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U.S. Social Security Ruling Impedes U.S. Digital Nomad Visas in Spain

The U.S. Social Security Administration (SSA) is denying certificates of coverage to American digital nomad visa applicants in Spain. These applicants are employees of U.S. companies who want to work remotely from Spain. The SSA argues the existing Totalization Agreement…
Posted on 22nd July, 2024
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Double taxation risk for non-resident executive corporate officers of French companies

Some French jurisdictions recently challenged the criterion of physical presence to allocate the right to tax salaries paid to non-resident executive corporate officers of French companies. According to the Versailles Administrative Court of appeal (October 18 2022, Axa Group Operations),…
Posted on 15th July, 2024
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German member firm, KELLER MENZ, identified as a top employment law firm in Germany

The employment practice at German member firm KELLER MENZ has once again been identified as a recommended firm for providing employment law services to corporate clients. They have been included in a list of the 68 top firms in all…
Posted on 1st June, 2023
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Portugal: BAS – Sociedade de Advogados recognised in Chambers 2023

Portuguese member firm BAS has been recognized again in the Chambers Europe 2023 ranking in the Employment and Life Sciences practice areas. In the individual ranking Chambers Europe recognized lawyers Alexandra Almeida Mota and Pedro Madeira de Brito as references…
Posted on 9th May, 2023
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Bacciardi Partners Expands Global Mobility Practice Offering with New Hire

Italian member firm - Bacciardi Partners is pleased to announce that it has expanded its Global Mobility offering with the addition of Mr. Gabriele Del Bianco, a new Junior Associate. Mr. Gabriele Del Bianco will be dealing with the following…
Posted on 18th April, 2023
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Exemption of withholding tax obligations for foreign employers of French tax residents

Additional guidelines on the scope and consequences of the measure. Further to our article dated 23rd October 2022, the Finance Bill for 2023 in its adopted version abolished the obligation to withhold wage tax at source some foreign employers of…
Posted on 20th March, 2023
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Switzerland: Employer’s obligations under the Gender Equality Act

The principle of equality between men and women is laid down in the Gender Equality Act, in particular the right to equal pay for work of equal value, and must be respected by the employer throughout the employment relationship. The…
Posted on 20th March, 2023
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Switzerland: Checklist for employee bonus entitlement

Each year, employers and employees are confronted with the same question: Who is entitled to a bonus? This article will show you how to easily check bonus entitlements in your company under Swiss employment contract law. No previous legal knowledge…
Posted on 20th March, 2023
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2023 visa routes to the UK

There are various “work visa” categories in the UK, many of which require sponsoring by a business with a relevant sponsor licence. Since the sponsor licence system was first introduced in 2008, these visa categories have evolved. Some have been…
Posted on 17th March, 2023
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Application of the inbound expatriate tax regime to employees returning to Italy from a posting abroad

Requirements for applying the inbound expatriate tax regime According to the rules regulating the inbound expatriate tax regime in Italy, employees are subject to tax on 30% of their Italy sourced employment income, assimilated income and income from self-employment, where…
Posted on 21st February, 2023
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BAS – Sociedade de Advogados – The Best Lawyers in Portugal™

We are proud to announce that BAS – Sociedade de Advogados, the CELIA Alliance member firm in Portugal was recognized in the 2023 edition of The Best Lawyers in Portugal™ in seven practice areas: We see this recognition as a…
Posted on 19th December, 2022
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Expanding into the EEA or UK for the first time

What are the main considerations when expanding into the European Economic Area (EEA) or the UK for the first time? We have created a checklist of the top 10 considerations for a business taking its first steps in the EEA…
Posted on 13th December, 2022
, in UK 
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Fidere Avocats – Labour and employment law

We are proud to announce that FIDERE AVOCATS, one of our CELIA Alliance firms in France, has received excellent rankings for labour and employment law from “Leader’s league”. Leaders League is an international rating agency that have been running for…
Posted on 24th November, 2022
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Keller Menz – Employment law for companies.

We are proud to announce that KELLER MENZ, CELIA Alliance's German member firm, is listed in the "German Commercial Law Firms 2022/2023" JUVE handbook for another year. JUVE publications have been issued annually since 1998 to provide commercial law firms…
Posted on 8th November, 2022
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New law in Spain for the equal treatment, non-discrimination, and protection of sexual diversity

Rights related to sexual freedom and moral integrity have evolved significantly in recent years. The new law in Spain offers greater protection against discrimination in the workplace, therefore both companies and workers must be informed to avoid conflicts, sanctions, and…
Posted on 3rd November, 2022
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The Draft Finance Bill for 2023 plans to reduce withholding tax obligations for foreign employers of French tax residents

A new wage tax withholding system has been applicable in France since 1 January 2019, burdening employers with the responsibility of withholding personal income tax from their employees’ taxable salaries and paying it monthly to the French tax authorities. This…
Posted on 23rd October, 2022
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An original organization of working hours in France: “le forfait en jours”

In France, working time regulations may be confusing. Although the legal duration of work is equal to 35 hours per week, exceptions to this rule are numerous. French Labor Law provides for multiple arrangements, including but not limited to a…
Posted on 12th October, 2022
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Amendments to the “Beckham Law” in the horizon for relocated employees in Spain

Global mobility is an irrefutable trend. In our ever-more globalized world, attracting talent has become a need to enterprises; a need that trespasses borders. This reality, known to the Spanish legislator, is the rationale behind the pre-draft of proposed amendments…
Posted on 28th September, 2022
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Mobile Working, Home Office, or Teleworking, are they under the same regulations?

Under German law, employers need to ensure they use decisive wording in agreements for mobile working, home office or teleworking to avoid possible pitfalls. Although these terms are often used as synonyms, under German law, they may have different legal…
Posted on 20th September, 2022
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Fast-Track Work Permits For Audio-Visual Industry

For the Spanish government, the audio-visual industry is of strategic importance to its economy because of its global nature, its capacity to generate employment and its potential for modernization through digitalization. To this end, the fast-track work permit for those…
Posted on 6th September, 2022
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Non-Habitual Resident

The non-habitual resident (NHR) regime is available to legal residents in Portugal who have not been a tax resident of the country during the previous 5 years. This is a very interesting fiscal optimisation tool and its financial saving allure…
Posted on 22nd August, 2022
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Delays to UK worker visas: what can employers do?

Many employers have struggled with the challenges caused by delayed VISA applications of their workers and a lack of priority appointments in all but a small number of visit visas. This has made it very difficult to reasonably plan when…
Posted on 21st August, 2022
, in UK 
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China Clarifies Cross Border Data Transfer Rules

In November 2021, China introduced their core personal data protection regulations: the Personal Information Protection Law (PIPL). The PIPL applies to personal information, which is information that may be used to identify natural persons. Article 73 of the PIPL uses…
Posted on 29th July, 2022
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5 things foreign employers should know about the French inbound expatriate regime

The inbound expatriates tax regime as provided for by Article 155 B of the French tax Code is one of the most efficient tax exemption mechanisms currently in force under French tax law. Beneficiaries of such regime who transfer their…
Posted on 21st July, 2022
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Loyens & Loeff Zürich celebrates its 5 year Office Anniversary

With a history dating back over 100 years, Loyens & Loeff is the largest independent law and tax firm in continental Europe. It provides full-service legal and fiscal support to multinational organisations, financial institutions, investors and High Net-Worth Individuals. Loyens…
Posted on 13th July, 2022
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Dutch Government has announced its intention to limit tax relief on the 30%-ruling.

Under the 30% ruling an employer can provide a tax-free allowance to qualifying employees recruited or seconded from abroad to cover expatriate expenses.  The maximum tax-exempt allowance is set at 30% of the employee’s income that is subject to Dutch…
Posted on 28th June, 2022
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“The Macron Scale” of employment law damages approved by Supreme Court.

“The Macron scale” has been approved by the French Supreme Court.   After Emmanuel Macron’s election in 2017, a scale of damages, also known as the “Macron scale” (“barème Macron”), was introduced into French employment law. The Macron scale provides…
Posted on 21st June, 2022
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Employers to ensure written employment particulars are given of face fines of up to EUR 2,000 per employee

In June 2022, a new law is expected to be passed in Germany implementing the EU Directive 2019/1152 into national law. The new law supplements existing German law which already provides for the right of employees to a written record…
Posted on 14th June, 2022
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Right to Work Checks have changed from April 2022

In March 2020 Right to Work checks in the UK were temporarily adjusted due to the COVID-19 pandemic. This was to make it easier for employers to carry out checks. Temporary changes The following temporary changes were made: checks could…
Posted on 24th May, 2022
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Legal update – a new entry visa and work permit in Italy.

New Italian entry visa and work permit for digital nomads and remote workers The Italian Law no. 25 of 28th March 2022 has introduced a new entry visa and work permit which allows extra-EU citizens to enter and stay in…
Posted on 7th May, 2022
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Fidere Avocats – New Appointments

Fidere Avocats is pleased to announce the appointment of Marine Clapaud, Vincent Roche and Léa Bensoussan as counsels in the firm. All three provide advice and litigation services on all aspects of labor law to French and international companies: Marine…
Posted on 28th February, 2022
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Fidere Avocats – New Hires

Fidere Avocats is also pleased to welcome Erwane Hadjadj, who will be joining us as a “juriste” after many years as a law professional. Erwane is writing a thesis on the role of the judge in dismissal litigation and is…
Posted on 28th February, 2022
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Fidere Avocats – Updated training packages

Fidere Avocats has reviewed its training packages for clients and now offers: A training cycle on the management of the social and economic committee (which is successor of the French works council)A training cycle on legal news in labor law,…
Posted on 16th February, 2022
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How can you support employees who are citizens of Ukraine?

Employers who employ Ukrainian citizens are now thinking about how they can help their employees and their family members. In addition to offering spontaneous support, e.g. by creating fundraisers, employers also have other options to help. Here are some suggestions…
Posted on 3rd January, 2022
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Implementing the Work-Life Balance Directive in Poland

A new draft act implementing Directive (EU) 2019/1158 of the European Parliament and of the Council of 20 June 2019 on work-life balance for parents and carers and Directive (EU) 2019/1152 of 20 June 2019 on transparent and predictable working…
Posted on 3rd January, 2022
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New employment law developments in Czech law effective from 1 January 2022

As of 1 January 2022,  several significant changes in the field of employment law have been adopted, including changes to the minimum wage and work-life balance. In this article, we assess these changes and their impact. Increase in the minimum…
Posted on 3rd January, 2022
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New tax regime in Belgium for inbound taxpayers

On 1 January 2022, a new tax regime came into force in Belgium for inbound employees, directors and researchers. The new regime provides for greater legal certainty (as opposed to the “old” ex-pat tax regime) for employers and qualifying employees/directors.…
Posted on 3rd January, 2022
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2021 Climate Law – New obligations to inform and consult employee representative bodies in France

On 22 August 2021, the French Parliament adopted the Climate and Resilience Law ("2021 Climate Law"). Since being passed, employee representative bodies must now be informed and consulted on the environmental consequences of any major project considered by an employer.…
Posted on 3rd January, 2022
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Kurzarbeit in Slovakia – Emergency aid for employers – What you need to know

Kurzarbeit, or the short-term work scheme, has introduced a new procedure in Slovakia intended to help employers maintain employment when they are unable to assign work to their employees due to external factors outside of their control. Kurzarbeit replaces the…
Posted on 3rd January, 2022
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Netherlands – A new tax exempt working from home allowance

Since 1 January 2022, employers can provide a tax exempt ‘working from home allowance’ of EUR 2 per working day. The allowance is intended to cover any additional expenses incurred when working at home (heating, coffee/tea etc.). This working from…
Posted on 3rd January, 2022
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UK – Investor route to a visa closed for those with £2m to invest – but alternatives remain for those wanting to invest in the UK

With the spotlight on wealthy Russians having used the Investor route as a quick path to settlement in the UK the Home Office closed this visa route to new applicants with immediate effect on 17 February 2022. Existing Investor migrants…
Posted on 3rd January, 2022
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Netherlands – Change of tax allocation rules for severance payments in cross-border situations

After 5 February 2022, the right to levy tax on severance payments in cross-border situations will no longer be based on the allocation of taxation rights over the last twelve months of the employment. Instead (in principle), it will be…
Posted on 3rd January, 2022
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New mechanisms of internal flexibility in companies to avoid dismissal entered the Spanish labour market playing field

On 30 December 2021 Spain introduced new labour market flexibility to avoid dismissals and meet the needs of businesses during the Covid-19 pandemic. By making these flexibility measures more accessible to companies outside of events like Covid-19, it is possible…
Posted on 3rd January, 2022
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The requirement to make an annual Individual Tax Settlement for 2021 during March-June 2022

Individual taxpayers who were tax residents in China in 2021 may be required to handle the Individual income tax (“IIT”) annual settlement for the year 2021 from 1 March 2022 to 30 June 2022. On 8 February, the State Administration…
Posted on 3rd January, 2022
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Business immigration in Italy – the routes to obtaining a working visa and residence permit

1 - Italian Working Visa and Residence Permit Under Entry Quotas Non-EU citizens may obtain an Italian visa and residence permit upon meeting the conditions of the “Decreto Flussi”, a decree issued every year by the Italian government which sets…
Posted on 3rd January, 2022
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UK GDPR – A new UK personal data transfer mechanism

What’s new? Eight months after the EU released their new standard contractual clauses for personal data transfers outside of the EEA, the UK Information Commissioner’s Office (ICO) issued its version of the new standard contractual clauses (SCCs). Why? Following Brexit,…
Posted on 3rd January, 2022
, in UK 
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The Netherlands: Dutch Budget 2022 – New Tax brackets and Tax Free Allowances

Dutch wage tax rates have been updated in the Dutch Budget 2022 as have the tax free limits of the Employment Costs Scheme which allows employer to provide tax free allowances and benefits in kind to employees. New Dutch income…
Posted on 3rd January, 2022
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A look at Italy’s attractive new tax regimes for inpatriate workers and pensioners

Back in 2019 and 2020 new, attractive tax regimes were launched for both employees and self-employed workers, and pensioners who transfer their tax residency to Italy. The Covid pandemic somewhat obscured the new regimes as permanent international moves, as opposed…
Posted on 3rd January, 2022
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Consequences of lockdown and travel restrictions measures: no special treatment for French business travellers and inbound expatriates

As explained in our Q4 2020 newsletter, France entered into various amicable agreements with bordering countries to neutralize the tax consequences of COVID-19 restrictions for cross-border employees. While the application of these agreements was extended until September 30, 2021, France…
Posted on 8th January, 2021
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Changes in rules of entry to workplace following return from abroad

As of July 1, 2021, mandatory COVID-19 testing of employees at their workplace ended in the Czech Republic. However, since July 9, 2021, new obligations of testing for COVID-19 for persons returning from abroad have been introduced. The new rules…
Posted on 8th January, 2021
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Compliance with the minimum wage in the matter of posting – EU jurisprudence

CJEU, 8 July 2021, aff. C-428/19, Rapidsped : In a preliminary ruling on July 8, 2021 relating to Hungarian drivers performing their work in France, the European Court of Justice, questioned by a Hungarian administrative and Labour Court, ruled on the…
Posted on 8th January, 2021
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Workers posted from the UK to France

As of January 1, 2021, the United Kingdom has been a country outside the European Union. A Trade and Cooperation Agreement (TCA) was signed with the United Kingdom on December 30, 2020. Since January 1, 2021, this agreement has determined…
Posted on 8th January, 2021
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Remote working in Belgium and Germany – extension

The Netherlands has concluded mutual agreements with Belgium and Germany on how to apply the double taxation agreements for cross-border employees under the COVID-19 measures. The mutual agreements which were concluded on 6 April 2020 with Germany and 8 May…
Posted on 8th January, 2021
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Abbiss Cadres Bolsters Data Protection Service With New Partner Hire

We are pleased to announce the addition of a new partner, Megan Shields, former Associate General Counsel of U.S. headquartered Webroot Inc, the global, anti-malware tech firm. Megan will spearhead the expansion of Abbiss Cadres’s data protection and privacy offering…
Posted on 8th January, 2021
, in UK 
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Don’t Leave the UK if you have an Outstanding application

The recent COVID-19 pandemic has had an unprecedented effect on businesses throughout the last year and a half. Immigration, in particular, has been affected with a multitude of issues arising as a result of travel restrictions. In this case study,…
Posted on 8th January, 2021
, in UK 
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International Remote Working, Checklist for Employers

Are you ready for increased employee choices and flexibility in the workplace? There is no doubt that we are all living through an exceptional period of time, as a result of the pandemic. We have seen a revolutionary and practically…
Posted on 8th January, 2021
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Remote working in Belgium and Germany

The Netherlands has concluded mutual agreements with Belgium and Germany on how to apply the double taxation agreements for cross-border employees under the COVID-19 measures. Due to the travel restrictions caused by COVID-19 measures, cross-border employees may face taxation of…
Posted on 4th January, 2021
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French Supreme Court Jurisprudence

According to European Union law (Case A-Rosa Flussschiff GmbH, C-620/15, April 27 2017) the regular issuance of an A1 certificate is protection against the criminal offense of undeclared work. The issuing of a regular A1 certificate is a presumption that…
Posted on 4th January, 2021
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Dutch large enterprises become eligible for the Fixed Cost Allowance pursuant to approval European Commission

As the lockdown measures are extended, the Dutch government envisages to open the Fixed Costs Allowance (TVL) to large enterprises and increase the subsidy amount significantly. On 16 March 2021, the European Commission approved the envisaged measures. The TVL is…
Posted on 4th January, 2021
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It is now possible to obtain Italian citizenship in shorter time

It is now possible to obtain Italian citizenship in shorter time. The Law Decree n. 130/2020, entered into force on October 22nd 2020, has reduced the time needed to define the procedures in order to obtain the Italian citizenship for…
Posted on 4th January, 2021
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International Remote Working – A Multidisciplinary Perspective

Are you ready for increased employee choices and flexibility in the workplace? There is no doubt that we are all living through an exceptional period of time, as a result of the pandemic. We have seen a revolutionary and practically…
Posted on 4th January, 2021
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EU Commission Data Protection Adequacy Decision – One Step Closer to Approval

Another positive step towards data adequacy status was reached in February with the publication of the European Commission’s draft adequacy decision. Further progress was made towards UK data adequacy status with the publication of the European Data Protection Board’s (EDPB)…
Posted on 4th January, 2021
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International mobility of workers for companies

In a market as globalised and competitive as the current, international labour mobility is an increasingly common option for companies. Many employers see the international mobility of their workers outside the national territory as an opportunity to grow and expand…
Posted on 4th January, 2021
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Keller Menz excels with presence in law firm rankings for their employment law practice in 2020

In June 2020, Keller Menz was named one of four "preferred law firms" in Munich (Kanzleimonitor, p. 141). Thomas Keller was named as a recommended lawyer based on recommendations by companies and in-house lawyers. In July 2020, Brand eins labelled…
Posted on 4th January, 2021
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Continuation of the fixed commuting allowance during COVID-19

Employers may grant a tax-exempt fixed commuting allowance to their employees, dependent on i.a. commuting distance, travel frequency and EUR 0.19/km. Because of the current COVID-19 measures, employees preferably work at home as much as possible, which would have a…
Posted on 4th January, 2021
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China New Accounting Standards 2021

Chinese enterprises will be required to adopt several revised accounting standards starting from January 2021. These revised standards concern mainly the recognition of revenue (“new CAS 14”) and the treatment of the financial leases in the financial statements. Enterprises which…
Posted on 2nd January, 2021
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China’s First Civil Code, 1st January 2021

China’s first ever Civil Code will come into effect on January 1st, 2021. This Civil Code is a codification of the existing civil and tort related laws, regulations and judicial interpretations issued by the Supreme People’s Court. The following laws…
Posted on 2nd January, 2021
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Changes of taxation of employment income in the Czech Republic in 2021

The new law changing materially the taxation of employment income was approved and took effect on 1 January 2021. Below we summarise the main changes: Income from employment (and other types of taxable personal income) is generally subject to a…
Posted on 2nd January, 2021
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Consequences of lockdown measures due to COVID on taxable income for French tax residents

The year 2020 is over but will continue to have many consequences in 2021. As far as French tax residents are concerned, the lockdown measures and movement restrictions imposed over the year by the various governments which prevented many employees…
Posted on 2nd January, 2021
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Obtaining Italian Citizenship

It is now possible to obtain Italian citizenship in shorter time. The Law Decree n. 130/2020, entered into force on October 22nd 2020, has reduced the time needed to define the procedures in order to obtain the Italian citizenship for…
Posted on 2nd January, 2021
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Pensions – lump sum payment allowed as from 2022

Contrary to most European countries, accumulated pension capital cannot be paid to an employee in a lump sum under Dutch law. Accumulated pension capital must be paid in lifelong annuities from the retirement date. In order to give employees more…
Posted on 2nd January, 2021
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Brexit Deal: What’s Changed?

Immigration: Although the transition period has ended, EU Citizens will be able to enter the UK just using their passports until the end of September 2021. Now the transition period has finished, the Frontier Worker system offers EU Citizens who…
Posted on 2nd January, 2021
, in UK 
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The Post Brexit Immigration System

The UK officially left the EU on 31 January 2020 the transition period maintaining free movement for EU citizens ran until 31 December 2020. As of now, the Post Brexit Immigration Rules apply to all migrants, including those arriving from the…
Posted on 2nd January, 2021
, in UK 
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The Pension Schemes Act 2021 Receives Royal Assent

The Pension Schemes Act 2021 (the Act) has received Royal Assent on 11th February 2021. The Act may well have an effect on corporate transactions given that the Act extends the powers of the Pensions Regulator to include the creation…
Posted on 2nd January, 2021
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New Spanish CELIA Alliance member CECA MAGÁN

CELIA Alliance welcomes new member firm in Spain. The CELIA Alliance is delighted to announce the addition of a new Spanish member firm – CECA MAGÁN with effect from November 2020.  CECA MAGÁN has accumulated more than 45 years of…
Posted on 24th November, 2020
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Excellent results Loyens & Loeff in Women in Tax Leaders guide 2021

ITR (International Tax Review) has released their results for the 2021 Women in Tax Leaders Guide. We congratulate our 8 colleagues for being recognized as leaders in their field. The excellent results are: Dominique Afink – Highly Regarded Marieke Bakker…
Posted on 9th January, 2020
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Bringing Certainty, 5 ways a Global Mobility Team can support businesses through uncertain times

Currently, it feels like we can’t turn on the news without being faced with yet another event rocking the global stage. From political changes like Brexit, the growing rhetoric between the US and China to the Coronavirus pandemic, the world…
Posted on 9th January, 2020
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Is the European Court of Justice opening the door to material employment practice in social security?

On 16 July 2020 The Court of Justice of the European Union ruled that international lorry drivers who work in more than one country are covered by social security regime in the member state in which their employer has its…
Posted on 9th January, 2020
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China-Italy tax treaty new step in ratification

Tax treaties and double tax agreements between two jurisdictions are an excellent tool to boost and strengthen the bilateral economic relationship and promote cross-border investments. Currently, thousands of tax treaties and arrangements are in force worldwide. Based on international law,…
Posted on 9th January, 2020
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Changes impacting employment law in the Czech Republic in 2020

In June 2020, the long-awaited amendment to the Labour Code was approved. The amendment is to take effect on 30 July 2020, with the exemption of certain matters, especially the new calculation of annual leave entitlement and the concept of…
Posted on 9th January, 2020
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Job Retention Scheme – deciding when to act

Last updated: 31th March 2020 15:45 Many employers will be considering whether and if so when to take advantage of the Job Retention Scheme announced by the Government on 23 March 2020. The main points of the Scheme are a…
Posted on 6th January, 2020
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Coronavirus Business Support for Employers and Workers

Last updated: 2nd June 2020 9:30 Every day, governments and central banks around the world are announcing new measures to support the economy through the COVID-19 crisis. Set out below is a summary of the UK measures which we will…
Posted on 6th January, 2020
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HMRC 2020 UK Tax Deadlines amid Coronavirus (COVID-19) crisis

Whilst companies are continuing to be impacted by the COVID-19 crisis, either directly or indirectly, this time in the year is often a busy time with a number of key deadlines for businesses to consider.  HMRC understand some of the…
Posted on 6th January, 2020
, in UK 
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The UK Government’s COVID-19 Recovery Strategy – Coronavirus Lockdown

The UK Government has launched its COVID-19 recovery strategy – ‘Our Plan to Rebuild’ on 11th May 2020. The strategy was launched with the caveat that the timetable will be delayed if the Coronavirus is not successfully controlled and if…
Posted on 6th January, 2020
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Coronavirus & Global Mobility – Back to Business, the ‘New Normal’

We are all in unprecedented times with changes to the way we live and work due to Coronavirus (COVID-19), that no-one could have imagined just a few months ago. With many countries in lockdowns and nearly all international travel paused…
Posted on 6th January, 2020
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Immigration in the COVID-19 lockdown in the UK

The UK’s Home Office are now regularly updating their guidance for immigrants in the UK and those wanting to make applications to come here. The latest position is set out in their guidance most recently updated on 26 May 2020…
Posted on 6th January, 2020
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Guide to Coronavirus Job Retention Scheme, Updated 8th June 2020

Last Updated 8th June 2020 Most Recent Changes to the Coronavirus Job Retention Scheme About the Scheme FAQs   Most Recent Changes to the Coronavirus Job Retention Scheme The government has announced significant changes to the Coronavirus Job Retention Scheme.…
Posted on 6th January, 2020
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The Netherlands: Q&A Coronavirus employment

Introductory remarks The coronavirus (COVID-19) is currently causing concern and uncertainty and poses challenges to companies and individuals alike. A number of legal issues are also emerging. This article aims to highlight the most important points from a Swiss employment …
Posted on 4th January, 2020
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Tax News – coronavirus-related tax relief package

We would like to briefly inform you that the government approved the so-called Tax Relief Package at the weekend – a package of measures that should help taxpayers, and the economy, deal with the coronavirus (Covid-19) emergency. The exact parameters…
Posted on 4th January, 2020
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Coronavirus raises VAT questions in Luxembourg

Many Luxembourg based businesses experience financial pressure due to the current coronavirus (COVID-19) crisis. This, in turn, triggered a whole range of legal and tax questions, including on VAT. This comes as no surprise: VAT is a significant financial item…
Posted on 4th January, 2020
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Legal considerations for businesses during the coronavirus outbreak in Belgium

Also important to take into account however are certain legal and tax considerations. For instance with regard to the payment of corporate income tax, corporate governance and obligations and liabilities under commercial contracts of your business. This comprehensive guide includes…
Posted on 4th January, 2020
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Coronavirus FAQs

Last updated: 2nd June 2020 12:30 Here to help Effective, regular communication is key to the successful management of your workforce in this crisis.  This is particularly so where your workforce is mainly working remotely and where you are looking…
Posted on 4th January, 2020
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Temporary Aid Scheme to Maintain Employment (NOW)

On 31st of March the temporary aid scheme to compensate wage costs in connection with the Coronavirus was announced (Temporary Aid Scheme to Maintain Employment, in Dutch: Tijdelijke noodmaatregel overbrugging voor behoud van werkgelegenheid). Download PDF Further information For further…
Posted on 4th January, 2020
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Polish Anti-Crisis Shield

The Polish Anti-Crisis Shield was adopted on 31 March - below is a summary of the changes that may affect running a business. Download PDF Further information For further information or to discuss any of the issues raised, please contact Agnieszka…
Posted on 4th January, 2020
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Czech Republic: PRK Partners named 2019 Best Law Firm of the Year

Celia Alliance member, PRK Partners, has been named the 2019 Best Law Firm of the Year, organised by EPRAVO.CZ under the auspices of the Czech Bar Association and the Ministry of Justice of the Czech Republic. In addition to the…
Posted on 1st January, 2020
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Germany: A year on: a review of the new laws on the expiry of paid annual leave entitlements

In February 2019, the BAG (German Federal Labour Court) decided to change the law on the expiry of paid annual leave entitlements.  What are the changes?  Previously to the Federal Labour Court’s decision, untaken paid annual leave expired at the…
Posted on 1st January, 2020
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The Netherlands: Dutch Budget 2020 – New Tax brackets and Tax Free Allowances

There have been two relevant updates to Dutch wage tax, according to the Dutch Budget 2020. Alongside a two-bracket tax system, there has also been an increase from 1.2% to 1.7%  for the tax free allowance  for the first 400,000…
Posted on 1st January, 2020
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Netherlands: Dos and Don’ts: Best practice when dealing with a visit by the Dutch Labour Inspectorate

The Dutch Labour Inspectorate (Inspectie SZW) can visit a workplace without prior notice, to ensure that employers comply with the law and that everything taking place at a workplace is legally compliant. The Labour Inspectorate has supervising powers in regard…
Posted on 1st January, 2020
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China: New foreign investment law 2020 brings radical change to the governance and ownership of foreign investment entities

China’s Foreign Investment Law (FIL) implemented major reforms from 1 January 2020 affecting all aspects of foreign investment in China. The FIL greatly simplifies the legislative environment with only 42 articles over six chapters -albeit the FIL is accompanied by…
Posted on 1st January, 2020
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What is replacing the UK’s Tier 1 Entrepreneur visas? Part One: Start-up Visas

As of March 2019, International applicants wanting to start or get involved in businesses in the UK must now use the new Start-up and Innovator categories as Tier 1 (Entrepreneur) visas have been consigned to history. There is a feeling…
Posted on 8th January, 2019
, in UK 
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What is replacing the UK’s Tier 1 Entrepreneur visas? Part Two: Innovator Visas

International applicants wanting to start businesses in the UK must use the new Start-up or Innovator visa categories since the Tier 1 (Entrepreneur) visa has been consigned to history. We looked previously at the Start-up category, how family members can…
Posted on 8th January, 2019
, in UK 
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Poland: Tax relief on employees under the age of 26 as of 1 August 2019

As of the 1st August 2019, employees (Polish citizens and foreign nationals) under the age of 26 are no longer obliged to pay income tax, a decrease from a rate of 18%, provided the employee in question is employed on…
Posted on 8th January, 2019
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Poland: Upcoming amendments to Polish Labour Code

Important amendments to the Polish Labour Code are being made on 7th September 2019 that will affect both employers and employees. Discrimination in employment The definition of discrimination in employment within the Polish Labour Code is being changed, opening the…
Posted on 8th January, 2019
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Poland: Random breathalyser tests on employees prohibited

On 27th June 2019, the Polish Personal Data Protection Office announced that employers were prohibited to perform random breathalyser tests on their employees. Instead, the tests need to be carried out by a professional in order to ensure reliable results.…
Posted on 8th January, 2019
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France improves its attractiveness for inbound expatriates

Employees hired in France or posted to France from abroad may be exempt from contributing to French pension schemes due to France’s effort to transform economic growth and aid businesses. The new ‘PACTE’ (Action Plan for Business Growth and Transformation)…
Posted on 8th January, 2019
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Czech Republic: Dismissal protection during sickness period

A new law on electronic medical certificates could prevent employees wrongly claiming dismissal protections by obtaining doctor’s certificates after an alleged ‘sick period’. Based on the new legal regulation, the employee’s medical incapacity should be known to the employer immediately…
Posted on 8th January, 2019
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Germany: New legal provisions to apply for A1 certificate

An A1 certificate for a posted employee can only be applied for electronically in Germany. An A1 form determines which social security legislation applies to the holder of the certificate. The online process is now available, according to § 106…
Posted on 8th January, 2019
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Employing in China: five things you need to know

With outstanding GDP growth over the past twenty years, the People’s Republic of China (PRC) is taking its place among the world’s top economies and attracting significant foreign investment. But for businesses looking to expand into China, navigating labour law…
Posted on 7th January, 2019
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Sending employees to the UK – six top tax tips

For those considering sending employees to the UK, there are several ways to reduce the employment costs with careful planning. Our multi-disciplinary team can help arrange UK assignments to allow employers to take maximum advantage of the key planning points…
Posted on 7th January, 2019
, in UK 
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Dutch minimum wage applies to crew on ships with Dutch home harbour, Dutch state council rules

On 17 April 2019, the Dutch State Council (Raad van State) ruled that the Dutch Act on Minimum Wages applies to seafarers working on board of harbour tugboats (havensleepboten), provided their home harbour is in the Netherlands. This means that…
Posted on 5th January, 2019
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Poland: Automatic enrolment for retirement plans – employee capital plans came into force on 1 January 2019

The Employee Capital Plan (PPK), a long-term savings programme to give employees additional security in retirement, generally involves new obligations for employers. The programme, which came into force on 1 January 2019, will also incur additional costs that should be…
Posted on 3rd January, 2019
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France: A review of 2019’s new wage tax withholding system and its impact for foreign employers

On 1st January 2019, a new wage tax withholding system was implemented in France. This has meant employers are obliged to withhold personal income tax from their employees’ taxable salaries and pay it monthly to the French tax authorities. This…
Posted on 3rd January, 2019
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Changes impacting employment law in the Czech Republic in 2019

There have been two major changes to Czech Republic employment law proposed for 2019: an increase of the threshold for payment of health insurance, and the proposed amendment to the Opening Hours Act. Increase of the Decisive Amount for Payment…
Posted on 3rd January, 2019
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Obligation to report posted employees as of 1 July 2019

The obligation to report any posted employees in the Netherlands will enter into force from 1 July 2019. This means that companies and individuals who want to provide services in the Netherlands have to report posted employees to the Dutch…
Posted on 3rd January, 2019
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Business Immigration: Opportunities for Overseas Businesses and those wanting to bring in talent to the UK

The UK Government has signalled its intention to make all inward migration to the UK subject to the same Rules. This is regardless of whether the applicants are coming from Europe or beyond, so it is a good time for…
Posted on 3rd January, 2019
, in UK 
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10 Considerations for employers ahead of Brexit

Unless there is an agreement to extend the two-year Article 50 period, the UK will be leaving the EU on 29 March 2019. If an agreement is reached before 29 March 2019 then there will a transition period during which…
Posted on 3rd January, 2019
, in UK 
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Poland: New rights to unionise for non-employees

As of 1 January 2019, a major amendment to the Polish Unions Act allows those working under non-employment arrangements such as civil law contracts or under self-employment are to unionise. The new regulations apply to those who provide work outside…
Posted on 2nd January, 2019
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China: The New Individual Income Tax Law

China’s new Individual Income Tax Law (IIT) came into force as of 1 January 2019. This was passed in an effort to achieve a better income distribution, reduce the tax burden for taxpayers, as well as increasing the domestic consumption…
Posted on 2nd January, 2019
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Immigration in the Brexit scenarios: What could happen?

In light of the UK Government’s recently published guidelines for EU citizens in the case of a no-deal Brexit, Senior Consultant at Abbiss Cadres Jonathan Martin takes a look at the possible options and how immigration may change under each…
Posted on 2nd January, 2019
, in UK 
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French president allows tax-exempt bonuses between 11 December 2018 and 31 March 2019

On 24th December 2018 French President Emmanuel Macron passed a law allowing any private employer, including state-owned companies, to pay an exceptional tax-exempt bonus to employees. This is provided their earnings are less than 3,600 euros per month (three times…
Posted on 1st January, 2019
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Dutch Budget 2018 – other tax and social security proposals

Dutch Budget 2018 - other tax and social security proposals The Dutch Government has announced its plans for the tax year 2019 and future years. We examine the issues most relevant to Dutch employers and their employees. Transitional rules for…
Posted on 11th January, 2018
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Extensive changes impacting employment law in the Czech Republic in 2019

Extensive changes impacting employment law in the Czech Republic in 2019 Employers will want to take note of proposed changes to sick leave provisions and extensive amendments of the Czech Labour Code. Sickness benefits to be paid from day 1…
Posted on 11th January, 2018
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Proposed changes to Chinese income tax laws have a significant impact on both foreign and local employees

Proposed changes to Chinese income tax laws have a significant impact on both foreign and local employees A draft amendment on the PRC Individual Income Tax (“IIT”) Law has been released recently for public consultation. The main proposed changes include…
Posted on 11th January, 2018
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Significant changes to the elimination of double taxation in Hong Kong

Significant changes to the elimination of double taxation in Hong Kong For the 2018/19 tax year ending 31 March 2019 there are significant changes to claiming relief from double taxation for salaried tax payers. Background In the past, for those…
Posted on 11th January, 2018
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Changes to the laws governing posted workers in France

Changes to the laws governing posted workers in France A new law passed in September 2018 made some significant changes to the laws governing the registration and reporting of the international posting of workers in France. Limited relaxation of mandatory…
Posted on 11th January, 2018
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UK Budget – key takeaways for HR practitioners

On 29 October 2018, the Chancellor delivered the 2018 Budget. This article provides an overview of the key developments relevant to HR practitioners. Changes in tax rates and allowances Income tax The tax free personal allowance for income tax will…
Posted on 11th January, 2018
, in UK 
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Term of validity 30%-ruling reduced from eight to five years

The Dutch government intends to reduce the term of validity of the 30%-ruling from eight to five years as from 1 January 2019. The proposal applies to both new and existing situations. It was accepted by the Cabinet on a…
Posted on 4th January, 2018
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Urgent changes to pension schemes required by 1 January 2018 changes to the legal retirement age

With effect from 1 January 2018, the legal retirement age for collective pension schemes (second pillar pension) will increase from 67 to 68. The increase of the legal retirement age is  likely to result in pension schemes exceeding the maximum…
Posted on 11th January, 2017
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The Canadian business immigration benefits for EU nationals following the Canada-European Union Comprehensive Economic and Trade Agreement

Canada implemented the Canada-European Union Comprehensive Economic and Trade Agreement, referred to as CETA, earlier in 2017.  CETA’s immigration provisions will provide a number of benefits for EU workers and business visitors.  These include: “Enhanced” Intra-Company Transfer Provisions The basic…
Posted on 11th January, 2017
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Expansion into the UK – Immigration opportunities for overseas business, investors and entrepreneurs

Currently there are three key immigration routes for businesses and investors looking to expand into the UK. Post the decision to leave the EU, the UK Government is keen to grow its non-EU trade relationships. Given that UK sterling has been trading…
Posted on 11th January, 2017
, in UK 
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New temporary residence permits for intra-corporate transfers

The Polish parliament is considering draft legislation: Introducing  a new temporary residence permit for intra-corporate transfers involving the employment of third-country nationals (individuals from a country that is not a member of the Union); Providing for an intra-EU mobility scheme which…
Posted on 11th January, 2017
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Draft Polish legislation to implement GDPR includes the new workplace monitoring provisions

The Polish Ministry of Digitization has published a draft of a new Protection of Personal Data Act and its implementing Act which introduces changes in over hundred acts of law, including the Labour Code, in order to implement the new…
Posted on 11th January, 2017
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Dutch Budget 2018: new tax rates and bands, changes to the employment status of listed company non-executives, pensionable age change, and promises of clarity on contractor status

The Dutch Government has announced its plans for the tax year 2018 and future years. The issues most relevant to companies employing staff in the Netherlands are as follows. Reduction in the life of the special tax regime for inbound…
Posted on 11th January, 2017
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Religious attire: practical tips for EU employers

Throughout the EU, disputes with employees who wear religious clothes or symbols, such as Islamic headscarves and Christian crosses, can be expensive and damaging for employers.  Such disputes attract potentially uncapped compensation awards if an employer’s dress code is found…
Posted on 7th January, 2017
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Italy tax changes: rolling out the red carpet for impatriates

Italy is rolling out the red carpet for international workers who acquire Italian tax residency, in a series of generous tax reforms.  Employers of individuals incoming to Italy should familiarise themselves with the new rules, in case they impact upon…
Posted on 7th January, 2017
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The moving target of UK immigration policy: practical steps for workforce planning

UK immigration policy is a constantly moving target, amid the cut and thrust of the UK’s negotiations to leave the EU.  So where are we now, and how can employers in the UK do the right thing by their EEA…
Posted on 7th January, 2017
, in UK 
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Labour law reform in Poland: changes on the horizon for employers of seasonal and short-term staff

A draft act with significant implications for employers of short term and seasonal workers in Poland has been adopted by the Polish Parliament (“the Act”).  The Act: provides new rules for employing non-EU/EEA citizens for seasonal and short-term work in…
Posted on 7th January, 2017
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Remote working across borders: opportunities and traps for international employers

The attractions of remote working are obvious:  saving office space and costs for the employer, and commuting costs and time for the employee.  In the UK, figures published by the Office for National Statistics in April 2016 showed remote working…
Posted on 7th January, 2017
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France: Major labour law reforms continue

Labour law reform was a major topic of newly elected President Macron’s election platform, in order to tackle unemployment and inflexible rules on hiring and firing. Following the first round of consultations with trade unions and employers' organizations, the Government…
Posted on 7th January, 2017
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Intra Corporate Transfer Directive and international assignments: a patchy picture across the EU

Many EU member states were due to implement the Intra Corporate Transfer-Directive (“ICT Directive”), into domestic immigration law late last year.  To date, the implementation map remains patchy across the EU.   However, international employers should be aware of the new…
Posted on 7th January, 2017
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Intra Corporate Transfer Directive and international assignments: a Netherlands case study

In this article we examine the implementation of the Intra Corporate Transfer Directive (“ICT Directive”) in the Netherlands, as an illustration of its implications for employers in a particular jurisdiction, and to highlight some “knock-on” effects in other EU countries.   …
Posted on 7th January, 2017
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New disclosure rules to ensure equal pay in Germany

A new law (EntgTranspG) to ensure equal pay of male and female employees comes into effect in Germany this summer (the “Act”). This will require employers, upon request by an employee, to disclose anonymised salary details of other employees working…
Posted on 7th January, 2017
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Market Abuse Regulation one year in: key issues for employee share plans

The Market Abuse Regulation (“MAR”) came into force throughout the EU one year ago, with significant impact for companies operating employee share plans.  In this article we summarise the impact of the MAR on employee share plans, and some important…
Posted on 7th January, 2017
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Posting workers to France? New duties for host companies

Readers may recall our report on the particular complexities of posting workers into France. Recent legislation imposes additional controls and duties on companies in France which use posted workers (a “Host Company”): Suspension of work: As we previously reported, any…
Posted on 7th January, 2017
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Posting workers to France? Five things to know before they go

Employers posting staff to France on a temporary basis from another EU country should take note of the Posted Workers Enforcement Directive (the “Enforcement Directive”) which creates particularly onerous new obligations for employers.  This is an EU-wide measure, but implementation…
Posted on 4th January, 2017
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From non-event to nightmare: Cross-border postings and the Posted Workers Enforcement Directive

International employers who send staff based in an EU country to work in other EU countries on a temporary basis – whether within an international group of companies, or to a customer in another state - will be familiar with the Posted Workers…
Posted on 4th January, 2017
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Workforce planning in Germany: new rules for temporary agency work

On 1 April 2017, a new law governing temporary agency work came into effect in Germany (the “Act”).  Businesses operating in Germany, whether suppliers or end users of agency workers, must take note of the new rules under the Act…
Posted on 4th January, 2017
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Three years to claim? Supreme Court in Poland opens door to claims for termination on discriminatory grounds

Employers in Poland should be aware of a recent landmark decision in the Supreme Court, which could allow employees to bring claims in respect of termination long after their employment has ended. Short deadline overturned Previous case law had suggested…
Posted on 4th January, 2017
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Hong Kong Tax Changes for 2017-18

As Hong Kong tax filing deadlines approach in early May and June (see below), it is important for management/HR and as well as international assignees to be aware of recent tax changes to profits, salaries and property taxes. Amongst the…
Posted on 4th January, 2017
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Newsflash: Hong Kong Tax Alert

The Hong Kong tax filing season for the 2016/7 tax year has now commenced.   Both individuals and employers must file their tax returns promptly in time for the upcoming deadlines.   Key filing deadlines are:- 2 May 2017 Filing…
Posted on 4th January, 2017
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Newsflash: France Tax Alert

The filing deadlines for  2017 income tax returns (income from 2016) in France are approaching fast: May 17th 2017 (paper filing) or, for online filings, May 23rd/30th or 6th June 2017. See table for more details.  Filing deadlines for tax…
Posted on 4th January, 2017
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Maximising express entry points: senior executives get a fresh look

Background The way that points are granted for permanent residence under Canada’s Express Entry system changed in November 2016.  These changes affected various issues including credit for Canadian education as well as non-LMIA (‘Labour Market Impact Assessment’) work permits, to…
Posted on 3rd January, 2017
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Investing in the UK: immigration routes to expansion

The UK’s decision to leave the EU has created uncertainty for businesses in the UK, and those considering a move to the UK.    However, the recent growth figures for the UK economy in Q4 2016 demonstrate that this is…
Posted on 3rd January, 2017
, in UK 
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Termination costs for high earners in Switzerland: new flexibility for employers?

A recent ruling of the Swiss Federal Supreme court could allow employers in Switzerland greater flexibility in termination packages for some very high earning employees. Under Swiss law, a bonus which is part of an employee’s variable salary with the…
Posted on 3rd January, 2017
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Good news for non-resident EU taxpayers with overseas income: ECJ rules on personal deductions

The European Court of Justice (the “ECJ”) has brought good news for many individuals who live and work across EU borders, in a case in which Loyens & Loeff acted for the taxpayer.   According to the ECJ, an individual…
Posted on 3rd January, 2017
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Brexit: practical steps to plan ahead and keep your workforce happy

Much remains unclear about the future of the UK labour market following its formal exit from the EU, likely to be in March 2019 under the emerging Brexit timetable. However the UK government’s position, set out in its formal White…
Posted on 3rd January, 2017
, in UK 
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BREXIT: a brief timeline

On 29th March, the United Kingdom government triggered Article 50 of the Lisbon Treaty, following a swift approval process through the UK legislature.  This kick-started the two-year notice period for the UK’s official exit from the European Union.  Here’s a…
Posted on 3rd January, 2017
, in UK 
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France changes the tax treatment of tax qualifying free share plans – again…

Readers may recall the 2015 ‘Macron Law’ which enhanced the favourable tax and social security treatment of the gains made from certain share incentive awards granted under French qualifying share plans. However, this favourable tax treatment only had a limited…
Posted on 3rd January, 2017
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Employees working cross-border Germany and the Netherlands: where to pay tax on termination payments

In our January 2016 newsletter we informed you about the new double tax treaty between the Netherlands and Germany (the “2016 Tax Treaty”).  In that article we highlighted an area of uncertainty with regards to the allocation of taxation rights…
Posted on 3rd January, 2017
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PRK partners among the top six law firms in the Czech Republic again

After winning the award last year, we have again been shortlisted for the upcoming Chambers Europe Award 2017 according the internationally acclaimed directory of law firms, Chambers and Partners. The awards are issued in recognition of work of national and…
Posted on 3rd January, 2017
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Visa restrictions to be lifted for Bulgarian and Romanian citizens from 1 December 2017

The Minister of Immigration has announced that visa requirements for citizens of Bulgaria and Romania will be lifted as of 1 December 2017. Even before that date, Canada hopes to implement a partial lift that will exempt certain Romanian and…
Posted on 12th January, 2016
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Brexit – EU Nationals in the U.K.

  It is now nearly six months since the U.K. referendum voting for Britain to leave the EU.  The U.K. government is still arguing that it should not have to ask the U.K. Parliament to trigger Article 50 of the Treaty…
Posted on 12th January, 2016
, in UK 
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Temporary Employment Contracts – New Dutch Supreme Court Ruling

On 4 November 2016, the Supreme Court gave judgment in the Care 4 Care case in respect of two issues that are of great importance to the employment agency industry.  The law describes the temporary employment contract as an employment contract…
Posted on 11th January, 2016
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Changes to Criminal Liability of Legal Entities

Recent developments As of 1 December 2016 there are changes in the law in relation to the criminal liability of a legal entity.  The changes narrow the scope of natural persons whose conduct can be attributed to a legal entity.…
Posted on 11th January, 2016
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Enforcement of The Deregulation of Assessment of Independent Contractor Status Act postponed until 1 January 2018 (DBA Act)

Background Since the abolition of the VAR (Declaration of Independent Contractor Status) on 1 May 2016 there has been a great deal of disquiet and uncertainty among clients and the contractors/self-employed regarding the DBA Act. Recent developments On the advice…
Posted on 11th January, 2016
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Polish Employment Law Update Autumn 2016

The recent key developments in Polish employment law are examined below. 1.     Communication of changed notice period required On 22 February 2016, new regulations came into force extending the notice period for a fixed-term employment contract.  After the lapse of…
Posted on 11th January, 2016
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The Netherlands and China Sign Social Security Treaty

On 12 September 2016, a social security treaty between The Netherlands and China was signed.  The treaty will probably become effective sometime in 2017.  This treaty does not cover all social security schemes of The Netherlands and China. Employees from…
Posted on 11th January, 2016
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PRC Individual Income Tax – A New Wave of Tax Inspection

Background The new B2V tax reform in China has meant that, as of May 2016, liability to Business Tax (“BT”) has been replaced by Value-Added-Tax (“VAT”).  BT used to be managed and collected by the Local Tax Bureaux ("LTB") in…
Posted on 11th January, 2016
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French Supreme Court Clarifies that Intra-Group Transfers may Continue to be Formalised Through Tripartite Agreements

The background Under French labour law, an employment contract may only be terminated through resignation by the employee, dismissal by the employer or mutual agreement between the parties.  According to a 2014 decision by the French Supreme Court, termination of…
Posted on 11th January, 2016
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Brexit: Landmark High Court Ruling that Parliamentary Approval is Required to Trigger Article 50

The Summary Claimants, including a group known as "The People's Challenge to Article 50", have succeeded in obtaining a declaration from the High Court that the Government does not have the legal power to notify its intention to leave the…
Posted on 11th January, 2016
, in UK 
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Digital Rights Ireland Challenges EU-US “Privacy Shield”

Privacy advocacy group Digital Rights Ireland is challenging the EU-US "Privacy Shield" (allowing for EU-US data transfers based on self-certification by US companies) before the EU's General Court, accusing it of failing to provide sufficient guarantees to ensure adequate data…
Posted on 10th January, 2016
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Mexicans will no longer need a visa to seek temporary entry to Canada

The background In 2009, in the face of surging numbers of refugee claimants, Canada instituted a visa requirement for Mexican citizens to travel to Canada.  Whatever impact this move may have had on stemming the tide of refugee claimants, it…
Posted on 10th January, 2016
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Validity of Exclusion Clauses in Employment Contracts

It is common practice for German employment contracts to have a mutual clause that excludes claims by either party if they have not been declared by written notice within a three month period.  These clauses usually require the notice to…
Posted on 10th January, 2016
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Increase in German Minimum Wage

Effective from 1 January 2017, the minimum wage in Germany will increase from €8.50 to €8.84per hour. Currently, there are some exceptions for collective bargaining agreements.  From 1 January 2017 collective bargaining agreements have to provide a minimum wage of…
Posted on 10th January, 2016
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Proposed Amendments to the Labour Code – Issue 1

Welcome to the first issue in our series discussing the proposed amendments to the Czech Labour Code.  The amendments, scheduled to take effect from 1 April 2017, are currently in consultation and have already raised numerous concerns.  We will explore…
Posted on 10th January, 2016
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New German Social Security Contribution Caps for 2017

The German Federal Cabinet has published the draft of a regulation concerning the social security contributions of 2017.  As provided for in the German Code of Social Law, important social security contribution ceilings are adjusted according to the income in…
Posted on 10th January, 2016
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New legislation on restriction of business hours in the Czech Republic

Czech Republic – October 2016 New Legislation on restriction of business hours for retail and wholesale trade during specified national holidays New legislation came into force on 1 October 2016 which prohibits or limits retail and wholesale trade on specified…
Posted on 10th January, 2016
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France is looking to improve the inbound expatriates regime

With the people of the UK opting to leave the European Union, the French Prime Minister plans to make changes to the inbound expatriate regime to attract UK tax payers to live and work in France.  The French Prime Minister,…
Posted on 9th January, 2016
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Brexit: Potential consequences on UK/Italy tax relations

On June 24 the British people voted in favour of the UK leaving the EU. The vote itself does not automatically imply the withdrawal from the EU: It will only take place once Article 50 of the EU Treaty has…
Posted on 9th January, 2016
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The latest in Polish Employment Law

New regulations on posting of employees came into force on 18 June 2016 On 18 June 2016, new regulations came into force on the posting of employees to and from Poland, implementing the Posted Workers Directive (Directive 2014/67/EU) into the…
Posted on 9th January, 2016
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Recap of the International Experience Class’ Work Permit Applications

Background Immigration, Refugees and Citizenship Canada (IRCC) maintains bilateral programs with various countries whereby young people, (typically aged 24 to 30) may seek work permits in Canada without a Labour Market Impact Assessment.  This category of work permits is known…
Posted on 9th January, 2016
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Czech Supreme Court rules evaluation by employer in termination case binding

Last year, the Czech Supreme Court addressed the question of whether the employer’s evaluation of an employee’s breach of work discipline was binding in a termination notice. Under Czech law, there are three levels of a work discipline breach –…
Posted on 9th January, 2016
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Amendments affecting employees in Hungary

Protection for pregnant women According to the original wording of the Hungary Labour Code, pregnant women and women undergoing fertility treatment are protected against dismissal under labour law if their status is disclosed to their employer before notice of dismissal…
Posted on 9th January, 2016
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Dutch Budget Announcements for 2017

On 20 September, the day of the opening of the Dutch Parliament (Prinsjesdag), the Dutch Government announced its plans for the tax year 2017. The issues relevant to HR departments The issues most relevant to Dutch employers and their employees…
Posted on 9th January, 2016
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Don’t overlook your UK obligations on Modern Day Slavery

Prime Minister, Teresa May, recently announced that the UK will lead the way in the battle against Modern Day Slavery, estimated to affect 20.9 million people worldwide. What many businesses may not realise is that they could have a responsibility under…
Posted on 9th January, 2016
, in UK 
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Brexit: Help reassure UK based European employees today

Since the UK’s decision to leave the European Union following a historic referendum many European nationals and their families will be naturally concerned about their future status in the UK. While we do not know the exact certainties that lay…
Posted on 9th January, 2016
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Crucial Constitutional Court Ruling on Concurrent Employment Contracts

The background A situation may arise where a member of a company’s statutory body (typically an executive director or a member of the board of directors) is also in a concurrent employment relationship with the company in a leading management position, particularly as a CEO (or another director).  This is…
Posted on 9th January, 2016
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Work permits required again for Japanese nationals in the Netherlands

In December 2014 the Dutch Council of State confirmed that Japanese nationals no longer require a work permit to work in the Netherlands, although a residence permit was still required. The Council referred to the Dutch-Japanese trade treaty, which states…
Posted on 8th January, 2016
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French workers have the ‘right to disconnect’

As part of planned labour reforms, new legislation in France will encourage all companies to create policies to help their employees ‘disconnect from the office’ when they are no longer in the office environment.     The amendment was included in…
Posted on 8th January, 2016
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New responsibilities for foreign transportation companies in France

On 7 April 2016, executive decree no. 2016-418 to the Macron Act was issued.  It defines the rules for posting road transport employees in France and introduces new responsibilities for foreign transport companies and their representatives in France. It came into force on July…
Posted on 8th January, 2016
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Understanding Dutch tax residence issues

Last year we reported a case involving a Dutch national who claimed an exemption from import duty and tax on his personal property, including his car when he returned to the Netherlands after living outside the EU for a number…
Posted on 8th January, 2016
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Canada to implement mandatory ‘electronic travel authorization’ (eTA) requirements for non-visa nationals

Anyone seeking to visit, work in or study in Canada, who does not currently require a visa, will now need to apply for an Electronic Travel Authorisation (eTA) before entering Canada. This can have significant consequences for corporations sending business visitors…
Posted on 7th January, 2016
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Implied Status: Travelling outside Canada

‘Implied Status’ is the right to continue work after a work permit expiry and while a work permit extension application is pending in Canada. As long as the person has submitted their application prior to the expiration of the current…
Posted on 7th January, 2016
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Improved enforcement of cross-border posting

The Act on Employment Conditions for Posted Workers in the EU came into force on 3 June 2016. The Act implements the European Enforcement Directive and aims to improve the protection of posted workers. Below is an overview of the…
Posted on 7th January, 2016
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The UK votes to leave the European Union – What does it mean for Employers?

After months of debate the wait is over.  Although the UK might feel like a very different place today, in reality very little will change immediately. With no precedent, and after 40 years of integration, there is much left to…
Posted on 6th January, 2016
, in UK 
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New European data protection regulations herald major changes from 2018

Businesses both within, and transacting with, the EU need to plan to manage the significant impact and major penalty regime of the new regulations. The Data Protection Directive of 1995 provided only for a basic level of security measures relating…
Posted on 6th January, 2016
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Are employees obliged to return termination payments if termination found valid?

The Czech Supreme Court recently addressed the question of unjust enrichment of an employee and whether that employee was obliged to return salary compensation that had been paid out due to an invalid employment termination.  Unjust enrichment is a concept…
Posted on 5th January, 2016
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Wage tax obligation for supervisory board members abolished – choices to be made

From 1 May 2016, members of the supervisory board of directors will no longer be considered as employees for Dutch wage tax purposes. Further to the discussions in the Senate with respect to the Deregulation of Assessment of Independent Contractor…
Posted on 4th January, 2016
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How to reduce expatriation costs: A French perspective

Sending employees on assignment abroad can be an expensive endeavour, on average traditional expatriate assignments can cost a company approximately 2 to 2.5 times the employees annual salary each year.  However, companies can structure their assignments in various ways to…
Posted on 4th January, 2016
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EU-US Privacy Shield rejected

In March 2016, the EU Commission issued a draft decision stating that the Privacy Shield agreement negotiated between US officials and the EU Commission in January 2016, as a replacement for the former Safe Harbor agreement, offered adequate protection for…
Posted on 4th January, 2016
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What part should return to work assessments play in the dismissal of sick employees?

In general, where employees are unfit for work for more than six consecutive weeks or on an aggregate basis within a year due to health reasons, it is vital that the employer conduct a return to work assessment known in…
Posted on 4th January, 2016
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Employers no longer obliged to offer positions in overseas branches for forced redundancies

Under German law, redundancy dismissals must be based on compelling operational reasons and, in order to avoid wrongful termination of employment, the employer must prove that the position now being made redundant permanently ceases to exist and offer the employee…
Posted on 4th January, 2016
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New withholding tax on employment income announced

The French government has revealed the first details of the new withholding (or income) tax rules that will be implemented from 1 January 2018.  The new arrangements are set to impact significantly on the French employers and those companies with…
Posted on 4th January, 2016
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EU-US Privacy Shield published

The full details of the Privacy Shield Agreement reached between EU Commission and US government officials at the beginning of February 2016 have now been published. Where we left off As previously reported, the Privacy Shield Agreement (which was designed…
Posted on 3rd January, 2016
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New Whistleblowers Act adopted

In March 2016, the Dutch Senate adopted the House for Whistleblowers Act (Wet Huis voor klokkenluiders) which is expected to enter into force on 1 July 2016. Background The House for Whistleblowers Act introduces legal protection for whistleblowers (those who…
Posted on 3rd January, 2016
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Developments impacting employment law

Employers should take note of a new public holiday, a recent ruling on sick leave and proposed legislation affecting employment law in the Czech Republic.    What has happened  A new public holiday From March 2016, Good Friday has been…
Posted on 3rd January, 2016
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Tax penalties imposed lead to rejection of migrant sponsor licence

In the first case of its type, an employer has challenged the fact that their sponsor licence was rejected in court on the basis of tax penalties they had suffered, and lost their case. Dutch employers are obliged to register…
Posted on 3rd January, 2016
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Tax shift: Reductions to employment taxes for employers and employees

In October 2015, the Belgian government agreed on a “tax shift”, which was introduced as a means of decreasing the budget deficit and improving Belgium’s competitiveness in the labour market compared to its neighbouring countries.  The aim was to shift…
Posted on 3rd January, 2016
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Dutch Supreme Court rules on 150 km requirement in 30%-ruling

Following a ruling by the European Court of Justice (ECJ), on 4 March 2016, the Dutch Supreme Court concluded that the 150 km requirement and the reduction rule in the 30%-ruling is not contrary to EU law.  (For more information…
Posted on 3rd January, 2016
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Simplification of social dialogue with employee representatives

The French Social Dialogue and Employment Act, published on 24 March 2016, facilitates the combination of employee representative bodies in order to improve and simplify discussions, negotiations and joint actions in companies.   What has changed? Prior to the reform,…
Posted on 3rd January, 2016
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Court confirms decision to include commission in holiday pay

The Employment Appeal Tribunal has confirmed that an employee’s holiday pay should take into account the contractual commission they would have received had the employee been able to work during their holiday period. The history        The ongoing saga of whether…
Posted on 3rd January, 2016
, in UK 
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Modern day slavery reporting obligations kick in for businesses in the UK

The UK government has taken an increasingly proactive stance to try and address the global issue of human trafficking, slavery, servitude or forced or compulsory labour which is estimated to affect 20.9 million people worldwide.  Improved knowledge of the size…
Posted on 3rd January, 2016
, in UK 
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New provisions on restrictive covenants in employment contracts

Since 1 January 2016, new provisions on agreements to restrict competition in employment contracts have been in force in Norway. The Working Environment Act (WEA) contains a new chapter which includes these detailed provisions.  Transitional rules apply for employment contracts…
Posted on 2nd January, 2016
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Declaration of Independent Contractor Status in the Netherlands to be scrapped: self-employed affected

On 2 February 2016, the Dutch Senate passed the Deregulation of Assessment of Independent Contractor Status Act (Wet Deregulering Beoordeling Arbeidsrelaties).  As of 1 May 2016, the Declaration of Independent Contractor Status (VAR) will be abolished. Background Currently, companies who…
Posted on 2nd January, 2016
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UK tax authorities crackdown on remuneration tax avoidance

In February 2016, the UK tax authorities (HMRC) announced that they will be cracking down on certain types of remuneration arrangements which seek to convert what would otherwise be taxable employment income into capital gains.   Taxation of employment income UK…
Posted on 2nd January, 2016
, in UK 
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Update on recent employment law changes

In January and February 2016, a number of substantial amendments to Polish employment law regulations came into force. Adopted legislation  Parental leave From 2 January 2016, the period of additional maternity leave has been included in the length of parental…
Posted on 2nd January, 2016
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Quick survey of expatriate tax regimes in the European Economic Area and Switzerland

Expatriate tax breaks Some countries offer expatriates tax breaks (a tax relief or advantage) if they meet certain criteria.  Below we look at some of the countries that offer these.  Belgium A special tax regime is available for foreign executives…
Posted on 1st January, 2016
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Europe and USA – Top tax and social security rates survey: Changes from 2015

Top rates of income tax & social security contributions – no significant changes After a period of generally increasing top-tax rates across many jurisdictions since 2008, as a response to the economic downturns seen across many countries, very few changes…
Posted on 1st January, 2016
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Major employment changes: 2015’s changes and what to expect in 2016

2015 saw many legislative changes and announcements for 2016 that impacted not only UK resident companies and their employees, but also international businesses with a presence in the UK.  In this article we review what happened in 2015, and what…
Posted on 1st January, 2016
, in UK 
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EU data protection reform to usher in far reaching changes for businesses by 2018

Following four years of negotiation, agreement has been reached between the various European Union (EU) institutions (the Commission, the Council and the EU Parliament) on reform of data protection laws to be applicable across all EU member states, applicable from…
Posted on 1st January, 2016
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ECHR finds surveillance of private communications at work does not infringe human rights

The much litigated issue of employers’ rights to review employees’ private communications during working hours, using company equipment, has come before the European Court of Human Rights (ECHR).  The case, originating between a Romanian worker and his employer, concerned a…
Posted on 1st January, 2016
, in UK 
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Pension changes for defined contribution schemes of expats in the Netherlands

In 2015 a new Decree on the international aspects of pensions affecting expatriate employees was published.  Changes were proposed to allow more flexible retirement benefits for participants in a defined contribution (DC) scheme. The Dutch Pension system is generally considered…
Posted on 1st January, 2016
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New immigration rules offer more options for non-EU nationals in the Czech Republic

The Czech Republic is preparing an important amendment to the Czech immigration rules relating to the engagement of non-EU nationals as seasonal workers or within intra-company transfers.  New residency permits for the purpose of employment Intra-company transfers The amendment will…
Posted on 1st January, 2016
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Dutch temporarily reduce fines for employers’ work permit breaches

Employers in the Netherlands will now face a reduced fine of €8 000 per person for employing workers from outside the European Union, European Economic Area and Switzerland that do not possess a work permit until a revised fining system…
Posted on 1st January, 2016
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New rights to request flexible working in the Netherlands

On 1 January 2016, the Flexible Working Hours Act (‘FWH’) entered into force which aims to improve the work-life balance of Dutch employees. Under previous legislation, an employee could only request an amendment of their working hours, such as an…
Posted on 1st January, 2016
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Reform to simplify and streamline tax in Italy

In 2014, the Italian Government took on the task of reforming and restructuring the tax system within one year.  Its main aims were to tackle tax evasion, and to address the urgent need from both individuals and businesses to simplify…
Posted on 1st January, 2016
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26 week protection from sickness dismissal can be curtailed

A new law came into force in Luxembourg on 1 September 2015 which amended the provisions relating to an employee’s inability to work due to sickness, both from the perspective of employment law and social security law. Payment of an…
Posted on 1st January, 2016
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Significant changes to employment law in Poland

After winning a parliamentary majority in the last general election the Polish Law and Justice political party (PiS) will implement their manifesto proposals, some of which impact on Polish employment law. Outline of the proposed changes Civil law contracts (e.g.…
Posted on 1st January, 2016
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New income tax treaty between the Netherlands and Germany impacts cross border workers

After a slightly longer than expected ratification process in the Netherlands, the new income tax treaty with Germany became effective from 1 January 2016. Created to prevent double taxation, the treaty provides guidelines for determining which country has the right…
Posted on 1st January, 2016
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New social security rules complicate the treatment of termination payments in France

In French law there are specific social security exemption rules for termination payments, depending on the status and seniority of the worker.  The Social Security Finance Bill for 2016 introduced a discrepancy between the tax treatment of termination payments for…
Posted on 1st January, 2016
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Dutch Supreme Court delivers judgment on two proceedings in the 30%-ruling

On 29 January 2016 the Dutch Supreme Court concluded that cross-border workers may not apply the 30%-ruling to the Belgian part of their wages when invoking the compensation rule under the tax treaty between Netherlands and Belgium, and that the…
Posted on 1st January, 2016
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Dutch crisis tax not incompatible with European Human Rights Convention

On 29 January 2016, the Supreme Court of the Netherlands ruled that the one-off crisis tax, including its extension, is not incompatible with the ownership right of Article 1 of the First Protocol to the European Convention on Human Rights…
Posted on 1st January, 2016
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Important Supreme Court decision can affect the validity of all corporate HR-related decisions

A recent Supreme Court decision has created new requirements for Czech companies with a collective statutory body to delegate certain HR responsibilities to a member of its statutory body. Under section 164(3) of the new Labour Code, every company with…
Posted on 11th January, 2015
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UK Government update on economic progress: changes impacting HR professionals

Introduction The UK Government revealed its plans for the British economy in the Autumn Statement on 25 November 2015, which included some key tax announcements that will impact HR practitioners and companies with employees in the UK. In this article…
Posted on 11th January, 2015
, in UK 
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Carried interest accepted as earned by personal companies

In a landmark judgement the Norwegian Supreme Court has ruled in favour of taxpayers, accepting their claim that carried interest profit share should not be taxed as employment income but instead should be taxable at the level of the individuals’…
Posted on 11th January, 2015
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New law to improve social dialogue in France

A new law published in August 2015, aims to improve social dialogue, to improve the quality of life at work and to promote the value of union membership and employees’ collective involvement and representation.  Social dialogue is the process of…
Posted on 10th January, 2015
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Are you ready for the minimum wage increase?

The Czech government has approved another increase in minimum wage; as of 1 January 2016 the minimum wage will rise to CZK 9 900 per month, an increase of 7.6% from CZK 9 200. This will translate to CZK 58.70…
Posted on 10th January, 2015
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Nationals from Croatia still need a work permit

Employers in the Netherlands who are hiring nationals from the EU, EEA or Switzerland do not need to possess a work permit for these employees due to the free movement workers enjoy between countries within the European Union (as contained…
Posted on 10th January, 2015
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France improves the tax treatment of tax qualifying free share plans

The new Macron Act, enacted on 7 August 2015, brings various changes to the rules regarding tax qualifying free share plans, both from a corporate and tax standpoint. The new regime provides that the minimum vesting period applicable to conditional…
Posted on 10th January, 2015
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Dutch Budget Announcements for 2016

On 15 September, the day of the opening of the Dutch Parliament (Prinsjesdag), the Dutch Government announced its plans for the year 2016 and beyond.  They aim to reduce the tax burden on tax payers and to stimulate economic growth…
Posted on 10th January, 2015
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Termination of fixed-term employees in Poland in 2016

A crucial amendment to the Polish Labour Code regarding fixed-term employment contracts will come into force on 22 February 2016. Fixed-term employment contracts are quite often preferred by employers since their termination does not require any legal justification, unlike open-ended…
Posted on 10th January, 2015
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New social security contributions

The German Federal Cabinet has published the draft of a regulation concerning the social security contribution ceilings of 2016. As provided for in the German Code of Social Law, important social security contribution ceilings are adjusted according to the income…
Posted on 10th January, 2015
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Changes to evening and Sunday working, profit sharing and lay-offs

Controversial new laws came into force on 6 August 2015, which amended the laws relating to: work carried out during evenings, Sunday working, profit sharing arrangements; and procedures required in the case of economic lay-offs. The measures are designed to…
Posted on 10th January, 2015
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Employee data transfers to the US: The end of the Safe Harbor scheme

On 6 October 2015 the Court of Justice in the European Community (European Court) gave its judgment in the case brought by Max Schrems concerning the validity of the US Safe Harbor scheme and concluded that it does not adequately…
Posted on 10th January, 2015
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Changes to the accounting treatment for share-based payments

The International Accounting Standards Board (IASB) is considering changes to the accounting treatment for share-based payments under IFRS2.  The changes would allow an award that is settled net of withholding taxes to be treated as entirely equity settled for accounting…
Posted on 10th January, 2015
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Benelux: What are the formal requirements for an employment contract?

Netherlands Under Dutch law there are no formal requirements for an employment agreement; it can be entered into in writing or orally. However, for certain provisions (e.g. probation period, non-competition clause, amendment clause or penalty clause) it is necessary to…
Posted on 10th January, 2015
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Market value of shares subject to restriction on sale

The First-tier Tax Tribunal has ruled that the valuation of shares acquired by an employee, which were subject to a restriction on sale, should be reduced to take that restriction into account for the purposes of calculating the employee’s income…
Posted on 10th January, 2015
, in UK 
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Recent conclusions of Advocate General on 30%-ruling impacting expatriates

The 30% ruling is a fiscal facility for foreign employees who have specific skills or expertise, which are scarce in the Dutch labour market, who come to work in the Netherlands and who meet certain other conditions.  Under Dutch law…
Posted on 10th January, 2015
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‘Working time’ now included in travel to and from work for mobile workers

Readers may remember that in our last edition we reported on an important case assessing whether workers were 'working' when they travelled from home to their first customer assignment of the day, and back home again at the end of…
Posted on 9th January, 2015
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Equal treatment policies could be waived for workers from staffing agencies

On 15 July 2015 a new regulation came into force that provides exemptions from the provisions in the Norwegian Working Environment Act on equal treatment of wages and working conditions for personnel hired from staffing agencies. The regulation implies that…
Posted on 9th January, 2015
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France making headway in the implementation of the Posted Workers Directive

The fight against fraudulent posting of workers has become a major challenge within the European Union (EU) with the publication of the Directive 2014/67 EU on 15 May 2015. Background The 1996 Posted Workers Directive (96/71/EC) entitles posted workers to…
Posted on 9th January, 2015
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Netherlands: tax update for internationally mobile employees

In our previous newsletter, we looked at the laws surrounding the tax deductibility of mortgage interest paid on a Dutch property.  In recent months, a number of new cases have been referred to the courts concerning the possible tax relief…
Posted on 7th January, 2015
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Short stay visa no longer required for travellers from UAE to Europe

On 6 May 2015, the European Union and the United Arab Emirates waived the visa requirements for United Arab Emirates nationals visiting the Schengen* countries within Europe. Nationals from the United Arab Emirates may now stay in all Schengen countries…
Posted on 7th January, 2015
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Pensions auto enrolment is starting to hit small and medium-sized employers in the UK

In October 2012 pension changes were introduced in the UK requiring all employers to automatically enrol their employees in a pension scheme.  The changes are being phased in and until now have only affected large employers.  However, with most large…
Posted on 7th January, 2015
, in UK 
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Could ‘working time’ now include travel to and from work?

In what could be a landmark decision, Advocate General Bot has said that, under the European Working Time Directive, a group of Spanish workers were ‘working’ when they travelled from home to their first customer assignment of the day and…
Posted on 7th January, 2015
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New act to tackle false employment relations in The Netherlands

The Act on Tackling False Employment Relations (Wet Aanpak Schijnconstructies: “WAS”) will come into force in the Netherlands in three phases on 1 July 2015, on 1 January 2016 and on a date yet to be determined .  Designed to…
Posted on 7th January, 2015
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Tax savings for employee profit sharing arrangements in the Czech Republic

Since 1 January 2014 Czech law has allowed part of a company’s profit to be shared with persons other than the company’s shareholders (e.g. an employee, a board member or any other person), if permitted by the company’s articles of…
Posted on 7th January, 2015
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French Court agrees with ECJ decision on CSG and CRDS contributions

Following an earlier decision by the European Court of Justice (ECJ), the French Supreme Court has ruled that French employees, who are expatriated to a foreign country within the EU where they pay social security contributions, shall no longer pay…
Posted on 7th January, 2015
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Summer Budget 2015 – Key announcements relevant to UK Employers

The second budget of 2015 in many ways continues previous trends as the UK government looks to incentivise people into work, reduce state benefit and deficit bills and promote the UK as “open for business”. However there was one major…
Posted on 7th January, 2015
, in UK 
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French Court changes rules for calculating tax exemption for foreign business travel

Following a decision by the French Supreme Administrative Court, French tax residents who travel abroad for business may now claim tax exemption on any additional compensation they receive (known as ‘Foreign Service Premiums) up to a value of 40% of…
Posted on 6th January, 2015
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Netherlands: Amendment to proposed changes to employer deductions for hired contractors

Following considerable criticism, the proposals to change an employer’s liability to make tax and social security deductions for hired contractors have been amended.  New rules will now come into force from 2016. In September 2014 we informed you of proposed…
Posted on 6th January, 2015
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Polish Supreme Court rules that employees of subsidiary company should be treated equally

The Polish Supreme Court has ruled that an employee who received a severance payment lower than that paid to employees in a parent company had been treated unfairly. The case concerned two voluntary redundancy programmes, where an employee in a…
Posted on 6th January, 2015
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ECJ clarifies definition of ‘establishment’ for collective redundancies

The long awaited decision regarding the former UK retailers Woolworths and Ethel Austin has been handed down by the ECJ. The ECJ decided that each store could be a separate ‘establishment’.   Background: There is a legal requirement to collectively consult…
Posted on 5th January, 2015
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Romanian Labour Code provides greater protection for temporary and absent employees

A number of new amendments have been added to the Romanian Labour Code in order to reduce discrimination against temporary employees and give greater clarity on the treatment of individual employment contracts.  The amendments, which came into force on 25…
Posted on 5th January, 2015
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Rules on mortgage interest tightened for Dutch expatriates

The Dutch Supreme Court has tightened the rules for tax deduction on mortgage interest payments for Dutch tax residents who are temporarily working abroad. In the Netherlands interest paid on a mortgage for property that is used as principal place…
Posted on 5th January, 2015
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Norwegian Court of Appeals: carried interest taxable as employment income

In a landmark judgement, the Norwegian Court of Appeals has ruled that carried interest profit share that can be linked to services provided by employees should treated as taxable income for those employees. The Herkules case concerned a private equity…
Posted on 4th January, 2015
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Mandatory gender pay reporting to be introduced in the UK

Mandatory gender pay reporting to be introduced in the UK Just before the UK parliament was dissolved for the forthcoming general election, the Small Business, Enterprise and Employment Bill received Royal Assent.  One element of this new Act is to introduce…
Posted on 4th January, 2015
, in UK 
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ECJ to rule on import duty exemption for Dutch national moving back to Netherlands

The Dutch Supreme Court has asked the European Court of Justice to rule on the regulations for import duty exemption for personal property. The case involves a Dutch national who for a number of years worked in a non-EU country. …
Posted on 4th January, 2015
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Czech Republic increases minimum wage

The Czech Republic increased the minimum wage and related guaranteed salary levels from 1 January 2015.  As well as Czech workers, the increase will affect employees from EU countries seconded to the Czech Republic for more than 30 days in…
Posted on 4th January, 2015
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Japanese nationals no longer require work permit to work in the Netherlands

In December 2014 the Dutch Council of State confirmed that Japanese nationals no longer require a work permit to work in the Netherlands, although a residence permit is still required. The removal of the work permit requirement will reduce the…
Posted on 3rd January, 2015
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Germany: employer fined for spying on sick employee

A German employer who hired a private detective to check whether a sick employee was really unfit for work has been fined for violating the employee’s human rights.  After the ruling by the German Federal Labour Court, the employee was…
Posted on 3rd January, 2015
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ECJ update on 150km limit for 30% ruling

The European Court of Justice ruled on 24 February 2015 that the 150 km limit for the 30% ruling is in principle not in conflict with the free movement of employees under EU law.  The Dutch National Court will now…
Posted on 3rd January, 2015
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Norwegian Working Environment Act to change

The Norwegian governing parties have announced key changes to the Working Environment Act that are designed to bring greater flexibility for Norwegian employees, as well as helping the unemployed get back to work.  The proposals will be considered by the…
Posted on 3rd January, 2015
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European Income Tax and Social Security: The Latest Trends

This article considers the key trends and changes in tax and social security rates for the 2015 tax year.    Top rates of tax - no significant changes After a period of generally increasing top-tax rates across many jurisdictions between…
Posted on 2nd January, 2015
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Italian tax changes for 2015

Following the introduction of the 2015 Finance Bill, a number of tax changes have come into force in Italy from January 2015.  The key points are summarised below. 1. Increase in taxation of Italian pension funds From 1 January 2015,…
Posted on 2nd January, 2015
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Employment Law Update: Poland

Planned changes to the Temporary Employment Act The Solidarity Trade Union has proposed changes to the Temporary Employment Act, which would prohibit businesses from using the same temporary employee for a period of more than 18 months within a three…
Posted on 2nd January, 2015
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UK Finance Bill 2015 to simplify taxation of benefits and expenses for employers

The UK Government has published the first draft of the Finance Bill 2015, which includes most of the legislative changes announced by the Chancellor in his Autumn Statement. Building on the previous recommendations of the Office of Tax Simplification, the…
Posted on 1st January, 2015
, in UK 
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New rules for holiday pay in the UK could cost employers more

Changes to the way in which holiday pay is calculated in the UK will bring additional expense to many employers in 2015. Under the Working Time Regulations 1998, all UK employees are entitled to 28 days’ paid holiday per annum,…
Posted on 1st January, 2015
, in UK 
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UK – HMRC annual share plan returns – 5 top tips to ensure you are ready for 6 July 2015

A new online registration and filing regime for share plans came into force on 6 April 2014; the first annual filing deadline under the new regime will be 6 July 2015.  Set out below are 5 top tips for companies…
Posted on 1st January, 2015
, in UK 
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Is obesity a disability? ECJ Judgement

In a decision that could have a significant impact for employers, the European Court of Justice (ECJ) has ruled that obesity could, in some cases, be a disability.  In November 2010, Mr Kaltoft, a Danish childminder, was dismissed after 15…
Posted on 1st January, 2015
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New ‘Frauenquote’ introduces targets for senior women in Germany

In December 2014, the German government introduced legislation to increase the number of women in senior positions in Germany’s leading organisations.  From 2016, at least 30% of all supervisory board positions in Germany’s largest companies must be held by women.…
Posted on 1st January, 2015
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Is joining a tax favourable Dutch pension scheme the best option for expatriate employees?

Most expatriate employees who start working in the Netherlands can join a tax favorable Dutch pension scheme.  However, according to a recent article by Bas Dieleman in ‘Pensioen & Praktijk’ (an English language version of which is available below), joining…
Posted on 1st January, 2015
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30% ruling referred to European Court of Justice

30% ruling referred to European Court of Justice The 30% ruling, which allows Dutch employers to pay a tax-free allowance to employees recruited from abroad, has been referred to the European Court of Justice. Under current law, employers may pay…
Posted on 12th January, 2014
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Norway – tax cuts in the state budget for 2015

In the recent 2015 Budget announcement, the Conservative Coalition Government proposed several tax cuts, as well as a few increases.  The reduction in the net wealth tax is the most significant change for resident individuals and foreign individuals owning real…
Posted on 10th January, 2014
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Employers need to act on Dutch pension changes from January 2015

From 1 January 2015, the maximum amount that an individual can save in their pension without incurring a tax charge will be reduced.  Companies need to act now to ensure that their pension plans comply with the new rules. What’s…
Posted on 10th January, 2014
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Employment law update – Poland

Fixed-term agreements to be limited In a ruling issued in June 2014 the Supreme Court determined that lengthy fixed-term contracts (in that case 7 years) should only be used in exceptional circumstances.  At the same time an amendment to the…
Posted on 10th January, 2014
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Shared parental leave brings new complications for employers

From 1 December 2014 (and not 1 October as originally anticipated), the new Shared Parental Leave (SPL) regulations will come into force in England and Wales. These will be provided alongside the current Maternity and Parental Leave regulations 1999, giving…
Posted on 10th January, 2014
, in UK 
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Wife inherits dead husband’s holiday pay

In a decision that could affect all EU countries, the European Court of Justice (ECJ) has ruled that a German company was acting against EU law when it refused to pay the widow of a former employee an allowance in…
Posted on 10th January, 2014
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2015 changes to Czech employment law

From 1 January 2015, changes to Czech employment law will have a significant impact on employers' record keeping obligations and administrative offences. Workplace record keeping simplified From 2015, employers will only be required to keep workplace records of employment for…
Posted on 9th January, 2014
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German Social Security Rates for 2015

The expected 2015 social security rates for Germany are set out below.  These are subject to confirmation by the Federal Cabinet and Council in October 2014. New rates for 2015 Area of social security Contribution threshold 2015* Pension and unemployment…
Posted on 9th January, 2014
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Dutch tax changes from 2015

From 1 January 2015, the Dutch Government will introduce a number of tax and savings related changes.  The key changes are summarised below. Changes to the work-related expenses will become mandatory for all employers. New tax bands and rates introduced:…
Posted on 9th January, 2014
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CELIA Alliance welcomes Norwegian member firm Haavind

CELIA Alliance’s expansion into the Nordic countries continues with the addition of a new member firm in Norway.  We are delighted to announce that leading Norwegian firm Haavind joined the Alliance with effect from 1 September, 2014. Haavind is one…
Posted on 9th January, 2014
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Dutch government to change the Minimum Wage Act

The Dutch Government has announced plans to change the Minimum Wage Act during 2015 to bring it in line with the current employment market. What’s changing? The planned changes address four key areas: The scope of the Act and whether…
Posted on 9th January, 2014
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Dutch employee not required to pay Dutch tax for money earned in Germany

Following a ruling by the Dutch Court in May 2014, a Dutch employee has been granted tax relief for income he earned in Germany. Germany was the 'economic employer' In 2011, an employee of a Dutch company was seconded to…
Posted on 9th January, 2014
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EU, EEA and Swiss nationals no longer required to register with Dutch Immigration Authorities

On 16 July 2014 the Dutch Government ruled that nationals of the European Union, the European Economic Area or Switzerland are no longer required to register with the Dutch Immigration Authorities ("IND") if they wish to stay in the Netherlands…
Posted on 9th January, 2014
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Employment law update – Slovakia

Minimum wage to increase in 2015 Subject to Government agreement, from 1 January 2015 the minimum wage will increase to: monthly minimum wage - EUR 380 (currently EUR 352) hourly minimum wage - EUR 2.184 (currently EUR 2.023). Minimum wage…
Posted on 9th January, 2014
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New rules on French unemployment benefits may affect negotiated terminations

New rules for the payment of French unemployment benefits, which were introduced from 1 July 2014, may have an impact on the ability of French employers to negotiate termination packages. Waiting period for benefit payment changed Before the new rules…
Posted on 9th January, 2014
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Employer Social Security rates reduced in Romania with effect from 1 October 2014

From 1 October 2014, Romanian employer social security contributions have reduced by 5%.  There is no change to employee contributions. Working condition Employee contribution Employer contribution Total contribution Normal working conditions 10.5% 15.8% 26.3% Special working conditions employee is exposed…
Posted on 9th January, 2014
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Dutch law set to change on employer deductions for hired contractors

Proposed changes have been put before the Dutch Parliament regarding an employer’s liability to make employment tax and social security deductions for hired contractors. Current obligation Currently, a company hiring a self-employed person is fully exempt from paying employment tax…
Posted on 9th January, 2014
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Risk of double payment of social security contributions due to the retrospective determination of applicable legislation

EU social security legislation provides that a person who regularly pursues an activity as an employee in two or more states of the EU/EEA or in Switzerland (the “Member States”) shall be subject to the social security legislation of only…
Posted on 8th January, 2014
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Dutch Ministry of Finance publishes new guidelines on reimbursement of business travel expenses

On 23 June 2014 the Dutch Ministry of Finance published an update of a Directive with guidelines for the tax treatment of benefits provided by employers to employees, including the reimbursement of expenses incurred during business trips abroad, such as…
Posted on 7th January, 2014
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Dutch Supreme Court rules on taxation of excessive leaving bonuses

On 20 June 2014 the Dutch Supreme Court ruled that the employer tax due on excessive termination payments is not contrary to international law. In early 2013 we updated you on the Dutch employer tax due on so-called excessive redundancy…
Posted on 7th January, 2014
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Rules for obtaining a residence permit for wealthy foreign nationals revised

Since 1 October 2013, wealthy foreign nationals may qualify, contingent on certain conditions, for a residence permit (see our earlier update). As per 1 June 2014 the rules have been revised. The principal changes are as follows: Wealthy foreign nationals…
Posted on 7th January, 2014
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Paying commission during holiday

The recent case of Lock v British Gas Trading Limited has caused concern amongst employers. The European Court of Justice (ECJ) decided that Mr Lock's holiday pay should include a sum in lieu of the commission that he might have…
Posted on 7th January, 2014
, in UK 
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Belgian tax law changes impact non-residents

In March 2014, Belgium introduced new laws which will have an effect on the tax position of some Belgian non-residents.   Previously, non-resident taxpayers were not entitled to personal tax allowances unless they were: Non-residents who have an abode in…
Posted on 7th January, 2014
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Dutch lower court rules on 16% crisis tax

In May 2014 the District Court in The Hague issued the first decisions in numerous court cases against the 16% crisis tax which we wrote about in a previous update. The Court ruled in favour of the tax authorities, the…
Posted on 7th January, 2014
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New law changes some rules for Restricted Stock Units and Performance Shares awards

French law creates a new incentive for companies granting Restricted Stock Units or Performance Shares to all their employees in France. The French Commercial Code provides that companies may grant RSUs or Performance Shares to their employees and corporate officers…
Posted on 7th January, 2014
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Work-related expenses scheme compulsory as of 2015

In a previous update we informed you about the taxation scheme for work-related expenses (‘werkkostenregeling’) which was introduced in 2011. The law allowed employers to choose between applying this new scheme or continuing to apply the former legislation if that…
Posted on 7th January, 2014
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Share plans – new registration and online filing regime in the UK

Key points A new registration and filing regime for share plans came into force on 6 April 2014. In summary: All companies that grant share options or other share incentives to their UK employees will need to register their plans…
Posted on 7th January, 2014
, in UK 
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Minimum wage to be introduced in Germany from 2015

A minimum wage of € 8.50 gross per hour will be introduced in Germany for the first time from January 2015. Collective agreements with a lower minimum wage can still remain in force until December 2016. The minimum wage will…
Posted on 7th January, 2014
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New Case Law on 30% Ruling

Recently, new Court decisions were published regarding the conditions for the 30%-ruling to apply at a later point in time than the start of employment in the Netherlands. Scarce specific skills One of the conditions of the 30%-ruling is that…
Posted on 6th January, 2014
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Non-Dutch social security schemes must be considered for Dutch employment tax calculation

In order to determine whether social security contributions paid to non-Dutch social security schemes are taxable (employer contributions) or tax deductible (employee contributions) it is necessary to investigate the specific non-Dutch schemes. In many cases, employees working in the Netherlands…
Posted on 6th January, 2014
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Collective redundancies and transfer of undertakings in the UK – what has change

On 31 January 2014 changes were made to the UK legislation which implements the European Acquired Rights and Collective Redundancies Directives. The new Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014 (unattractively shortened to CRATUPEAR) state:…
Posted on 3rd January, 2014
, in UK 
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Important change to collective consultation required on redundancy

Two important decisions from the UK Employment Appeals Tribunal and from an Employment Tribunal in Northern Ireland have had a significant impact on the law relating to collective redundancies in the UK. The cases On the insolvency of the Woolworths…
Posted on 12th January, 2013
, in UK 
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Temporary 16% employer tax retained for 2014

The 16% employer tax, introduced as a temporary measure for 2013, will apply again in  2014. (See our February 2013 article). In 2014, employers will have to pay 16% tax on the 2013 taxable income from present employment (loon uit…
Posted on 11th January, 2013
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New guidelines – Dutch Ministry of Finance brings more clarity in 30% tax ruling

On 12 September 2013 a new Decree of the Dutch Ministry of Finance became effective, replacing the 2005 Decree. The new Decree has retroactive effect from 1 January 2012. The highlights Under specific circumstances, extraterritorial expenses can be compensated tax…
Posted on 10th January, 2013
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Temporary workers must be counted for unfair dismissal protection

The rules on protection against unfair dismissal under the Employment Protection Act ("Kuendigungsschutzgesetz") are only applicable in establishments, if more than ten employees are employed on a regular basis ('regelmäßig'). The Federal Labour Court ruled earlier this year that temporary…
Posted on 9th January, 2013
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Transferees not bound by collective agreements – the UK perspective

The Court of Justice of the European Union ('CJEU') has determined that changes to a collective agreement do not bind a transferee if the collective agreement is negotiated and amended after the transfer and the transferee had not been able…
Posted on 9th January, 2013
, in UK 
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Far-reaching reforms to directors’ pay in the UK

From 1 October 2013, UK listed companies will be subject to new rules concerning the approval and disclosure of directors' pay. The changes are in part a reaction to the massive increases in directors' pay over the last decade and…
Posted on 9th January, 2013
, in UK 
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Wage tax/social security – withholding obligations for non-Dutch employers

New legislation offers relaxation of administrative burden for non-Dutch employers hiring out personnel to a Dutch group company. By making their employees available to a Dutch group company non-Dutch employers are deemed to have a permanent establishment for wage withholding…
Posted on 6th January, 2013
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Swiss Federal Council moves to further limit the number of migrant workers to Switzerland from EU-17 States

Switzerland has imposed restrictions on the number of EU nationals who can work legally in Switzerland. Background In recent years there has been a consistent growth in the number of migrant workers coming to Switzerland. This is viewed by some…
Posted on 5th January, 2013
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Retirement Clauses in Collective Agreements and Employment Contracts are lawful

The Federal Labour Court has ruled that Collective Agreements can state that an employment contract will terminate on the regular retirement date without the employer being exposed to a claim of age discrimination. Many employment contracts contain a clause stating…
Posted on 5th January, 2013
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Proposed changes – contributions on the remuneration of a supervisory board member

Companies may become liable to pay social security contributions on supervisory board members' pay. The Minister of Labour and Social Policy has prepared guidelines for a new law introducing an obligation to remit social security contributions on remuneration payable by…
Posted on 5th January, 2013
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30% tax ruling no longer limited to one employment relationship

Under the 30% tax ruling, foreign employees working in the Netherlands may be eligible for tax relief. The Court of Appeal has now ruled that the relief can be granted for two or more employment relationships that exist at the…
Posted on 4th January, 2013
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All change for collective redundancy rules

In this article, we analyse recent changes to the law on collective redundancies and explain how we can help organisations going through restructures. The facts The law on collective redundancies changed in April 2013: in the event 100 or more…
Posted on 4th January, 2013
, in UK 
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New tax approach to share-based employment income for globally mobile employees

The UK Tax Authority has changed its stance on National Insurance contributions (NICs) on share-based income of employees moving between the UK and countries with which the UK has a social security agreement. Background A liability to UK income tax…
Posted on 3rd January, 2013
, in UK 
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New social security rates announced

Social security contribution rates are generally adjusted every other year in line with the economic situation and salary trends. The latest amendments came into force on 1 January 2013. Social insurance contributions 2013 Social insurance sector Contributions as percentage of…
Posted on 2nd January, 2013
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New legislation on the taxation of share-based employment income

On January 1, 2013 new federal laws were introduced to ensure a consistent approach in all cantons to the taxation of share-based employment income. Federal Law on the taxation of share-based employment income ("FLTES") The FLTES introduces consistent rules on…
Posted on 1st January, 2013
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Tax relief for overseas workdays is extended

The UK Government has announced that overseas workdays relief will be available to all non-UK domiciled new arrivals in the UK. Background Historically, certain non-UK domiciled employees coming to the UK could remove from the scope of UK taxation the…
Posted on 1st January, 2013
, in UK 
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Employee voice and sustaining business success

A recent report by Involvement and Participation Agency (IPA) and Tomorrow's Company1 indicates that organisations that help their employees speak up are more able to create conditions for sustained business success. We look at the key findings of the report…
Posted on 1st January, 2013
, in UK 
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Flexible working to be extended to all employees

The UK Government has announced its plans to extend the right to request flexible working to all employees from 2014. Legal issues This table sets out the current legal position and the changes to come into force in 2014. Flexible…
Posted on 11th January, 2012
, in UK 
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NIC not due where employee meets cost of benefit in kind

The First-tier Tribunal has determined that employer-only NIC (Class 1A) is not payable on benefits in kind where the cost to the employer of providing the benefit is made good by the employee. Background Class 1A National Insurance Contributions are…
Posted on 11th January, 2012
, in UK 
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Employees who are sick during their holiday can take that holiday entitlement at a later date

The European Court of Justice ("ECJ") has confirmed that an employee who falls ill during a period of paid annual leave is entitled to take the affected days as paid annual leave at a later date. Background The ECJ had…
Posted on 7th January, 2012
, in UK 
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UK immigration – changes to applications from overstayers

From 1 October 2012 migrants who have overstayed their leave for a period exceeding 28 days will have any application for further leave automatically refused. On 29 June 2012 the UK Border Agency ("UKBA") announced that this change would affect…
Posted on 7th January, 2012
, in UK 
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HMRC issues guidance on share-based payments made after the cessation of employment

This guidance sets out answers to frequently asked questions concerning the application of the '0T' tax code to share-based payments made following the cessation of employment. From 6 April 2012 the 0T tax code must be applied to share-based payments…
Posted on 7th January, 2012
, in UK 
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Romania – Taxation of the income earned by non-resident individuals in Romania

The residence rules for taxation of the income earned by non-resident individuals have been amended with effect from 1 January 2012. In accordance with the provisions of the Tax Code currently in force, a non-resident individual is required to pay…
Posted on 6th January, 2012
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Switzerland implements EC Social Security Regulations

As of 1 April 2012, arrangements regarding social security between Switzerland and the EU member states are governed by the provisions of Regulations (EC) No. 883/2004 and (EC) No. 987/2009 ("The Regulations"). These are the Regulations which harmonise the various…
Posted on 5th January, 2012
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Entitlement to a bonus following notice of termination

The entitlement to a bonus may be made dependent on an employee not being under notice at the time of payment, irrespective of who terminated the employment. The plaintiff claimed payment of a Christmas bonus, which should have been paid…
Posted on 2nd January, 2012
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UK tax – a look forward to 2012

The UK fiscal budget for 2012/13 will be set on 13 March.  We look at developments we expect to see in 2012 which have already been announced. Changes to tax allowances and bands The income tax personal allowance is to…
Posted on 2nd January, 2012
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Redundancy, selection and age discrimination

When selecting employees for redundancy selection a difference in treatment due to age may be justified by a legitimate aim. According to the Protection from Unfair Dismissal Act (“KSchG”), employers have to consider social criteria, such as seniority, age, obligations…
Posted on 2nd January, 2012
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New Swiss/Dutch Double Taxation Treaty

A new double taxation treaty between Switzerland and the Netherlands (the “new DTT”) contains new provisions on dividends, interest, capital gains and information exchanges. The provisions of the new DTT apply to tax years beginning on or after January 1,…
Posted on 2nd January, 2012
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A new retrospective federal inheritance and gift tax?

A popular initiative called “Million-estates for the AHV (Inheritance Tax Reform)” was launched in August 2011.  It aims to introduce a federal inheritance and gift tax at a flat tax rate of 20%. At present, the constitutional power to levy…
Posted on 2nd January, 2012
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The new Hungarian labour code

A new labour code (the “New Code”) is due to come into force on July 1, 2012.  The New Code makes changes in a number of areas including protection from dismissal and working hours and allowances. The main provisions of…
Posted on 2nd January, 2012
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New arrivals and failure to notify UK tax liability

Until 1 June 2010, foreign nationals or returning UK nationals were required to file a form (P86) informing HMRC of their arrival in the UK and, among other things, their intention with regard to the duration of their stay here.…
Posted on 2nd January, 2012
, in UK 
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Employment aspects of the revised City Code on Takeovers and Mergers (the “Takeover Code”)

Following a review of the Takeover Code a number of changes were made.  Provisions affected by these changes include those relating to employee information rights and buyer intention statements. Background The Takeover Code governs the terms and conduct of offers…
Posted on 2nd January, 2012
, in UK 
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Pensions update – auto-enrolment

A delay in the roll out of auto-enrolment into pension schemes for firms with fewer than 250 employees has been announced, along with a delay in the increase of employer contribution rates. What is auto-enrolment? From October 2012 employers will…
Posted on 2nd January, 2012
, in UK 
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Increase in employment tribunal award limits and statutory payments

From 1 February 2012 there will be an increase in the amounts payable on certain employment tribunal awards and other amounts payable under employment legislation.  These increases only apply where the effective date of termination of employment occurs on or…
Posted on 2nd January, 2012
, in UK 
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ECA International events 2012

ECA International provides valuable data to employers operating international assignment programmes and have released their events & training programme for the first half of 2012.  These events are being run in various international locations. Resources International Events 2012
Posted on 2nd January, 2012
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Deadline for filing annual return forms for approved and unapproved share plans

The annual return forms must be filed by the relevant deadline or a penalty may be imposed by HMRC. Annual Return forms The following annual return forms for the year ended 5 April 2012 are now available on HMRC’s website. …
Posted on 2nd January, 2012
, in UK 
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Long awaited tax reforms announced by the Government

Following an agreement between Belgian political parties to form a government a Tax Bill has been passed.  A summary of the main tax measures announced in these budgets, and which may be of relevance to CELIA Enews readers, are set…
Posted on 1st January, 2012
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Amendment to the Labour Code

An extensive amendment to the Labour Code came into force on 1 January 2012.  The amendment brings many significant changes, the most important of which are summarised below. Trial period The amendment makes it possible to agree an extended trial…
Posted on 1st January, 2012
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Employment Law Changes

The legislation governing employment law has been amended, with the amendments coming into force on 1 January 2012.  The amendments result in a number of changes; the most important of which are summarised below. Illegal work – hiring freelancers for…
Posted on 1st January, 2012
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Reforming executive pay – Government proposals and investor concern

There have been a number of recent developments with regard to executive pay.  These are summarised below. Department of Business Innovation and Skills In September 2011 the Department of Business Innovation and Skills (“BIS”) published 2 documents relating to executive…
Posted on 1st January, 2012
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Swiss residents may claim reduced withholding tax rates on gains from the sales of French property

It was recently held that Swiss tax residents may claim the 19% withholding tax rate on gains arising on the disposal of French property and that they are not subject to the 33.33% rate. Background Under French domestic tax legislation…
Posted on 1st January, 2012
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France introduces an exceptional tax on high net income taxpayers

As part of the austerity plan started in 2011, the Finance Act for 2012 introduces an exceptional tax to be levied on those individuals with annual net taxable income exceeding EUR 250,000. The new tax is to be levied both…
Posted on 1st January, 2012
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French Supreme Court specifies the conditions under which GPS may be used to monitor an employee

It was held by the French Supreme Court that a company had unlawfully used a GPS device to track the company car of one of its employees. Background An employee working as a sales representative was informed by his employer…
Posted on 1st January, 2012
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Scope of new exit tax further extended

France introduced a new exit tax in 2011 for individuals who have been tax resident in France for at least 6 out of the preceding 10 years who move their tax residency abroad. The exit tax consists of the taxation…
Posted on 1st January, 2012
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Exemption from social security contributions on termination payments reduced

The portion of termination sums that may be exempt from employment social security contributions has been further reduced by the 2012 Social Security Financing Law as part of the austerity plan. The exempt termination payment is limited to twice the…
Posted on 1st January, 2012
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The 30% ruling amended

Under Dutch law expatriates working in the Netherlands may be entitled to tax-free compensation equal to 30% of their gross remuneration.  This law has now been subject to a number of amendments. The Dutch Parliament has amended legislation governing the…
Posted on 1st January, 2012
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Increase of withholding tax on dividends and interest

The rates of withholding tax on dividends and interest have increased with effect from 1 January 2012. Interest and dividends are, as a matter of principle, subject to the standard income tax regime.  They are declared and subject to tax…
Posted on 1st January, 2012
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Carried forward holiday and new restrictions for the long-term sick

The rules on carrying forward holidays and a new decision limiting the carry forward period to 15 months for long-term sick employees. In principle, an employee’s entitlement to holiday is lost at the end of the year if it has…
Posted on 1st January, 2012
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New Labour Code Submitted to Parliament

A comprehensive revision of the Labour Code was submitted to Parliament on October 26, 2011. (“Draft Bill”).  If adopted in its current form, the Draft Bill will overhaul material provisions of the existing statutory regime.  Effective date of the new…
Posted on 11th January, 2011
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Proposed new statutory residence test – some reflections

The consultation period relating to the proposed introduction of a statutory residence (and ordinary residence) test in the UK closed on the 9th September 2011.  We are now awaiting the publication by the Government of a summary of responses.  This…
Posted on 10th January, 2011
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Are your partners and LLP members really employees? Court raises spectre of employee liabilities

The Employment Tribunal found that an individual who had been a member of an LLP (paying tax and NI as a self employed person) should have been regarded as an employee.  The individual in question was originally an employee who…
Posted on 10th January, 2011
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France introduces several tax restrictions as part of austerity plan

France recently introduced a set of new tax measures as the first part of an aggressive plan to reduce the huge and constantly growing state deficit. The most urgent measures were included in the Second Amendment to the Finance Law…
Posted on 10th January, 2011
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Funds in Swiss bank accounts to be taxed from 2013

The UK and Switzerland have reached an agreement which will see funds in Swiss bank accounts taxed and the proceeds remitted to the UK Treasury. How it will work From 2013 Swiss bank accounts of UK taxpayers in Switzerland will…
Posted on 10th January, 2011
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Carrying forward holiday entitlement accrued while on sick leave

The Employment Appeal Tribunal recently held that employees who accrue holidays during a period of sick leave will carry forward any untaken holiday entitlement to future holiday years automatically.  It is not necessary for them to have formally notified an…
Posted on 10th January, 2011
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UK Immigration Update

We set out a summary of the latest developments in UK immigration law. Changes to the Sponsorship Management System (“SMS”) From 1 October 2011 there will be changes to the SMS.  This will affect the way in which applications for…
Posted on 10th January, 2011
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Monetary claims for compensation for untaken holiday can be validly excluded

Court holds that a monetary claim for compensation can be excluded by contractual provision. In virtue of sec. 7 par. 4 BUrlG (Bundesurlaubsgesetz, Holidays Act) the employee is entitled to compensation for holidays he was not able to take because…
Posted on 10th January, 2011
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Additional Premiums for work on Public Holidays such as Easter Sunday and Whit Sunday

If a collective agreement allows for additional premiums for work on public holidays, this additional premium regularly only has to be paid if those public holidays are statutory. In this case (See Resources below), the claimant was working shifts for…
Posted on 10th January, 2011
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Transfer of part of an undertaking to an affiliated company abroad prevented fair redundancy dismissal

Reliance cannot be placed on a redundancy dismissal by reason of closure of workplace where the part of the undertaking in which the employee works is transferred. If an employment contract rules that German law is applicable, the question whether…
Posted on 10th January, 2011
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Agency Workers Regulations – in force from 1 October 2011

On 1 October 2011 the Agency Workers Regulations come into force in the UK.  Employers of the estimated 1.3 million agency workers in the UK take note! What is the effect of the Regulations? Day one rights From day one…
Posted on 10th January, 2011
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Increase of qualifying period for unfair dismissal and introduction of Tribunal fees to “increase competitiveness”

On 3 October 2011 it was announced that the length of the unfair dismissal qualifying period would increase to 2 years and that fees would be introduced for bringing Employment Tribunal claims. Unfair dismissal qualifying period In order to bring…
Posted on 10th January, 2011
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Welcome news – UK £30,000 Remittance Basis Charge is a creditable tax for US taxpayers

The IRS has announced in Revenue Ruling 2011-19 that the £30,000 Remittance Basis Charge may be credited against US income tax.  The UK Remittance Basis Charge is imposed on US taxpayers who are resident (but not domiciled) in the UK…
Posted on 10th January, 2011
, in USA 
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Wider employee share scheme exemptions from Prospectus Directive requirements now in force

The scope of the exemptions from the obligation to produce a prospectus under the Prospectus Directive were increased with effect from 31 July 2011 in the UK. Exemptions from the Prospectus Directive Under the Prospectus Directive a prospectus may be…
Posted on 10th January, 2011
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Further tightening for the 30% ruling for incoming expatriates

The 30% ruling is a fiscal facility for foreign employees who have specific skills or expertise which are scarce on the Dutch labour market and who come to work in the Netherlands, and who meet certain other specific conditions.  Under…
Posted on 10th January, 2011
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Tax treatment of board directors – office staff, office space and cars

The regional finance office of Magdeburg submitted an order on how to deal with additional benefits provided to members of the supervisory board for tax purposes. Occasionally, larger companies provide office space, office staff and company cars to their board…
Posted on 10th January, 2011
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Stock options and severance indemnities

On 31 May 2011, the Labour Court of Brussels has reconfirmed that stock options must be included in the calculation basis of the severance indemnity payment. Nature of the stock options The case concerned the character of stock options and…
Posted on 10th January, 2011
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Court’s power to imply a principle of a good faith into employment contracts

Implying an obligation of good faith on the employee, the Swiss Federal Supreme Court ruled that an employment could be terminated on the statutory notice period of one month rather than the contractual three months. On May 7, 2008 the…
Posted on 10th January, 2011
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Uncapped awards for failure to inform and consult on transfer of UK undertakings

A recent decision confirms that protective awards are uncapped for a breach of the information and consultation obligations under UK transfer of undertaking legislation (“TUPE”). Background A company purchased a business when it went into liquidation.  This was a relevant…
Posted on 10th January, 2011
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The first prosecution under the UK Bribery Act 2010

The UK Crown Prosecution Service has announced the first prosecution under the Bribery Act 2010. The defendant is a magistrate’s court clerk who is alleged to have requested a payment of £500 in return for influencing the court’s conduct of…
Posted on 10th January, 2011
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Proposed increase in Social Insurance contribution ceilings for 2012

On September 8th 2011, the Federal Ministry of Labour presented the draft bill for the Social Insurance operands regulation for 2012.  The draft intends an increase for many contribution assessment ceilings as wage inflation amounted to approx. 2% in the…
Posted on 10th January, 2011
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Employees residing abroad and holding an employment contract with a Swiss resident employer, but not working on Swiss territory are not subject to Swiss tax at source

In its decision of March 25, 2011 the Swiss Federal Supreme Court decided that the practice of the tax administration of the canton of Zurich was unlawful. The canton of Zurich had adopted the practice whereby an employment contract with…
Posted on 10th January, 2011
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UK Bribery Act Training – “Managing the risks”

CELIA Alliance member Abbiss Cadres LLP is holding further series of lunchtime workshop training sessions on the UK Bribery Act.  Places are limited and are available on a “first come, first served” basis. The sessions will look at how to…
Posted on 7th January, 2011
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The recast European Works Council (“EWC”) Directive came into force on 5 June 2011

On 5 June 2011 regulations came into force in the UK which implemented the recast EWC Directive, the result of which was a number of changes to the rules on EWC. The Transnational Information and Consultation of Employees (Amendment) Regulations…
Posted on 7th January, 2011
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Insured benefits and the State Pension Age

Employers who want to withdraw insured benefits from employees who have reached the state pension age (the “SPA”) should be aware that it may not be as straightforward as it first appears. Background The Equality Act 2010 contains an exception…
Posted on 7th January, 2011
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The UK Bribery Act came into force on 1 July 2010 as the FSA announces a corruption review

The UK’s Bribery Act 2010 (the “Act”) applies to all organisations carrying on business in the UK and creates a number of offences, breach of which is punishable by up to 10 years imprisonment and an unlimited fine. Organisations doing…
Posted on 7th January, 2011
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Proposed new residency test – complexity replaces uncertainty?

The Government has issued its proposals for a statutory residence test (“SRT”) for individual taxpayers. It is widely accepted that the current rules do not provide certainty in all cases and suffer from too great a level of subjectivity.  However,…
Posted on 7th January, 2011
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Immigration crackdown on sponsor breaches predicted

A parliamentary committee’s report on lack of control over intra-company transfers (“ICT”) is predicted to spark enforcement of sponsor’s obligations. On 17 May, 2011 a report was published by the Committee of Public Accounts which raised the issue of the…
Posted on 7th January, 2011
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Double taxation

The rules governing the taxation of commuters to Luxembourg have changed. On the 14th June 2011 the German Federal Ministry of Finance published the mutual agreement of 26th May 2011 between Germany and the Grand Duchy of Luxembourg regarding the…
Posted on 7th January, 2011
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Agency Workers Regulations – final guidance published

The Department for Business, Innovation and Skills (“BIS”) published final guidance on the Agency Workers Regulations 2010 (“AWR”) in May 2011. The AWR comes into force on 1 October 2011 and will not have retrospective effect.  This means that for…
Posted on 7th January, 2011
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New income tax surcharge on stock option payments and variable compensation for managers of financial entities and clarifications on scope issued

To the extent that bonuses awarded to certain employees of financial institutions exceed one third of the employee’s fixed compensation, the excess is liable to an additional 10% surcharge. Art. 33 of the Law Decree no. 78 of May 31,…
Posted on 7th January, 2011
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When is the notice of termination of employment effectively received by the employee?

Notice of the termination of the employment relationship does not take effect until its effective delivery to the employee.For an employee to be deemed to have received notice it is sufficient that the notice of termination reaches the employee’s “sphere…
Posted on 7th January, 2011
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New list of daily allowances for foreign business trips during 2011/12

On 9 May 2011 the 2011 list of daily allowances was published in the Belgian Gazette.  The new rates came into effect on 1 April 2011. Payments of the daily allowance made by employers to employees who undertake short business…
Posted on 7th January, 2011
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New Federal Law on the taxation of employee shareholdings

The Federal Council has determined that a new Federal Law on the taxation of employee shareholdings (“FLTES”) will enter into force on 1 January, 2013. The FLTES determines the timing of the taxation of employee shareholdings as well as the…
Posted on 7th January, 2011
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Guidance on the new social security treatment of termination payments issued

The social charges treatment applicable to payments received on termination of employment was substantially modified with effect from 1 January 2011.  Guidance issued in April 2011 clarifies the calculation. The French Social Administration recently issued guidance on the application of…
Posted on 7th January, 2011
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New wealth, trust and exit taxes for individuals but tax on second homes is dropped

The Addendum to the Finance Law 2011 (the Bill) will significantly broaden exposure to French taxation. French wealth tax French wealth tax is currently levied at rates ranging from 0.5% to 1.80% on the portion of net assets exceeding €800,000. …
Posted on 7th January, 2011
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Draft foreign asset form released by the IRS on 8 June 2011

Companies paying for a tax return service for their US assignees are likely to see a rise in professional fees as the IRS have released a new draft form that will soon be mandatory for tens of thousands of US…
Posted on 7th January, 2011
, in USA 
 | 

Social Security Agreement between Switzerland and India

On January 29, 2011 a bilateral social security agreement (“SSA”) between Switzerland and India came into force. What is the effect of the SSA? The SSA helps and encourages cross-border movement of professionals across the two countries.  The SSA ensures…
Posted on 7th January, 2011
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Double taxation of commuters to luxembourg

Taxation of commuters to Luxembourg The rules governing the taxation of commuters to Luxembourg have changed. On the 14th June 2011 the German Federal Ministry of Finance published the mutual agreement of 26th May 2011 between Germany and the Grand…
Posted on 7th January, 2011
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Changes to benefit in kind charges for home to work company car travel

The German Federal Ministry of Finance has commented on the treatment of company cars provided for commuting between home and the employee’s regular place of work with regard to wage tax. Background While the benefit in kind charge for the…
Posted on 7th January, 2011
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Changes in the tax treatment of ‘extra payments’ to the purchase expenses of a company car

Under the old law extra payments by employees to the purchase expenses of a company car, which could also be used privately, could only be set off in the year of payment against non-cash benefits, to be assessed for private…
Posted on 7th January, 2011
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Federal government and states consider extension of tax free pension contribution to posted workers

Contribution to a home country pension scheme may attract relief in future. According to § 3 Nr. 63 EStG (German Income Tax Law), contributions to pension funds, pension schemes and insurance companies in the EU – as well as possibly…
Posted on 7th January, 2011
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Constitutional challenge to time limit for tax deductible subsistence expenses fails

The German Federal Finance Court confirms that deductions for meal allowances is limited to 3 months. Where employees are working away from their usual place of work, for example at a client’s premises or if they are on secondment to…
Posted on 4th January, 2011
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International travel expenses deduction held at 2010 level for 2011

The Federal Ministry of Finance has announced that there will be no reassessment of flat rate amounts for expenses for travelling abroad until 01.01.2012. Under German tax law published per diem rates allow deductions from income.  The rates vary depending…
Posted on 4th January, 2011
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Agency workers providing services to more than one end-user client to benefit from additional subsistence deductions

The German Federal Finance Court has ruled that, typically, agency workers have no regular place of work in cases where the worker performs services for several different end-user clients of his employment agency employer.  The consequence of this decision is…
Posted on 4th January, 2011
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Employees may not claim a deduction for payments under car-hire contracts

The German Federal Finance Court has ruled deductions from income for travelling to and from work are limited to the published rates based on distance travelled. The employee claimed that expenses for car leasing costs could be claimed as this…
Posted on 4th January, 2011
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IRS targets non-compliant US ex-pats as the clock for voluntary disclosure ticks down

US ex-pats need to get a move on to take advantage of the “last best chance” for voluntary disclosure which closes in August 2011.  Working as an ex-pat has its benefits and also brings its challenges.  Today this is particularly…
Posted on 4th January, 2011
, in USA 
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Limitation period for personal injury limits employers’ exposure to claims

An important decision of the Federal Supreme Court confirms that the limitation period for personal injury claims for breach of contractual duty claims run from the date of the breach. The case The plaintiff worked  from 1962 as a turbine…
Posted on 4th January, 2011
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CELIA welcomes specialist US Tax member

The Alliance is delighted to announce that niche consultancy firm US Tax and Financial Services (known as "US Tax"), are to join the Alliance with immediate effect. As the name suggests US Tax specialise in US tax return compliance and…
Posted on 4th January, 2011
, in USA 
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ECJ decision to increase premiums for insured and other benefits

The ECJ has held that insurers cannot take gender into account as a risk factor when setting premiums and payouts in respect of annuities, retirement savings and accident cover. The decision is likely to affect many insured benefits provided by…
Posted on 4th January, 2011
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Looming deadline for filing annual return forms for approved and unapproved share schemes

The annual return forms must be filed by the relevant deadline or a penalty may be imposed by HMRC. Annual return forms The following annual return forms for the year ended 5 April 2011 are now available on HMRC’s website. …
Posted on 4th January, 2011
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Self Assessment Tax – new regime significantly increases penalties for late filing

For the tax year 2011/12 there is a new penalty regime for late filing of tax returns and the late payment of tax.  Under the new regime penalties for filing a tax return six months late could exceed £1,300. The…
Posted on 4th January, 2011
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Victimisation claims covered by judicial immunity

Judicial proceedings immunity whereby a witness enjoys absolute immunity from any action brought on the ground that his or her evidence is false, malicious or careless extends to victimisation claims.The Employment Appeal Tribunal (“EAT”) held that a complaint of victimisation…
Posted on 4th January, 2011
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Draft guidance on Regulations extending employment protection to Agency Workers

The government has published draft guidance on the Agency Workers Regulations 2010 which come into effect on 1 October 2011.The Agency Workers Regulations implement the EU Temporary Agency Workers Directive 2008/104.  From 1 October  temporary agency workers with a minimum…
Posted on 4th January, 2011
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UK Bribery Act Guidance published – organisations doing business in the UK have until 1 July 2011 to ensure compliance

The UK Ministry of Justice has finally published the Guidance to the Act which now comes into force on 1 July 2011.  All organisations doing business In the UK should consider if steps are needed to ensure compliance. After a…
Posted on 4th January, 2011
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HMRC to fine small and medium sized businesses up to £3,000 for failing to keep proper records

HMRC has announced that it is to target 40% of the UK’s 4.9 million small and medium sized businesses which engage in poor record keeping and where HMRC expect that unpaid tax is likely to be due. HMRC intend to…
Posted on 4th January, 2011
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EU social security regulations expanded to cover non-EU nationals – UK and Danish opt-outs raise possibility of double liability

Since January 1, 2011, the application of the European Social Security Regulation no. 883/2004 also applies to citizens of countries that do not belong to the European Union.  In practice, this means that the regulations have also become applicable to:…
Posted on 4th January, 2011
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Dutch “Heineken case” extending transfer of undertakings legislation to posted workers has EU-wide impact

On October 21, 2010 the European Court of Justice held that employees need not have an employment contract with the transferor in order for transfer of undertakings legislation to apply to them. Facts and circumstances Within Heineken the staff who…
Posted on 4th January, 2011
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French Tax Residency Test

Supreme Court emphasise importance of source income and non-marital family connections in maintenance of French residence. In a series of recent decisions, the Conseil d’Etat, the French Supreme Court clarified certain aspects of French tax residency test rules, which may…
Posted on 4th January, 2011
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Major consequences for French tax residents who fail to disclose foreign bank accounts

Supreme Court confirms swingeing tax consequences of dealing with undisclosed accounts complies with EU law. French tax residents are subject to a general obligation to declare the details of their foreign bank accounts to the French tax administration.  Failure to…
Posted on 4th January, 2011
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Supreme Court rules on tax exemption for multiple payments for termination of multiple Group positions

The Supreme Court clarifies anti-avoidance provisions. Sums paid to an employee or an executive on the termination of his duties may be tax exempt under certain limitations. A termination payment is tax exempt in whole when it does not exceed…
Posted on 4th January, 2011
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UK Budget 2011

The UK Budget was presented on 23 March 2011. Summary of the Budget’s major changes  The main points arising from this Budget are set out below: Revised legislation on “disguised remuneration” is included in the Finance Bill 2011 published on…
Posted on 4th January, 2011
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New OECD Model Tax Convention – examining the new definition of “employer” in Article 15

The revised version of the condensed OECD Model brings welcome clarity to the meaning of employer for Article 15 (short term assignment) purposes. The OECD (Organisation for Economic Co-operation and Development) Council approved the 2010 Update to the Model Tax…
Posted on 4th January, 2011
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Working in different EU countries can create pension entitlement in multiple states

Those working and making social security contributions in multiple EU states should take advantage of additional pension entitlements created in the home and host states. For many employees working in different EU countries for certain periods has become quite common;…
Posted on 4th January, 2011
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France: Tax and social withholdings increases for 2011

Proposals will see increases in income and capital gains taxes, social withholdings, and less attractive treatment for stock options and qualified instruments.  The proposals are to reduce state indebtedness and finance the country’s social system. The developments are included in…
Posted on 12th January, 2010
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France: Revocation of tax treaty between France and Denmark: practical implications

The French tax administration recently proposed several solutions to reduce the negative consequences of the cancellation of the tax treaty between France and Denmark. Denmark notified the French authorities in June 2008 of its decision to revoke the treaty, signed…
Posted on 12th January, 2010
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Denmark: Revocation of tax treaty between France and Denmark: practical implications

The French tax administration recently proposed several solutions to reduce the negative consequences of the cancellation of the tax treaty between France and Denmark. Denmark notified the French authorities in June 2008 of its decision to revoke the treaty, signed…
Posted on 12th January, 2010
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Germany: Expenses claim for temporarily posted employees

An income tax information brief issued by the Rhineland Regional Finance Office has clarified the tax implications for employers posting their employees temporarily to an affiliated company. The guidance highlighted the differing tax positions related to two specific types of…
Posted on 12th January, 2010
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Germany: Parental leave periods do not count towards company pension payments

The decision of the Federal Labour Court is sufficient not only for pension payments but also other entitlements during parental leave. The decision, made earlier this year, related to an employer-employee dispute over whether parental leave should impact pension payments. …
Posted on 12th January, 2010
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Germany: German social security contributions for 2011

First draft regulations provide for lower thresholds and higher contributions. Income Limit for the assessment of Contributions for 2011 On 3rd September 2010, the Ministry of Employment and Social Affairs submitted the first draft of a regulation for decisive operands…
Posted on 12th January, 2010
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Netherlands: New rules for trading of non-listed employee stock

Employees working in non-listed companies may soon be allowed to trade their employee stock amongst themselves, after the Netherlands Participation Exchange (NPEX) has obtained approval from the Dutch Supervisor (AFM) to expand its on-line trading platform. It is not uncommon…
Posted on 12th January, 2010
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Switzerland: Improved planning opportunities for employees taxed at source

A wide-reaching Federal Supreme Court decision earlier this year has significantly improved the tax planning opportunities for employees taxed at source on their employment income. The case involved a Swiss national, who moved to France in 2001 but continued to…
Posted on 12th January, 2010
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Swizerland: Dismissal without notice – a very high hurdle to justify

Examining thoroughly whether an employee’s misconduct is severe enough before dismissing without notice has been highlighted by a recent Swiss Federal Supreme Court decision. The decision, announced in May, concerned the employee of a catering company at Geneva international airport,…
Posted on 12th January, 2010
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Switzerland: Cancellation of discounts for employee stock options

The National Council has changed the 2004 draft on taxation of employee participation instruments, with the main change being the cancellation of the discounts for employee stock options.  The Council of States now debates on the new draft. Under the…
Posted on 12th January, 2010
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UK: Ability to compromise discrimination claims under the Equality Act 2010 in doubt

Care needs to be taken before settling discrimination claims until legislative fault is corrected. On 1 October 2010 the Equality Act 2010 came into force and now governs all aspects of discrimination in employment (age, sex, race etc).  However the…
Posted on 12th January, 2010
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UK: Effective date of termination of employment – impact on incentive plans

The Supreme Court confirm the timing of the effective date of termination (“EDT”) of employment on summary dismissal - a key date for vesting of rights under incentive plans. The Supreme Court held that when employment is summarily terminated by…
Posted on 12th January, 2010
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UK: Proposals for the protection of personal data finally published by the European Commission (the “Commission”)

Key objectives which will provide the framework for the EU’s revised protection of personal data legislation. The key objectives are those of: strengthening individuals’ rights; protecting sensitive data; making remedies and sanctions more effective; enhancing the single market dimension; ensuring…
Posted on 12th January, 2010
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EU: Proposals for the protection of personal data finally published by the European Commission (the “Commission”)

Key objectives which will provide the framework for the EU’s revised protection of personal data legislation. The key objectives are those of: strengthening individuals’ rights; protecting sensitive data; making remedies and sanctions more effective; enhancing the single market dimension; ensuring…
Posted on 12th January, 2010
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UK: Court of Appeal refuses to extend legal professional privilege (“LPP”) to non-lawyers

Clients who obtain advice from non-lawyers may not be able to prevent the disclosure of information given to advisors. What is legal professional privilege? LPP applies to confidential communications which pass between a client and his lawyer and which have…
Posted on 12th January, 2010
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CRD 3 and restrictions on remuneration in the financial services sector

STOP PRESS An amended version of CRD (the “Capital Requirements Directive”) 3 was published on 30 September 2010 by the Council of Europe. On 10 December 2010 the Committee of European Banking Supervisors (“CEBS”) published new guidelines on the Capital…
Posted on 12th January, 2010
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UK government announces new cap on number of migrants to the UK

The government has announced that from April 2011 new measures are being introduced to limit the number of non-EEA migrants who may come to the UK. Overview of UK immigration system During 2008/9 the UK immigration system was changed to…
Posted on 12th January, 2010
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UK: 2011 “Budget” date announced for review of UK fiscal regime

The UK Budget 2011 will take place on Wednesday 23 March 2011. This date is important because changes to the UK tax regime can come into effect on the day of the Budget.  Where possible, any schemes which may be…
Posted on 12th January, 2010
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UK: Employers may withhold discretionary bonuses even where performance is satisfactory

When determining whether to award a discretionary bonus or not the key issue for the Courts to look at is whether the employer’s decision was irrational or perverse and not whether the employees performance was sufficient to justify a bonus.…
Posted on 12th January, 2010
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UK: Amended Prospectus Directive finalised – extended exemption for employee shares schemes

The proposed early enactment into UK law of 2 of the recent amendments to the Prospectus Directive and the expansion of the share schemes exemption to include all EU companies. On 11 October 2010 the Council of the European Union…
Posted on 12th January, 2010
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UK: UK Enterprise Management Incentives (“EMI”) schemes and foreign companies

The highly tax efficient share scheme for smaller companies is to be made available to foreign companies. Background EMI schemes are the most flexible of the UK’s tax favoured share option plans and provide generous tax treatment to participating employees…
Posted on 12th January, 2010
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UK: The EHRC have published draft Codes of Practice on the Equality Act 2010 (the “Act”)

The UK Equality Act 2010 (the “Act”) covers all areas of equality and discrimination legislation.  The Codes of Practice (the “Codes”) are key to understanding the new obligations under the Act. The Equality and Human Rights Commission (“EHRC”) has produced…
Posted on 12th January, 2010
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UK: Bribery Act 2010 – ALERT – Are you compliant?

All organisations doing any business in the UK need to take active steps to manage the risk of criminal liability under this new Act The provisions of the Act come into force in April 2011. An obligation on all commercial…
Posted on 12th January, 2010
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UK: Breaking news – New CEBS guidelines published on 10 December

Further to our article - CRD 3 and restrictions on remuneration in the financial services sector (click here), the Committee of European Banking Supervisors (“CEBS”) has published new guidelines on the Capital Requirements Directive (“CRD 3”). These Guidelines will be…
Posted on 12th January, 2010
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UK: Government considers making it easier to dismiss employees

The UK government is actively considering increasing the qualification requirement for protection from dismissal from one to two years as a means of increasing employment. Unfair dismissal rights Employees who have a years’ service when they are terminated have the…
Posted on 12th January, 2010
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UK: Government guide to maternity and new additional paternity leave rights

Male employees with parental responsibility for babies that are due to be born or placed for adoption on or after 3 April 2011 will have the right to take part of their partner’s maternity leave as “additional paternity leave”, subject…
Posted on 12th January, 2010
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USA: New US/Belgian agreement clarifies double taxation of pensions

Welcome clarification of ‘qualified pension plans’ attracting relief from double taxation. The US and Belgium have signed an agreement on avoidance of double taxation of pension plans.  The agreement, which clarifies the plans benefiting from the treaty provision, was published…
Posted on 12th January, 2010
, in USA 
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Belgium: New US/Belgian agreement clarifies double taxation of pensions

Welcome clarification of ‘qualified pension plans’ attracting relief from double taxation. The US and Belgium have signed an agreement on avoidance of double taxation of pension plans.  The agreement, which clarifies the plans benefiting from the treaty provision, was published…
Posted on 12th January, 2010
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Employment: New paternity rights available for new and adoptive parents from 3 April 2011

On 6 April 2010, regulations came into force granting new rights to additional paternity leave and pay for parents with children due on or after 3 April 2011. The new rights will also apply to adoptive parents who have received…
Posted on 5th January, 2010
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Employment: New criminal offences to counter corporate corruption

On 8 April 2010 the Bribery Bill received Royal Assent. No date has yet been set for the new Act to come into force, however it represents a complete overhaul of corporate obligations in relation to bribery and corruption.  The…
Posted on 5th January, 2010
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Employment: Significant changes to the UK points-based Immigration Rules from 6 April 2010

On 18 March 2010 the Home Office announced changes to the Tier 1 (highly skilled workers) and Tier 2 (skilled workers with a job offer) which impact all applications made on or after 6 April 2010 Changes to Tier 1…
Posted on 4th January, 2010
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Employment: Changes to European Works Council regulations

The Transnational Information and Consultation of Employees (Amendment) Regulations 2010 (“TICE”)  amending the Transnational Information and Consultation of Employees Regulations 1999 (the “1999 Regulations”) in order to bring them into line with the recast 2009 European Works Council Directive (the…
Posted on 4th January, 2010
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Employment: Equality Act passed

On 6 April 2010 the Equality Bill as amended by the House of Lords was passed without further change by the House of Commons.  It received Royal Assent on 8 April and the majority of its provisions are expected to…
Posted on 4th January, 2010
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Compensation & Benefits: New company car mileage rates

From 1 December 2009, HMRC approved rates payable to an employee for use of a company car for business purposes have changed with immediate effect. (HMRC explained that the one month’s prior notice previously given for such changes does not…
Posted on 3rd January, 2010
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Compensation & Benefits: The post-Walker corporate governance environment

Governance needs to be brought “back to centre stage” but will not be achieved through “box-ticking conformity” So stated the final recommendations of the Walker report published in November 2009. Background As reported in our article dated 9 November (see…
Posted on 3rd January, 2010
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Compensation & Benefits: HMRC issues new guidance on Share Incentive Plans

On 29 January 2010, HMRC issued new guidance in its Employee Share Schemes User Manual on the operation of SIPs. Resources Employee Share Schemes User Manual For further information, please contact Guy Abbiss (guy.abbiss@abbisscadres.com) or Libs Davies (libs.davies@abbisscadres.com) on +44…
Posted on 3rd January, 2010
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Employment: Revised guidance for injury to feelings compensation

The Employment Appeal Tribunal has ruled that the bands for damages awarded for injury to feelings in unlawful discrimination cases (known as “Vento” damages) should be increased in line with inflation, with immediate effect. The upper limit of the lower…
Posted on 3rd January, 2010
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Compensation & Benefits: New HMRC ‘rights’ Charter

On 11 November 2009, HMRC published its new Charter called 'Your Charter', setting out the rights of obligations of individuals when dealing with HMRC. The Charter notes that HMRC wants to give the taxpayer a “service that is even-handed, accurate…
Posted on 3rd January, 2010
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Employment: New legal right to request time off to train

The Apprenticeships, Skills, Children and Learning Act 2009 (the “Act”), the main provisions of which come into force for businesses with 250 or more employees in April 2010, will give certain qualifying employees the right to request time off from…
Posted on 3rd January, 2010
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Compensation & Benefits: Government issues concession on childcare vouchers, “not a U turn”

In our previous newsletter, we reported that the Government was planning to remove the existing tax and National Insurance Contributions (NICs) exemptions on childcare vouchers (see link to article in Resources below) from 2011. Following heavy lobbying from MPs, the…
Posted on 3rd January, 2010
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Employment: New regulations to implement the Temporary Agency Workers Directive

Following consultations in 2009, the regulations implementing the EU Temporary Agency Workers Directive, the Agency Workers Regulations 2010 (the “Regulations”), have been laid before Parliament.  The Regulations are due to come into force on 1 October 2011. The draft Regulations…
Posted on 3rd January, 2010
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Compensation & Benefits: FRC issues final report on corporate governance and commences consultations on draft revised Combined Code and a new stewardship code

Current Combined Code is “broadly fit for purpose”. The Financial Reporting Council (FRC) has confirmed that it has found no evidence of “serious failings in the governance of business outside the banking sector” but, nevertheless, it now proposes “sensible improvements”…
Posted on 3rd January, 2010
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Compensation & Benefits: Clarification of entitlement to holiday pay upon termination – contractual claim not brought under Working Time Regulations

The Employment Appeal Tribunal (“EAT”) has upheld an employment tribunal’s decision that, under the terms of the employment contract, an employee was entitled to a payment in lieu of untaken holiday accrued over the full period of seven and a…
Posted on 3rd January, 2010
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Compensation & Benefits: Update on proposed auto-enrolment pension reforms

“Pragmatic approach” welcomed as “major step forward” Following the Department for Work and Pensions’ (“DWP”) consultation exercise in September 2009, key changes have been made to the draft regulations initially published.  The revised regulations relate to employers duties set out…
Posted on 3rd January, 2010
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Employment: Clarification of territorial scope of race and age discrimination legislation

Employees who work at least partly in the UK are entitled to rely on UK legislation to bring race and age discrimination claims. The Employment Appeal Tribunal (“EAT”) has ruled that when determining whether an employee works “wholly or partly”…
Posted on 3rd January, 2010
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Compensation & Benefits: Revised European social security legislation from 1 May 2010

Revised EU legislation will introduce substantial changes to social security for EU employers not present in the UK and for those individuals who work temporarily outside their home EU member state The revised EU social security legislation (833/2004) will finally…
Posted on 3rd January, 2010
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International Assignments: A new concealed tax on sport?

International athletes who attend sporting events in the UK may be subjected to UK tax on a higher proportion of their worldwide earnings than has previously been the case before.  However, HM Revenue & Customs (HMRC) has denied a change…
Posted on 3rd January, 2010
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International Assignments: Residency in the UK- where are we now?

In recent weeks, there have been a number of decisions highlighting the complexities surrounding residence in the UK All of the decisions, including the well-known Court of Appeal case involving Robert Gaines-Cooper, have been decided in favour of H M…
Posted on 3rd January, 2010
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Compensation & Benefits: Incomplete disclosure of facts may result in both formal and informal tax rulings being withdrawn

In a recent VAT case, the High Court has ruled that taxpayer's application for judicial review of HMRC's decision to withdraw its VAT ruling with retrospective effect, because the taxpayer had failed to make a full and accurate disclosure of…
Posted on 3rd January, 2010
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Employment: 42 year old banker wins age discrimination claim

A tribunal has upheld a 42 year older banker’s claims for age discrimination, unfair dismissal and protective awards against one of the largest banks in Canada, Canadian Imperial Bank of Commerce (“CIBC”).  The banker, who earned £900,000 a year, had…
Posted on 3rd January, 2010
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International Assignments: Amended HMRC arrival procedures for expatriate employees

Notifications of new arrivals in the UK will no longer be accepted by HMRC if the correct form is not submitted by employers HM Revenue & Customs (HMRC) has confirmed that they will no longer accept notifications of new arrivals…
Posted on 3rd January, 2010
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Compensation & Benefits: Amendment to AIM rules to now require disclosure of directors’ remuneration

On 15 December 2009, the London Stock Exchange published AIM Notice 35, detailing proposed amendments to the AIM Rules. On 17 February 2010, AIM Notice 36 was published with a new version of the AIM Rules, which are effective from…
Posted on 3rd January, 2010
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Compensation & Benefits: Normal minimum pension age set to rise to 55 from 6 April 2010

As a general rule a member of a UK registered pension scheme must reach a specified age before he can draw his pension, the normal minimum pension age (“NMPA”).  This will rise from 50 to 55 on 6 April 2010.…
Posted on 3rd January, 2010
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Compensation & Benefits: An extra bank holiday in 2012!

The government plans to create a one-time extra bank holiday on 5 June 2012 to mark Queen Elizabeth II’s Diamond Jubilee. In addition to the extra day of holiday, the existing bank holiday in late May will be moved to…
Posted on 3rd January, 2010
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Compensation & Benefits: UK Enterprise Management Incentives (“EMI”) schemes

To become more attractive to non-UK companies Following on from the recent announcement by HM Revenue and Customs regarding a significant development concerning EMI schemes, the proposed amendment to the EMI legislation has been included in the Finance Bill 2010…
Posted on 3rd January, 2010
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Employment: Reduced compensation limit for unfair dismissal from February 2010

The Employment Rights (Revisions of Limits) Order 2009 sets out a new, reduced, upper limit on awards for unfair dismissal, effective from 1 February 2010. The change has been made to take account of the decrease in the retail prices…
Posted on 3rd January, 2010
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Employment: Application of UK employment legislation to a worker travelling from one place to another

The Court of Appeal (“CA”) has upheld a decision of the Employment Appeal Tribunal that a seaman employed on a ship registered outside Great Britain can bring an unfair dismissal claim in the UK, provided he can show that he…
Posted on 3rd January, 2010
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Compensation & Benefits: New PAYE penalty regime from April 2010

HMRC has issued a draft order providing that the new penalty regime for late payment of income tax under PAYE will come into force from 6 April 2010 PAYE penalties are not currently charged.  However, given the ongoing drive by…
Posted on 3rd January, 2010
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Compensation & Benefits: Total Reward – What does success look like?

Total Reward has enormous potential to improve business performance through an engaged workforce, and it is being harnessed and utilised by many UK companies Recent research from both Thomsons and the CIPD (see links in Resources below) show a third…
Posted on 3rd January, 2010
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Compensation & Benefits: Publication of proposals from EHRC to reduce gender pay gap – voluntary participation encouraged from employers “straight away”

Last year we reported that the Equality and Human Rights Commission (“EHRC”) had been asked by the Government to review private sector pay arrangements in an attempt to increase transparency in the area of pay and narrow the pay gap…
Posted on 3rd January, 2010
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Employment: Proposed Equality Act: Codes and new guidance in development by EHRC

In anticipation of the current Equality Bill coming into force, the Equality and Human Rights Commission (“EHRC”) has been working on producing associated statutory Codes of Practice together with non-statutory guidance. The Equality Act is intended to replace nine anti-discrimination…
Posted on 3rd January, 2010
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Germany: No entitlement to statutory severance payment where employee files a claim for unfair dismissal

Where an employer offers a severance payment that is to be paid in certain circumstances where an employee refrains from filing a claim for unfair dismissal, it is not then obliged to pay the severance payment if the employee fails…
Posted on 3rd January, 2010
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Portugal: Special tax regime for inbound employees

Portugal has recently introduced a new regime, effective retrospectively from 1 January 2009, which affords beneficial tax treatment for qualifying income arising from a Portuguese source for non-habitual residents (see below for an explanation of this term), arriving in Portugal…
Posted on 3rd January, 2010
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Netherlands: New employer tax charge on pension contributions for high earners

With effect from 1 January, 2010 the Netherlands has enacted a provision to discourage excessive remuneration Pension contributions for employees with a ‘high pensionable wage’ will be subject to income tax at a rate of 15%. Where applicable, this tax…
Posted on 3rd January, 2010
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Belgium: New tax position on cashing out of stock options raises planning opportunities

The generally accepted position that such payments for the release of stock options should be treated as ordinary taxable income, except in some specific company restructurings, has now been revised following a recent tax ruling Facts Employees of a Belgian…
Posted on 3rd January, 2010
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Germany: Payment for reduction in working hours similar to redundancy payment

A payment by an employer to an employee as compensation for a reduction in the employee’s weekly working hours, for an indefinite period, is classed as a redundancy payment and therefore afforded favourable tax treatment A change of weekly working…
Posted on 3rd January, 2010
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Germany: Travel costs – welcome new rule on mixed business/non-business expenses

Clarification of treatment of travel costs with both a business and private element Travel costs with business and private elements may be split into deductible business costs and non- deductible private costs, provided that both elements of the costs can…
Posted on 3rd January, 2010
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Germany: Tax exemption for ‘non standard’ working hours is restricted

The tax exemption available for additional amounts paid to an employee for working at night-time, Sundays and during public holidays will not apply if the hourly remuneration of the employee is the same, regardless of the day or hour Background…
Posted on 3rd January, 2010
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Netherlands: Important guidelines from the Ministry of Finance issued regarding the concept of ‘factual employer’ in double tax treaties

New approach following Supreme Court ruling On 20 January 2010, the Dutch Ministry of Finance published guidelines regarding the concept of ‘factual employer’ in double tax treaties.  Earlier guidelines from 2004, which applied solely to foreign companies with employees in…
Posted on 3rd January, 2010
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Germany: New wage tax bulletin from Ministry of Finance for tax deductions in 2010

The bulletin of the Ministry of Finance concerns wage tax class combination and new "Faktorverfahren" for wage tax deductions for the year 2010 In Germany, for income tax purposes, there are six wage “classes”. Every employee will have a tax…
Posted on 3rd January, 2010
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Germany: Extension of short-time compensation scheme in 2010

Due to the financial crisis, many German of companies have used this scheme as a means to avoid redundancies Under the scheme, pro-rated employment benefits are paid by the government, as compensation for loss of income, to workers whose hours…
Posted on 3rd January, 2010
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Netherlands: Holiday entitlement during sickness – Netherlands legislation breaches European law

Background In 2009, the European Court of Justice (ECJ) handed down a judgment regarding the accrual of annual leave during periods of illness. The ECJ ruled that sick employees were entitled to at least four weeks’ holiday (20 days) per…
Posted on 3rd January, 2010
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Compensation & Benefits: Report published on risk governance in non-financial service companies

Backing from ICAEW for a “hands-off" approach to the non-financial sector Those interested in where the current corporate governance debate will take us will be interested to note that on 12 October 2009 the Institute of Chartered Accountants of England…
Posted on 11th January, 2009
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Compensation & Benefits: Employee Benefit Trusts (EBTs) – anti-avoidance update

HM Revenue & Customs (“HMRC) has recently published Spotlight 5: Using trusts and similar entities to reward employees - PAYE (Pay As You Earn) and National Insurance contributions (NICs), Corporation Tax and Inheritance Tax, highlighting avoidance schemes. Background Recent tax…
Posted on 11th January, 2009
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Employment: Compulsory retirement age for all civil servants to be scrapped by 2010

Last October the UK government pledged to remove the compulsory retirement age for all junior civil servants.  The Cabinet Secretary has now promised to do the same for senior civil servants, making the civil service “retirement free”. From April 2010…
Posted on 11th January, 2009
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Compensation & Benefits: Childcare vouchers to lose tax and National Insurance Contribution exemptions

Employers should take advantage of the scheme now to secure the tax and NIC advantages to 2015 Controversial proposals from the government will mean that employees joining childcare voucher schemes from April 2011 will not be entitled to the existing…
Posted on 11th January, 2009
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Compensation & Benefits: Pensions reforms – new disclosure rules for tax avoidance schemes

Following on from the announcements in April of this year regarding the restriction of higher rate tax relief on pension contributions for those earning more than £150,000, HM Revenue and Customs (HMRC) has updated its guidance on the disclosure of…
Posted on 11th January, 2009
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Employment: Changes to rates from 1 October 2009

Increases to statutory redundancy payment and basic award for unfair dismissal The limit on the maximum amount of a week’s pay taken into account to calculate the amount of statutory redundancy payments and basic awards for unfair dismissal increased with…
Posted on 11th January, 2009
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Compensation & Benefits: EU Commission now narrows Prospectus Directive exemption for employee share schemes

Soon after announcing a proposal for a blanket exemption the EU has revised its proposals. Background As set out in our last newsletter, on 24 September 2009, the EU Commission published its proposed amendments to the Prospectus Directive as part…
Posted on 11th January, 2009
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Compensation & Benefits: Corporate Governance – what now for listed non-financial services companies?

Following the global banking crisis, much has been detailed in the press regarding corporate governance for banks and financial institutions. In July 2009 Sir David Walker published his review on the issue which was commissioned by the UK Treasury. .…
Posted on 11th January, 2009
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Employment: Government launch “helpline” on government enforced employment rights

The service is available to employers and workers for information and advice, and to report breaches of National Minimum Wage, Employment Agency standards, Working Time rules and other matters. The government has launched a service which appears to be a…
Posted on 11th January, 2009
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Employment: The High Court limits damages in wrongful dismissal cases

Court confirms limit on damages for failure to follow contractual disciplinary procedure A doctor sought to claim loss of earnings of more than £4 million, in a wrongful dismissal claim.  The High Court ruled that in a wrongful dismissal claim…
Posted on 11th January, 2009
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International Assignments: A guide to living and working in Switzerland as a foreign individual

This guide sets out the work and residence permit rules applicable to EU/EFTA nationals and third country nationals, the tax consequences for foreigners living and working in Switzerland, together with the Swiss import and customs regulations, and details the Swiss…
Posted on 11th January, 2009
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Employment: Equality Bill Update: responses to consultation on multiple discrimination proposals published

The proposals aim to provide protection against multiple discrimination without placing undue burden on businesses. Existing law requires individuals who have experienced multiple discrimination to bring separate claims for each type of unlawful discrimination.  For example, a black woman passed…
Posted on 11th January, 2009
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Compensation & Benefits: Greater scope to challenge service-related pay criteria

Employers required to justify both the “adoption” and “application” of service-related pay criteria as Court of Appeal establishes a  low hurdle for employees. Background The Equal Pay Act 1970 implements Article 141 of the EC Treaty in Great Britain whereby…
Posted on 11th January, 2009
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Compensation & Benefits: National minimum wage rises (slightly)

Small increases to the national minimum wage took effect from 1 October 2009 The government has adopted the Low Pay Commission’s recommendations that: the adults rate, for workers aged 22 or over,  should rise from £5.73 to £5.80 per hour;…
Posted on 11th January, 2009
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Employment: Continuity of employment preserved in pre-pack sales

Background Regulation 8 of the Transfer (Protection of Employment) Regulations 2006 (“TUPE”) provides that if an insolvency is with a view to the liquidation of the assets of the transferor then its provisions do not apply.  If, on the other…
Posted on 11th January, 2009
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Germany: Social security and gardening leave- new rules from 1 July 2009

Where an employment relationship comes to an end, the employer and employee often agree that the employee need not provide his services until the end of the notice period, although the employer is still obliged to pay the contractual remuneration…
Posted on 10th January, 2009
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Switzerland: Double tax agreement – new exchange of information protocol to UK/Switzerland agreement signed

The United Kingdom and Switzerland have signed a protocol to the current UK/Switzerland double taxation agreement.  The protocol will bring the exchange of information article in the tax agreement in line with international and OECD standards and follows a change…
Posted on 10th January, 2009
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Germany: Employee has to reclaim prior year tax paid in error by their employer by filing a tax return

Ordinarily German employees do not submit tax returns in respect of employment income and it had been hoped that employers could correct their tax errors through payroll. The German Federal Finance Court has ruled that where an employer has wrongly…
Posted on 10th January, 2009
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Netherlands: Ratification of new UK – Netherlands double tax treaty

The Netherlands has taken the first step towards obtaining the necessary parliamentary approval for the new tax treaty signed between the Netherlands and the United Kingdom (the “New Tax Treaty”) by submitting it to the Lower House on September 23,…
Posted on 10th January, 2009
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Germany: Travel to work using a company car by home workers may be a taxable benefit

On 7 May 2009, the Regional Finance Office Frankfurt confirmed its position on the following questions:- when is a home office to be regarded as the regular working place of an employee; and what consequences result from this finding where…
Posted on 10th January, 2009
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International Assignments: Deadline for UK personal income tax returns looms

Tax payers who are required to file a 2008/09 UK personal income tax return and are planning to file a paper return have until midnight on Saturday 31 October 2009 to submit their return to HM Revenue & Customs. Individuals…
Posted on 10th January, 2009
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France: A review of the special tax regime for expatriates

The French expat tax regime offers some very beneficial tax advantages. To make France an attractive location for the assignment of executives and high net worth individuals in multinational groups, several tax advantages have been introduced over the last few…
Posted on 10th January, 2009
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Germany: New legislation on Executive compensation in German public companies

New legislation on the amount and structure of pay (including options), new rights for the court to claw back monies paid, the passing of risk to executives, and new corporate governance on remuneration. Due to the current economic crisis and…
Posted on 10th January, 2009
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International Assignments: New France-UK dual tax treaty

The new treaty offers exemptions from French wealth tax and closes avoidance loopholes. France and the UK signed a new tax treaty on 19 June 2009 to replace the current tax treaty which is now more than 40 years old. …
Posted on 10th January, 2009
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Germany: Obligation to pay full social security contributions for trainees

Reduced rate of social security contributions for the lower paid does not apply to trainees. Lower social security rates apply to the employer and employee in respect of low paid employees "Geringverdiener" (§ 8 SGB IV) and progress according to…
Posted on 10th January, 2009
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Netherlands: Budget changes for 2010, 2011 and 2012

New expenses scheme (‘werkkostenregeling’) adds complexity and increases costs for employers This year the budget proposals contain several far-reaching measures in the areas of wage tax and social security contributions.  A controversial new taxation regime, the “expenses scheme”, is outlined…
Posted on 10th January, 2009
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International Assignments: Termination of a foreign secondment: Repatriation and reintegration obligation

Obligations for French employers to repatriate seconded employees triggered by business transfers. The temporary cross-border assignment of employees in multinational groups is a common HR management tool.  To protect seconded employees against the difficulties that may arise from the termination…
Posted on 10th January, 2009
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Switzerland: A guide to living and working in Switzerland as a foreign individual

The United Kingdom and Switzerland have signed a protocol to the current UK/Switzerland double taxation agreement.  The protocol will bring the exchange of information article in the tax agreement in line with international and OECD standards and follows a change…
Posted on 10th January, 2009
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International Assignments: US – IRS issues guidance on new exit tax

The US Internal Revenue Services (IRS) has issued guidance on the new exit tax that applies to individuals subject to US expatriation on or after 17 June 2008. Expatriation is a term used to refer to individuals who have given…
Posted on 10th January, 2009
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Germany: Agreed position on the taxation of redundancy payments as between Germany and Belgium, the Netherlands and Switzerland not valid

The German court rejects the agreement made between national fiscal authorities as non-binding thereby abandoning the previously understood tax treatment. The German Federal Finance Court has ruled that redundancy payments received by the employee after termination of the employment contract…
Posted on 10th January, 2009
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Netherlands: Budget proposals 2010 – new expenses scheme

New expenses scheme (‘werkkostenregeling’) adds complexity and increases costs for employers This year the budget proposals contain several far-reaching measures in the areas of wage tax and social security contributions.  A controversial new taxation regime, the “expenses scheme”, is outlined…
Posted on 10th January, 2009
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France: Termination of a foreign secondment: Repatriation and reintegration obligation

Obligations for French employers to repatriate seconded employees triggered by business transfers. The temporary cross-border assignment of employees in multinational groups is a common HR management tool. To protect seconded employees against the difficulties that may arise from the termination…
Posted on 10th January, 2009
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Germany: Smoke-free workplaces introduced…but not necessarily in restaurants

Employees are entitled to a smoke-free workplace in restaurants and casinos.....the entrepreneurial freedom exception to the workplace ban does not apply. Facts An employee worked as head of roulette tables in a casino, which did not have a separate bar…
Posted on 10th January, 2009
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International Assignments: Double tax agreement – new exchange of information protocol to UK/Switzerland agreement signed

The United Kingdom and Switzerland have signed a protocol to the current UK/Switzerland double taxation agreement.  The protocol will bring the exchange of information article in the tax agreement in line with international and OECD standards and follows a change…
Posted on 10th January, 2009
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France: Golden parachutes: New tax and social security treatment

The tax and social security treatment for termination payments was changed in 2009.  We look at the new rules. Until recently all termination payments (whether paid to employees or executives) were subject to the same tax and social security treatment. …
Posted on 10th January, 2009
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Germany: Distinction between capital gains tax and wage tax treatment clarified

Clarity on when employees may escape employment income taxation in respect of gains (and dividends) on shares and other capital held in the employer’s business. If an employee acquires shares or other capital investment in his employer’s business in connection…
Posted on 10th January, 2009
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International Assignments: A review of the special tax regime for expatriates

The French expat tax regime offers some very beneficial tax advantages. To make France an attractive location for the assignment of executives and high net worth individuals in multinational groups, several tax advantages have been introduced over the last few…
Posted on 10th January, 2009
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Germany: New limits on variable pay arrangements

Recent case law decisions mean it is now necessary to revise clauses in employment contracts which provide that certain payments are discretionary or may be revoked in certain circumstances.  The nature of a discretionary payment means that the employee is…
Posted on 10th January, 2009
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Malaysia: Double tax agreement: exchange of information protocol signed to UK/Malaysia agreement

The United Kingdom and Switzerland have signed a protocol to the current UK/Switzerland double taxation agreement.  The protocol will bring the exchange of information article in the tax agreement in line with international and OECD standards and follows a change…
Posted on 10th January, 2009
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France: New France-UK dual tax treaty

The new treaty offers exemptions from French wealth tax and closes avoidance loopholes. France and the UK signed a new tax treaty on 19 June 2009 to replace the current tax treaty which is now more than 40 years old. …
Posted on 10th January, 2009
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Netherlands: Restricted scheme for part-time unemployment benefits introduced from 20 July 2009

Background This scheme allows employers to make employees redundant on a ‘part-time’ basis for a limited period.  The benefit for an employer is twofold, in that there is an immediate reduction in salary expenses but the experienced and trained workforce…
Posted on 10th January, 2009
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Germany: Wage tax: Glasses may be provided tax free, subject to conditions

The costs of employees' special glasses will be free of income tax and social security where: a specialist carries out the eye examination; the result of the examination is that the special glasses are required by the employee, such that…
Posted on 10th January, 2009
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USA: IRS issues guidance on new exit tax

The US Internal Revenue Services (IRS) has issued guidance on the new exit tax that applies to individuals subject to US expatriation on or after 17 June 2008. Expatriation is a term used to refer to individuals who have given…
Posted on 10th January, 2009
, in USA 
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Germany: Tax treatment of costs incurred by employer for vocational training of employees – reversal of previous position

Costs of training met by an employee will not form taxable salary for an employee provided certain conditions are met. Where an employer pays the costs of vocational training for an employee, this does not constitute taxable salary of the…
Posted on 10th January, 2009
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International Assignments: Double tax agreement: exchange of information protocol signed to UK/Malaysia agreement

The United Kingdom and Switzerland have signed a protocol to the current UK/Switzerland double taxation agreement.  The protocol will bring the exchange of information article in the tax agreement in line with international and OECD standards and follows a change…
Posted on 10th January, 2009
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Imminent changes to UK Immigration system require immediate action

This Alert is essential reading for organisations that employ non EU nationals in their UK workforce. From the end of November the current UK work permit scheme will be replaced with a new points-based qualifying system.  From the end of…
Posted on 9th January, 2009
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International Assignments: Substantial changes to EU social security regulations in May 2010

New liabilities for EU employers not present in the UK; employees working in two EU member states may no longer be able to stay in their home country social security system The revised EU social security regulations for individuals who…
Posted on 9th January, 2009
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Compensation & Benefits: New personal pension accounts regime

As the UK government moves to ensure the UK (and its employers) save for retirement and issues  more consultation on the new regime planned for 2012, now is the time for employers to plan for the new financial and administrative…
Posted on 9th January, 2009
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Employment: Mentoring scheme to increase numbers of female non-executive directors in FTSE

An initiative sponsored by BP and MWM Consulting, “Women for Boards” was announced on 23rd September.  The scheme aims to address the massive under-representation of women on the boards of Britain’s top companies by providing mentoring by experienced female non-executive…
Posted on 9th January, 2009
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Compensation & Benefits: Employment trends survey reveals extent of workplace belt tightening

The Confederation of British Industry and recruitment consultancy Harvey Nash have published a survey revealing the extent of organisational changes employers have made or are considering making to weather the downturn. Key findings The survey attracted responses from 704 organisations,…
Posted on 9th January, 2009
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International Assignments: How to manage international assignments

We look at the key considerations to bear in mind when approaching the question of managing international assignees. Before the employee leaves the UK Assignment policy Employers that would like to deal with international assignments in an effective and efficient…
Posted on 9th January, 2009
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Employment: Government brings forward review of default retirement age

The government has announced that the review of the default retirement age (“DRA”), originally scheduled for 2011, will be brought forward to 2010.  It is expected that any changes to the DRA will not be implemented until 2011. At present…
Posted on 9th January, 2009
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Compensation & Benefits: Extension to paternity leave revisited – employers fear administrative burdens and scope for fraud

The government will shortly be consulting on proposals to allow fathers to “share” some of a mother’s maternity leave entitlement. Currently fathers are entitled to 2 weeks paid paternity leave whereas mothers are entitled to 52 weeks maternity leave of…
Posted on 9th January, 2009
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Compensation & Benefits: OFT takes anti-money laundering (“AML”) role

Some loans made to employees require employers to be licensed under the Consumer Credit Act 1974 to avoid potential criminal liability and to be able to enforce the loan.  The OFT now requires such employers to register with it for…
Posted on 9th January, 2009
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Employment: Information Commissioner hikes annual data controller notification fees

It is a legal requirement for organisations to register with the Information Commissioner if they process personal data relating to living individuals. As the definition of "processing personal data” is wide enough to include holding of names on customer lists…
Posted on 9th January, 2009
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Employment: Consultation on gender pay reporting in the private sector – a first step before mandatory reporting

The Equality and Human Rights Commission (“EHRC”) is consulting on ways to measure and report on the gender pay gap in private and voluntary sectors on a voluntary basis – new powers to compel reporting from 2013 appear in the…
Posted on 9th January, 2009
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Employment: High Court rules default retirement age of 65 is lawful

On 25th September 2009 the High Court gave judgement in the so-called “Heyday” case, a long-running challenge to the legality of the Default Retirement Age (DRA) of 65 established by the Employment Equality (Age) Regulations 2006. Heyday is a charitable…
Posted on 9th January, 2009
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Compensation & Benefits: New levy on workplace parking

On 1 October 2009 new regulations come into effect that will allow local authorities in England (excluding Greater London), to introduce schemes under which employers and educational establishments will be charged for each parking space they provide. The stated aim…
Posted on 9th January, 2009
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Compensation & Benefits: EU Commission proposes exempting all employee share schemes from the Prospectus Directive

The proposal extends the current employee share schemes exemption to all companies even if they  are not listed on a regulated market in the EEA,  but it may take some time to come into force. On 24 September 2009 the…
Posted on 9th January, 2009
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Employment: Workers can reclaim holidays lost to sickness

The European Court of Justice (ECJ) has ruled that a worker who is sick during a period of annual leave may decide to postpone his holiday entitlement to an alternative date. This case builds on the principle established in ECJ…
Posted on 9th January, 2009
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Employment: Compensation can be reduced for earnings

In unfair dismissal cases an employee does not have to give credit for earnings from alternative employment during the normal notice period (known as the “Norton Tool principle” after the case that established the rule). In a recent case the…
Posted on 9th January, 2009
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Compensation & Benefits: EMI options

All companies issuing EMI options should note that the relevant HMRC office has now changed address. HMRC’s Small Company Enterprise Centre (SCEC) which deals with the administration of Enterprise Management Incentive (“EMI”) options moved from its longstanding address in Cardiff,…
Posted on 9th January, 2009
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Compensation & Benefits: HM Revenue & Customs update Employee Share Schemes User Manual (“ESSUM”)

HMRC has published updates to the ESSUM including some useful clarifications on SAYE (“Save As You Earn”) and CSOP (Company Share Option Plan) options. Resources HMRC website list of ESSUM updates made on 27 July 2009 Disclaimer Content is for…
Posted on 9th January, 2009
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Tax/Social Security: New P45 forms

HMRC has introduced a new form P45 which must be used to record details of employment that have come to an end on or after 6 April 2009.  The new form is larger, A4 rather than A5, and incorporates new…
Posted on 7th January, 2009
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Compensation & Benefits: Thomson Online Benefits publish Employee Rewards Watch 2009

A survey by Thomsons Online Benefits has found that 88.32% of respondents thought that reward professionals are under more pressure to minimise costs and improve return-on-investment in 2009.  The research also revealed that reward professionals are poorly equipped to respond…
Posted on 7th January, 2009
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Compensation & Benefits: New Sharesave bonus rates

Employees participating in HMRC approved Sharesave schemes are required to save a certain amount from their net pay, normally monthly.  The arrangement will normally include an entitlement to a bonus which is equal to a guaranteed number of monthly contributions. …
Posted on 7th January, 2009
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Employment: EU social partners agree to increase parental leave

On 18 June 2009 the EU social partners revised an agreement to increase the period of parental leave from 3 months to 4 months per parent.  UK employees who have at least one year’s service are currently entitled to up…
Posted on 7th January, 2009
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International Assignments: Double tax treaties

HMRC have announced (9 June 2009) the UK’s double tax treaty negotiating priorities for the period to 31 March 2010 as well as setting out recent double tax treaty developments - listing those which have recently been finalised or have…
Posted on 7th January, 2009
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Employment: Consultants subject to implied duty of confidentiality

Although employers are well-advised to put express provisions in a written contract, it is established that employees are subject to an implied duty of confidentiality that prohibits them from using or disclosing their employers “trade secrets” even after the employment…
Posted on 7th January, 2009
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International Assignments: Short term business visitors and PAYE

Many employers remain surprised that earnings in respect of duties performed in the UK are taxable and subject to PAYE even if the employee is not tax resident in the UK and is present in the UK for less than…
Posted on 7th January, 2009
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Employment: Using length of service criterion in redundancy selection

Since the introduction of legislation outlawing age discrimination in 2006 employers have generally been advised that “last in first out” or other service-related criteria for redundancy selection are best avoided.  However certain employers had binding redundancy selection processes, often negotiated…
Posted on 7th January, 2009
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Expatriates: New rules for non-UK domiciled and not ordinarily resident taxpayers

Under the UK tax system those who have a non-UK domicile are entitled to use the remittance basis of taxation whereby only income and gains which they “remit” to the UK is taxable here. So too the remittance basis applies…
Posted on 7th January, 2009
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Employment: Equality Bill 2009 – a wide-ranging reform of discrimination legislation

The Equality Bill 2009 is currently being debated in Parliament, with simultaneous public consultation on specific provisions including the proposed extension of age discrimination laws to the provision of services. The Bill is designed to replace and simplify all existing…
Posted on 7th January, 2009
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Compensation & Benefits: 3 top ways to achieve legitimate tax efficiencies

Tax and national insurance rates may be rising and HMRC may be cracking down on avoidance schemes but there are legitimate ways to achieve tax efficiencies. 1. Pay bonuses early Many companies are considering bringing forward the payment of bonuses…
Posted on 7th January, 2009
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Employment: Updated guidance on managing workplace stress

The Chartered Institute of Personnel and Development, the Health and Safety Executive and Investors in People collaborated to produce new guidance for line managers on managing workplace stress.  The updated guidance is entitled "Line management behaviour and stress at work". …
Posted on 7th January, 2009
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Compensation & Benefits: National minimum wage set for a small rise

Small increases to the national minimum wage will take effect from 1 October 2009.  The Government has adopted the Low Pay Commission’s recommendations that: the adults rate, for workers aged 22 or over,  should rise from £5.73 to £5.80 per…
Posted on 7th January, 2009
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Compensation & Benefits: Statutory holiday pay for workers on long term sick leave

Earlier in 2009 the European Court of Justice ruled that workers who were on long-term sick leave were entitled to continue accruing annual holiday even if they had exhausted all entitlement to paid sick leave.  The ECJ also ruled that…
Posted on 7th January, 2009
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Employment: Consultation on regulation of contingency fees in tribunal cases

The Government has announced plans to consult on the regulation of “damages-based contingency fees” (“DBCFs”) in employment tribunals.  A DBCF is a type of “no-win, no-fee” agreement which allows a claimant’s legal representative to receive a percentage of the total…
Posted on 7th January, 2009
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Compensation & Benefits: UK income tax and social security – the new realities

We look at the new tax rates in force from April 2010 as well as the new rules on tax relief for pension contributions. Changes to the UK tax system taking effect from 6 April 2010 significantly increase the tax…
Posted on 7th January, 2009
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Employment: Paternity leave extension shelved

The Government has shelved plans to extend fathers’ paternity leave to enable mothers to return to work earlier.  Fathers are currently only allowed 2 weeks’ paternity leave, whereas the proposals would have given fathers six months’ paid leave.  The Government…
Posted on 7th January, 2009
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Expatriates: New Tier 1 application forms

In response to recent changes to Tier 1 of the Immigration Rules, the UK Border Agency has released new application forms for each of Tier 1 (general) and Tier 1 (post study work).  The old versions of these forms are…
Posted on 7th January, 2009
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Employment: New measures crack down on unpaid tribunal awards

The Government has announced new measures to reduce the number of unpaid tribunal awards and the costs of enforcing them.  The new measures are in response to Government research which found that: 39% of awards granted have not been paid;…
Posted on 7th January, 2009
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Employment: Government reveals new “fit notes”

The Government has begun a 12 week consultation on new "fit notes" which it proposes will replace GP’s "sick notes” in spring 2010.  This is in response to recommendations made in Dame Carol Black’s review of the health of Britain’s…
Posted on 6th January, 2009
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Employment: Offshore workers – “field breaks” count toward annual leave

An important decision for the oil and gas industry - the Employment Appeal Tribunal ("EAT") has reversed a previous decision that “field breaks” (time spent onshore by offshore workers) cannot count towards statutory minimum holiday entitlement. Decision The EAT held…
Posted on 6th January, 2009
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Employment: EAT rules “field breaks” count toward annual leave

In an important decision for the oil and gas industry, the Employment Appeal Tribunal ("EAT") has reversed a previous decision that “field breaks”, that is time spent onshore by offshore workers, cannot count towards statutory minimum holiday entitlement. Majority decision…
Posted on 6th January, 2009
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Expatriates: A8 workers registration scheme extended

The UK Government has decided to extend the registration scheme, which was due to end on 30 April 2009, for two more years.  The scheme will now end on 30 April 2011.  The scheme covers workers from the so-called “A8…
Posted on 6th January, 2009
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Employment: Pre-judgment interest in discrimination cases reduced

Unlike most other types of claims in the employment tribunals, claimants in discrimination cases can claim interest on losses incurred up to the date of judgment.  The interest accrues on a daily basis and is simple, not compounded. The applicable…
Posted on 6th January, 2009
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Employment: Equality Bill to reverse Malcolm

The UK Government has published the Equality Bill which would reverse the problematic House of Lords’ judgment in London Borough of Lewisham v Malcolm (“Malcolm”).  The Malcolm decision currently makes it very difficult to establish “disability related discrimination”, particularly since…
Posted on 6th January, 2009
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Belgium: Stock options: extension of exercise period with no tax consequences

As a reminder, the Economic Recovery Act of 27 March 2009 (published in the Belgian Official Journal of 7 April 2009) provided for the possibility to extend the exercise period of stock options stemming from plans concluded between 1 January…
Posted on 6th January, 2009
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Employment: More employees get the right to request flexible working

At present employees with 26 weeks continuous employment have a right to request flexible working arrangements to accommodate caring responsibilities for children aged up to 6 (18 where the child is disabled) or for adult relatives or adults who live…
Posted on 3rd January, 2009
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Employment: Repeal of statutory dismissal and grievance procedures

It is almost universally agreed that the statutory dismissal and grievance procedures introduced in 2004 have failed in their stated objective of reducing the amount of claims going to employment tribunals. With effect from 6 April they will be repealed,…
Posted on 3rd January, 2009
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Employment: Increase in Statutory Sick Pay and Statutory Maternity Pay rates

The rate of Statutory Sick Pay for qualifying periods of sickness absence commencing on or after 6 April 2009 is £79.15 per week (£15.83 per day for employees with five qualifying days per week). For payment weeks starting on or…
Posted on 3rd January, 2009
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Employment: Increases to statutory minimum holiday entitlement

Effective 1 April 2009 the statutory entitlement to paid holiday will increase to 5.6 weeks, inclusive of bank holidays.  For an employee working a 5 day week in England where there are 8 bank holidays per year this means that…
Posted on 3rd January, 2009
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Immigration: Tougher immigration criteria for migrant workers

With effect from 1 April two key changes will be made to the points-based immigration system to make it tougher for nationals from outside the European Economic Area to come and work in the UK. For sponsored workers under Tier…
Posted on 3rd January, 2009
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Employment: A reminder of the importance of communication in redundancy situations

An EAT case* heard in March underlines the importance to employers of ensuring effectively that employee communication during the redundancy process is not overlooked. In a redundancy situation, an employee who unreasonably refuses an offer of suitable alternative employment made…
Posted on 6th January, 2008
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Employment: Government to consult on extension of the right to claim flexible working

The government has adopted proposals of a report by the Department of Business Enterprise and Regulatory Reform which recommend the extension of the right to request flexible working to all employees with parental responsibility for children up to the age…
Posted on 6th January, 2008
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Income Tax: 22 million UK basic rate tax payers to be £120 better off

On 13 May the Chancellor of the Exchequer announced a surprise amendment to be made to the Finance Bill 2008 - the personal tax free allowance will rise for the 2008/09 tax year to £6,035 from £ 5,435. The rise…
Posted on 6th January, 2008
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International mobility: HMRC announces interim update on residence and tax liability (booklet IR 20)

HMRC announced the publication of an update to its long standing booklet IR 20 on the taxation of residents and non-residents. It is of limited value as it does not reflect the changes to be made in the Finance Bill…
Posted on 6th January, 2008
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USA: US company gives shareholders a vote on pay

The Financial Times ("FT") have reported that Aflac has become the first US based company to give its shareholders a vote on the pay of its CEO and other top management team members by way of a vote at the…
Posted on 5th January, 2008
, in USA 
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Netherlands: Bill regarding the taxation of “lucrative interests”

The bill 'taxation of excessive remuneration', which was sent to Parliament on 13 May 2008, includes a proposal for a new tax regime for so-called 'lucrative interests'. Executive summary A new tax regime is proposed for the taxation of certain…
Posted on 5th January, 2008
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