This Week in Payroll: Friday, March 04, 2022
This week in Payroll News - we take a look at the United Arab Emirates cracking down on delayed payrolls.
Germany releasing several new changes in everything from Coronavirus restrictions to tax free Coronavirus bonuses rules.
As well as a look at Cost of Living Crisis in the United Kingdom and improvements to living wages and minimum wages.
Ministry of Human Resources and Emiratization cracks down on delayed payrolls
Penalties and fines will be more severe to further encourage employers to pay timely wages to their workforce. The new labor law will notify employees of a lapsed payday, 3 and 10 days after the due date for payment, before actions including suspension of new work permits, fines and a notice to the public prosecution will be applied.
The Wage Protection Systes (WPS) was established in 2009, and these recent attempts to improve issues with non-payment of wages, aim to inspire firms to pay wages through WPS or other electronic salary transfer system.
Conditional Fines will be applied to violations under revised labor codes
Expats are being encouraged to review new laws and changes to regulations coming in March 2022!
Many of the updates center around Corona Virus restrictions, such as implementation of steps two and three of agreements made at the Coronavirus Summit in February, which would permit unvaccinated to continue in-person patronage of restaurants, hotels and other establishments. This will be effective today, March 4th, 2022.
Vaccine mandates will be effective for all workers in the German healthcare system after March 15th. Medical exemptions, proof of previous infection or proof of full vaccination will be considered, and loss of employment would be a final measure if it came down to it.
March 20th and beyond, will bring an end to many of the current measures – the only measures to continue will be masks required in shops and public transportation settings. The required work from home order will be lifted as well.
More payroll centric changes - Coronavirus bonuses of up to 1,500EU will remain exempt from taxation until the final day in March (March 31st).
New laws to improve inflexible contracts and strict auto-renew and cancellation policies came into effect March 1st as well, allowing customers to have easy access to a cancellation button online to reduce hoop-jumping tactics used to keep people trapped in contracts.
Cost of Living projected to soar in April – living wage and minimum wage improved
The UK released their Nation-wide living wage in 2016, but it was restricted to citizens 25 and older. Under new increases in minimum wage and living wage standards, the standard of a living wage will be available to anyone 23 year of age and older.
These changes have been made to improve the low wage requirements and disproportionate cost of living. UK citizens are quickly facing increased National insurance rates, phone bills, gas and electricity cost spikes and rising fuel prices – April is projected to be one of the more expensive months in household history!
The national living wage will increase by 59 pence from 8.91EU to 9.50EU per hour, resulting in an additional 1,000EU for full-time employees in the UK. The National minimum wage is due to increase of 82 pence, and apprentices will see 52 pence increase.