insights employment

SPOTLIGHT: Winning technology

THE VIEW FROM HONG KONG

Interview with...

Hagen Köckeritz and Isabelle van Sambeck

CHINA

FRANCE

GERMANY

HONG KONG

SINGAPORE

United Arab Emirates

United Kingdom

United States

The 2024 outlook for Brazil employment law will reflect the trends in the employment relationship of the past few years with an increase in some related matters. The arrangement of new forms of employment, such as work provided via online platforms, may be subject to new regulations and may lead to more litigation regarding employment misclassification. Further, union relations will also be under the spotlight with the Brazilian Supreme Court’s recent decision on union fees and an increase in union negotiations on the adequacy of operational needs. Additionally, efforts around DEI and ESG are also worth highlighting as we have seen an increase in labor laws regarding these matters. For example, employers are now required to maintain diverse workplaces within the parameters of the new Brazilian Equal Pay Act. Also, with the rise of AI in the workplace, care must be taken to ensure compliance with technology and privacy laws.

BRAZIL

The outlook for employment law in mainland China in 2024 is closely tied to the prospect of economic and social development from the government and employers. With the slow recovery of service industry, the ongoing transformation of traditional manufacturing, and the general increase in labour costs, most employers will continue to streamline their workforce to adapt the competition in the post-epidemic era, which will lead to “right sizing” on one hand and talent attraction and retention on the other. As issues regarding women’s rights have become one of the most outstanding topics on Chinese social media, one of the approaches for talent retention may be the protection of female employee rights with the promulgation of the new Protection of Women's Rights and Interests Law and its supporting regulations in the last two years. Data protection for employees is also likely to draw more attention as the authorities have now strengthened the control over cybersecurity and personal information security. Another emerging topic is ESG. Although not mandatory currently, it is predictable that ESG disclosure requirements will gradually cover most of the market entities in the coming years. This was prepared with the assistance of Meng Bo Law Office, a PRC law firm based in Shanghai, with which Mayer Brown has a close working relationship.

CHINA

The French employment law outlook in 2024 is based on the recent development of several factors in the employment field. Employers will likely face increasing claims arising from the recent turnaround, based on French case law, relating to the acquisition of paid leave during sick leave, and from the strengthening of employers’ obligations to monitor working time even for autonomous employees. Likewise, the protection against dismissal granted to whistleblowers, combined with an increase in compliance measures, is likely to lead to more cases where unprotected employees in the “hot seat” try to gain protection against dismissal by invoking whistleblower status. The enhanced requirement for a safe work environment should continue to generate litigation on the ground of discrimination (notably based on gender, sexual orientation, and religious beliefs) and harassment. Finally, it is envisioned that the rapid development of AI could potentially be used by companies to justify a collective reduction in force, on the basis their businesses can be easily automated. There are currently no legal reforms under discussion which would directly control the impact of AI on employment.

FRANCE

The German employment law outlook in 2024 will very much depend on the size of the company. Larger companies face a number of new regulatory requirements. The EU Corporate Sustainability Reporting Directive significantly increases the number of companies that will be subject to non-financial reporting requirements, especially on social and governance aspects. Also, from 2024, companies with as few as 1,000 employees will become subject to the new Supply Chain Due Diligence Act, and companies with less than 250 employees will need to implement internal reporting channels for whistleblowers. Regardless of their size, most employers in Germany are still in a holding pattern as far as new rules on working time recording are concerned. Changes to the Working Time Act have long been announced, but the draft bill has not yet made it through the legislative process. Also, following a number of court decisions at the EU and federal level, employers may need to update their processes around granting vacation to ensure employees do not accumulate entitlements over several years. Other topics for employers in Germany are the increased relevance of AI and the continuing demand by employees for remote/hybrid working models.

GERMANY

Singapore’s economy remains cautiously optimistic going into 2024. 64% of the businesses polled by the Singapore Business Federation have plans to implement an average salary increment of 6%. However, while the overall outlook appears promising, salary increments may vary significantly across different industries. Some sectors are riding high on the wave of economic resurgence, while others face more challenging headwinds. Employers in the construction, accommodation and food services industries are likely to show increased hiring, more generous salary increments and possibly increases in employee share plan participation and other employment benefits. Employers in the real estate, health, education, and information & communications/professional services industries are struggling with high operational costs, and we are already seeing a trend of higher redundancies and C-suite employment terminations in these sectors. Finance and insurance, and wholesale and retail trade industry employers are not experiencing the anticipated growth. There is likely to be more “right sizing” in these industries, as well as more employment mediations and tribunal dispute resolutions. This was contributed by PK Wong & Nair, now in a Joint Law Venture with Mayer Brown.

SINGAPORE

The Hong Kong employment law outlook in 2024 will vary depending on the industry in which the employer operates. It is envisaged that employers will continue to handle an increasing number of whistleblowing complaints and misconduct and internal corporate investigations, as well as maintain efforts on DEI into 2024. Some businesses will continue to look to “right size”. Arising from this is potential for more disputes around termination of employment, incentive scheme payments and post-termination restrictive covenants. On the flip side, some businesses, such as those in construction, will continue to struggle in dealing with labour shortages and have to look overseas for talent. Apart from discussions to extend the definition of a continuous contract there are currently no major changes proposed to the Employment Ordinance. A number of recent court cases involving the treatment of same-sex partners will focus some employers’ attention to diversity and inclusion initiatives.

HONG KONG

The UAE employment law outlook in 2024 will vary depending on the sector and jurisdiction in which the employer operates. For example, a foreign entity with subsidiaries both onshore and in a free zone, such as the Dubai International Financial Center (DIFC) or the Abu Dhabi Global Market (ADGM), will need to consider the different aspects of both the UAE Federal Employment Law (and regulations) and the free zone specific employment laws and regulations in place. Employers should also consider any employment contract forms required by regulators in certain jurisdictions in the UAE. Separately, Emiratization ratios are being applied depending on employers' sectors and sizes of business. Emiratization is a program introduced by the UAE government in 2004 to encourage the employment of UAE nationals, and has since been further expanded into the private sector. In addition, many UAE employees are now in favor of either a hybrid or fully remote working model, which some UAE employers have started implementing. We are expecting an increase in the number of remote working employment arrangements in 2024. Finally, the UAE is heavily investing in AI and technology and we expect businesses to further adopt AI in their HR strategies and analytics in the coming years.

UNITED ARAB EMIRATES

FOCUS: DIVERSITY, EQUITY & INCLUSION

Restructurings, Redundancies and Reductions in Force – A Practical Guide for Employers

New Federal Law Expands Protections for Pregnant Applicants and Employees

When is a Discretionary Bonus Not Discretionary?

The Rise of ESG and What HR Professionals in Germany Should Do to Keep Up

Employers Now Required to Record Race and Ethnicity

Paid Time Off Accrual – A Significant Interpretation of EU provisions by the French Supreme Court

Benefits

Enforcement of Dodd-Frank Clawback Policies Under Foreign Law

DOL Releases New Proposed Regulation Regarding Investment Advice Fiduciaries

Executive Compensation & Employee Benefits

SECURE 2.0 – Changes for Retirement Plans

Validity of amendments to contracted-out rights – important High Court decision

Pension scheme data privacy notices – updates likely to be required

Mobility

Supreme Court Decision Opens the Door for DHS to Expand Work Authorization to Additional Visa Categories

Canada Offers Open Work Permits to US H-1B Visa Holders as Part of “Tech Talent Strategy”

Requirement to Disclose Social Media Identifiers on Visa Applications Survives Judicial Scrutiny

U.S. Passport Processing Times Continue to Improve

UK Immigration and Nationality Fees: The Only Way is Up

Australia Expands Eligibility for Permanent Residency

We were delighted to receive a number of accolades across the Employment & Benefits Group during 2023. Read More...

Mayer Brown has been named as one of Europe’s “Most Innovative Law Firms” by the Financial Times in its 2023 2023 “Most Innovative Lawyers: Europe Report.” The Firm was also Commended in FT’s Digital Solutions category for its Misclassification Risk Assessment (MiRA) tool which helps organizations more accurately classify their...Read More...

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For more information on any of the issues highlighted in this publication, please get in touch with one of the listed contacts or visit the Mayer Brown website.

REGIONAL SNAPSHOT FOR 2024

The following images provide a snapshot of the key hot topics for 2024, across the Americas, Asia and EMEA. They are based on insights from our Mayer Brown Employment, Benefits and Global Mobility & Migration teams, alongside input from our wider network of local counsel. AI, ESG and DEI, perhaps unsurprisingly, feature strongly across all regions. These areas are already key priorities for many employers, both locally and globally, and will continue to be core focus areas across employment, benefits and mobility. Workplace culture, harassment, whistleblowing and investigations are also common themes. These are complex areas, particularly where they arise across different jurisdictions, potentially posing a number of risks for businesses.

Talent retention/attraction is also set to be a major focus area for businesses, from both an employment and mobility perspective – employee engagement, remote/hybrid work and workforce shortages are frequently mentioned, illustrating the importance of talent management over the coming year. Restructuring and “right-sizing” are also likely to feature (and are already underway in some jurisdictions), but it remains to be seen how widespread this will be across all regions and sectors next year. Pensions and benefits developments will also be a key focus area in some jurisdictions, with significant changes and reform on the horizon (see outlook for pensions and benefits in the United Kingdom and the United States). If you would like to discuss the outlook for particular jurisdictions in more detail, please get in touch with one of the contacts listed here.

aMERICAS

ASIA

EMEA

Employment In the United Kingdom, we expect to see a continued focus on remote/hybrid working, as the push in certain sectors to bring employees back into the office more regularly continues. Relevant to that will be the changes to the regulations on flexible working requests, due to be implemented in 2024. The right to make a request will become a “day one” right, employers will not be able to refuse a request unless the employee has been consulted and two requests will be possible in any 12-month period, instead of only one. We anticipate that there will continue to be a focus on DEI within the workplace. For example, we expect that in the financial services sector there will be the implementation of new measures following the Financial Conduct Authority and Prudential Regulation Authority’s consultation papers into diversity and inclusion in the workplace. The proposals currently include firms being required to develop DEI strategies, setting targets to address underrepresentation and the requirement to publish data in relation to a range of demographic characteristics. The use of AI will continue to be a major trend in the workplace. AI tools are evolving fast and companies are considering the use of AI for various different tasks including hiring decisions. Businesses will, therefore, want to think about ensuring the necessary policies are in place to manage the risks associated with such technology. By March 2024, UK regulators will be expected to have incorporated the five principles from the government’s AI white paper (“A pro-innovation approach to AI regulation”) into guidance. Finally, it is possible we will see a general election before the end of 2024, or at the very least we will be building up to one at the start of 2025. Depending on the outcome this could have a significant impact on business in the future. In their recent proposals, for example, the UK’s Labour party has stated that they intend to create a single status of “worker”, ban zero hours contracts and make unfair dismissal a day one right.

Pensions A number of significant changes affecting UK occupational pension schemes are expected in 2024. April is expected to see introduction of new funding and investment requirements for Defined Benefit (DB) schemes which will require companies and trustees to agree a new strategy for ensuring that benefits under their scheme can be provided over the long term. Meanwhile, the current drive by the UK government and regulators to encourage both DB and Defined Contribution (DC) schemes to invest a greater proportion of their assets in more diverse investments such as unlisted UK equities and illiquid assets is expected to continue. Important changes to the UK pensions tax regime are also expected to come into force in April which will require a major overhaul of the way in which schemes are administered. In addition, the Pensions Regulator’s long-awaited code of practice setting out the requirements that schemes must meet to have an effective system of governance is likely to come into force in the first half of 2024. While schemes will already meet many of the code’s anticipated requirements, they will need to put various new policies and processes in place to achieve full compliance. More generally, the emphasis on achieving good member outcomes, in particular in DC schemes, is likely to continue to grow with a new value for money framework proposed for DC schemes and further UK government and regulator action to encourage scheme consolidation in both the DB and DC sectors anticipated. Changes to bring more workers within the scope of the automatic enrolment regime are also possible. Lastly, ESG is likely to remain a key topic with a government review expected of the climate change governance and reporting requirements applicable to schemes with £1 billion+ of assets and a possible consultation on new sustainability requirements.

Mobility For the United Kingdom, the big mobility themes for 2024 will be the digitalisation of the UK immigration system and the introduction of the Electronic Travel Authority requirement. The UK Government is looking to develop a fully digital immigration system which will involve migrants to the UK being issued with eVisas rather than physical documents, such as Biometric Residence Permits (“BRPs”). The Government already issues eVisas to migrants entering the UK through certain immigration categories, such as the EU Settlement Scheme and, during 2024, it intends to complete the roll out of eVisas to all nationalities and immigration categories. This should mean that, from 1 January 2025, migrants to the UK will no longer be issued with physical proof of their immigration status. Migrants who are applying for a visa for the first time, or applying to extend their UK immigration permission, will be required to create a UKVI account as part of the application process which, once the migrant has been issued with their UK immigration permission, will enable them to prove their immigration status, for example, to employers to demonstrate that they have the right to work in the UK. For migrants already in the UK who do not have a UKVI account, they will need to register for one and the UK Government intends to issue guidance and information on how to do this during 2024. The Electronic Travel Authority (“ETA”) scheme, which is similar to the ESTA system operated by the United States, is broadly for those coming to visit the UK who do not need a visa for short stays to the UK, or who do not already have a UK immigration status prior to travelling. It is essentially advance permission to travel to the UK and, once granted, will be valid for two years, or until the applicant’s passport expires, and will allow multiple journeys to the UK within that period. The ETA scheme already applies to Qatari nationals, with nationals of Bahrain, Kuwait, Oman, United Arab Emirates, Saudi Arabia and Jordan being added to the scheme on 1 February 2024. The plan is to roll out the scheme to all other nationalities who do not require a visa to visit the UK, which includes US, Canadian, Australian and New Zealand nationals as well as European citizens, by the end of 2024.

UNITED KINGDOM

Employment The US employment law outlook in 2024 will continue to focus on the issues that have dominated headlines in the latter part of 2023. Issues such as privacy, artificial intelligence and the use of technology in the workplace will continue to remain a focus. In addition, there are likely to continue to be developments in pay equity and transparency, restrictive covenants, and decisions by the National Labor Relations Board (which has been very active in recent years). Employers will likely also focus on formulating and fine-tuning DEI initiatives. There are currently several significant pieces of legislation slated for consideration in 2024, such as the Federal Trade Commission’s proposed ban on non-competes and the Department of Labor’s Proposed Overtime Rule.

Benefits The US outlook for retirement plans and benefits in 2024 reflects a range of recent developments. The “SECURE 2.0” legislation, passed at the end of 2022, changed the retirement landscape yet again. The Act contains too many provisions to describe here, but key provisions benefit employees nearing retirement, e.g., the age at which retirees must take required minimum distributions (RMDs) increased from 72 to 73. Roth accounts in employer plans will be exempt from the RMD requirement starting in 2024, and starting in 2025, employees aged 60-63 will enjoy an increased catch-up contribution limit on 401(k) elective deferrals. SECURE 2.0 also imposes additional obligations on employer retirement plan sponsors. For example, starting in 2025, new 401(k) and 403(b) plans must automatically enroll all eligible employees at an initial contribution rate of at least 3%, and starting in 2026, catch-up contributions made by employees with $145,000 or more in wages for the previous year must be made on a Roth basis. As health care costs skyrocket, the U.S. federal government continues to focus efforts on increasing health care price transparency. Recent legislation impacting employer-sponsored health plans includes the so-called “gag clause” prohibition and related attestation as well as extensive public reporting requirements on negotiated rates. Employers that sponsor health plans must redouble their efforts to track and comply with these requirements. Even still, additional legislation is pending – and more is likely to come. We are seeing a good deal of expansion among asset managers of offerings of lifetime income products for 401(k) plans. Unfortunately, additional regulatory guidance is needed for some structures. We are also seeing increasing activism in state and local efforts to regulate various aspects of compensation and benefits.

Mobility Looking ahead to 2024, the US mobility outlook presents a dynamic landscape. These changes, driven by evolving policies and global trends, are set to impact how companies manage and acquire global talent. In the realm of specialized skills, especially in emerging technology sectors, there is an expectation that the focus on artificial intelligence and advanced science and technology talent is likely to intensify to attract and retain skilled professionals in these fields. Businesses should prepare for increased competition for this talent pool. The US government is focusing on more efficient visa renewal procedures for individuals already in the US, which would provide more predictability and reduce administrative burdens associated with maintaining an international workforce for employers. The administration of the H-1B specialty worker program is also likely to see reform, including changes to the H-1B allocation process to focus on individual workers to address concerns of entities attempting to “game” the system. Further, policies around temporary protection and humanitarian programs could see updates, providing legal status and work authorization to certain groups within the workforce. Backlogs in immigration processing, a persistent issue, are expected to continue to be a challenge. The key to navigating these changes lies in staying informed and seeking expert guidance in immigration law and policy when needed.

UNITED STATES

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This publication provides information and comments on legal issues and developments of interest to our clients and friends. The material is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed in this publication. Mayer Brown is a global services provider comprising associated legal practices that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England & Wales), Mayer Brown (a Hong Kong partnership) and Tauil & Chequer Advogados (a Brazilian law partnership) and non-legal service providers, which provide consultancy services (collectively, the “Mayer Brown Practices”). The Mayer Brown Practices are established in various jurisdictions and may be a legal person or a partnership. PK Wong & Nair LLC (“PKWN”) is the constituent Singapore law practice of our licensed joint law venture in Singapore, Mayer Brown PK Wong & Nair Pte. Ltd. Details of the individual Mayer Brown Practices and PKWN can be found in the Legal Notices section of our website. “Mayer Brown” and the Mayer Brown logo are the trademarks of Mayer Brown. © 2023 Mayer Brown. All rights reserved. Attorney Advertising. Prior results do not guarantee a similar outcome.

What first led you to develop MiRA? Hagen: Employers often utilize the labor of a range of different workers and, depending on the type of contract/employment, an array of legal risks and regulations can arise. Classifying personnel is often complex and, in Germany, incorrect classification can result in the issuing of administrative fines and even have criminal consequences. As this is a challenging area for employers, we wanted to give our clients confidence in the consistency and compliance of their decision-making when classifying their personnel. This led us to develop MiRA as a time-saving risk management tool, helping employers comply with local employment, social insurance and tax laws and strict reporting obligations. How does MiRA work? Isabelle: Clients simply need to complete an online questionnaire. Based on the responses, MiRA immediately generates a tailor-made risk assessment. MiRA identifies whether there is a risk that personnel may be considered as bogus employees or agency workers and rates the classification risk as either low, medium, or high. Clients get a report, which documents the answers provided and sets out recommendations, enabling clients to take steps in order to reduce the risk or to keep it low.

SPOTLIGHT

Why should employers use MiRA? Hagen: MiRA provides a unique combination of bespoke and expert guidance, with a bilingual, easy-to-use interface. This provides employers with greater certainty and consistency when assessing the status of their personnel. MiRA also relieves our clients’ legal departments of the often complicated assessment, ensuring they have a consistent, reliable, timely and auditable solution to a critical business need. How has MiRA been received? Isabelle: This tool has been named in The National Law Journal list of “Legal Technology Trailblazers,” which recognizes both MiRA and Mayer Brown as an “agent of change.” MiRA’s innovative capabilities have also been recognized by the Professional Management Network Awards 2023 and were commended by the Financial Times Innovative Lawyers Europe Awards 2023. It is great to see MiRA’s capabilities being identified as innovative, and we look forward to sharing the tool with our clients. How do clients find out more about MiRA? Hagen: We would be delighted to discuss MiRA further with clients. While it has been designed initially with the German legal framework in mind, please do get in touch if you would like to know more!

We were pleased to win a number of awards this year recognizing the innovative work of our German Employment & Benefits team on the client-focused Misclassification Risk Assessment Tool (MiRA). We caught up with Hagen Köckeritz, Partner, Employment & Benefits, and Isabelle van Sambeck, Counsel, to find out more about MiRA.

WINNING TECHNOLOGY

This led us to develop MiRA as a time-saving risk management tool, helping employers comply with local employment, social insurance and tax laws and strict reporting obligations.

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Hagen Köckeritz

Isabelle van Sambeck

Our Hong Kong story is 160 years old. It is a story that demonstrates the strength, resilience and exemplary spirit the people of Hong Kong are renowned for, as the city grew from a small provincial port in Southern China to become the leading global financial and legal centre that it is today. Today, Mayer Brown has over 650 people in Hong Kong, including over 60 partners and more than 100 lawyers. In 2023, Mayer Brown was awarded Hong Kong Law Firm of the Year by Who's Who Legal and by Asian Legal Business for the 11th time. Mayer Brown is now one of the largest international law firms in Asia with seven offices across the region. Please enjoy this series of snapshots about the lives and work of the generations of people who built our Firm — and Hong Kong — from 1863 to the present day.

Alongside providing a snapshot of the outlook for businesses in Hong Kong for 2024, we should also take the opportunity to note a major milestone in Mayer Brown’s history in the region.

A VIEW FROM HONG KONG

People

650

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2023 has seen employers explore both opportunities and challenges, whether in relation to affirmative action, artificial intelligence, diversity reporting, complex disputes or implementing new policies. Tackling this across multiple jurisdictions, with a view to aligning strategies, can present a range of issues and it is likely that these will continue into 2024. The appetite and climate for DEI also varies significantly by jurisdiction and, as economic conditions become increasingly challenging, businesses are often needing to adapt to deliver their DEI strategies. We have a long track record of advising business on DEI matters. Members of our Employment & Benefits group are also involved in Mayer Brown’s diversity, equity and inclusion initiatives, serving in leadership roles in committees across the Americas, Asia and Europe.

Diversity, Equity and Inclusion (DEI) has been a key item on the agenda this year for many businesses. Whether it has formed part of a wider focus on Environmental, Social and Governance (ESG) or a core strategy, employers are increasingly recognizing the need to navigate DEI across their business.

FOCUS: DIVERSITY, EQUITY & INCLUSION

Information about our ESG capabilities can be found here.

Learn more

Diversity, Equity & Inclusion practice

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OPEN Talks DEI Podcast Series

For information about Mayer Brown’s approach to DEI, view our website page and latest report.

Mayer Brown has been named as one of Europe’s “Most Innovative Law Firms” by the Financial Times in its 2023 “Most Innovative Lawyers: Europe Report.” The Firm was also Commended in FT’s Digital Solutions category for its Misclassification Risk Assessment (MiRA) tool, which helps organizations more accurately classify their personnel as employees or contractors (read more here). The Firm was also named to The National Law Journal’s list of 2023 “Legal Technology Trailblazers” for MiRA. The NLJ award recognizes firms and products that are “agents of change” and advances the legal industry through innovative solutions and technology. MiRA’s innovative capabilities were also recognized by the Professional Management Network Awards 2023. Mayer Brown’s Employment & Benefits practice has been named “Benefits Group of the Year” for the fourth consecutive year (2019-2022) by Law360 – the only law firm to hold this distinction. The “Practice Groups of the Year” awards honor the law firms behind the litigation wins and major deals that resonated throughout the legal industry. Mayer Brown’s London Pensions practice was nominated for the Team of the Year and Impact on Society awards at the Pensions Management Institute’s Pinnacle Awards 2023. These categories recognize outstanding teams within the pensions sector that have achieved remarkable accomplishments, alongside teams that have created positive and tangible social value. In addition, Dian Smith, secretary in the London Pensions practice, won the Frontline Hero of the Year award which recognizes individuals working at a more junior level who make an exceptional difference to their organizations. Mayer Brown partners Reginald Goeke, Nancy Ross and Brantley Webb have been named “Litigation Trailblazers” by the National Law Journal. The annual list recognizes litigators from across the nation who are “agents of change.” Reginald, Nancy and Brantley were specifically recognized for securing a first-of-its-kind jury trial victory for Yale University in a lawsuit seeking more than $600 million in damages related to Yale’s retirement plan.

IN THE NEWS

Mayer Brown partner Ruth Zadikany was named a 2023 “Lawyer on the Fast Track” by The Recorder. The award honors “the next generation of legal leaders” under the age of 40. Mayer Brown partners Elizabeth (Liz) Espín Stern and Grace Shie were recognized in Corporate Counsel’s 2023 Women, Influence and Power in Law Awards. The annual list honors top women lawyers who are business strategists, complex problem-solvers and who demonstrate a “commitment to advancing the empowerment of women in law,” according to the publication. Liz, managing partner of Mayer Brown’s Washington DC office and leader of the Global Mobility & Migration practice, was recognized in the “Managing Partner of the Year” category. Grace, a partner in the Firm’s global Mobility & Migration practice, was recognized in the “Diversity, Equity and Inclusion Champion” category. Grace Shie was also named a 2023 “Woman Worth Watching in Leadership” by Profiles in Diversity Journal. Mayer Brown’s Hong Kong office has been recognized as an Outstanding Firm in Diversity & Inclusion (D&I) at the Chambers Asia Pacific and Greater China Region Awards 2023. Tauil & Chequer Advogados Employment & Benefits practice has been recognized by Leaders League Brasil 2023 and partner Aline Fidelis was recognized as a Recommended Lawyer. Additionally, Aline was recognized as a “Litigation Star” for Labor and Employment in Benchmark Litigation’s 2023 rankings and in IFLR’s “Women in Business Law Expert Guide” for Labor and Employment in Brazil.

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UNITED KINGDOM

Pensions The US outlook for retirement plans and benefits in 2024 reflects a range of recent developments. The “SECURE 2.0” legislation, passed at the end of 2022, changed the retirement landscape yet again. The Act contains too many provisions to describe here, but key provisions benefit employees nearing retirement, e.g., the age at which retirees must take required minimum distributions (RMDs) increased from 72 to 73. Roth accounts in employer plans will be exempt from the RMD requirement starting in 2024, and starting in 2025, employees aged 60-63 will enjoy an increased catch-up contribution limit on 401(k) elective deferrals. SECURE 2.0 also imposes additional obligations on employer retirement plan sponsors. For example, starting in 2025, new 401(k) and 403(b) plans must automatically enroll all eligible employees at an initial contribution rate of at least 3%, and starting in 2026, catch-up contributions made by employees with $145,000 or more in wages for the previous year must be made on a Roth basis. As health care costs skyrocket, the U.S. federal government continues to focus efforts on increasing health care price transparency. Recent legislation impacting employer-sponsored health plans includes the so-called “gag clause” prohibition and related attestation as well as extensive public reporting requirements on negotiated rates. Employers that sponsor health plans must redouble their efforts to track and comply with these requirements. Even still, additional legislation is pending – and more is likely to come. We are seeing a good deal of expansion among asset managers of offerings of lifetime income products for 401(k) plans. Unfortunately, additional regulatory guidance is needed for some structures. We are also seeing increasing activism in state and local efforts to regulate various aspects of compensation and benefits.

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