Global HR News

Ontario introduces new job posting requirements effective 1 January 2026

Starting 1 January 2026, employers in Ontario will face new obligations under the Working for Workers Five Act, 2025, requiring greater transparency in job advertisements. These changes aim to promote pay equity and informed decision-making for job seekers.

What is changing?

• Mandatory salary disclosure
  All publicly advertised job postings must include either:

• a specific salary figure
• a salary range that accurately reflects the expected compensation for the role.

• Disclosure of remote work options
  Employers must clearly state whether the position allows remote work, hybrid arrangements, or requires full on-site attendance.

• Ban on Canadian experience requirements
  Job postings cannot require ‘Canadian work experience’ as a condition of employment, removing barriers for internationally trained professionals.

Why does this matter?

These measures aim to improve pay transparency, reduce wage gaps, and support diversity in hiring. Employers who fail to comply may face penalties under the Employment Standards Act, 2000.

Employer considerations

• Review and update job posting templates to include salary details and remote work information.
• Train recruitment teams on compliance requirements.
• Audit current postings to ensure removal of Canadian experience conditions.

Ontario joins a growing list of jurisdictions introducing pay transparency laws, signalling a broader trend toward fairness and inclusivity in recruitment practices.

Further Ontario labour law changes 

On 27 November 2025, Ontario’s Working for Workers Seven Act, 2025 (Bill 30) received Royal Assent, introducing significant amendments to workplace laws. This legislation builds on previous reforms and impacts several statutes, including the Employment Standards Act (ESA), Occupational Health and Safety Act (OHSA), and Workplace Safety and Insurance Act (WSIA).

Employment Standards Act (ESA) updates

• Job posting platforms
  Operators of job posting platforms must:
  • Implement procedures for reporting fraudulent job postings.
  • Maintain a written policy on handling such reports and display it prominently on the platform.
  • Note: Employer-operated platforms advertising only their own jobs are exempt.

• Job-seeking leave
  Employees affected by mass terminations (50+ employees) are entitled to three unpaid days for job searches, interviews, or training. Employees should provide three days’ notice where possible.

• Extended layoffs
  Employers can now extend layoffs up to 52 weeks within a 78-week period, subject to:
  • Mutual agreement between employer and employee.
  • Approval from the Director of Employment Standards.
  • Written agreements specifying recall dates (cannot be withdrawn once agreed).

Occupational Health and Safety Act (OHSA) changes

• Health and safety management systems
  Accredited systems are now recognised as equivalent under OHSA.
  
  
• Defibrillator requirements
  • Construction projects with 20+ workers and lasting over 3 months must have an Automated External Defibrillator (AED) on-site.
  • AED must be clearly marked, accessible, and a trained worker must be present during work.
  • WSIB will reimburse certain employers for AED costs under prescribed criteria.

What employers should do

• Review job posting platform policies for compliance.
• Update HR policies to include job-seeking leave entitlements.
• Assess layoff procedures and prepare agreements for extended layoffs.
• Ensure AED requirements are met for qualifying construction projects.

These changes aim to strengthen worker protections, improve workplace safety, and address fraudulent job postings. Employers should act now to avoid compliance risks

Year-end payroll reporting obligations – T4 and T2200

Employers in Canada must issue T4 slips to employees and the CRA by the end of February each year, summarising employment income and deductions during the year. 

T2200 forms are only required if employees need to claim employment expenses (e.g., home office, travel). Employers should begin preparing in advance by reconciling payroll records, identifying employees eligible for T2200, and ensuring systems are ready for accurate reporting.

How employers can prepare ahead of year-end:

For T4s:

• These will be prepared by your payroll provider. If we are your provider, we will be reaching out early in the new year with the drafted T4’s. 
• If we do not assist in your payroll, then you should look to check with your provider that they have these in hand. 

For T2200s:

• Identify employees who have claimed expenses (remote workers, commission staff).
• Review employment contracts and policies to confirm eligibility.
• Communicate early with employees about whether they will receive a T2200.

Changes to general protections processes aim to address soaring claims

The Fair Work Commission (FWC) has introduced a series of reforms to manage the sharp rise in general protections claims, which increased by 27% above the five-year average in the 2024/25 financial year. These changes are designed to streamline case management and reduce delays.

What’s driving the increase?

• Paid Agents: A growing number of applications involve paid agents rather than lawyers. Unlike lawyers, paid agents are not subject to professional or ethical regulations, sparking industry concern. The FWC has established a Paid Agents Working Group to ensure ethical conduct and published a report titled Paid Agents and the Fair Work Commission highlighting these issues.
• The use of AI: there is growing speculation that AI tools are enabling faster, cheaper preparation of claims by individual claimants, reducing barriers to entry.

What is changing?

• Updated application and response forms
  Forms F8 (application) and F8A (response) now require more detailed information upfront, including:
  • Submissions requesting permission for legal or paid-agent representation.
  • Employer respondents must identify and explain any jurisdictional objections, such as claims that the employee was not dismissed.

• Early determination of representation
  The Commission can now decide whether parties may be represented by lawyers or paid agents before the conciliation conference, reducing last-minute uncertainty.

• Handling late applications
  Applications lodged outside the 21-day time limit will no longer be automatically served on employers. Instead, a Commission Member will review whether exceptional circumstances exist. If not, the matter may be dismissed without requiring a response.

• Other reforms
  A trial of new conference procedures is underway to make settlement-focused conferences faster and more efficient. The Commission is also considering extending the current seven-day response period for general protections claims. 

Why does this matter?

These changes aim to reduce administrative burden and improve efficiency amid record claim volumes. Employers should expect greater scrutiny at lodgement and earlier engagement with jurisdictional issues.

Employer considerations

• Review internal processes for responding to general protections claims.
• Prepare detailed submissions early, including representation requests and jurisdictional objections.
• Monitor further updates on response time extensions and conference reforms.

Deadline for tax-deductible superannuation contributions  

Companies with a December year-end should look to ensure that any Superannuation Contributions they have for the December 2025 payroll are paid prior to the end of December 2025 to ensure they are tax deductible

Employer superannuation contributions are deductible only when actually paid, not when accrued in the account. If contributions are not paid by the end of the year, they cannot be claimed as a deduction in that financial year’s tax return. Instead, they roll into the next year. 

For tax purposes, superannuation is treated on a cash basis. This means that even if a company records the liability in its December accounts, the deduction is only available once the payment clears before 31st December.

Pay employees on the final day or face penalties

A recent Federal Court decision has confirmed that employers who fail to pay termination entitlements on the final day of employment risk financial penalties, even if payments are made shortly after termination.

What happened?

In Jewell v Magnium Australia Pty Ltd (No 2) [2025], the employer paid accrued annual leave and payment in lieu of notice weeks after the termination date and delayed redundancy pay for several months. Although the payments were eventually made, the court found this breached the National Employment Standards (NES) under the Fair Work Act 2009 (Cth).

Key breaches

• Section 117(2)(b) – unlawful to terminate employment without giving notice or paying in lieu of notice.
• Section 90(2) – accrued annual leave must be paid when employment ends.
• Section 119 – redundancy pay must be paid if employment ends due to redundancy.

Penalties imposed

The employer was fined $18,600 for three contraventions, despite the breaches being considered ‘careless’ rather than deliberate. The case highlights that technical breaches can still attract significant penalties.

Why does this matter?

Historically, employers often paid termination entitlements within seven days or in the next pay cycle. This ruling confirms that such practices are no longer acceptable, and payments must be made on the final day of employment.

Employer considerations

• Review payroll processes to ensure all termination payments are made on the last working day.
• Train HR and payroll teams on compliance requirements.
• Avoid assumptions about timing; late payments can lead to costly penalties.

Victoria moves to restrict NDAs in workplace sexual harassment cases

The Victorian Government has introduced the Restricting Non-Disclosure Agreements (Sexual Harassment at Work) Bill 2025, which will significantly limit the use of non-disclosure agreements (NDAs) in workplace sexual harassment matters. This reform follows recommendations from the Ministerial Taskforce on Workplace Sexual Harassment and the Australian Human Rights Commission’s Respect@Work report.

What is changing?

• NDAs only by complainant's request
  Employers will be prohibited from using NDAs unless confidentiality is genuinely requested by the complainant.

• Mandatory information and review period
  Workers must receive an information statement and have at least 21 days to review before signing an NDA.
• Ban on coercion
  Employers cannot pressure or influence workers to enter into NDAs.

• Right to speak to key parties
  Even after signing an NDA, workers can talk to Victoria Police, medical professionals, lawyers, and certain regulators.

• Right to terminate
  Workers may unilaterally terminate an NDA after giving 12 months’ notice.
• Breach notices
  Workers can issue a breach notice if statutory preconditions were not met.

Why does this matter?

The Bill aims to dismantle the ‘culture of secrecy’ that has allowed sexual harassment to be concealed and perpetrators to avoid accountability. NDAs have traditionally been used to protect trade secrets and ensure confidentiality in settlements, but their misuse in harassment cases has drawn criticism for silencing victims and shielding employers from reputational harm. 

Employer considerations

• Review settlement practices and template agreements.
• Train HR and legal teams on new compliance requirements.
• Prepare for increased transparency and potential reputational risks.

The Bill is not retrospective and will apply only to NDAs entered into after commencement. Victoria will be the first Australian jurisdiction to introduce such restrictions, following similar reforms in Ireland, Canada, and several U.S. states.

Employees to receive natural disaster commuting assistance 

Background

Taiwan frequently experiences typhoons, heavy rain, earthquakes, and other natural disasters that can severely disrupt transportation and pose serious safety risks. In response, the Ministry of Labor (MOL) has updated the Guidelines on Attendance Management and Wage Payment for Workers During Natural Disasters (‘Guidelines’), clarifying employer obligations when requiring employees to work during such events. The revisions aim to strengthen worker safety, reduce commuting-related risks, and set clearer compliance expectations for employers.

Attendance principle: no work unless necessary

Under the revised Guidelines, the default position is that employees should not be required to report to work during natural disasters. Employers may request attendance only when there is a genuine business necessity and the employee expressly agrees. The MOL stressed that workers should not be expected to face severe weather conditions, strong winds, falling debris, or hazardous roads on their own. The updated Article 3 now explicitly requires employers to ensure adequate commuting support for any employee asked to work.

Mandatory commuting assistance

When employees agree to work during a natural disaster, employers must provide commuting assistance to reduce safety risks and minimise the chance of commuting-related accidents. These measures must be clearly set out in employment contracts, collective agreements, or workplace rules. Examples include employer-arranged transport, shuttle services, or reimbursement of additional travel costs. If an employee needs to take a taxi for safety reasons, the employer must cover the extra expense.

Wage protection and prohibition of adverse actions

If a local government announces work and class suspension, employees are entitled not to report to work. Employers may not treat such absence as:

• absenteeism or tardiness
• personal leave
• grounds for disciplinary action
• justification for termination
• basis for withholding attendance bonuses or other benefits.

These protections remain unchanged and apply broadly. If employees agree to work despite the suspension, the employer’s commuting assistance obligation under Article 3 applies in full.

Compliance expectations for employers

To ensure proper implementation, the MOL has also amended the Work Rules Review Guidelines. Local labour authorities will now require businesses to include commuting assistance provisions in their work rules. Employers that fail to comply may face increased penalties during labour inspections and greater liability for commuting-related injuries.

Shanghai introduces new paid elder-care leave

On 1 November 2025, Shanghai implemented amendments to its Regulation on the Protection of the Rights and Interests of the Elderly, creating a new statutory entitlement to paid elder-care leave. This measure reflects China’s growing focus on family care obligations amid an ageing population.

What is changing?

• Leave entitlement
  Employees are entitled to paid leave when a parent is hospitalised for medical treatment due to illness:
  • Up to five working days per year if the employee has siblings.
  • Up to seven working days per year if the employee is an only child under the former one-child policy.
  • The leave can be taken in one block or split across multiple hospital admissions within the same calendar year.

• Eligibility
  The entitlement applies to employees who are the statutory primary caregiver of an elderly person, typically a parent aged 60 or above. It may also extend to other relatives where the employee has assumed legal caregiving obligations, such as a son- or daughter-in-law or grandchild in certain circumstances.

• Salary protection
  During elder-care leave, employees must receive their full salary, consistent with other family-related statutory leaves.

Compliance and enforcement

Granting this leave is mandatory. Employers who refuse may face claims under PRC labor law, even though the amended regulation does not specify penalties. Practical uncertainties remain, including:

• whether the parent must be hospitalised in Shanghai or hold a Shanghai household registration (hukou).
• what qualifies as ‘hospitalised for medical treatment’ (e.g., overnight stays for tests or non-essential procedures).

Employer considerations

• Update employee handbooks and leave policies to include elder-care leave.
• Define application and approval processes, required documentation, and clarify unresolved issues such as pro-rating for 2025.
• Complete statutory consultation and publication procedures for policy changes.

With 38% of Shanghai’s population aged 60 or above, demand for elder-care leave is expected to grow. Employers should act promptly to ensure compliance and minimise operational disruption.

Supreme Court rules Uber drivers are employees

On 17 November 2025, New Zealand’s Supreme Court issued a landmark decision confirming that Uber drivers are employees, not independent contractors. This ruling ends a long-running dispute that began in 2021 and has major implications for gig economy platforms and businesses using contractor models.

What the court decided

The Court unanimously dismissed Uber’s appeal and held that four drivers were employees while logged into the Uber app. Applying section 6 of the Employment Relations Act 2000, the Court emphasised that the real nature of the relationship, not contractual labels determines employment status. Key factors included:

• Uber’s significant control over drivers through fare-setting, ratings, and disciplinary protocols.
• Drivers being integrated into Uber’s business rather than operating independent enterprises.
• Contracts describing drivers as contractors were considered ‘window dressing’ and did not reflect reality. 

Why this matters

Employee status is the gateway to core rights, including:

• minimum wage and paid leave
• collective bargaining and union representation
• protection against unjustified dismissal.

The decision also raises complex questions for gig platforms, such as:

• how to apply minimum entitlements when workers switch between multiple apps
• what constitutes 'working time' for app-based work
• whether multiple platforms could be jointly liable for the same worker. 

Tax implications

The Court noted potential mismatches between how drivers have historically filed taxes as contractors and how income should be treated now that they are employees. While tax was not directly ruled on, businesses should anticipate compliance reviews. 

Employer considerations

• Review all contractor arrangements, especially those involving digital platforms or gig work.
• Assess exposure to claims for back pay and minimum entitlements.
• Monitor legislative developments, this ruling may influence broader reforms on platform work.

New Employment Leave Act 

The New Zealand Government has announced plans to repeal the Holidays Act 2003 and replace it with a new Employment Leave Act, aiming to simplify leave entitlements and reduce compliance complexity for employers. The proposed changes represent a major shift in how annual and sick leave are calculated and paid.

What is changing?

• Hours-based accrual for annual and sick leave
  Employees will accrue leave from day one of employment, calculated on an hourly basis rather than in weeks or days:
  • annual leave: 0.0769 hours per contracted hour worked, equivalent to four weeks per year for a 40-hour week
  • sick leave: 0.0385 hours per contracted hour worked, capped at 160 hours. Entitlements adjust proportionately for part-time employees.

• Leave compensation for casual employees
  Casual workers will receive an upfront payment of 12.5% per hour worked, replacing the current 8% Pay-As-You-Go system. Additional hours worked beyond contracted hours will also attract a 12.5% payment instead of accruing leave.

• Immediate access to certain leave types
  Family violence and bereavement leave will be available from the first day of employment.

• Parental leave improvements
  Employees returning from parental leave will receive full pay for annual leave, addressing current inequities.

• Greater flexibility and transparency
  • Ability to cash up 25% of annual leave each year.
  • Mandatory pay statements showing clear leave and pay calculations.

Why does this matter?

The current Holidays Act has long been criticised for complexity and compliance challenges. The new framework aims to provide clarity, reduce payroll errors, and better reflect modern working arrangements. 

Transition period

Once enacted, a 24-month transition period will apply to allow employers and payroll providers to adapt systems and processes.

Employer considerations

• Review payroll systems for hours-based accrual capability.
• Update employment agreements and leave policies.
• Prepare for upfront leave compensation for casual and additional hours.

Mumbai mandates registration of internal committees on SHe-Box portal

The District Women and Child Development Officer (Mumbai City) has issued a directive requiring all private establishments with 10 or more employees to register their Internal Committee (IC) details on the SHe-Box portal by 15 May 2025. This move aims to strengthen compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) and improve workplace safety for women. 

What is required?

• Mandatory IC constitution
  Under Section 4 of the POSH Act, every qualifying establishment must constitute an Internal Committee to address sexual harassment complaints. Failure to comply can result in penalties of up to ₹50,000 under Section 26. 

• Registration on SHe-Box portal
  Employers must register IC details on the official portal (shebox.wcd.gov.in) by selecting “Private Head Office Registration”, completing the required fields, and submitting the form online. 

Why this matters

The SHe-Box portal serves as a centralised compliance and complaint management system, enabling women to file harassment complaints online and allowing authorities to monitor IC constitution and compliance across organisations. This initiative enhances transparency and accountability in workplace safety. 

Employer considerations

• Confirm that your Internal Committee is properly constituted and functional.
• Complete registration on the SHe-Box portal before the deadline.
• Update workplace policies and training programs to ensure full POSH compliance.

Non-compliance may attract penalties and increased scrutiny during inspections. Employers are strongly advised to treat this as a priority compliance requirement.

India: labour law overhaul 

On 21 November 2025, India implemented a historic labour law reform by bringing into force four consolidated Labour Codes:

• Code on Wages (2019).
• Code on Social Security (2020).
• Industrial Relations Code (2020).
• Occupational Safety, Health and Working Conditions Code (2020).

These codes replace 29 existing central labour laws, creating a streamlined framework aimed at improving compliance, reducing complexity, and promoting formalisation of employment.

Key changes and implications

• Uniform wage definition: Impacts calculation of PF, gratuity, and bonuses. Employers may need to restructure salary components to remain compliant.
• Universal minimum wage coverage: All employees, regardless of industry or skill level, are entitled to minimum wages and timely payment.
• Social security expansion: Gig workers, platform workers, and those in the unorganised sector are now covered under social security schemes.
• Mandatory appointment letters: Employers must issue formal appointment letters to all employees, enhancing transparency.
• Industrial relations: Stricter norms for layoffs and retrenchment, with higher thresholds for prior government approval.
• Health and safety standards: Enhanced workplace safety requirements, aligning with global best practices.

Why it matters

This reform is expected to boost ease of doing business, encourage investment, and support the government’s vision of Aatmanirbhar Bharat. However, businesses should anticipate operational adjustments, including:

• revisiting wage structures
• updating HR documentation and compliance processes
• preparing for state-level implementation rules.

Action point

Employers should conduct a compliance audit and review employment contracts to ensure alignment with the new codes. Early preparation will mitigate risks and avoid penalties.

Kerala introduces right to disconnect bill for private sector employees

The Kerala government has proposed the Right to Disconnect Bill, 2025, granting private sector employees the legal right to disengage from work-related communications outside prescribed working hours. If enacted, Kerala will become the first Indian state to legislate this right, aligning with global trends seen in France, Belgium, and Australia.

What is changing?

• Right to refuse after-hours communication
  Employees may decline to respond to work-related calls, emails, messages, or video conferences outside official working hours unless they have explicitly agreed to work beyond those hours.

• Protection against retaliation
  Employers cannot penalise employees for exercising this right. Actions such as dismissal, demotion, or withholding benefits are prohibited.

• Grievance redressal mechanism
  The Bill proposes district-level committees to monitor compliance and address complaints, chaired by the regional joint labour commissioner. 

Why does this matter?

The Bill aims to combat the ‘always-on’ culture intensified by remote and hybrid work, reduce burnout, and promote mental well-being. It reflects growing recognition that constant connectivity erodes personal time and impacts health. 

Employer considerations

• review communication protocols and workplace norms
• update employment policies to respect digital disengagement rights
• prepare for compliance frameworks and awareness programs once the Bill is enacted.

Kerala’s initiative marks a significant shift in India’s labour law landscape and could set a precedent for other states.

Karnataka introduces mandatory paid menstrual leave 

The Karnataka Government has issued a landmark order mandating one day of paid menstrual leave per month for women employees aged 18 to 52 years. This progressive measure, effective from 12 November 2025, applies across all sectors, including government offices, IT, manufacturing, and services.

What is changing?

• Leave entitlement
  Women employees are entitled to 12 paid menstrual leave days per year, taken as one day per month.
• Applicability
  The policy covers permanent, contractual, and outsourced workers in establishments registered under laws such as the Factories Act, 1948, and the Karnataka Shops and Commercial Establishments Act, 1961.
• No documentation required
  Employees do not need to provide a medical certificate to avail the leave.
• No carryover
  Unused leave cannot be carried forward to subsequent months.

Why does this matter?

Karnataka is among the first Indian states to formally mandate menstrual leave, signalling a major shift in workplace health and welfare laws. The policy aims to promote women’s health and mental well-being, while reducing stigma around menstruation.

Compliance considerations

• Employers must update leave policies and employee handbooks to reflect the new entitlement.
• HR systems should ensure monthly enforcement and prevent carryover.
• Vendor and contractor agreements may need review, as the policy applies to outsourced staff.

Looking ahead

Officials have indicated that amendments to the Karnataka Maternity Benefit Rules, 1966 and a standalone framework for menstrual leave may follow. Additional notifications are expected to clarify enforcement and penalties for non-compliance

Changes to freelance worker rules in Austria

Starting 1 January 2026, Austria will introduce significant reforms affecting employee-like freelance contractors under amendments to the Austrian Civil Code (ABGB) and the Labour Constitution Act (ArbVG). These changes aim to provide greater legal clarity and protection for freelancers who are economically dependent on a client but not bound by personal instructions.

Who is affected?

The new rules apply to employee-like freelance contractors as defined in Section 4(4) of the General Social Insurance Act (ASVG) those who perform work personally and do not use substantial business resources of their own. Traditional self-employed professionals, ‘new self-employed’ individuals, and tradespeople remain exempt.

What is changing?

• Introduction of statutory notice periods
  For the first time, clear legal requirements for termination will apply:
  • freelance contracts can be ended by either party on the 15th or last day of the month
  • a four-week notice period applies, increasing to six weeks after two years of service
  • the first month may be agreed as a probationary period.

• Collective agreements extended to freelancers
  It will now be possible to conclude collective agreements for freelance workers or apply existing agreements to them, either fully or partially.

• Mandatory service notes (Dienstzettel)
  Freelance contracts must explicitly state notice periods, probationary terms, and any applicable collective agreement provisions.

Why does this matter?

Until now, freelance workers had no statutory protection regarding termination dates or notice periods. These changes bring Austria closer to EU standards on predictable working conditions and will require employers to review and update contracts before the new rules take effect.

Employer considerations

• Audit current freelance arrangements to identify employee-like contractors.
• Update contracts and service notes to include new legal requirements.
• Monitor developments on collective agreements for freelancers.

Wage indexation changes in Belgium

Belgium’s recent budget agreement introduces significant changes to the country’s wage indexation system, which traditionally links salaries to inflation through sector-specific collective labour agreements. These changes aim to reduce labour costs and improve competitiveness but will have long-term implications for employers and employees.

What is changing?

• Partial suspension of automatic indexation
  On 1 January 2026 and 1 January 2028, wages will only be indexed up to €4,000 gross per month. Any salary above this threshold will not receive the automatic inflation adjustment.
• Impact on employers
  Companies benefiting from this measure must transfer 50% of the savings to the state.
• Scope of application
  The €4,000 ceiling applies only to the first 2% of indexation in a year, affecting approximately 40% of Belgian employees.

Why does this matter?

Although the measure applies only twice during the legislative period, it will have a snowball effect on future wage calculations. Subsequent indexations will be based on a lower gross salary, reducing cumulative wage growth over time.

Sector impact

The most affected sector is Joint Committee 200, which covers over 600,000 employees and traditionally applies annual indexation in January. Forecasts suggest an indexation of 2.22% for January 2026, meaning the cap will significantly reduce increases for higher earners.

Employer considerations

• Review payroll systems to apply the €4,000 cap correctly.
• Communicate changes clearly to employees to manage expectations.

Recording working time to become mandatory from 2027

The Belgian federal government has announced that, starting 1 January 2027, all employers will be required to record employees’ working hours. This measure stems from Belgium’s recent budget agreement and aims to align with the EU Working Time Directive and rulings from the Court of Justice of the European Union (CJEU).

What is changing?

• General obligation introduced
  Employers in both the public and private sectors must implement an objective, reliable and flexible system to track working time for all employees.
• Choice of technology
  Employers will have discretion over the method used, digital or paper-based, provided it meets the legal criteria for accuracy and accessibility.
• Current position
  Despite rulings from the CJEU, at present, Belgium does not impose a general obligation to record working time, except in specific cases such as part-time employees with variable schedules or those on “gliding” working time arrangements.

Why does this matter?

This requirement will significantly impact employers who do not currently track working hours. It may add administrative burdens and reduce flexibility under Belgium’s already strict working time rules. Key questions remain, including whether the obligation will apply to employees exempt from standard working time regulations.

Employer considerations

• assess current time-tracking practices and plan for implementation
• choose a system that is objective, reliable and flexible
• monitor legislative developments for detailed compliance requirements.

Registered mail not evidence of delivery 

A recent ruling by the Hamburg Regional Labour Court (LAG) has cast doubt on the reliability of registered mail as proof of delivery in employment-related matters. The case involved an employee dismissed for frequent short-term illnesses after the employer claimed to have sent a company integration management (BEM) invitation by registered mail. The employee denied receiving the letter, and the court sided with the employee.

What the court decided

The LAG held that presenting proof of posting and a reproduction of the delivery receipt does not constitute prima facie evidence of receipt. The current postal scanning process does not confirm the recipient’s address or exact delivery time and leaves delivery options (e.g., letterbox or authorised recipient) unchecked. This lack of certainty means the sender bears the risk of non-delivery.

Why this matters

Employers often rely on registered mail for critical communications such as termination notices, warnings, or compliance invitations. This ruling highlights that registered mail alone may not meet evidentiary standards in dismissal disputes, potentially rendering terminations invalid.

Employer considerations

• Avoid relying solely on registered mail for important employment documents.
• Consider alternative delivery methods, such as personal service with documented proof or courier messenger delivery, which courts recognise as more reliable.
• Update HR policies and procedures to reflect this change in legal risk.

The decision underscores the need for employers to reassess document delivery practices to ensure enforceability and compliance.

Tax Amendment Act 2025

The Federal Cabinet has endorsed the draft of the Tax Amendment Act 2025. Approval by both the Bundestag and Bundesrat is expected before the winter parliamentary recess in December, allowing the new provisions to take effect on 1 January 2026. The draft outlines several key adjustments:

• Travel allowance: The flat-rate deduction for commuting expenses will rise to €0.38 per kilometre, replacing the current €0.30/km. From the 21st kilometre onwards, the rate will also be €0.38/km.
• Mobility bonus: For individuals with low incomes, the mobility bonus will become a permanent measure. Since many in this group do not pay income tax, they may apply for reimbursement starting from the 21st kilometre.
• Expense allowances: Tax and social-security-free allowances will increase to €3,300 annually for trainers and €960 for volunteers. Both allowances can be claimed simultaneously, provided they support charitable, non-profit, or church-related activities from 2026 onward.
• VAT on food services: The value-added tax on food provided by restaurants, catering services, and similar outlets will be reduced from 19% back to 7% as of January 2026. The VAT on beverages will remain at 19%.

Supreme Court clarifies application of multiple collective agreements for employers with diverse activities

The Italian Supreme Court has ruled that employers operating in multiple business sectors must apply the sector-specific collective bargaining agreement (CCNL) relevant to each activity, rather than relying solely on individual employment contracts.

What happened?

The case involved a company active in both the gas-water sector and waste management. Employees requested the application of the waste management CCNL instead of the gas-water CCNL specified in their contracts. While lower courts upheld the contractual terms, the Supreme Court overturned these decisions.

Key principles established

• Collective agreements prevail over individual contracts
  The Court confirmed that the effectiveness of a CCNL derives from associational membership and the actual nature of the work performed, not just the wording of individual agreements.

• Equal treatment and fair pay
  Employers cannot use contractual clauses to circumvent obligations under the CCNL applicable to the sector in which employees work. This ensures compliance with Article 36 of the Italian Constitution, which guarantees proportional and fair remuneration.

• Multiple activities require multiple CCNLs
  When a company operates across different sectors and is registered with relevant employer associations, it must apply the CCNL corresponding to each specific activity.

Why does this matter?

The ruling prevents arbitrary selection of CCNLs and reinforces the principle that sectoral agreements govern employment conditions, including pay scales, working hours, and benefits.

Employer considerations

• Review operations to identify all applicable CCNLs.
• Align employment contracts and payroll practices with sector-specific agreements.
• Ensure compliance to avoid disputes and potential litigation.

This decision underscores the importance of correctly applying collective agreements in Italy’s complex industrial relations framework.

State labour inspection targets civil law contracts

The Polish government has published a new version of its controversial draft law that significantly extends the powers of the State Labour Inspection. The changes, scheduled to take effect on 1 January 2026, will allow labour inspectors to reclassify civil law contracts as employment contracts, both prospectively and retroactively for up to three years.

What is changing?

• Reclassification authority
  District labour inspectors will be able to issue administrative decisions converting civil law contracts into employment contracts. This applies where the nature of the work meets the criteria for employment under the Labour Code.
• Retroactive effect
  Inspectors can determine the existence of an employment relationship for a period of up to three years prior to the start of proceedings, aligning with the limitation period for employment-related claims.
• Immediate enforceability
  Decisions will generally take effect immediately upon delivery to the employer, even if appealed. However, the Chief Labour Inspector or a court may suspend enforceability if enforcement could cause significant and irreversible consequences.
• Appeal process
  Employers will have 14 days to appeal. If a decision is revoked, the employment relationship is deemed to have existed only from the date of delivery until revocation.

Why does this matter?

The law aims to curb misuse of civil law contracts and strengthen worker protections, fulfilling commitments under Poland’s National Recovery and Resilience Plan. However, it raises concerns about legal certainty and the administrative burden on employers.

Employer considerations

• Review all civil law contracts, including B2B and service agreements, to assess compliance.
• Prepare for potential reclassification risks and associated costs.
• Update internal processes to respond quickly to inspection decisions and appeals.

New statutory right to winter allowance

Slovenia has enacted the Winter Allowance Act, creating a new mandatory benefit for employees. The law requires employers to pay a winter allowance equal to 50% of the statutory minimum wage by 18 December each year, starting in 2025. This measure aims to improve employee well-being and provide additional financial support during the winter season.

Who is entitled?

All employees with an employment contract are eligible, including those whose employment ends during the year. The allowance is calculated on a pro rata basis for part-time employees or those employed for less than a full year.

Amount and payment deadline

• The allowance equals 50% of the minimum wage (currently €638.86 gross).
• Payment must be made no later than 18 days after the November payroll period, therefore by 18 December.
• In exceptional cases, employers facing liquidity issues may defer payment until 31 March of the following year, if allowed by a sector-level collective agreement.

Tax treatment

The winter allowance enjoys favourable tax treatment, as amounts up to half the minimum wage are exempt from income tax and social contributions. Any excess is treated as a performance bonus and taxed accordingly.

Employer obligations

• Update payroll systems to include the winter allowance.
• Communicate the entitlement clearly to employees.
• Ensure compliance with deadlines to avoid penalties.

This new requirement will significantly impact year-end payroll planning, and employers should prepare early to meet their obligations

Rate increases announced, effective April 2026

The UK Government has confirmed new rates for the National Minimum Wage (NMW) and other statutory payments, following recommendations from the Low Pay Commission. These changes will take effect from 1 April 2026, and employers should start planning now.

National minimum wage updates

• National Living Wage (21 and over): £12.71 (up from £12.21) – a 4.1% increase.
• 18–20 year olds: £10.85 (up from £10.00).
• 16–17 year olds: £8.00 (up from £7.55).
• Apprentices: £8.00 (up from £7.55).
• Accommodation offset: £11.10 (up from £10.66).

For a full-time worker on the National Living Wage (37.5 hours/week), this means an annual increase of approximately £977.

Statutory sick pay

• Increasing to £123.25 per week (up from £118.75).
• The proposed Employment Rights Bill may also remove the current waiting period.

Family-friendly statutory payments

Weekly rates for maternity, paternity, adoption, shared parental, neonatal care, and parental bereavement pay will rise to £194.32 (up from £187.18).

Government abandons day 1 unfair dismissal rights

The UK Government has abandoned its earlier plan to grant employees unfair dismissal protection from day one. Instead, the qualifying period will be reduced from two years to six months, following extensive debate and stakeholder engagement.

Key changes

• Six-month qualifying period
  Rather than a day 1 right, employees will gain the right to claim ordinary unfair dismissal after six months of continuous service (instead of the current two years). This provides employers with a limited window to assess new hires without facing unfair dismissal claims.
• Compensation cap to be lifted
  The Government has pledged to remove or increase the current cap on unfair dismissal compensation (currently the lower of £118,223 or one year’s pay). Details remain unclear, but this could significantly raise potential liability for employers.
• Dropped proposals
  The previously suggested statutory probationary period, which would have allowed a ‘lighter touch’ dismissal regime for up to nine months, has been scrapped. Instead, the six-month rule creates a clear threshold for protection.

Why the change?

The original day-one rights proposal raised concerns about recruitment risk and tribunal overload. The compromise aims to balance worker protection with business flexibility, while avoiding a surge in employment litigation.

Implications for employers

• Review probation policies: Standard probation periods of three to six months will need careful management to avoid crossing the six-month threshold without proper assessment.
• Prepare for higher compensation risk: Budget for potential increases in dismissal-related costs.
• Monitor implementation timeline: It is unclear whether the original 2027 implementation date will apply or if changes will come sooner.

Government doubles ACAS early conciliation period

The UK Employment Tribunals are facing a massive backlog in employment claims. In order to alleviate some of this pressure the maximum period for ACAS Early Conciliation will increase from six weeks to twelve weeks, under the Employment Tribunals (Early Conciliation: Exemptions and Rules of Procedure) (Amendment) Regulations 2025.  The change is effective from 1 December 2025.

What is changing?

• Extended conciliation window
  Parties will now have up to 12 weeks to explore a settlement before a claim can proceed to the Employment Tribunal. Either party can still end the conciliation early, and ACAS will issue a certificate if settlement is not possible.
• Impact on limitation periods
  The conciliation period 'stops the clock' on the usual time limit for bringing a claim. Combined with the Government’s plan to extend tribunal claim deadlines from three months to six months, employers may remain unaware of potential claims for nine months or more.

Why does this matter?

The extension aims to give ACAS more time to allocate conciliators and manage workloads, improving the chances of early resolution. However, it also prolongs uncertainty for employers and may increase risk exposure.

Employer considerations

• Treat the extra time as an opportunity to strengthen internal processes, not delay action.
• Review HR and legal strategies for managing potential claims.
• Ensure clear ownership for handling conciliation and settlement discussions.

The Government will review the effectiveness of the 12-week period in October 2026 to decide whether it should remain or revert to a shorter timeframe

Company Directors Must Verify Identity or Risk Losing Role

Effective 18 November 2025, UK company directors and individuals with significant control (PSCs) were subject to a new legal requirement: they now must verify their identity or risk losing their role within the company.

This change was part of the UK government’s broader efforts to improve corporate transparency and combat economic crime. The new identity verification rules were expected to apply to approximately 6 to 7 million individuals.

Key requirements:

• New directors must verify their identity immediately upon appointment.
• Existing directors will need to complete verification when submitting their next confirmation statement.
• Persons with Significant Control (PSCs) must verify their identity according to specific timelines based on their registration details.

Failure to comply with these requirements may result in serious consequences, including removal from official company roles and restrictions on filing company documents.

Increase in the number of work-from-home or telework days for certain categories of employees

Under Law 149/2025, published in the Official Gazette on October 9, 2025, employees who are responsible for minor children with disabilities are entitled to eight days each month of remote work or teleworking.

For those with two or more dependent children with disabilities, the entitlement increases: beyond the standard eight days, an extra two days per child are granted monthly.

Where employees care for multiple disabled minors, or for twins, triplets, or other multiple births, they may receive two additional remote work days per child each month. These are added to the eight days (or four days, depending on the situation) already provided by law.

Additionally, employees with children under the age of 11 may request up to four days per month of telework or work from home.

To access these benefits, the employee must submit a written application along with a declaration from the other parent or legal guardian confirming that they have not requested overlapping telework days.

In cases involving disabled children, the application must also include the official disability classification certificate.

Employers are required to approve these requests only if the employee’s role and responsibilities can reasonably be performed remotely.

New licensing system for employment agencies

On 11 November 2025, the Dutch Senate approved the Admission for Allocation of Workers Act, introducing a mandatory licensing system for companies that post workers to hirer businesses. The law amends the Workers Allocation by Intermediaries Act and will take effect on 1 January 2027, with licensing becoming compulsory from 1 January 2028.

What is changing?

• License requirement
  Companies posting workers under the supervision of another business, including staffing agencies, payrolling companies (Employer of Record), and similar service providers must obtain a license from the Minister of Social Affairs and Employment before posting workers. Hirer companies can only source workers from licensed providers, verified via a public register.
• License validity and conditions
  Licenses will be valid for four years. To obtain one, companies must:
• submit a Certificate of Conduct (Verklaring omtrent gedrag)
• pay a €100,000 deposit
• demonstrate compliance with employment laws, including minimum wage, tax obligations, right-to-work checks, and equal pay for posted workers.
• Exemptions
  Companies posting workers only to a very limited extent may apply for an exemption if:
• wages have been paid for at least 12 months
• fees for posted workers represent less than 10% of turnover
• fees do not exceed €5 million
• certain industries, currently limited to private security, may also be exempt.

Compliance and enforcement

The Netherlands Labour Authority will monitor compliance and enforce the licensing requirement. Companies must regularly confirm compliance through inspection reports from private institutions. Failure to comply or violations of employment laws can lead to suspension or revocation of the license, with decisions subject to administrative appeal.

Employer considerations

• Review current staffing and payrolling arrangements.
• Prepare for licensing requirements and associated costs.
• Monitor further guidance on exemptions and enforcement procedures.

Agency worker pay changes effective 1 January 2026

Starting 1 January 2026, temporary employment agencies applying the ABU Collective Labour Agreement (CLA) must provide agency workers with an equivalent package of employment conditions to those of employees directly employed by the hirer in similar roles. This marks a significant shift from the current system, which only requires matching certain pay components.

Key changes under the new ABU CLA

• Essential terms of employment
  Agency workers must receive terms equivalent to those of comparable permanent employees for:
• wages and allowances
• working hours (including overtime)
• rest periods and breaks
• night work
• holiday duration and public holiday arrangements.
• Non-essential terms of employment
  All other employment conditions (beyond the essentials) must also be equivalent in total value to those offered to the hirer’s own employees.
• Compliance tests
• The combined package of essential and non-essential conditions must be equivalent overall.
• Employers cannot offset a shortfall in essential conditions with non-essential benefits (though the reverse is allowed).
• Joint liability
  Both the temporary employment agency and the hirer are jointly and severally liable for compliance, increasing risk for businesses using agency workers.

Implications for employers

• Comprehensive review required: Agencies and hirers must audit employment terms and adjust contracts before January 2026.
• Cost impact: Aligning benefits and allowances may increase labour costs.
• Operational changes: HR and payroll systems need updates to ensure compliance.

Action steps

• Conduct a full compliance check of agency worker arrangements.
• Update agreements with agencies and review liability clauses.
• Prepare for employee communications and budgeting adjustments.

This reform aims to reduce inequality between agency and permanent workers and will significantly impact staffing strategies

European Commission confirms UK adequacy status for data transfers

The European Commission has completed its review of the UK’s data protection framework and confirmed that it continues to provide safeguards essentially equivalent to those offered under EU law. This decision follows an assessment of the UK Data Use and Access Act (DUAA) alongside the UK GDPR and the Data Protection Act 2018.

What is changing?

• Renewal of adequacy status
  On 22 July 2025, the Commission launched the procedure to adopt a new adequacy decision, ensuring the free flow of personal data between the European Economic Area (EEA) and the UK without additional transfer safeguards.
• Legal certainty for businesses
  The renewed adequacy decision provides a stable framework for cross-border data transfers, supporting digital trade, research, and cooperation in law enforcement.

Why does this matter?

Data flows between the EU and UK are critical for commerce and public services. By reaffirming adequacy, the Commission signals its commitment to privacy and partnership with the UK while maintaining rigorous standards.

Next steps

The draft decision will undergo:

• review by a committee of Member State representatives
• scrutiny by the European Parliament
• once adopted, the decision will provide long-term certainty for organisations transferring personal data into the UK.

Employer considerations

• Ensure compliance with both EU and UK data protection requirements.
• Review cross-border data transfer policies and vendor agreements.
• Monitor developments on the adoption timeline and any conditions attached to the adequacy decision.

Employers set to benefit from proposed changes to the EU AI Act

The European Commission has announced significant proposed amendments to the EU Artificial Intelligence Act (AI Act), aimed at easing compliance burdens and addressing implementation challenges. These changes could have a major impact on employers using AI in recruitment, workforce management, and HR processes.

What is changing?

• Deferral of high-risk provisions
  Enforcement of rules for ‘high-risk’ AI systems—such as those used in employment and worker management, will be postponed until 2 December 2027, or 2 August 2028 for certain systems under EU harmonisation legislation. This gives employers more time to prepare.
• Shift in AI literacy obligations
  Responsibility for promoting AI literacy will move from employers and AI providers to the European Commission and Member States, reducing compliance pressure on businesses.
• Use of sensitive data for bias detection
  Employers will be allowed to process special category personal data (e.g., ethnicity, gender) for bias detection and mitigation, provided strict safeguards are in place. Before using such data, alternatives like synthetic data must be considered and ruled out.
• Simplified compliance for SMEs
  Quality management requirements will be streamlined for small and medium-sized enterprises, including start-ups, to encourage innovation.
• Regulatory sandboxes
  The Commission will facilitate EU-wide regulatory sandboxes, giving priority access to small businesses to test AI systems in a controlled environment.
• Removal of certain registration obligations
  Providers who classify AI systems as not high-risk under Annex III will no longer need to register them, reducing administrative overhead.

Why does this matter?

These changes aim to balance innovation with accountability, making it easier for employers to adopt AI responsibly while reducing compliance complexity. However, the proposals still need approval from the European Parliament and Council, and further amendments are expected.

Employer considerations

• Review current and planned AI use cases in HR and workforce management.
• Prepare for future compliance by documenting bias mitigation strategies.
• Monitor legislative developments and timelines for enforcement.