 whilst the re-employment age
of the MOEL to issue work suspension orders.
will be raised from 67 to 70 by 2030. The Government
(5) Increased responsibility on the project owner on
sector will raise the retirement and re-employment ages
construction projects. (6) MSDS filing obligation and
of its officers a year earlier in 2021.
non-disclosure pre-approval system. (7) Enhanced
punishment for fatal workplace accidents.
The Government will raise the Central Provident Fund
(CPF) contribution rates starting from 2021 to 2030 for • Minimum wage for the year 2020 will be
workers aged 55 to 60 such that the contribution rate KRW 8,590 per hour, an increase of KRW 240 from
will increase from the current 26 percent to 37 percent, 2019. The portion of the regular bonus which is in
to be on par with younger workers. excess of 20% of the monthly minimum wage of the
year 2020 (KRW 8,590 x 209 (hours) = KRW 1,795,310)
South Korea and the portion of the cashable welfare benefit which
• From 1 January, 2020, private businesses with 300 or is in excess of 5% of the monthly minimum wage
more employees, state and local governments, and must be included in the minimum wage calculation
public organizations will all be obligated to provide (this calculation coverage will be gradually expanded
their employees with paid holiday on public holidays between 2019 and 2024).
for Government offices. (The effective date will be
• From 28 February 2020, the revised bill for the
1 January 2021 for employers with 30~299 employees,
Enforcement Decree of the Equal Employment Act will
and 1 January 2022 for those with fewer than
become effective. This permits parents to each take
30 employees).
childcare leave for the same child and it shortens the
• From 1 January 2020, employees may take ‘family care qualifying period of consecutive service for reduced
leave’ for up to 10 days per year, to care for a family working hours for childcare or leave of absence for
member’s disease, accident or old age or to take care family care from 1 year to 6 months (effective as
of a child. Employees may also take family care leave of 24 December 2019).
or take a leave of absence for family care in order
to care for his/her grandparent or grandchild (the Taiwan
current statute only allows family care leave or a leave • The Labor Incident Act took effect from 1 January,
of absence to take care of parents, spouses, children, 2020. It is a procedural rule governing matters
or spouse’s parents). relating to labor actions including: (1) Any payment
made from the employer to the worker without
• From 1 January 2020, when an employee working
any statements or descriptions will be presumed
in a public or private workplace with 300 or more
as wages. (2) The working hours recorded on the
regular employees applies for a reduction in his/her
worker’s timesheet are presumed to be the time
working hours in relation to: family care; his/her own
that the worker spent on performing duties with the
health conditions; preparations at the age of 55 years
employer’s permission. (3) If a dismissal is suspected
or older for retirement; or his/her school work, then
to be unlawful, the court may order a temporary
the employer must allow the employee to work for a
status quo injunction, based on the worker’s motion,
11ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020
for continuous employment and payment of wages. The key points of the Act include (1) Middle aged
The Act also has a retroactive effect, so it applies to people are those who are 45 to 65 years old,
labor cases that occurred prior to the enactment. elderly people are those who are over 65 years old.
(2) Employers may hire laborers over 65 years old
• The Employment Promotion Act for The Middle Aged
with fixed term labor contracts. (3) Employers cannot
and The Elderly was announced on 4 December,
treat middle-aged/elderly employees or job seekers
2019 but the effective date is yet to be announced.
differently due to their age.
“Super prompt and responsive” and “commercially savvy.”
Employment Australia – Chambers Asia Pacific 2020
Thailand • The employer must notify the health check-up results
Following the enactment of the Labour Protection Act to the employee within 7 days from the results
(No.7) B.E. 2562 (2019), there has been little movement becoming known to the employer. However, if there
in the employment sphere in Thailand. appears to be an adverse result to the employee’s
health, the employer must notify the employee
However, the Deputy Director General of the of such result within 3 days; and
Department of Labour Protection and Welfare has • In the event there is sufficient medical evidence to
indicated that a draft bill relating to the health and illustrate that the employee cannot continue his/her
safety of employees was passed by the Cabinet in current role, the employer must offer a change in role
the meeting dated 29 October 2019 (“Bill”). They key (as appropriate) by taking into account his/her health
provisions under the Bill include the following: and safety.
• The employer must notify and arrange a health check- Further, there is a draft Ministerial Regulation
up for the employee within 30 days from the date issued under the Occupational Safety, Health and
the employee commences his/her work and annually Environment Act B.E. 2554 (2011) (“MR”). The MR
thereafter; includes, amongst others, the application, registration,
• In the event the employee takes sick leave for suspension and revocation of permit relating to
three consecutive days, the employer must occupational safety, health and environmental services
request an opinion from a certified doctor or (“Services”). It specifically sets out the eligibility criteria
arrange for a health check-up for the employee and the procedure for obtaining the Occupational
before the employee returns to work. Please note Safety, Health and Environment Licence (“Licence”).
that the employer will be responsible for the costs Further, it goes into detail regarding how the Services
involved in the health check-up; are rendered under the Licence.
• The employer must keep a health record for
each employee which contains the details of
the health check-up and return such record to the
employee at the end of employment;
“Responsive, very helpful and reliable.”
Employment Japan – Chambers Asia Pacific 2020
12DLAPIPER.COM
Meet the team in Asia Pacific
Australia Japan
Nicholas Turner Lawrence Carter
Partner Partner
Sydney Tokyo
+61 2 9286 8522 +81 3 4550 2811
nicholas.turner@dlapiper.com lawrence.carter@dlapiper.com
Clancy King Keiji Nasuda
Senior Associate Senior Associate
Sydney Tokyo
+61 2 9286 8677 ++81 3 4550 6417
clancy.king@dlapiper.com keiji.nasuda@dlapiper.com
China New Zealand
Johnny Choi Laura Scampion
Partner Partner
Beijing Auckland
+86 10 8520 0709 +64 9 916 3779
johnny.choi@dlapiper.com laura.scampion@dlapiper.com
Ying Li Singapore
Senior Associate
Katherine Chew
Shanghai
Of Counsel
+86 21 3852 2131
Singapore
ying.li@dlapiper.com
+65 6512 6046
katherine.chew@dlapiper.com
Hong Kong
Helen Colquhoun Thailand
Partner
Pattama Jarupunphol
Hong Kong
Senior Associate
+852 2103 0840
Bangkok
helen.colquhoun@dlapiper.com
+66 2 686 8574
pattama.jarupunphol@dlapiper.com
David Smail
Senior Associate
Hong Kong
+852 2103 0443
david.smail@dlapiper.com
13ASIA PACIFIC EMPLOYMENT LAW FORECAST 2020
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14DLAPIPER.COM
About DLA Piper’s Employment Group
DLA Piper’s Employment group is a market-leading For more information please email your usual contact
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15DLA Piper is a global law firm operating through various separate and distinct legal entities. Further details of these entities can be found at dlapiper.com. This publication is intended as a general overview and discussion of the subjects dealt with, and does not create a lawyer-client relationship. It is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. DLA Piper will accept no responsibility for any actions taken or not taken on the basis of this publication. This may qualify as “Lawyer Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome. Copyright © 2020 DLA Piper. All rights reserved. | JAN20 | A04174
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