A Look Back On 2022 And What To Expect For 2023

• Published date: 24 November 2022
• Subject Matter: Employment and HR, Retirement, Superannuation & Pensions, Employee Benefits & Compensation
• Law Firm: Appleby
• Author: Theodora Hand

First Published in The Bermuda Chamber Of Commerce Newsletter (Chamber Insider), November 2022

As we approach the end of 2022, we are able to look back and say with certainty that the arena of labour relations law has not been as lively as it was in 2021, when there were changes to the Employment Act 2000 and the tribunal system. Following a tweet at the beginning of the year from the Minister of Labour, it was anticipated that there may be some legislative developments to "expand the rights of workers in Bermuda throughout 2022". This could have been both significant and controversial, however the rumblings of change stopped there and 2022 was not the hive of activity that it might otherwise have been.

That being said, as discussed below, there have been a couple of notable changes that HR professionals and businesses will want to note for 2022; and with a new year comes the potential for some legislation which may not be universally welcomed in the business and employer community.

A LOOK BACK ON 2022

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS) AMENDMENT AND VALIDATION ACT 2022

In force from 29 March 2022, the National Pension Scheme (Occupational Pensions) Amendment and Validation Act 2022 amends the National Pension Scheme (Occupational Pensions) Act 1998 to provide a further one-time lump sum withdrawal of up to $6,000 by a member or former member of a defined contribution pension plan, or a local retirement product, who has not attained the normal retirement age. Although this change does not impact employers directly, HR professionals and business owners will want to be aware of this change should an employee make enquiries regarding early draw down from their scheme.

PAYROLL TAX AMENDMENT AND VALIDATION (NO.2) ACT 2022

On 20 October 2022, the Payroll Tax Amendment and Validation (No.2) Act 2002 came into force. The main amendments include clarification around what constitutes actual renumeration and the widening of exclusions to renumeration more than any substantive or significant changes. Points to note include that "gratuity" for the purposes of exclusions to renumeration has been clarified to mean "any gratuity for services rendered, whether paid by a customer directly or paid by an employer or self-employed person from a fund entirely constituted of gratuities paid by customers for services rendered". Given that these changes are already in force, those managing payroll will want to make sure that gratuity, under this new definition, is...