A dynamic and highly active space, employment law is on the cusp of a changing world. The economic climate, new technology, government policy and recent case law precedents have ensured that employment is one of the busier practice areas in 2023. Across litigation and non-contentious work, change is in motion, and the spotlight on this area will continue to grow as the 2020s progress.
Mental health in Singapore’s workplace is a growing concern, with a Straits Times article reporting that nearly seven in ten Singapore residents found 2021 to be the most stressful year at work, and more than half struggled more with their mental health at work in 2021 than 2020.1 This article sets out the existing legal regime regarding mental health concerns at the workplace, and subsequently provides recommendations for employers to consider adopting, particularly if termination is being contemplated.
Under the WSH Act, employers have a duty to take, so far as is reasonably practicable, measures that are necessary to ensure the safety and health of the employees at work,2 with ‘health’ encompassing both physical and mental well-being.3 Officers of the company are also responsible for ensuring their employees’ safety and health, and would have to show that they had exercised due diligence to prevent workplace incidents.4
Pursuant to the WSH Act, the Workplace Safety and Health Council has approved Codes of Practice (COPs)5 including:
The Advisory, which was issued in 2020, recommends that employers provide support for their employees’ mental well-being on three levels:
More recently, on 4 August 2023, the Singapore Government has accepted the final set of recommendations by the Tripartite Committee on Workplace Fairness for the Workplace Fairness Legislation (WFL), which is expected to be passed in 2024. The WFL will inter alia prohibit workplace discrimination in respect of protected characteristics, including mental health conditions which is presently not a protected characteristic under the Tripartite Guidelines on Fair Employment Practices and Wrongful Dismissal.
The definition of ‘mental health conditions’ was recommended to cover more serious forms of diagnosed mental disorders usually associated with distress or impairment in important areas of functioning.7 Details are expected to be made available when the WFL is introduced.
Where there are mental health concerns arising in the workplace, employers should consider inter alia the existing COPs and Advisory, as well as guidance published by the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) on supporting employees’ mental well-being at work.
Briefly, TAFEP’s recommendations are that an employer should respond to an employee’s mental health condition by:
If the termination of the employee is being considered, in the case of poor performance, it would be prudent to ensure that there is documented proof recording any performance improvement plan and any reasonable accommodations that had been extended to the employee to accommodate any mental health issues.
In the case of misconduct, extra care must be taken during the inquiry process. Whilst there are no local authorities on the impact of an employee’s mental health issues on an employer’s inquiry into misconduct, there have been foreign authorities, specifically in the UK and Australia, where the following principles may be gleaned:
Notwithstanding that unlike in Singapore, there is legislative protection in UK and Australia for those with mental health conditions which qualify as a disability,8 authorities from these jurisdictions may still provide guidance for a prudent and cautious approach to be adopted by employers in Singapore.
To conclude, mental health issues are difficult and sensitive to address in the workplace context, particularly in the case of dismissals. Employers would benefit from implementing measures to create the right type of support structure in the workplace to manage mental health. Added benefits include reduced absenteeism and attrition and increased productivity, as it has been reported that employees with mental health conditions missed 17.7 days of work per year and were 40% less productive while at work, which equates to S$28,720 in economic losses annually per person.9
Lee Ping
Partner
E: [email protected]
Teo Mae Shaan
Partner
E: [email protected]
2. See section 12(1) of the WSH Act.
3. See [26] of Ms Gan Siow Huang’s, Minister of State, Ministry of Manpower, speech at Speech by Minister of State for Manpower Ms Gan Siow Huang at Committee of Supply 2022 (mom.gov.sg); FAQs to “Code of Practice on Chief Executives’ and Board of Directors’ Workplace Safety and Health Duties”
4. See section 48(1) of the WSH Act.
5. While approved COPs are not laws, the courts may consider compliance with such COPs when determining the appropriate sentence for a breach under the WSH Act.
6. See the Tripartite Advisory on Mental Well-being at Workplaces at www.mom.gov.sg/-/media/mom/documents/covid-19/advisories/tripartite-advisory-on-mental-well-being-at-workplaces.pdf (mom.gov.sg).
7. See Recommendation 2(a)(i)(v) at www.mom.gov.sg/-/media/mom/documents/press-releases/2023/tripartite-committee-on-workplace-fairness-final-report_pdf-copy.pdf.
8. The UK Equality Act 2010 and the Australian Disability Discrimination Act 1992
9. See page 5 of ‘Prevalence and economic burden of depression and anxiety symptoms among Singaporean adults: results from a 2022 web panel’ at bmcpsychiatry.biomedcentral.com/articles/10.1186/s12888-023-04581-7
1. What are the key employment laws and regulations in India that both employers and employees should be familiar with?
The most significant aspect of the Indian labour law regime pertains to the categorisation of workforce into workmen and non-workmen under the Industrial Disputes Act 1947 (IDA), with non-workmen, who are essentially senior managerial employees, not having the same statutory protections as workmen on matters relating to termination, dispute resolution, unfair labour practices, etc. Senior managerial employees are also often excluded from the scope of state-specific ‘shops and establishments’ legislations (LSEA), which are the key laws governing employees’ working conditions, such as working hours, leave, overtime, etc. The central and state governments can legislate on labour and employment matters in India often leading to complex interplay between over 50 and 200 legislations at the central and state levels respectively. Continue reading “Sponsored Q&A: Cyril Amarchand Mangaldas”
In recent years, ESG (environmental, social, and governance) factors have been subject to a growing and constant evolution within the European Union and its member states, which has led sustainability to assume an increasingly important role in the economic and social context. Sustainability has become a competitive, strategic and organisational tool for creating added value, with the ambition of being able to measure organisations’ sustainability performance based on predetermined KPIs (ie standard GRI and ESRS).
Please see below for a link to an online pdf of the Employment Yearbook 2023. Continue reading “Access your pdf edition of the Employment Yearbook 2023”
TLT, Latham & Watkins and Compass Group were among the major winners at the 2023 Legal Business Awards, which welcomed more than 800 guests to the Grosvenor House hotel on Tuesday (19 September).
Hosted by actor, writer, and producer Sally Phillips, the evening saw TLT crowned Law Firm of the Year, with judges particularly impressed by its stellar performance over the past few years, with a strong financial performance in 2021/2022 underpinned by key client wins. Continue reading “TLT, Latham and Compass Group among the big winners at 26th Legal Business Awards”
RPC has added partner James Channo to its London corporate practice to provide clients with advice on IPOs, secondary fundraisings, cross-border M&A and joint ventures. Channo joins RPC from Ince, where he headed up the corporate practice, before which he was the London managing partner and head of corporate at Locke Lord.
Examples of Channo’s prior transactional experience includes the listings of Supergroup, Adriatic Metals, SolGold, BSF Enterprise and Roquefort Theraputics, as well as advising Derriston Capital on the reverse takeover of S4 Capital. Continue reading “Revolving Doors: City firms expand finance and restructuring teams”
Allen & Overy and Shearman & Sterling today (18 September) announced that their respective partnerships will start voting on their proposed merger on 28 September, with the voting window to close on 13 October and results announced soon after. For the merger to be voted through, 75% of the partnerships will have to vote in favour of the deal.
‘Over the past few months, partners and teams from both firms have been meeting and building relationships, and the excitement about the opportunities for the merged firm is palpable’, said A&O senior partner Wim Dejonghe (pictured) in a statement. Continue reading “A&O Shearman merger vote to kick off this month as pensions issues overcome”
Osborne Clarke has announced the launch of its third US office in Miami, adding to its existing offerings in San Francisco and New York. According to the firm, the opening of its Miami practice is the latest phase in its US and international arbitration strategies.
OC has appointed the former managing partner of Bird & Bird Spain and IT, data law and international dispute resolution specialist, Javier Fernández-Samaniego, from his own firm Samaniego Law as its managing partner and sole practitioner. He is well acquainted with the Florida, Latin America, and Spanish legal markets, having run Samaniego Law offices in both Madrid and Miami over the past seven years. Continue reading “Osborne Clarke launches international arbitration offering in Miami”
Just days after Scottish firms Morton Fraser and MacRoberts announced their intention to merge, Irwin Mitchell also unveiled plans to combine with Scottish firm Wright, Johnston & Mackenzie (WJM) in what appears to be the start of a Scottish consolidation movement.
While Irwin Mitchell already operates in Glasgow, focusing on banking and finance and personal injury, the merger with WJM would give it access to the corporate, private client, property, and asset management markets in Edinburgh, Dunfermline, Inverness and Dunblane. Continue reading “Economies of scale: Scottish consolidation escalates as Irwin Mitchell announces merger with WJM”
Allen Tan, Dawn Quek and Jeremiah Soh of Baker & McKenzie Wong & Leow provide a glimpse into the challenges arising from the implementation of international tax developments and implications for Singapore’s tax landscape. Continue reading “Sponsored thought leadership: tax complexities abound for taxpayers and states alike in navigating a fast-evolving international tax landscape”
Amid a recent spate of senior deal lawyer appointments, McDermott has brought former Kirkland & Ellis partner Usman Khan into its transactions practice. Khan specialises in real estate finance, and has experience acting for clients including banking institutions, private equity sponsors, credit funds, and sovereign wealth funds.
Mayer Brown has also grown its London banking and finance practice, with the hire of Victoria Thompson from Morgan Lewis. Thompson focuses on domestic and cross-border secured lending and restructuring transactions and is dual-qualified in New York and England and Wales.
Quelling weeks of market speculation, former Kirkland & Ellis deal star Roger Johnson has finally landed at Paul Weiss, along with three other Kirkland partners and a partner from Linklaters.
The move sees Johnson, who was asked to leave the partnership of Kirkland in early August, reunited with debt superstar Neel Sachdev to co-lead Paul Weiss’ London office. Continue reading “Deal star Johnson lands at Paul Weiss amid fresh round of hires from Kirkland and Linklaters”
The broader life sciences sector saw a spate of deal activity in recent weeks, with two acquisitions over the billion-dollar mark and several more in the hundreds of millions.
The highest-value transaction came on 28 August, when US-based life sciences company Danaher announced its agreement to purchase Cambridge-based protein research tools supplier Abcam in a deal valued at $5.7bn. Continue reading “Dealwatch: Big-ticket life sciences activity picks up again as overseas investors buy into the UK”
The partnership of Hogan Lovells has voted in chief executive Miguel Zaldivar for a second four-year term, the firm today (5 September) confirmed.
The move follows on from the firm’s board’s unanimous recommendation that Zaldivar (pictured) be re-elected for a term starting on 1 July 2024, subject to a partner vote, which closed at the end of August. Continue reading “‘We want to associate ourselves with winners’: Hogan Lovells’ Zaldivar sets out stall for second CEO term”
1. What are the key tax laws and regulations in Morocco that individuals and businesses should be aware of?
The General Tax Code consolidates all the tax laws related to corporate tax, personal income tax, value added tax (VAT), and registration duties.
With regard to the municipal taxes to which companies are subject, these are governed by Law 47-06, in particular with regard to business tax and tax on communal services.
2. Can you explain the tax obligations for residents and non-residents in Morocco?
Morocco operates a territorial tax system. Companies (both resident and non-resident) are generally subject to corporate tax only on income generated from activities carried on in Morocco. Foreign corporations are subject to taxation on income arising in Morocco if they have, or are deemed to have, a permanent establishment in Morocco. Morocco has signed several tax treaties to avoid double taxation.
Morocco applies a special company income tax for all the non-residents who provide services to Moroccan resident companies. The tax rate is 10%. This tax is collected as withholding tax paid by the Moroccan beneficiary of the service.
3. What are the different types of taxes imposed in Morocco, such as income tax, VAT, and corporate tax?
Corporate income tax
The definition of ‘corporate’ covers limited liability companies, limited partnerships by shares, general and limited partnerships in which at least one partner is a corporate entity, civil companies, branches of foreign corporations, public sector companies having profit-oriented activity and joint ventures having business-oriented activity.
The normal rate is:
A higher CIT rate of 40% applies to leasing companies and credit institutions.
Foreign contractors carrying out engineering, construction or assembly projects relating to industrial or technical installations may opt to be taxed at a rate of 8% calculated on the total contract price net of VAT and similar taxes.
Companies are always subjected to a legal minimum tax (cotisation minimale (CM)) of MAD 3,000 or 0.25% of the annual turnover. The CM is not payable by companies during their first 36 months of operation.
A social solidarity contribution on profits and income is hereby introduced and payable by companies and individuals.
A 15% branch remittance tax is imposed on profits remitted to the head office. The Moroccan-sourced income of Moroccan branches of foreign companies is subject to income tax at the ordinary corporate rate of tax. The taxable income is calculated as if the branch was a separate entity from the foreign company.
Value added tax
Suppliers of goods and services must add VAT to their net prices. Where the purchaser is also liable for VAT, input VAT may be offset against output VAT. The standard VAT rate is 20% and applies to all suppliers of goods and services, except those taxed at other rates or those who are exempt. A reduced rate of 10% applies to specific items such as banking and credit services, leasing, gas, water and electricity.
Personal tax
Individuals, regardless of nationality or activity, who have their habitual residence in Morocco are subject to a personal income tax (impôt sur le revenu or IR) on their worldwide income on a progressive scale between 10% and 38%.
Capital gains derived from the disposal of immovable property are generally subject to tax as part of the personal income of the individual, ie, 20%.
4. Are there any tax incentives or exemptions available for businesses or individuals in Morocco?
There are specific areas which provides tax incentives :
5. What are the requirements for tax registration and filing in Morocco? Are there any specific deadlines that need to be followed?
The calendar year is normally the fiscal year although a company may opt for a different fiscal year. Accounts for income tax purposes must be filed within three months after the end of the relevant accounting period. Corporate tax is payable in four equal instalments, based on the prior year’s assessment. Foreign companies that have elected for the 8% default taxation must submit a declaration of their turnover before 1 April following each calendar year.
6. Can you provide guidance on the taxation of international transactions and cross-border investments in Morocco?
Article 214-III of the General Tax Code provides a framework for analysing international transactions between affiliated companies:
7. How does Morocco address tax evasion and tax avoidance? What are the penalties for non-compliance?
A fine equal to 100% of the amount of tax evaded is applicable to any person who has taken part in manoeuvres designed to evade payment of tax payment, or assisted or advised the taxpayer in carrying out the said manoeuvres, independently of any disciplinary action if he holds a public office.
8. Are there any specific tax considerations for specific industries or sectors in Morocco?
Newly incorporated companies whose activity (22 activities available) is industrial and provided in a specific act are exempted from corporate income tax for five years. Example of activities:
9. Can you explain the tax implications for expatriates working in Morocco, such as residency status, tax treaties, and foreign income reporting?
Since a Moroccan resident is taxed on worldwide income, the Moroccan tax system provides relief from foreign taxes paid on such worldwide income by means of a foreign tax credit. This foreign tax credit cannot exceed the Moroccan tax otherwise payable in respect of the foreign-source income.
Individuals who do not have their habitual residence in Morocco are subject to tax only on Moroccan-source income.
10. What are the options for resolving tax disputes in Morocco, such as administrative appeals or legal proceedings?
In case of tax disputes, taxpayers can present their claim in front of :
Last week saw several hires in the finance sector and numerous lateral hires in the international market, as London calmed down following the shock Paul Weiss moves in August.
Paul Hastings has made its third infrastructure hire in just three months, appointing partner Candice Lambeth to its energy and infrastructure practice. Moving from Weil, Lambeth specialises in domestic and cross-border M&A, joint ventures, and co-investments across the energy and infrastructure sectors. Continue reading “Revolving Doors: Paul Hastings continues infrastructure hiring spree as White & Case strengthens debt finance practice”
Chatting with a male managing partner recently about – what else – the hire of Kirkland’s debt superstar Neel Sachdev into Paul Weiss in London, talk eventually turned to the Barbie movie (obviously).
With the managing partner intending to see the film soon, I ask him to report back on whether he thinks its messaging is as anti-male as many critics have suggested. His reaction? ‘Isn’t it about time something was not all about how great men are, for a change?’ This is an interesting point, and segues us nicely into our cover feature this issue on the City’s standout women dealmakers, five years on from our influential ‘Alphas’ analysis. Continue reading “Women deal stars prove you can have it all – but don’t worry men, you are Kenough”
‘Paul Weiss hasn’t got enough partners in London for doubles ping pong!’ scoffed a senior source at the beginning of August when it emerged that the Wall Street powerhouse had lost its City managing partner, Alvaro Membrillera, to Kirkland & Ellis.
What a difference a few short weeks make. While the political skirmishes inside Kirkland that prompted the exit of private equity star Roger Johnson can only be guessed at – and, ringing around the market, there is no shortage of such rampant speculation – what followed has been nothing short of extraordinary. Continue reading “Paul Weiss’ hire of Kirkland rock star is the shake-up we didn’t know we needed”
