Choosing a country to relocate to depends on various personal factors: a passion for a particular nation, an interest in its culture, personal challenges, career prospects, or a love for nature, among others. However, it's essential to balance these reasons against the realities of the country's labor laws. Factors such as working hours, vacation policies, union presence, and retirement age are crucial. Here's an analysis of the countries with the 'worst' and 'best' labor regulations.
Working hours
Working hours such as 72, 69, 48, 40, 37, and 35 might seem bewildering, yet they represent the daily reality for many employees. Global professionals might find these systems particularly surprising, especially those accustomed to either shorter or longer legal working hours in their home countries. Adapting to long hours and extensive unpaid overtime can prove challenging. Consequently, some may opt to switch professional fields or, more drastically, relocate altogether.
Is the 35-hour workweek a French exception?
Since its implementation in 2000 and mandatory adoption in 2002, this reduction from the previous 39-hour week has drawn international curiosity, especially as other countries maintain a standard of 40 hours or more. However, the enforcement of the 35-hour rule varies across different sectors. The original reform includes provisions for exceptions, allowing workweeks to extend from 44 to 48 hours and even up to 60 hours under exceptional circumstances. Notably, Italy and Australia also have legal workweeks below 40 hours, which is 38 hours per week.
40 hours: The standard workweek duration
In Germany, the legal working week is set at 40 hours, with a maximum allowable limit of 48 hours. Spain currently adheres to the same 40-hour standard but is considering a reduction to 37.5 hours by 2025. This proposed change, introduced by Labor Minister Yolanda Diaz in March, aims to 'rationalize work schedules' and curtail the country's notoriously late working hours—characterized by lunch breaks from 2 to 4 pm, office work past 7 pm for at least 30% of employees, and restaurants operating until 2 am. While some Spaniards support the initiative, weary of nightlife that disrupts their sleep, it faces significant opposition. The 40-hour workweek is also the norm in the United States, Canada, Mauritius, South Korea, and Nigeria. Notably, in March 2023, South Korea considered extending the legal workweek to 69 hours but scrapped the plan after widespread public dissent.
Towards 50 hours and more: Does it mean working more to earn more?
In Switzerland, workweeks range from 40 to 50 hours, depending on the sector. Morocco and Singapore set a standard of 44 hours, with Singapore allowing up to 48 hours. South Africa's standard is 45 hours, while both the UK and Egypt cap at 48 hours. The same 48-hour threshold applies in most Latin American countries, including Argentina, Bolivia, Colombia, Costa Rica, Mexico, Nicaragua, Panama, Paraguay, and Peru. Exceptions are Brazil and Ecuador, where legal working hours are set at 44 and 40 hours per week, respectively. In 2023, Chile followed Ecuador's lead, reducing its workweek from 45 to 40 hours.
In China, the norm is between 40 and 44 hours. However, the tech sector often exceeds this with the '996' system—9 am to 9 pm, six days a week, totaling 72 hours. Variants include the '8106' (8 am to 10 pm, six days a week), the '997' (9 am to 9 pm, seven days a week), and the '007' (24/7). Despite increasing unrest among young workers, these intense schedules, born from the Internet boom, persist.
Retirement age
Several countries are incrementally raising the retirement age to manage escalating health costs and pension burdens. This response is typical across nations grappling with declining birth rates and rapidly aging populations, resulting in fewer working-age individuals to sustain pension systems. Consequently, the 'silver generation' is increasingly re-entering the workforce to support these financial pressures.
The slow march toward retirement at 60 years
On September 13, Beijing announced an increase in the legal retirement age, shifting from 60 to 63 years for men and from 55 to 58 years for women. This policy shift, long under consideration by the government amidst economic crisis concerns, aims to reassure citizens by maintaining a retirement age that is still below the norm seen in many other countries. In March, Singapore also adjusted its legal retirement age from 63 to 64 years and its re-employment age from 68 to 69 years. This re-employment policy targets retirees who choose to continue working.
Retirement at 60 years and older is the norm
Retirement ages across the globe typically range from 60 to 70 years, though there's often a significant disparity between statutory laws and actual practice. For instance, Japan officially sets retirement at 60 years, but due to insufficient pension funds, many work until they are 70 or even older. It's common to find employees who are 80 years old. Similarly, South Korea's legal retirement age is set to increase gradually—one year every five years—standing at 62 today and scheduled to reach 65 by 2033. Despite these numbers, it's common to see South Koreans older than 70 still in the workforce, highlighting the economic vulnerability among the elderly, a quiet crisis in the nation.
Meanwhile, several countries are moving towards setting the retirement age at 65 or higher. For instance, it's 65 years in Ivory Coast, Belgium, Cameroon, and Canada; 66 years in Denmark and the UK; and 67 years in Italy and Australia. In France, a pension reform to progressively raise the retirement age from 62 to 64 was set to start on September 1. However, unexpected summer elections and the subsequent appointment of a right-wing Prime Minister by a left-victorious electorate allowed President Macron to uphold his reform initiative.
Work-life balance and the right to disconnect
Since the pandemic, the concept of the right to disconnect has gained significant traction. Local and foreign workers are increasingly emphasizing the importance of maintaining a balance between their personal and professional lives. Consequently, many countries have legislated to support this balance to preserve "good relations" between employers and employees, while others have refrained.
By 2021, Italy, Spain, Portugal, and Ireland had established laws to enforce the right to disconnect, aiming to protect employees in the evolving work landscape better. Notably, Spain has recognized this right since 2018, and subsequent growth in telework prompted a legislative update to accommodate remote working conditions. France and the Philippines have also acknowledged this right since 2017.
In contrast, while there is no federal mandate in Canada and the United States, several regional initiatives have been undertaken. For instance, Ontario incorporated the right to disconnect into its legislation in December 2021, and California is currently considering a bill. Australia passed a similar law this summer.
However, several countries, including New Zealand, Sweden, Finland, the UK, Venezuela, Croatia, Turkey, South Korea, Japan, and Singapore, do not have any legal framework for disconnection. South Korea has been debating such legislation since 2016, yet finds it challenging to integrate disconnection into its labor laws despite high levels of work-related stress. In Japan, a 2023 survey by the Japanese Trade Union Confederation highlighted that 72.4% of workers were contacted outside office hours, up from 64.2% before the pandemic, indicating a rising concern over work-life boundaries.
Remote work regulations
Legislation on the right to disconnect is often linked with laws governing remote work. Several countries, including Colombia, Argentina, Chile, France, Ireland, the Philippines, Spain, and Germany, have enacted laws to regulate remote work. In Canada, specific measures are in place in Ontario, while in the United States, companies are allowed the autonomy to implement their own policies.
However, the existence of remote work laws does not guarantee employees the freedom to work remotely at will. These laws typically remind remote workers that they are subject to the same obligations as in the office. For instance, a company can deny requests for remote work based on collective agreements or security concerns.
While remote work has become trendy among many expatriates, it is not universally accepted as part of the culture in every host country. In Japan, for example, physical presence in the office is still the prevailing norm, despite a gradual increase in remote work adoption. In the Czech Republic, remote work remains unpopular and is not even recognized in the legal framework.
Paid leave
While it might seem unusual to prioritize paid leave when choosing your next destination, understanding what the labor law in a potential host country offers in terms of leave is essential.
Austria is among the most generous, offering 38 days of paid leave annually, including 13 public holidays, closely matched by Malta with 24 vacation days and 14 public holidays. Greece and Bolivia are not far behind, each offering 37 days, including 12 public holidays. The UK, Spain, Sweden, Venezuela, and France also offer substantial leave, providing 36 days, including 8 to 12 public holidays. In contrast, Germany provides 20 days of paid leave but allows an additional 10 to 14 public holidays, depending on the state. Finland's employees enjoy 35 days off, including 10 public holidays.
On the less generous side, Thailand and Canada offer merely 19 days of paid leave, with 13 and 9 public holidays, respectively. Mexico provides even fewer days off, with only 13 days, including 7 public holidays. In Singapore and the Philippines, employees are entitled to only 7 and 5 vacation days per year, respectively. Surprisingly, Japan offers a better scenario than expected, with 10 vacation days plus 20 public holidays. However, in the United States, there is no federal law mandating paid leave, with workers typically taking about two weeks of vacation annually.
Tips for choosing your destination for a thriving career
Deciphering the strengths and weaknesses of different legislative systems can be challenging. Often, the drawbacks in one sector may coincide with benefits in another. A worker seeking to enhance their career abroad needs to carefully weigh these factors in selecting an appropriate host country. For instance, despite its restrictive immigration policies, highly competitive job market, and minimal worker protections, including a weak union presence, the United States continues to be a top destination for many.
On the other hand, countries like Japan and South Korea are actively seeking to attract foreign talent to mitigate their demographic crises despite their reputations for challenging job markets, long working hours, and prevalent presenteeism. This illustrates the broader challenge faced by nations in crafting policies that enhance their appeal to international professionals. In some cases, such as the United Arab Emirates, this has even led to revisions in labor laws to draw more qualified foreign workers.
