05 Jan '24
A new year also brings new employment law changes. This blog briefly touches on the main changes from 1 January 2024 and discusses changes expected later in 2024.
The most significant change this year is the introduction of the minimum hourly wage. With this new legislation, employers will be obliged to pay employees at least the minimum hourly wage. The minimum hourly wage applies to all employees aged 21 and over and amounts to €13.27. For employees under 21, the minimum youth hourly wage applies. This change prevents an employee working 40 hours a week from having a lower minimum hourly wage than an employee working a 36-hour week. Since the minimum hourly wage is based on a 36-hour week, employees whose minimum wage in 2023 was calculated on the basis of a minimum wage of more than 36 hours per week will benefit. They will be entitled to a higher salary from 1 January 2024. This means that collective agreements, employment conditions regulations, salary systems and employment contracts will have to be adjusted (if they have not already been).
A number of allowances/amounts are indexed annually. We will briefly mention the main indexations as of 1 January 2024 below:
The temporary increase of the work-related expenses scheme in 2023 to 3% will be reversed. For 2024, the free allowance in the work-related expenses scheme will be 1.92% up to a wage bill of €400,000.- For the part of the wage bill higher than €400,000, the free allowance will remain 1.18%.
As a result of the Future Pensions Act, the statutory entry age for pension schemes will be lowered from 21 years to 18 years. This means that younger employees will accrue pension earlier. This change will apply to every pension scheme. Employees aged between 18 and 21 who have an employment contract on 1 January 2024 must be notified by the employer to the pension fund or pension insurer so that they can be included in the pension scheme. In addition, the pension scheme must include the new entry age of 18 (if this has not already been done).
On 18 February 2023, the Whistleblowers Protection Act for large employers (more than 250 employees) came into force. From 17 December 2023, this law will also apply to medium-sized employers (more than 50 employees). The law has partially entered into force. The sanction possibilities of the House for Whistleblowers and how to report anonymously have not yet been elaborated. For more information on the Whistleblowers Protection Act, please refer to our earlier blog on the subject.
From 1 July 2024, large employers (more than 100 employees) will be obliged to keep track of how much CO2 is emitted from commuting and business trips. These CO2 emissions must then be reported to the government no later than 30 June of the following calendar year. These new regulations are a precursor to the emissions cap for business travel, which is likely to come into force on 1 January 2026. When this emissions cap comes into force in 2026, CO2 emissions will be capped at 96 grams of CO2 per passenger kilometre.
When this bill enters into force, employers and intermediaries (think temporary employment agency and payroll companies) will be obliged to take measures to prevent discrimination in the recruitment and selection of new employees. The bill has passed the House of Representatives and is now before the Senate for consideration.
This bill aims to give employees of smaller employers a legal right to have access to a confidential advisor as well. The bill can thus contribute to reducing undesirable behaviour in the workplace and creating a safe working environment for all employees. The bill has already passed the House of Representatives and is now before the Senate for consideration.
Would you like to be informed about future employment law changes or more information on how to implement them in your organisation? Then contact our Employment Law team, or subscribe to our newsletter.
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