Government responses to continuing economic uncertainty fall into three main themes:
- Making it harder for employers to dismiss employees. Some governments are imposing lengthy new procedures employers have to follow.
- Encouraging employers to use permanent instead of temporary contracts. Hiring staff on flexible contracts is becoming harder.
- Promoting economic growth by improving productivity. Working hours and non-competes are in the spotlight.
Employers and employees are still adjusting to the post-pandemic workplace. Hybrid-working has become the norm in many regions and employee demand for flexibility remains high. This is having a knock-on impact on rights to time off, which many governments are expanding to cover a wider range of caring responsibilities.
Meanwhile, whistleblowing was a focus in 2023, with many EU governments introducing or amending their legislation to reflect the Whistleblowing Directive. The social aspects of environmental, social and governance are a priority, with a particular emphasis on pay transparency laws. Meanwhile, we are beginning to see attempts to regulate employers’ use of AI in the employment context, although this is not yet a universal trend.
Making it harder to dismiss employees
Laws on dismissals range from employer friendly to employee friendly depending on where in the world you operate. Rules and procedures apply, and of course, these vary by country and are becoming more onerous in some regions. Beware, simple mistakes can prove costly and time-consuming.
Encouraging permanent employment
Hiring on fixed-term contracts is becoming harder in certain countries, and restrictions limit their use to specific situations. Employers using workarounds, such as ending contracts early, may be at risk of court challenges.
Protecting gig economy and vulnerable workers
Employee status remains a developing area. Most countries distinguish between employees, contractors and other workers. The gig economy, zero-hours contracts and disguised employment structures are under close watch in most regions.
Boosting productivity
Trials to cut working hours – some to four-day weeks – and measures to regulate non-competes aim to improve productivity. Some countries are suggesting limits on the length of non-competes to curb their use. A number of U.S. states even ban them outright.
Hybrid and remote working
Flexible working, including hybrid and remote, is becoming more popular. In certain countries employees have a right to ask for flexible working. In turn, employers must consider these requests case by case.
Balancing work and family life
New forms of leave that take account of parental rights and carers’ responsibilities are on the rise. Examples include time off for birth and adoptive parents and periods of leave to handle the affairs of certain dependants. There’s a trend for more types of leave to be paid.
Whistleblowing
Employers in the EU with 50 or more workers must have in place whistleblowing policies and procedures, and it’s common for companies to apply their policies on a global basis. Companies that don’t comply are at risk of fines in various countries. Attempts to block whistleblower reports also attract penalties.
ESG/diversity
Reporting requirements on the gender pay gap and other measures of equality, such as numbers of male and female employees, are inconsistent across countries. Thresholds for compulsory reporting vary too. In some cases employers are simply encouraged to report.
Regulation and compliance – AI and data privacy
Safeguarding employees’ and candidates’ rights has become a priority as use of AI raises concerns around bias, for example in hiring decisions. This is mostly regulated through general data privacy laws. But some countries are applying employment-specific regulation.
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Authored by Jo Broadbent, Hélène de Nazelle, Tobias Darm-Tobaben, András Multas,Claudia Capolupo, Giuseppe Magaddino, Agnieszka Szczodra-Hadjuk, Aleksandra Fiuk, Olga Albalá Soria, Daan Koenrades, Imane Azdad, Maria Benvenuto, Maria Regina Torrero, Juan Pablo Vázquez, Jenson Zhang, Ingrid Lai, Teguh Darmawan, Andera Rabbani, Mark Vincent, Yasuyuki Shirabe, Tu Nguyen.
