Pay Equity Goes Global

In the ever-evolving landscape of employment law, 2024 saw a host of significant updates and legislative changes—predominantly aimed at improving employee welfare. From enhanced parental leave benefits to stringent antidiscrimination measures, countries around the world adopted policies focused on fostering gender equality and protecting workers’ rights.

Staying informed about the latest trends in employment law will better enable employers to ensure compliance and promote more inclusive work environments. Toward that end, here are some of last year’s key legislative updates and the broader global trends they signify.

Quick Hits

• Italy introduced new parental leave benefits, effective January 1, 2024.
• Singapore expanded paternity leave benefits and undertook comprehensive workplace fairness legislation.
• China (Shanghai) implemented penalties for unequal pay in labor dispatch.
• Brazil and the European Union (EU) focused on gender pay equity with new reporting obligations.
• Middle Eastern countries such as the United Arab Emirates (UAE) and Saudi Arabia enhanced protections for local nationals.
• Saudi Arabia required private-sector entities to disclose training data annually.
• Australia addressed discrimination against employees experiencing family and domestic violence.
• Singapore included mental conditions as a protected characteristic under new antidiscrimination laws.

Italy and Singapore: Enhanced Parental Leave Benefits

On January 1, 2024, Italy introduced substantial improvements to parental leave entitlements. Employees taking leave to care for children under the age of twelve were authorized to receive an indemnity from Italy’s National Institute for Social Security (Istituto nazionale della previdenza sociale). This indemnity equated to 80 percent of salary for the first month and 60 percent for the second month. Additionally, the government indemnified employers for the second month’s salary at 80 percent, ensuring employees would receive 80 percent of their salaries for the first two months, which reduced to 30 percent thereafter. This initiative underscored Italy’s commitment to supporting working parents and aligned with a broader global movement toward expanding parental leave benefits.

The trend of enhancing parental leave was not confined to Italy. Singapore, for instance, expanded its parental leave benefits. Previously, paternity leave was limited to two weeks, but as of January 2024, employers could voluntarily grant an additional two weeks of paid paternity leave. This change, which is anticipated to become mandatory on April 1, 2025, is believed to be part of a larger effort to address declining birth rates and support family welfare.

China (Shanghai) and Brazil: Equal Pay for Equal Work

Effective January 1, 2024, Shanghai introduced regulations to enforce equal pay for equal work in labor dispatch. Under this framework, employers must rectify any pay disparities within a specified time frame or face penalties. This regulatory initiative aligned with broader global efforts to ensure pay equity and combat gender discrimination.

Brazil also introduced measures in 2024 aimed at fostering equal pay for women and men. Companies with one hundred or more employees were required to publish half-yearly reports on wage transparency and remuneration criteria. Brazil’s government made these reports available on a public digital platform, further promoting transparency and accountability. This initiative mirrored the EU’s pay transparency directive, which mandated reporting obligations for companies meeting certain employee thresholds.

Middle East: Protection for Local Nationals and Training Obligations

The UAE and Saudi Arabia continued to enhance protections for their local nationals. The UAE updated its Emiratization rules, requiring companies with twenty to forty-nine employees to hire at least one Emirati national by the end of 2024, and another by year-end 2025. Penalties for noncompliance are substantial, starting at USD$26,000 in 2024 and increasing thereafter.

Saudi Arabia introduced a requirement for private sector entities with fifty or more employees to disclose their training data annually. Noncompliance can lead to fines and suspension of access to the Qiwa platform, crucial for managing expatriate employment. The data can be used to improve the quality and efficiency of the training programs within the private sector and to enhance the capabilities of the workforce.

Australia and Singapore: Antidiscrimination Measures

Australia implemented stronger protections against discrimination for employees experiencing family and domestic violence. Effective December 2023, employers may not take adverse action, including unfair promotion practices or dismissal, against such employees. This groundbreaking legislation aimed to provide a safer and more supportive workplace environment for affected individuals and positioned Australia among the few jurisdictions with such comprehensive protections.

Singapore enacted its first comprehensive workplace fairness legislation in 2024. This law expanded the definition of “discrimination” to include mental health conditions as a protected characteristic and required employers to establish grievance procedures for addressing discrimination and harassment claims. Singapore became the first jurisdiction in Asia to include mental conditions as a protected characteristic, reflecting a growing recognition of mental health issues in the workplace.

Conclusion

These legislative updates reflected a global trend toward more inclusive and protective employment laws. Countries throughout the world continue to expand parental leave benefits, enforce pay equity, protect local nationals, and address discrimination in the workplace. As these changes unfold, employers will be challenged to stay informed and adapt their policies to comply with new regulations, ensuring fair and equitable treatment for all employees.