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Atlas Insights October: China Increases Retirement Age, Australia Seeks to Strengthen Workplace Protections and more

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Atlas Team

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Published: 28 Oct 2024

China - Retirement Age Increases to Address an Aging Population and Economic Pressure 

China is set to raise its retirement age for the first time since 1978, in response to a rapidly aging population and the need to strengthen its shrinking workforce.  

Starting from January 1 2025, the retirement age will gradually increase over a 15-year period. For men, the retirement age will rise from 60 to 63, while for women, it will be raised from 50 to 55 for manual workers, and from 55 to 58 for those in white-collar or managerial roles. 

Starting from January 1 2025, the retirement age will gradually increase over a 15 year period.

The decision, aimed at addressing the economic challenges posed by a shrinking labor force, comes as China's economy faces its slowest growth in five quarters. With a longer working life, the government hopes to boost productivity, expand its tax base, and delay the payout of pensions—easing the financial burden created by a growing elderly population. However, the move may also stoke public discontent as workers grapple with economic uncertainties and a labor market slowdown. 

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As life expectancy in China has increased significantly over the years, the current retirement age is among the lowest in the world. Raising the age of retirement is expected to help alleviate the pressures on the country’s social security system and support the economic demands of a large and aging population. The phased implementation over 15 years aims to strike a balance between immediate economic needs and public sentiment. 

Implications for Employees

  • Employers must ensure compliance with the new retirement age regulations and update their HR policies accordingly. This includes adjusting contracts, retirement planning programs, and any legal documentation related to retirement. 

  • Employers will need to adjust their workforce strategies to accommodate an older workforce staying in employment for longer.  

Australia - Queensland’s ‘Respect at Work’ Bill Seeks to Strengthen Workplace Protections 

On September 10, 2024, the Queensland Government of Australia, passed the Respect at Work and Other Matters Amendment Bill 2024, marking a significant step in workplace protections against discrimination and harassment. The bill comes in response to findings from both the Respect at Work inquiry and the Building Belonging review, highlighting gaps between public awareness and available protections in Queensland’s Anti-Discrimination Act 1991. 

On September 10, 2024, the Queensland Government of Australia, passed the Respect at Work and Other Matters Amendment Bill 2024.

Positive Duty for Employers 

A key provision of the bill introduces a positive duty for employers, effective July 2025, to take proactive steps to protect employees from discrimination, sexual harassment, and other objectionable conduct. This means businesses will no longer be able to wait for complaints to arise but will need to ensure preventive measures are in place. 

Employers must adopt organizational policies promoting respectful behavior, provide anti-discrimination training, and establish clear procedures for reporting and addressing misconduct. 

Expanding Protected Attributes 

The bill broadens the scope of Queensland’s anti-discrimination protections by adding six new protected attributes, including: 

  • Expunged convictions under the Criminal Law (Historical Homosexual Convictions Expungement) Act 2017 

  • Homelessness 

  • Irrelevant criminal and medical records 

  • Physical appearance, including weight, height, and scars 

  • Subjection to domestic or family violence 

Additionally, existing attributes like parental status, sexual orientation, and family responsibilities have been expanded to provide more comprehensive protections. 

Addressing Harassment and Hostile Work Environments 

The bill also introduces a broader definition of harassment based on sex, covering demeaning conduct that may not meet the traditional threshold for sexual harassment. Furthermore, it prohibits work environments that are hostile on the basis of sex, providing a stronger legal framework to combat indirect discrimination and foster safer workplaces. 

Implications for Employers 

  • Starting in July 2025, employers will have a positive duty to prevent discrimination, harassment, and other offensive behaviors. Employers will need to adopt anti-discrimination policies, regular training programs on respectful behavior and clear reporting mechanisms for addressing issues before they escalate. 

  • Employers will need to accommodate and protect employees under new attributes such as homelessness, expunged criminal convictions, irrelevant medical records, and physical appearance (including weight, height, and scars).  

South Korea - New Initiatives to Boost Birth Rates and Support Families

With one of the lowest fertility rates in the world, South Korea is launching a series of initiatives aimed at encouraging more births by enhancing parental leave benefits and childcare support. The government's 2025 budget includes key measures designed to support families and improve work-life balance.

South Korea is launching a series of initiatives aimed at encouraging more births by enhancing parental leave benefits and childcare support.

Key Improvements for Parental Leave and Childcare Entitlements: 

  • Extended Paternity Leave: Employer-paid paternity leave will be increased from 10 to 20 days. Additionally, government subsidies will now cover the entire paternity leave period for small and midsize companies. 

  • Flexible Paternity Leave: The eligibility period for taking paternity leave will be extended from 90 to 120 days after the child’s birth. Fathers will also have the option to split their leave into up to three separate parts. 

  • Increased Parental Leave Pay: Parental leave benefits will see a significant boost, with payments rising from KRW 1.5 million per month to KRW 2.5 million for the first three months, KRW 2 million for months four to six, and KRW 1.6 million for months seven to 12. 

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  • Immediate Childcare Leave Payments: The previous six-month delay in receiving 25% of childcare leave benefits upon returning to work will be abolished, encouraging employees to take full advantage of their parental leave without fear of financial delays. 

  • New Childcare Leave Entitlement: A new entitlement allows up to two weeks of childcare leave per year, with increased pay replacement benefits of up to KRW 2.2 million per month for employees working a reduced workweek to care for a child under 12.

Implications for Employers  

  • Employers must adapt to a longer period of employee absence for new fathers. 

  • Employers will need to accommodate more flexible working hours. This could necessitate more flexible HR policies.