Europe,

Part Four: Extending Employee Benefits: Design and Global Issues
Chapter Twelve: Global Employee Benefits at a Glance
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Learning Objectives
In this chapter, you will gain an understanding of:
the differences among benefits in the U.S. and around the world.
paid time-off benefits in various continents and countries.
protection benefits such as retirement, health care, and social security in various continents and countries.
legal and regulatory influences on employee-benefits practices.
other practices that distinguish countries’ benefits programs.
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Overview
Chapter twelve examines paid time-off and protection benefits in countries on various continents, including:
North America,
South America,
Europe,
Asia,
Africa, and
Australia.
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Quantifying Elements of Employee Benefits outside the U.S.
The gross domestic product (GDP) describes the size of the country’s economy.
GDP per capita indicates the standard of living within a country.
Purchasing power parity (PPP) indicates GDP valued at prices prevailing in the U.S.
Another important measure is the per capita expenditure on health care.
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North America
NAFTA .
The North American Free Trade Agreement is a trade bloc between the U.S., Canada, and Mexico.
A trade bloc is a group of countries who agree to reduce trade barriers between themselves.
The North American Agreement on Labor Cooperation (NAALC) promotes cooperation between trade unions and social organizations.
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Canada
Constitutional monarchy.
Employment law falls within the jurisdiction of the provinces.
The origins of common law governing individual employment contracts are the
English Statute of Labourers of 1562 which established working hours and wages.
Quebec has its own Civil Code of Quebec.
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Canada
Paid Time-Off Benefits
Paid holidays vary by province – 6 to 10 days.
Two weeks paid vacation.
Paid maternity leave up to 17 weeks, parental leave up to 35 weeks.
Compassionate care leave up to 26 paid weeks.
No military leave.
Protection Benefits
Two state pension plans.
One for Quebec, one for rest.
Employers and employees contribute.
Executive plans differ.
Medical and basic hospital care is paid by taxes.
Both government and employers provide short- and long-term disability.
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Mexico
A federal republic and labor law is based on Mexican Federal Labor .
Clearly defines the terms worker and employer.
Free market economy is comprised of agriculture and new and old industries.
The Labor and Social Security article of the constitution is still in effect.
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Mexico
Paid Time-Off Benefits
Paid holidays and double pay for working holidays.
Females get 12 weeks paid maternity leave.
6-12 vacation days.
After five years – 14 days.
Two additional days for each five years worked.
Employers pay vacation premium – 25%.
Protection Benefits
Mexican Social Security Institute protects during disability, retirement, etc.
Employees and employers contribute.
Mandatory individual retirement account system.
Health benefits provided by the Mexican Social Security Institute facilities.
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South America
Brazil, Argentina, Columbia, and Chile are the largest economies – Venezuela and Peru too.
Venezuela has large oil reserves.
Human development index (HDI) is a UN comparative measure.
Argentina and Chile have the best HDI.
In 2004, the South American Community of Nations was formed, a large trade bloc.
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Brazil
A federal republic, well-developed and global.
Employment relationships are regulated under the Consolidation of Labor s.
For example, law states that continuity applies to all employment contracts, both written and oral.
In reality, employers discharge employees at will.
There are available workers who will accept lower pay.
Not enough incentives to engage in good-faith labor relations, and job security is often lacking.
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Brazil
Paid Time-Off Benefits
provides for an annual 30-day paid vacation,
plus a bonus of one-third of monthly salary.
Maternity leave is 120 days and paid by social security.
Paternity leave is five days if allowed.
Protection Benefits
Social security system in effect since 1991.
Social insurance is provided as pension with both employees and employers contributing.
The Unified Health System provides medical services for residents of Brazil.
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Argentina
A democratic republic.
Strong educational and rich natural resources.
Suffered economic decline and depression in the 1990s.
Various successive governments have tried to revive the economy.
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Argentina
Paid Time-Off Benefits
14 days paid vacation which increases with seniority.
3-6 months of sick leave.
3 months maternity leave paid by social security.
Permissible short leaves of absence.
12 paid holidays with double pay for working.
Protection Benefits
Mandatory pension system.
Employees and employers contribute.
Also funds disability and survivor benefits.
Mandated health and life insurance – employer pays.
Benefits defined by the Ministry of Health and Environment.
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Europe
The European Union (EU) was aimed to becoming an economic superpower.
The concept of “employment at will” does not exist in the EU as in the U.S.
Member states have minimum standards.
Each member also has legislation or civil code provisions applying to employment contracts.
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France
A democratic republic who is transitioning from a traditional model to a free market.
Workers get better benefits than U.S. workers.
Employment laws incorporated in the French Labor Code.
Mandatory profit sharing, participative management and “just cause dismissal” characterize employment relationships.
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France
Paid Time-Off Benefits
25 days paid vacation.
12 paid holidays with double pay for those working on Labor Day.
Women receive 14 weeks of paid maternity leave.
Protection Benefits
Government pensions
Social security benefits:
unemployment insurance, health insurance, and retirement insurance.
Employers pay for employee health insurance.
Flexible rules for upper level employees.
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Germany
A federal republic with the fourth-largest world economy.
Unemployment rates have been very high.
Germany has been pushing labor market reforms – increasing the retirement age and increasing female workforce participation.
There are rising concerns about aging workforce and high unemployment.
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Germany
Paid Time-Off Benefits
9-13 official holidays.
24-day minimum vacation.
Maternity Leave is
14 weeks paid leave.
Continuing education days.
Job retention if drafted.
Sick leave up to 6 weeks.
Child-rearing leave and family leave.
Protection Benefits
Statutory pension insurance, company pension plans, and private life insurance comprise pension benefits.
Mandated health insurance paid equally by employer and employee.
Higher level employees can opt out and purchase private insurance.
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United Kingdom
The U.K. is a constitutional monarchy and the second-largest economy in Europe.
A variety of common law and statutory provisions govern employment relationships.
The most significant reforms came under the Employment Relations Act of 1999.
Terms of employment are generally negotiable.
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United Kingdom
Paid Time-Off Benefits
28 days of paid annual leave including holidays.
28 weeks of sick pay.
26 weeks of paid maternity, and 6 weeks paternity leave.
Up to 13 weeks unpaid leave for child care.
Flexible work arrangements for dependent care.
Protection Benefits
State pension, supplemented with:
state second pension, company pension, personal pension, or stakeholder pension.
Medical services provided by National Health Service.
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Asia
As of 2016, China was the largest economy in Asia, followed by India and Japan.
Several trade blocs, including the Trans-Pacific Partnership (TPP) set in 2016.
12 Pacific Rim countries.
No unifying economic body in Asia.
Several countries not mentioned also are seeing an influx of foreign investment.
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The People’s Republic of China
The PRC is a communist state with a fast-growing economy.
Shifting from a centrally planned system to a more market-oriented one.
The PRC Labor was established in 1995.
A break from the older welfare system where employees were owned by the state.
Now, individual contracts define employment relationships.
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The People’s Republic of China
Paid Time-Off Benefits
Medical leave ranges from 3 to 24 months with 80% pay.
7-14 paid days of annual leave.
“home leave” is permitted.
Women receive 90 days of maternity leave.
Protection Benefits
Unified basic pension system with individual accounts.
Only employees contribute.
Both workers and employers contribute to health benefits.
Basic Medical Insurance Fund consists of a Pooled Fund and Personal Accounts.
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Japan
A constitutional monarchy.
Keiretsu is an eroded system in Japan.
Employment relationships are based on
freedom of contract, and
recent laws on labor standards, unions, minimum wages, childcare and family leave, etc.
Employee-benefits laws include mandatory participation in various insurance schemes.
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Japan
Paid Time-Off Benefits
10-day leave after 6 months.
Additional days up to 20.
No holiday paid time-off.
Maternity leave is granted if requested: 8-14 weeks.
Child care leave up to a year.
No military leave policy.
Time off for civic duties.
Protection Benefits
The social insurance system has a flat-rate pension benefit for all residents.
The National Health Insurance program covers medical care.
There is no limit to duration and cost-sharing is based on age and income.
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India
A democratic federal republic with a diverse economy plagued with income disparity.
Basic constitutional legislation governs employment relationships.
The Directive Principle of State Policy affects various aspects of the relationship.
Wide variations exist between public and private sectors with the Ministry of Labour governing the public sector.
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India
Paid Time-Off Benefits
Annual leave is calculated based on days worked.
Allowed to roll over to the following year up to 30 days.
Paid maternity leave, but no statutory provision.
Various paid holidays.
Protection Benefits
Employees’ provident funds were first passed in 1952.
State governments provide medical care on behalf of the Employees’ State Insurance Corporation.
Duration of benefits range from 3 months to 1 year depending on contributions.
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Africa
The UN states that the bottom 25 ranked nations in the world are all in Africa.
Economic success lies in South Africa and Botswana.
Comparable success in Ghana, Kenya, Cameroon, and Nigeria.
Nigeria has large oil reserves and the highest population in Africa.
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South Africa
A republic. middle income, emerging market with natural resources and modern amenities.
Social disparity is apparent.
The Labour Relations Act of 1995 does not distinguish union and non-union workers.
“unfair labor practice” applies to the individual.
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South Africa
Paid Time-Off Benefits
21-day annual leave.
12 paid holidays.
Sick leave available up to a 30-day maximum.
Female workers are entitled to four months of unpaid maternity leave.
Protection Benefits
State pensions are available but payout is modest.
Many private medical plans exist and employers who offer plans expect an equal employee contribution.
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Australia
A federal parliamentary democracy.
Economy fueled by high export prices.
Large employers must follow employment regulations from the 2005 Work Choices Act.
50% of all workers are employed under awards made by the
Australian Industrial Relations Commission.
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Australia
Paid Time-Off Benefits
Full-time employees get up to 10 days of paid leave.
Up to 52 weeks of unpaid parental leave exists for permanent employees.
Paid maternity and paternity leave maximums are 18 weeks.
Protection Benefits
Employers and employees contribute to the government pension.
Workers’ medical benefits include free care by staff doctors in public hospitals.
Private benefit organizations exist for private care.
Prescriptions are costly.
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Summary
Chapter twelve examined paid time-off and protection benefits in countries on various continents, including:
North America,
South America,
Europe,
Asia,
Africa, and
Australia.

Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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