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Asia Pacific – Labour hire pay, female employee advancement and minimum wage rises are top legal developments in Q4 2021

21 December 2021

The fourth quarter of 2021 saw a number of legal developments affecting the workforce solutions ecosystem across the Asia Pacific region, according to the latest Asia Pacific Legal Update Q4 2021.

The report, by Fiona Coombe, Director, Legal & Regulatory Research, highlights developments in Australia, Hong Kong, Japan, Malaysia, New Zealand, South Korea and Taiwan.

The changes highlighted in the report include additional health and safety rights for labour hire workers which are set to take effect in 2022 in the Victoria state of Australia.

The Occupational Health and Safety and other Legislation Amendment Act of 2021 will commence on 22 March 2022 in Victoria. Under current laws, the host employer does not owe labour hire workers the same health and safety duties as they do their own staff. The Amendment Act addresses this gap by extending the definition of “employer” and “employee” in the Occupational Health and Safety Act 2004 to ensure labour hire workers are considered employees of the host under the 2004 Act.

Meanwhile, The Fair Work Amendment (Same Job, Same Pay) Bill 2021 was introduced into the House of Representatives in November by the Leader of the Opposition, to amend the Fair Work Act 2009 (Cth) to provide that labour hire workers receive the same pay and conditions as workers who are directly employed.

In Hong Kong, the government passed a bill to progressively increase the number of statutory holidays under the Employment Ordinance from 12 to 17 days by 2030. Starting from 1 January 2022, one additional statutory holiday will be added every two years until the annual total reaches 17 days. An employer must grant such additional statutory holiday (or arrange substituted holiday) and must not “buy out” any statutory holiday, which is prohibited by law.

In Japan, Prime Minister Yoshihide Suga has vowed to achieve an average hourly rate of at least JPY 1,000 "as soon as possible" to help nonregular employees earn more and correct wage disparities between them and regular workers. However, a survey by Tokyo Shoko Research suggests that the wage rise is having the effect of companies hiring more regular workers.

Also in Japan, the advancement of women law is set to expand from April 2022. The Act on the Promotion of Female Participation and Career Advancement in the Workplace (APFPCA) currently obliges companies with more than 300 regular employees to formulate and file action plans for the promotion of female employees; and publish information on the activities of female employees at the company. From 1 April 2022, it will apply to companies with more than 100 regular employees.

In New Zealand, the Fair Pay Agreements Bill is expected to be introduced in early 2022.

Across South Korea, a number of significant employment law changes have taken place or are imminent in South Korea. They include a new minimum wage for 2022, new penalties for workplace harassment and remedies for gender discrimination and sexual harassment claims, plus leave and working hour adjustments for pregnant employees.

On 8 October 2021, Taiwan’s Labour Minister announced that the ministry’s Minimum Wage Review Committee decided to raise Taiwan’s monthly minimum wage by 5%, starting from 1 January 2022.

Further details on these stories and more can be found in SIA’s Asia Pacific Legal Update Q4 2021.