Singapore – Introduces New Shared Parental Leave Scheme 

Starting April 1, 2025, Singapore will introduce a Shared Parental Leave scheme, allowing parents to share up to 10 weeks of paid leave. The scheme will be phased in gradually to help employers adjust: 

  • Phase 1 (from April 1, 2025): Parents can share up to 6 weeks of leave. 

  • Phase 2 (from April 1, 2026): The entitlement expands to 10 weeks. 

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Parents will be able to share up to 10 weeks of paid leave in Singapore from April 1, 2025.

Current Shared Parental Leave Rules in Singapore 

At present, fathers (including self-employed individuals) can share up to 4 weeks of their spouse’s 16-week Government Paid Maternity Leave (GPML) or adoption leave, provided that the child is a Singaporean citizen, the mother qualifies for Government-Paid Maternity Leave and the father is lawfully married to the mother. 

Fathers can take this leave in full-week blocks, either continuously within the first 12 months after childbirth or flexibly by agreement with their employer. Wage reimbursement is capped at SGD 2,500 per week, including CPF. This is equivalent to USD 1,869.63/ GBP 1,482.38. 

Paid Childcare Leave for Working Parents 

Provided that the Employee has worked for their employer or has been self-employed for at least three continuous months, eligible parents of a Singaporean citizen child under 7 years old receive 6 days of paid childcare leave annually, while parents of non-citizens receive 2 days per year under the Employment Act. 

Employees must have at least 3 months of continuous service with their employer or as a self-employed individual. Parents can take up to 42 days of childcare leave in total. The employer covers the first 3 days, while the government funds the remaining 3 days, reimbursing up to SGD 500 per day, including CPF contributions. This is equivalent to USD 373.88/ GBP 296.48.  

Implications for Employers

Singaporean employers should prepare for increased parental leave entitlements by reviewing leave policies and workforce planning strategies. Flexible work arrangements and clear communication with employees will be essential for smooth implementation. Additionally, businesses should stay informed about government wage reimbursement processes to manage compliance and financial impact effectively. 

This phased approach provides time for companies in Singapore to adjust, ensuring a balanced transition for both employers and employees. 

Australia - Introduces Penalties for Wage Underpayment

From January 1, 2025, intentionally underpaying employees is now considered a criminal offense in Australia. Employers who deliberately fail to pay wages, leave entitlements, superannuation contributions, or salary sacrifice amounts could face severe penalties. 

Intentionally underpaying employees is now considered a criminal offense in Australia. Businesses can be fined up to AUD 8.25 million if found guilty.

Implications for Employers  

Employers in Australia must ensure their payroll systems are accurate and fully compliant with wage and entitlement laws to avoid severe penalties. Regular audits, clear record-keeping, and proactive corrections of any payroll discrepancies will be essential to mitigating risk. 

Additionally, leadership and HR teams should stay informed about legal obligations, as failure to comply could result in substantial fines or even criminal charges. 

Chile - Severance Pay Rules for Fair Dismissal

In Chile, employers must be aware of the Unidad de Fomento value (UF), which serves as last monthly salary on which severance pay is based.  

 The UF is recalculated daily, so its value flactuates each day. Severance pay is capped at 330 days' wages (equivalent to 11 years of service).  

Fair Dismissal and Severance Exemptions 

Under the Chilean Labor Code, employers may dismiss employees without severance pay for reasons such as dishonesty, immoral behavior, harassment of colleagues, unauthorized absences for two or more consecutive days, negligence affecting workplace safety or operations, intentional damage to company property and breach of contractual obligations.

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Under the Chilean Labor Code, employers may dismiss employees without severance pay.

Severance Pay for Economic or Business Reasons 

Employees dismissed due to economic changes, technological modernization, or company insolvency are entitled to 30 days' notice or pay in lieu of notice. Severance pay is equivalent to 30 days of the last monthly salary per year of service (for employees with at least one year of tenure).

Implications for Employers

Employers in Chile must ensure dismissal procedures align with the severance pay rules to avoid legal disputes and financial penalties. Clear documentation of termination reasons and adherence to notice requirements will be crucial in mitigating risks.  

Additionally, companies should budget for severance obligations, particularly for dismissals due to economic or business reasons. Regularly monitoring the UF value and maintaining compliance with Chilean labor laws will help businesses manage workforce changes effectively. 

 

         

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