Global Employment Tax and Compliance Newsletter. June 2024

Contents

• Introduction
• Legislation: What’s New in Global Employment and Tax Legislation
• Global Employment Solutions for Oil and Gas
• Employee Benefits Guide
• Global Payroll Calculator
• Summary and Close

Introduction

Welcome to the June 2024 Edition of the Express Global Employment Tax and Compliance Newsletter.

This issue covers the latest updates on global employment tax, legislative changes, and innovative solutions for managing a global workforce.

Our focus remains steadfast on delivering up-to-date, actionable knowledge that empowers you to make informed decisions in managing your global workforce.

???? Finland Eases EU Blue Card Requirements for Highly-Skilled Non-EU Nationals

On 13 May 2024, Finland implemented changes to comply with the EU Blue Card Directive, simplifying entry for highly-skilled non-EU professionals into the EU.

Key Changes

• Lower Salary Requirement: The new minimum salary is EUR 3,638 per month, down from 1.5 times the gross salary.
• Flexible Education Requirements: Applicants need a higher education degree of at least three years or five years of relevant work experience.
• Shorter Assignment Duration: The minimum employment duration is now six months, reduced from one year. For contracts less than years, the Blue Card will be valid for the contract duration plus 3 additional months, up to 2 years.
• Unemployment Protection: Blue Card holders have at least three months (or six months if they have lived in Finland for over two years) to find new employment without losing their residence permit.
• Increased Mobility: Blue Card holders can move to another EU country after 12 months, down from 18 months.

These reforms make Finland and the EU more attractive to global talent by standardising entry and residence conditions for highly skilled non-EU workers.

???? Ireland Grants Work Rights to Spouses and Partners of Certain Employment Permit Holders

As of 15 May 2024, spouses or partners of Intra-Company Transfer Employment Permit and General Employment Permit holders can work in Ireland without needing a separate employment permit.

Impact of Changes

This change allows immediate work access for spouses and partners, making it easier for families of permit holders to live and work in Ireland.

Key Points

• IRP Stamp 1G: Spouses or partners will get IRP Stamp 1G, allowing work without a separate permit.
• Automatic Update: Current IRP Stamp 3 holders automatically have work rights from 15 May 2024 and can inform employers of this status change.
• Transition Period: All IRP Stamp 3 cards should be renewed as IRP Stamp 1G by 15 May 2025.
• Exclusions: This does not apply to other family members or those with different visas (e.g., tourism or education).
• Validity: IRP Stamp 1G is valid for one year and can be renewed annually.

???? Czech Republic Simplifies Work Permit Exemptions for Select Nationals

The Czech Republic has amended its Employment Act to include a new category of 'citizens of selected countries' exempt from needing a work permit.

Effective from 1 July 2024, citizens from specified countries will benefit from a simplified immigration process, although a residence permit is still required.

Impact of Changes

This change aims to attract more skilled labour to the Czech Republic by simplifying the immigration process for certain foreign nationals, thus addressing the country's labour shortages.

Key Points

• Free Access to Labour Market: Citizens of Australia, Canada, Israel, Japan, the Republic of Korea, New Zealand, Singapore, the United Kingdom, and the United States no longer need a work permit to work in the Czech Republic.
• Simplified Employment Process: This exemption covers both locally employed and posted workers. However, a relevant visa or residence permit is still required.
• Non-Dual Employee Cards: For stays over 90 days, citizens can apply for an Employee Card, which will now only cover the right to stay as work does not require government approval.
• Automatic Transition: Existing Employee Cards will automatically switch to the new non-dual regime on 1 July 2024, requiring no action from cardholders.
• Excluded Countries: Taiwan was initially included but later removed due to political considerations, though future inclusion is possible once terminology issues are resolved.

Streamlined Procedures

The simplified immigration process is designed to make the Czech Republic a more attractive destination for skilled workers.

Although the visa-free regime remains for the specified countries, it does not apply to employment, requiring a Schengen visa for short-term stays or an appropriate residence permit for longer stays.

???? Australia Updates Visa Conditions to Combat Worker Exploitation

Starting 1 July 2024, the Department of Home Affairs will implement changes to visa conditions to address worker exploitation and enhance productivity.

Impact of Changes

Temporary Skill Shortage (Subclass 482) and Skilled Employer Sponsored Regional (Subclass 494) visa holders will benefit from extended periods to find new employment or manage their visa status if they cease work with their sponsoring employers.

Key Points

• Extended Job Search Period: Visa holders will have up to 180 days at a time, or a total of 365 days across the visa period, to find a new sponsor, apply for another visa, or arrange a departure from Australia. This is a significant increase from the current 60-day allowance.
• Work Flexibility: During this period, visa holders can work for other employers, including in different occupations, to support themselves. However, they must not engage in work requiring specific licences or registrations for their nominated occupation.
• Notification Requirement: Sponsors must notify the Department of Home Affairs of any changes in employment status within 28 days.
• Applicability: These changes apply to both existing and new visa holders as of 1 July 2024. Periods of non-employment before this date will not count towards the new time limits.

Implications

• Increased Flexibility: Visa holders will have more time and flexibility to transition between employers, reducing the risk of exploitation and financial instability.
• Employer Caution: Sponsors may need to exercise greater caution and consideration due to potential increased costs and limited refund options for the Skilling Australians Fund Levy.
• Compliance Monitoring: Details on how the government will monitor compliance and the impact on permanent residence applications under the Employer Nomination Scheme remain to be clarified.

Employee Benefits 2024: The Ultimate Guide

Employee Benefits Guide for Global Employers provides comprehensive insights on best practices for offering employee benefits across multiple jurisdictions.

Key Highlights

• Types of Benefits: Detailed information on various employee benefits, including health insurance, retirement plans, paid time off, life and disability insurance, and more.
• Mandatory Benefits: Essential compliance requirements for social security, healthcare, disability, and retirement plans across different countries.
• Voluntary Benefits: Strategies for offering additional benefits like wellness programs, flexible working arrangements, and professional development to attract and retain top talent.
• Designing a Benefits Program: Steps to create a tailored benefits package that aligns with company goals and meets employee needs.
• Global Payroll Calculator (GPC): An innovative tool for managing global payroll, budgeting, and talent insights efficiently.

The guide is designed to help global employers navigate the complexities of benefits provisioning, ensuring compliance while fostering a supportive and attractive work environment.

?? Read the full article Employee Benefits 2024: The Ultimate Guide.

Global Employer of Record Services for the Oil and Gas Industry

The oil and gas industry is one of the world’s most dynamic and challenging sectors; it continues to attract significant investment, albeit with some fluctuations.

Despite the evolving energy landscape and the push towards renewable resources, the oil and gas industry remains a crucial part of the global economy.

Startups in this sector are driving innovation, improving efficiency, and addressing environmental challenges, making it an attractive area for investment.

This influx of investment fuels industry growth and generates numerous employment opportunities across various functions and regions.

A Global Employer of Record talent engagement model can be a flexible and low-investment solution for engaging the workforce for cross-border projects, ensuring compliance, and streamlining operations in the oil and gas industry.

?? Read the full article Global Employer of Record Services for the Oil and Gas Industry.

Global Payroll Calculator

Discover the Global Payroll Calculator by Acumen International: Global EOR | PEO , the ultimate solution for streamlined global talent cost forecasting and a Global Payroll Association (GPA) award winner.

Here’s how it can improve your hiring process:

?? Comprehensive Employment Cost Data: Gain detailed information on employment costs across 190 countries, including gross-to-net calculations, employer liabilities, and employee taxes.

?? Streamline Talent Acquisition: Make informed hiring decisions and optimise your budgeting process with up-to-date, accurate data.

?? Identify Cost-Effective Talent Hubs: Pinpoint the best locations for remote talent with the Global Payroll Calculator.

??When it’s time to hire, onboard talent seamlessly with Express Global Employment. As a leading Global Employer of Record, we help you recruit, sponsor work permits, hire talent, and launch global teams with the speed of light.

?? Try for Free.

Summary and Close

Thank you for joining us for the June 2024 edition of the Express Global Employment Newsletter.

Stay tuned for more fresh insights and tools in our upcoming editions to help you navigate the world of global employment.

?? Sign up for the Global Employment Tax & Compliance Newsletter to stay updated on hot labour and tax law changes with the latest in?global employment,?tax, and?compliance?across 190 countries.

Stay informed, stay ahead.