Global Employment Law Changes in 2025
A look at the key global employment law changes in 2025, legislative updates and what employers need to know.
2025 is a year of significant change for employment legislation across the globe. Countries are introducing impactful updates to their labour laws, shaping the way businesses operate and how employees are treated.
For employers and HR professionals, staying informed about these developments is critical not only to ensure compliance but also to build inclusive, forward-thinking workplaces that avoid costly penalties.
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Below, We’ve summarised the key updates to global employment law for 2025.
Australia
Australia’s three-year plan to enhance parental leave pay continues in 2025. From 1 July, the entitlement will extend by an additional two weeks, reaching 24 weeks in total. By 2026, this will further increase to 26 weeks.
Additionally, from January 2025, intentional wage theft, including unpaid superannuation, will become a criminal offense, with penalties of up to 10 years in prison.
Starting July 2025, the government will introduce a superannuation contribution of 12% on Paid Parental Leave payments. This initiative aims to support retirement savings for parents taking leave.
Starting July 2025, the government will introduce a superannuation contribution of 12% on Paid Parental Leave payments. This initiative aims to support retirement savings for parents taking leave.
This initiative supports working parents and promotes work-life balance. Employers should update parental leave policies to reflect these changes and ensure employees are informed about their entitlements. Demonstrating support for employees during significant life events can strengthen workplace morale and loyalty.
Austria
Austria has expanded its statutory home office provisions from 1 January 2025. The updated rules now include teleworking arrangements in locations such as coworking spaces or cafés, ensuring employees enjoy the same legal protections as those working from traditional home offices.
Employers must review and revise policies to address these scenarios, ensuring coverage for work-related expenses, data security, and employee wellbeing in non-traditional work settings.
Bulgaria
From 1 June 2025, Bulgaria will replace traditional employee work books with electronic employment records stored in a national digital employment register.
Employers must prepare for this shift by training HR teams, ensuring employment data is accurately uploaded, and implementing processes for managing digital records.
Canada
Canada is rolling out updates in 2025 for workers in federally regulated sectors. These include limits on after-hours work communication, enhanced termination and severance rights, and new protections for gig workers.
Effective June 20, 2025, the use of replacement workers during strikes or lockouts in federally regulated workplaces will be prohibited. This measure is designed to support fair labor negotiations and uphold workers’ rights during industrial actions.
Employers operating in these sectors should revisit their policies and introduce measures to comply with these changes, which prioritise employee work-life balance and fair treatment.
Starting July 1, 2025, employers in Ontario with 25 or more employees must provide written details on pay, work location, and hours before or as soon as possible after a new employee’s first day. This requirement aims to enhance transparency in employment terms and ensure workers are informed about key job details from the outset.
Ontario’s Digital Platform Workers’ Rights Act (DPWRA) will also take effect on July 1, 2025, granting new protections to gig workers in ride-sharing, delivery, and courier services. Digital platform operators must comply with fair pay and working conditions, and compliance officers will have the authority to inspect records and enforce penalties for violations. The law is designed to address concerns about gig worker rights and improve working conditions in the sector.
Bill 229 of the Ontario province, also known as the Working for Workers Six Act, 2024, introduces unpaid Child Placement Leave and Long-Term Illness Leave, with the latter becoming effective on June 19, 2025. Additionally, the bill strengthens workplace safety laws by setting a minimum corporate fine of $500,000 for serious offenses leading to worker injury or death. It also expands occupational disease coverage under the Workplace Safety and Insurance Act (WSIA) for firefighters, ensuring better protection for those in high-risk professions.
Another key legislative change, Ontario’s Bill 190 (Working for Workers Five Act, 2024), mandates that construction site employers maintain clean and sanitary washroom facilities and keep maintenance records. These amendments, aimed at improving working conditions on job sites, will come into force on July 1, 2025.
Chile
Effective 1 February 2025, Chile implemented stricter workplace safety regulations under Decree No. 44. This decree introduces a proactive approach to occupational risk management, requiring employers to eliminate or control risks. Employers must implement risk matrices, preventive work programs, and management plans.
The decree emphasizes informing, educating, and training employees on occupational safety to ensure awareness at all levels. It also mandates a gender perspective in risk management, recognizing that occupational risks may differ based on gender and requiring tailored preventive measures.
Employee participation in risk prevention is a key innovation, increasing employer responsibilities for workplace safety and necessitating updates to internal regulations. Non-compliance could result in penalties and harm employee welfare.
China
From 1 January 2025, China has initiated a gradual increase in the statutory retirement age. For male employees, the current retirement age of 60 will rise incrementally by one month every four months until it reaches 63. Similarly, for female employees, the retirement age will increase from 55 to 58 using the same schedule.
Additionally, pension reforms are underway, requiring employees to meet a longer contribution period to qualify for monthly pension benefits by 2030. These changes aim to address labour shortages and the challenges posed by an ageing population. Employers should assess workforce strategies, retirement planning, and succession plans to adapt to these reforms.
China has also introduced two additional statutory holidays in 2025. The total number of statutory holidays now stands at 13 with 1 additional day each for Lunar New Year’s Eve (Spring Festival Holiday) and 2 May (Labour Day Holiday). This change will affect the calculation of average monthly working days, potentially leading to more overtime pay obligations for companies that use a comprehensive working hours system.
Czech Republic
A draft amendment to the Labor Code, expected in the first half of 2025, aims to enhance employment flexibility and address labor market needs.
Key changes include extending the maximum probationary period from three to four months (six to eight months for managerial employees) with an option for further extension, and reducing the notice period to one month for terminations due to poor performance or legal breaches.
Employees returning from parental leave before their child turns two will be guaranteed their previous position, and they may now take on additional work with the same employer during leave. Minors aged 14 and over will be allowed to perform light work during summer holidays under specific conditions. Other updates include new regulations on wage payments in foreign currency, electronic wage slips, and compensation for work-related injuries or diseases.
Denmark
Denmark’s Act on Accommodation of Employees takes effect from 1 July 2025, setting minimum living standards for employer-provided housing. Requirements include proper sanitation, heating, and sufficient living space.
This law particularly impacts industries employing seasonal or migrant workers. Employers must re-evaluate existing housing arrangements to ensure compliance and create safe, healthy living environments for their employees.
Finland
From 1 January 2025, Finland has broadened the scope of local collective bargaining agreements, empowering companies to establish agreements at the organisation level rather than relying solely on national employer and employee associations.
As a result of the reform, local bargaining will be possible regardless of whether the company belongs to an employer association or has a shop steward.
This shift offers employers greater flexibility to craft solutions specific to their industry or workforce, such as innovative working arrangements or productivity-focused measures. However, it is crucial to ensure that these agreements align with Finnish labour laws and safeguard employee rights. Engaging employees in meaningful discussions before implementing such agreements is highly recommended.
The Government has also proposed to amend the Aliens Act and is now in the handling of Parliament.
It is proposed that as of 1 April 2025, employees in Finland on a work-based residence permit will have three months to find new employment if their job ends; otherwise, they must leave the country unless granted a new residence permit.
Specialists, top and middle management, internally posted specialists, and employees with over two years of residency will have six months to secure a new job. Employers must inform the Immigration Office of terminated employment.
If approved, the proposal will also allow employees to switch sectors, provided the new sector is classified as a labor shortage sector in Finland.
France
Starting 1 January 2025, certain companies in France must consult their Social and Economic Committee (CSE) on sustainability information in their management reports, covering environmental, social, and governance (ESG) aspects.?
The Economic, Social, and Environmental Database (BDESE) will also be updated to include this information, replacing the non-financial performance declaration (DPEF).
The obligation applies to large companies, parent companies of large groups, and listed SMEs, with a phased implementation: large companies exceeding certain employee & revenue limits in 2025, additional large companies not meeting the earlier employee & revenue limits in 2026, and listed SMEs in 2027 (with a possible two-year deferral).
This reform aims to improve corporate transparency and CSE involvement in sustainability matters.
Germany
From 1 January 2025, companies can now provide proof of employment terms digitally, eliminating the requirement for physical copies. This simplifies administration but doesn’t apply to industries prone to illegal employment, like construction and cleaning.
Germany has also introduced legislation effective from 1 March 2025 that strengthens employee data protection rights. Employers are now required to conduct regular data protection impact assessments and appoint a data protection officer if they have more than 20 employees handling personal data. Compliance with these regulations is essential to avoid significant penalties.
Israel
Starting January 1, 2025, updates to the Income Tax Rules allow equity plans to be approved by the Israel Tax Authority through a newly introduced online platform. As part of this revised process, a new questionnaire has also been implemented. Approval is necessary only if the plan involves a trust under Section 102 of the Israel Income Tax Ordinance.
The amended rules will also reinstate quarterly and annual reporting requirements. Quarterly reports must be filed within 120 days after the end of each quarter and generally include details on equity grant terms. Annual reports are due by April 30 for the previous tax year and typically cover grant vesting, exercise, and transfer information.
The Israel Tax Authority is expected to issue further guidance on the format and content of these reports, which must be submitted online.
Italy
Italy’s new employment law, effective 12 January 2025, introduces changes to termination rules, probation periods, remote work reporting, and contract flexibility.
Employees absent without justification beyond the collective bargaining agreement period (or 15 consecutive days if none apply) will face automatic termination, considered a voluntary resignation, making them ineligible for unemployment benefits. Employers must notify the labor inspectorate, except in cases of force majeure.
Temporary workers on open-ended contracts through staffing agencies cannot be assigned to a company for more than 24 months. Fixed-term contracts over 12 months remain allowed until 31 December 2025, but without justification, they convert into open-ended contracts.
The probationary period for fixed-term contracts is one day per 15 days worked, with limits of 2–15 days for contracts under six months and 2–30 days for longer contracts. A new hybrid work model allows employees to work part-time while offering independent contractor services, benefiting from a EUR 85,000 tax cap.
Employers must report remote workers to the Ministry of Labour within five days.
Settlement agreements can now be ratified remotely through digital platforms. Fixed-term contract regulations have been extended until 31 December 2025, allowing employers and employees to justify contracts exceeding 12 months for business, technical, or production reasons. Without a valid justification, these contracts may be converted into open-ended agreements.
Japan
Japan’s workstyle reform laws continue to address overwork, with stricter overtime limits taking effect in 2025. These laws also encourage employees to utilise their paid leave entitlements, promoting a healthier work-life balance.
Starting in April 2025, the Tokyo Metropolitan Government will implement a four-day workweek for its employees. This initiative aims to provide greater flexibility, particularly for women balancing career and family responsibilities, and to encourage higher birth rates. The plan includes adjustments to existing flextime systems, allowing employees to take three days off each week.
From April 1, 2025, amendments to Japan’s Act on Childcare and Caregiver Leave will take effect, with additional provisions from October 1, 2025. These changes promote work-life balance by expanding flexible work arrangements, requiring public disclosure of childcare leave usage, and enhancing caregiving support for employees. Employers must offer adaptable work options based on a child’s age and strengthen support systems for working caregivers.
Employers in Japan should implement robust tracking systems to monitor work hours and cultivate a culture that values employee wellbeing.
Netherlands
In 2025, the minimum hourly wage in the Netherlands has increased, along with adjustments to maximum working hours to improve worker health and wellbeing.
Flexible work laws have also tightened in 2025, requiring employers to provide stronger justifications when rejecting remote or flexible work requests. The focus will be on mutual consultation to find reasonable solutions.
Employers with over 100 employees must now report on work-related travel and commute emissions as part of Dutch ESG legislation, with the first report due by 30 June 2025.
The proposed Confidential Advisors Act, pending approval, would mandate employers to appoint advisors for workplace harassment and discrimination issues.
Starting January 1, 2025, the Dutch Tax and Customs Administration began auditing self-employed individuals to identify potential fictitious employment relationships. The current enforcement moratorium will end, increasing compliance risks for companies and freelancers.
To avoid classification as “disguised employment” [verkapt dienstverband], contracts with freelancers must have clear start and end dates, be project-based, and not resemble standard employment arrangements to prevent legal and financial consequences.
Norway
Norway’s 2025 budget proposal includes key labor-related updates. The employer tax surcharge on wages above NOK 850,000 is proposed to be removed from January 1, 2025, easing business costs.
NOK 20 million shall be allocated to combat labor exploitation, with NOK 18 million strengthening the Labor Inspection Authority’s monitoring efforts.
To boost workforce participation, the government will invest NOK 468 million in labor market programs and introduce flexible rules to support employment for individuals with disabilities.
Saudi Arabia
Saudi Arabia is increasing Saudisation rates for four health professions in the private sector: radiology (65%), medical laboratories (70%), therapeutic nutrition (80%), and physiotherapy (80%). Implementation will occur in two phases: major cities and large facilities from 17 April 2025, and all facilities nationwide from 17 October 2025. The Ministry of Health will oversee compliance.
The Ministry of Human Resources and Social Development (MHRSD) has also updated regulations for temporary work visas and Hajj and Umrah services to enhance flexibility for the private sector. Changes include expanded eligibility, extended grace periods, revised procedures, and stricter compliance measures. These amendments take effect on 10 May 2025.
Singapore
Singapore’s Platform Workers Act, in effect since 1 January 2025, will create a distinct labor category for ride-hailing and delivery workers, strengthening their protections.
The Act mandates Central Provident Fund contributions from both platform operators and workers, provides financial compensation for work-related injuries, and establishes a legal framework for worker representation.
This legislation aims to enhance job security and social benefits for platform workers in Singapore.
Slovakia
Slovakia’s minimum wage will automatically increase to 60% of the average monthly wage starting in 2026 if no agreement is reached between employer and employee representatives by the end of 2025. This replaces the current threshold of 57% and aligns with the EU Directive on adequate minimum wages.
From January 2025, employers with more than 49 employees must provide a mandatory child’s sports activity allowance, covering 55% of eligible expenses, capped at €275 per year. This allowance remains voluntary for smaller employers and is exempt from personal income tax.
Changes to business trip compensation took effect in January 2025, adjusting reimbursement rules for travel expenses, including those related to electric vehicles and private cars used for business travel. Updates to meal and vehicle compensation rates will be published in the Collection of Acts.
From January 2025, Slovakia reinstated the binding force of representative collective agreements, extending their coverage to all companies and employees within the same economic sector. Compensation for intermediaries and arbiters involved in collective bargaining will also increase.
A new financial transaction tax will be introduced in April 2025, applying a 0.4% tax (capped at €40) on wire transfers, including salary payments, while cash withdrawals will be taxed at 0.8% with no cap. Payments for tax, social security, and health insurance will be exempt. This tax applies to companies, branches of foreign companies, and individual entrepreneurs.
Sweden
From 1 January 2025, a new structure for the statutes issued by the Swedish Work Environment Authority has come into effect. This revision simplifies existing regulations while maintaining the same level of protection and employer obligations. The goal is to make workplace safety rules clearer and more manageable. Additionally, for builders, designers, and building work environment coordinators, new rules have been introduced to clarify responsibilities and tasks in managing workplace safety.
On 1 October 2025, a new Unemployment Insurance Act will take effect, shifting the qualification criteria for benefits from hours worked to income earned. This change is expected to allow more individuals to qualify for unemployment benefits. Another key update is that membership length in an unemployment insurance fund (A-kassa) will now impact benefit levels, introducing a new intermediate compensation tier for those who have been members for at least six but less than 12 months.
Additionally, in 2025, approximately 500 central-level collective bargaining agreements covering 3.4 million employees will be renegotiated, primarily in March and April. These agreements may introduce new regulations on wages and employment conditions, requiring employer compliance.
Switzerland
The Federal Act on Gender Equality (GEA) mandates that employers with 100 or more employees conduct internal wage equality analyses every four years. The initial analysis was required by June 30, 2021, with subsequent analyses due every four years thereafter. This means the next analysis is due by June 30, 2025.
Employers must have these analyses reviewed by an external body and communicate the results to their employees. These measures aim to identify and address gender pay gaps proactively.
United Kingdom
The UK continues its phased implementation of the Employment Rights Bill, with significant provisions coming into effect in 2025 and 2026. Changes include expanded flexible working rights, extended family leave, and enhanced protections against workplace harassment.
The two-year qualifying period for employees to file an unfair dismissal claim will be abolished, granting employees protection from unfair dismissal from their first day of employment.
However, employers will retain the ability to dismiss employees more easily during or at the conclusion of a probationary period, as long as they follow specific procedural requirements.
The maximum duration of probationary periods is still under review, with the Government initially proposing a limit of nine months. While this change is expected to take effect in Autumn 2026, employers should begin preparations in 2025 to ensure compliance.
Tribunals will now have the power to increase or decrease compensation by 25% in unfair dismissal cases where employers fail to follow dismissal guidelines.
Here’s our recent article covering all the UK Employment Legislation Changes 2025.
United States of America
Several US states are implementing new labour laws in 2025. These include minimum wage increases, expanded paid family leave, and tougher workplace harassment regulations.
A federal court has blocked a planned increase in the minimum salary for white-collar exemptions under the Fair Labor Standards Act. The ruling prevents the increase from $684 to $844 per week in July 2024 and from $844 to $1,128 per week in January 2025 that were set to happen.
Employers must stay informed about state-specific updates and take proactive steps to comply with local requirements.
How Beyond Borders HR can help you
Staying compliant with evolving employment laws is challenging especially for organisations operating across multiple jurisdictions. Beyond Borders HR provides expert support to help your organisation adapt effectively and meet these requirements.
Here’s how we can assist you:
Need help with employment legislation in a specific country?
Get in touch with Beyond Borders HR today to ensure your organisation is ready for the changes 2025 brings.