CONVINUS Global Mobility Alert - Week 29.2023

ON DIVE IN GLOBAL

ON DIVE IN GLOBAL MOBILITY tiktok.com/@convinus_gms/

S h o r t N e w s J u l y 2 0 , 2 0 2 3 Germany Social security contributions for vacation jobs Vacation jobs in Germany are classified as short-term employment for social security purposes, which means that both temporary workers and employers benefit from a number of advantages. Vacation jobs are exempt from contributions to health, nursing care, pension, and unemployment insurance. For the employer, there are only minor contributions for accident insurance as well as apportionments for the reimbursement of employer expenses and the insolvency benefit apportionment. Switzerland - France Embracing Remote Work: Switzerland and France Sign Landmark Social Security and Tax Agreements Switzerland and France have recently taken a significant step forward by signing the EU framework agreement on social security. This agreement permits up to 49.9% of home office without any alterations to the existing social security status for employees. Furthermore, the authorities responsible for tax matters in both countries have come to an agreement, documented as an addendum to their double taxation treaty, specifically addressing the concept of "working from home." With these developments, international employees can now embrace remote work for up to 40% of their working time without any impact on their current tax status. This flexibility presents exciting opportunities for companies and their workforce to adopt remote work arrangements. However, it also calls for employers to exercise clarity when setting limits on working from home for their employees. The difference between tax and social security positions necessitates a careful approach to ensure compliance with the respective regulations of both countries. UAE Emiratization Requirements Expanded for Smaller Companies from 2024 Starting from January 1, 2024, the Ministry of Human Resources and Emiratization declared that companies within certain branches and with 20 to 49 employees will need to follow Emiratization requirements. Until now, only companies with 50 or more employees, no matter their industry, had to comply with specific Emiratization ratios. 3 convinus.com