Previously

Now

Preciously, necessary business leaves were implemented at the employer’s discretion and not mandated by the LPA.

With the update, it is now mandatory that employers provide at least 3 days of paid necessary business leaves per year.

Previously 

Now

Eligible employees can take up to 90 days of maternity leave inclusive of weekend and public holiday. During this period the employer must pay a minimum of 45 days at the employee’s more recent pay rate.

Eligible employees can take up to 98 days of maternity leave inclusive of weekend, public holiday,leaves taken for medical appointments and examinations before the delivery. During this period the employer must pay a minimum of 45 days at the employee’s more recent pay rate.

Previously

Now

For employees who have worked for an uninterrupted period of 10 years or more, severance pay was capped at 300 days of salaries.

Adding a new category for employees over 10 years, employees who have worked for an uninterrupted period of 20 years or more shall be entitled to severance pay equal to 400 days of the most recent pay rate.

Previously

Now

Employers wishing to relocate employees to a new workplace and/or to another of its existing workplace are required to notify the employees of such relocation but no period is set by the LPA.

Employees are allowed to refuse to be relocated and upon informing the employers of such refusal, are  entitled to severance pay at the normal rate.

Employers are required to post a notification of relocation for a continuous period of 30 days in advance if they wish to relocate employees to a new workplace and/or to another of its existing workplace.

The notice need to state details of the relocation such as who, when and where the employees shall be relocated.

In the case were the employee does not wish to be relocated, he/she must notify the employer within 30 days following the employer’s notification or on the date of relocation and shall be entitled to severance pay at the normal rate.

Employers may submit an objection to the employees’ refusal to be relocated to the Labor Office.

Previously

Now

All employees’ rights accrued from the previous employer shall automatically be transferred to the new employer.

A consent from the employees being transferred to the new juristic person is required in the incident where there is a change of employer (through merger or acquisition for instance).

All employees’ rights accrued from the previous employer shall also be transferred to the new employer.

Employees have the option of not providing consent, upon informing the employers of such refusal, employees are entitled to severance pay at the normal rate.

Previously

Now

Employees are entitled to 75% of their daily pay rate during the suspension period, in a case where the employer needs to suspend the business activities, for any reason other than force majeure, for a temporary period.

In case the employer needs to suspend the business activities, for any reason other than force majeure, for a temporary period, the employees shall be entitled to 75% of their daily pay rate during the suspension period.

Payment should be made at the current workplace, consent from the employee must be obtained, should the payment be made anywhere else.

Previously

Now

An interest rate of 15% per annum shall be applied to the following payments in the case where an employer fails to pay employees in due time:

• Collateral (section 10)
• Wage, Overtime, Holiday work (section 70)
• Severance payment (section 118)
• Payment in lieu of notice (relocation) and other Compensation under section 120, 121, 122

An interest rate of 15% per annum shall be applied to the following payments in the case where an employer fails to pay employees in due time:

• Collateral (section 10)
• Payment in lieu of notice (termination) (section 17/1)
• Wage, Overtime, Holiday work (section 70)
• Suspension of business (section 75)
• Severance payment (section 118)
• Payment in lieu of notice (relocation) and other Compensation under section 120, 121, 122

Previously

Now

Employers have the right to terminate employees with advance notice of at least one payment cycle. If they choose to terminate employees immediately, they have the option of doing so by paying salary in lieu of advance notice.

Employers may terminate employees either by advance notice of at least one payment cycles or immediately by paying salary in lieu of advance notice. 

If employers choose to pay in lieu of notice, the payment must be paid on the day of termination.

Previously

Now

Employers must pay wages, overtime payments, payment for working on holidays, and payment for working overtime on holidays, at the same rate for both male and female employees who undertake work of the same nature, quality, and quantity, at an equal rate.

Employers must pay wages, overtime payments, payment for working on holidays, and payment for working overtime on holidays, at the same rate for both male and female employees who undertake work of the same nature, quality, and quantity, or work of the same value, at an equal rate.