Payroll teams in the US have figured out payroll regulations, paying employees on time, and managing new legislation and regulations each year. So it would make sense that these same skills would translate to global payroll. Yet most companies find global payroll extremely challenging and struggle to maintain compliance. Why is global payroll so complicated?

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Over the past 16 years, the Ethiopian labor law has stayed pretty much the same. A few years ago, the government approved some changes to the law to accommodate changes in labor markets, employer-employee relationships, and investments in Ethiopia.

Here are some of the changes that were made to the Labor Law in Ethiopia:

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South East Asia features some of the fastest growing economies in the world. The presence of varying landscapes and cultures make it one of the most diverse markets for business expansion.

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As each week passes, new challenges arise for companies with global operations. Different employment laws, payroll and furlough schemes, and reopening strategies in each country make it more difficult to ensure payroll compliance with evolving regulations. How can you keep the company operational in each country while ensuring you’re keeping up with payroll and employment requirements?

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In December 2020, the Narendra Modi-led government made some significant changes to the Indian Labor Code.

Forty of the old central laws were replaced with four major labor codes that drew attention to wages of employees, industrial relations, health and safety hazards, as well as social security. Combined, these will help modernize India’s labor laws, revolutionizing the business environment.

Below are the changes made to India’s labor code:

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The UK government implemented the Coronavirus Job Retention Scheme last year to help businesses pay employees who had to reduce working hours or were laid off as a result of the shutdown. This furlough scheme has provided months of relief for workers and their employers during this ongoing crisis. But during the last year, there have been many changes in the percentage of government subsidizes – ranging from 60-80%, and these changes have been implemented with little notice.

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The Kingdom of Denmark is a country in Northern Europe and comprises of the Jutland Peninsula and various islands around it. A fairly small country, Denmark has a total land area of 42,916 square kilometers. It has a population of around 5.8 million and is famous for being the historical home of seafaring pirates known as The Vikings who lived between the 8th and 11th centuries in north-western Europe.

Today, this small Scandinavian country is best known for being one of the happiest in the world due to its great quality of life and several government initiatives that facilitate and support its citizens. For example, the government of Denmark analyzed the effects of the COVID-19 pandemic on the world economy and how its aftermath was felt by individual countries.

To safeguard and cushion its citizens from inflation and unemployment, the Danish Ministry of Employment introduced a new bill known as the Posting of Workers Directive in July 2020, which came into effect on January 1, 2021.

The Posting of Workers Directive bill stipulates the following changes to employment laws:

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Managing payroll is not easy – add in a few countries, and payroll gets even more complicated. So many moving parts, time zones, languages, and systems. It’s a juggling act on a good day, but when something goes wrong, it can take months to unravel. If you’re managing global payroll, you know how difficult it can be when a problem comes up. So how can you fix a broken global payroll process?

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As a regular citizen, you deal with compliance on a daily basis, even if you are not conscious of it. When you follow the traffic lights or stand at a distance from train doors after a subway announcement, you are complying with traffic laws and public safety regulations.

Compliance essentially refers to the various ways a business ensures that they are sticking to both their internal compliance framework as well as other international laws that apply to their industry. International employment compliance refers to how companies adhere to the international labor standards set by the countries themselves, as well as the International Labor Organization.

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