2. GLOBAL EMPLOYEE BENEFITS AT A GLANCE
Chapter 1
GLOBAL EMPLOYEE BENEFITS AT A GLANCE
McGraw-Hill/Irwin
Copyright © The McGraw-Hill Companies, Inc. All rights reserved.

3. LEARNING OBJECTIVES
Differences between benefits in the US 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

4. NORTH AMERICA - NAFTA
Mexico, Canada, and the US are part of a trade bloc known as NAFTA – the North Atlantic Free Trade Agreement
Formed as of January 1, 1994, NAFTA called for the elimination of duties and phasing out of tariffs over a period of 14 years
The labor side of NAFTA is the North American Agreement on Labor Cooperation (NAALC) and was created in order to promote cooperation between trade unions and social organizations in order to champion improved labor conditions

5. CANADA
The basic rule of Canadian law holds that labor and employment law fall within the exclusive jurisdiction of the provinces
8 and 9 annual paid holidays; 2 weeks paid vacation
2 state pension plans, one for Quebec residents only and one for the rest of Canada
Medical and basic hospital care paid for by provincial medical insurance plans with compulsory coverage for all residents

6. MEXICO Paid time-off during public holidays
6 weeks’ leave prior to giving birth and 6 weeks’ leave after birth on full salary
Social security programs in Mexico are administered by the Mexican Social Security Institute
Medical services provided directly to patients through the health facilities of the Mexican Social Security Institute

7. SOUTH AMERICA
December 8, 2004 at the Third South American Summit - South American Community of Nations
Modeled on the European Union

8. BRAZIL Consolidation of Labor Laws
Employers discharge employees arbitrarily because of big supply of readily available workers willing to accept lower pay
Comprehensive social security benefits
Medical services are provided directly to patients in rural and urban areas through the Unified Health System

9. ARGENTINA 14 days of paid annual vacation
maternity leave for 45 days before birth and 45 days after birth
There is a mandatory retirement and pension system
Employee health insurance mandated by statute

10. EU Directives and Community Legislations
Labor law was designed with the aim of ensuring that the creation of the Single Market did not result in a lowering of labor standards or distortions in competition
The concept of “employment at will” does not exist in the EU as in the United States

11. FRANCE 5 weeks paid leave after one year of employment
Social security benefits granted to employees contain three components: health insurance, unemployment insurance, and retirement insurance
Organization of medical services for employees is the responsibility of the employer

12. GERMANY 4 weeks paid vacation
Statutory pension system analogous to the Social Security system in the United States
German laws stipulate guidelines for minimal health welfare of workers

13. SPAIN 30 days paid vacation
Leave of absence for up to 3 years from birth
Pension funds are regulated under the Social Security system
Medical services provided to patients directly through the National Health Management Institute

14. UK 4 weeks paid annual leave
26 weeks maternity, which may not begin prior to 11 weeks before birth
All employees with the requisite National Insurance Contributions are entitled to basic state pension
Medical services are provided by the National Health Service

15. THE NETHERLANDS Paid leave for works council duties
Pregnancy and childbirth leave of 16 weeks with full pay
Social security system – employee and national insurance and social assistance schemes
State Old Age Pensions Act provides old age benefits

16. ITALY 3 to 5 weeks of paid vacation
Paid maternity leave - mandatory 2 months before birth and 3 months after birth
Two types of pension plans: compulsory and complementary

17. POLAND 20 days paid vacation Three-pillar system of pensions
Medical services are provided directly to patients by private health care providers under contract to the National Health Fund

18. SWEDEN 1600 hours work year – shortest in the world
14 weeks of maternity leave
Two statutory pension plans
Workers’ medical benefits

19. RUSSIA 28 days paid leave Everyone guaranteed social insurance
Government pensions are paid out of a federal budget
Compulsory medical insurance covers medical services provided directly to patients by public and private health providers

20. PEOPLE’S REPUBLIC OF CHINA
PRC Labor Law was established in 1995
Employees who have worked for more that one year are entitled to “home leave”
Social insurance and mandatory individual accounts
Basic Medical Insurance Fund - Pooled Fund and Personal Accounts

21. JAPAN Civil Code of 1896 10 days paid leave
Social insurance system involving a flat-rate benefit
National Health Insurance program

22. SOUTH KOREA 10 days paid leave
National health insurance plan - National Health Insurance Act as of July 1, 2001
National Health Insurance Corporation (NHIC)

23. INDIA Up to 30 days paid leave 1952 - employees' provident funds
employees' pension scheme
national social assistance program
Healthcare through Employees' State Insurance Corporation

24. SAUDI ARABIA Islamic Shari’a law 15 days paid vacation
Eid Al-Fitr – 10 day holiday
Maternity leave - 4 weeks before birth and 6 weeks after birth
Comprehensive social insurance system covering all
Full medical services
Employer provides living quarters and transportation

25. SOUTH AFRICA Labour Relations Act of 1995 21 days annual leave
4 months of unpaid maternity leave
State pensions
Numerous private medical plans