Ecovis in Singapore

Remote work Poland: changes in employment law

05.12.2022

One of the most important changes to employment law in Poland in 2023 will be the formal regulation of remote work. Companies that allow their employees to work from home should adapt their employment contracts and work regulations accordingly. The amendments to the Labour Code are expected to come into force in early 2023.

In the wake of the COVID-19 pandemic, working from home (also known as, home office or remote work) has become extremely popular. Remote work is now an integral part of many workplaces. The ability to work from home is becoming the norm in the post-pandemic workforce.

Discuss and regulate remote work together

The introduction of remote work must be mutually agreed between the employer and the employee, say the Ecovis experts. Unilaterally, employers will only be able to instruct a particular employee to work from home in exceptional circumstances (e.g. lockdowns, natural calamities). The arrangements can be amended and the initiative to cease working remotely will also be with both the employer and the employee. A request made by one party to change the working conditions will be binding on the other party.

We review employment contracts and adapt them to the new regulations for remote work.

Michał Mieszkowski, attorney at law, ECOVIS LEGAL POLAND Law & Tax, Warszawa, Poland

What rules must be set for remote work

The terms and conditions of remote working should be included in a company’s remote work regulations. This document should specify:

• A group of employees who have the option to work remotely
• The rules for reimbursement of expenses related to remote working (including a lump sum for increased consumption of utilities and an allowance for the use of the employee’s own tools)
• The rules for communication between the employer and remote workers (including the method of confirming attendance at work)
• The principles of monitoring work performance
• The principles of health and safety inspections
• The principles of checking compliance with security and information protection requirements, including procedures for the protection of personal data
• The rules on the installation, inventory, maintenance and updating of software and the servicing of work tools provided to remote workers.

Regulating remote work in companies with employees’ representatives

According to the bill, remote working regulations may be introduced after consultation with employees’ representatives. If there is no employee representative in the workplace, it will be necessary to elect one – it will be the preliminary stage before the implementation of remote work. For workplaces with a trade union presence, it will be necessary to reach an agreement with these organisations.

The remote work regulations will undoubtedly become an essential document in the operation of a workplace and drafting and implementing them will require an analysis of the specific issues related to working outside of the employer’s premises. At Ecovis, we can provide full support to employers with the introduction of remote working.

For further information please contact:

Michał Mieszkowski, attorney at law, ECOVIS LEGAL POLAND Law & Tax, Warszawa, Poland
Email: michal.mieszkowski@ecovis.pl

How to invest in Spain: New law makes it easier and more economic

02.12.2022

There are several possibilities for companies wanting to invest in Spain. They can simply register in Spain for tax and employment purposes, open a branch office (without its own legal personality) or incorporate a company. Thanks to a new law, this is now possible with just EUR 1 of capital.

A company makes sense for investors who need a permanent structure, want to limit the liability of the parent company and fully close the economic cycle, meaning it contracts directly with clients, issues invoices, etc.

Until recently, the options were either a public company (Sociedad Anónima) with a minimum capital of EUR 60,000 or a limited liability company (Sociedad Limitada) with a minimum capital of EUR 3,000.

What the corporate law reform will mean for investors

The reform now allows the incorporation of a limited liability company with a capital of only EUR 1. It also establishes a procedure which makes company incorporation easier, as long as standard procedures and models (for example for company articles) are followed. These models are now being prepared by the corresponding authorities, which does mean it may be some time before this easier procedure is actually available.

Discuss with us the alternatives for an office in Spain to suit your company.

Christian Koch, Lawyer, Partner, ECOVIS Legal Spain , Madrid, Spain

However, there are also some limitations. If the initial capital is below EUR 3,000,  the company must set aside 20% of its yearly benefits to establish a legal reserve until this reserve reaches EUR 3,000. Until this sum is reached, the partners will be personally liable up to this amount for the debts of the company in the case of insolvency, explain the members of the Ecovis Madrid Hub.

In all other aspects, a EUR 1 limited liability company is fully equivalent to any other limited liability company. As a result, investors now have a new instrument for investing in Spain when they are just testing the market and want to limit the cost of their investment.

For further information please contact:

Christian Koch, Lawyer, Partner, ECOVIS Legal Spain, Madrid, Spain
Email: christian.koch@ecovis.es

Malta Startup Residence Programme – An opportunity for budding entrepreneurs

01.12.2022

The Maltese government has launched the “Malta Startup Residence Programme”. Under the programme, non-EU citizens will receive improved start-up conditions, such as a residence permit for up to eight years, if they do business and pay taxes in Malta. The Ecovis consultants know what is required of entrepreneurs.

In October 2022, the Minister responsible for Environment, Energy and Enterprise launched a residency programme for expat entrepreneurs who decide to establish their start-up companies in Malta. The “Malta Startup Residence Programme”, which is part of the government’s efforts to promote Malta as a hub for startup entrepreneurial creativity, grants applicants and their immediate family a three-year residence permit, which can be extended for an additional five years, during which they may reside in Malta. During this time, beneficiaries must live and pay taxes in Malta.

Which requirements must companies meet when creating a startup?

The programme is intended for non-EU nationals who would like to embark on an entrepreneurial venture while keeping immediate families close. Undoubtedly, the Maltese jurisdiction offers other benefits to budding entrepreneurs, including the use of the English language in business operations, and the country’s access to the larger market in continental Europe.

To be eligible for the programme, an individual must:

• Be 18 years and older
• Have a concrete intention to develop and/or expand their business in Malta
• Be the founder or the co-founder of an enterprise which has been registered for not more than seven (7) years anywhere globally (including Malta), and which meets the following conditions:
  • It has not taken over the activity of another enterprise
  • It has not yet distributed profit
  • It has not been formed through a merger
• Have recognised health insurance covering risks in Malta for him/herself and dependants

Are you interested in the Malta Startup Residence programme? Contact us.

Dr Roberta Avellino Pulé, Senior Legal Consultant, ECOVIS Malta, Mosta, Malta

Which companies can look forward to funding

The requirements for eligibility further stipulate that the startup incorporated in Malta is required to make a tangible investment and/or provide paid-up share capital of not less than EUR 25,000. Where more than four co-founders apply for the startup residence permit, an additional EUR 10,000 needs to be provided per additional co-founder. The maximum number of co-founders eligible for the Startup Residence Programme is six.

In terms of industry focus, startups are considered eligible if they engage in one or more of the following activities:

• Manufacturing and analogous industrial services
• Software development
• Health, biotechnology, pharmaceuticals, and life sciences
• Eco startups engaging in blue, green and sustainable industries
• Economic activities enabled through knowledge and technology, providing services or products which are not yet readily available in the market.

Core employees who are instrumental to the operations of the startup in Malta are also eligible to apply for residency under the programme, provided they have specialist skills and earn not less than EUR 30,000.

For further information please contact:

Dr Roberta Avellino Pulé, Senior Legal Consultant, ECOVIS Malta, Mosta, Malta
Email: malta@ecovis.com