Global Employment Law Updates 2026: Europe
A summary of upcoming employment law changes across Europe in 2026, with practical impact for employers.
The updates below highlight key legislative developments expected across European jurisdictions and outline where employers should focus their compliance efforts.
Belgium
Belgium is expected to introduce several employment law changes in 2026 that affect pay indexation, social security protections, sickness absence obligations, and working time flexibility. While some measures will be implemented gradually or depend on sector-level agreements, employers should be aware of how these reforms may impact payroll costs, workforce planning, and HR processes.
Changes to Salary Indexation Mechanisms
Belgium’s system of automatic salary indexation to reflect inflation will continue, but a temporary hybrid model is expected to apply once in 2026 and again in 2028. Under this approach, full indexation will apply only to the first €4,000 of gross monthly salary. Any salary amount above this threshold will not be indexed.
For higher earners, indexation will therefore be capped, with the savings on the non-indexed portion split between the employer and the State. While this measure is intended to reduce employer costs, it may create employee relations challenges, particularly for employees whose salaries exceed the €4,000 threshold. The exact timing of indexation will depend on sector-specific collective agreements. Employers may wish to proactively explain the impact of these changes ahead of indexation moments to avoid confusion or dissatisfaction.
Shorter Duration of Unemployment Benefits
From 2026, Belgium plans to introduce a gradual reduction in the duration of unemployment benefits, aimed at encouraging faster reintegration into the labour market. The reform will be rolled out in phases, with individuals who have been unemployed for the longest periods affected first.
Certain groups will be excluded from the reduction, including employees aged 55 and over who have completed at least 30 years of professional service. Although employers are not required to take specific action, the reform may influence workforce mobility, redundancy planning, and employee decision-making around exits.
Stricter Obligations for Long-Term Sickness Absence
Employers will face expanded responsibilities in relation to long-term sick employees from 2026. The focus will be on strengthening reintegration efforts and demonstrating active compliance with return-to-work obligations. Employers will need to retain clear evidence of the steps taken to facilitate an employee’s return, including job adaptations or alternative arrangements where feasible.
In addition, employers will be required to contribute 30% of the sickness benefit for a period of two months following the guaranteed wage phase, increasing the financial impact of long-term absences. As a result, employers should review absence management policies, reintegration procedures, and internal documentation practices to ensure they can demonstrate compliance if challenged.
Modernisation of Working Time Rules
Belgium is also moving towards a more flexible and modern working time framework, with legislative changes expected in 2026. These reforms are designed to simplify administrative requirements and give employers greater flexibility in organising work.
Key changes include the removal of the obligation to list all work schedules in work regulations, the abolition of the minimum one-third working hours rule for part-time employees, and the introduction of annualised working time, allowing weekly hours to be averaged over the year. Employers will also be able to offer higher levels of voluntary overtime, up to 360 hours per year, with a substantial portion exempt from overtime surcharges.
For the distribution sector, the definition of night work will shift to midnight, alongside simplified procedures for introducing night work. While these measures offer greater operational flexibility, employers should assess how they align with business needs and employee expectations before making structural changes.
Bulgaria
Bulgaria will see two notable changes at the beginning of 2026, affecting public holidays and payroll administration. While the changes are relatively contained, they require attention from employers, particularly payroll teams.
Additional Non-Working Days Around New Year
31 December 2025 and 2 January 2026 have been designated as non-working days after the Bulgarian government approved a proposal from Finance Minister Temenuzhka Petkova, effectively creating an extended holiday period from 31 December 2025 to 4 January 2026. Employers should factor this into workforce planning and business operations around the year-end period.
Adoption of the Euro
From 1 January 2026, Bulgaria will adopt the Euro as its official currency. Employment contracts do not need to be amended, but salaries must be converted from Bulgarian lev (BGN) to euros (EUR) using the fixed conversion rate of 1 EUR = 1.95583 BGN.
Specific rounding rules apply: if the third decimal digit is greater than zero, the second decimal digit must be rounded up. For example, a salary of BGN 2,000 will convert to EUR 1,022.59. Employers should ensure that payroll systems are correctly configured and stay alert for any additional guidance from Bulgarian authorities during the transition period.
Increase in Statutory Minimum Wage
From 1 January 2026, Bulgaria’s statutory minimum wage will increase in line with the Labour Code methodology and national wage adequacy benchmarks.
The minimum monthly wage will rise to BGN 1,213 (€620.20), representing an increase of BGN 136 (€69.54) compared to the current level of BGN 1,077. Based on a standard 8-hour workday and 5-day working week, the minimum hourly wage will be set at BGN 7.31 (€3.74).
This adjustment reflects broader economic and labour market indicators, including projected GDP growth and efforts to support low-income workers through improved purchasing power.
Czech Republic
A number of significant employment law and administrative reforms are scheduled to take effect in the Czech Republic between late 2025 and 2026. These changes focus on pay transparency, employer reporting obligations, foreign workforce compliance, workplace safety administration, and mandatory retirement contributions. Together, they signal a move towards greater transparency, digitalisation, and tighter procedural compliance for employers.
EU Pay Transparency Directive
The Czech Republic is preparing to transpose the EU Pay Transparency Directive, with implementation expected by June 2026, unless a postponement or exemption is granted. The Directive reinforces equal pay principles and introduces extensive transparency and reporting obligations.
Notably, the Directive adopts a broad definition of “worker”, covering not only traditional employees but also individuals in employment-type relationships under national law, including certain atypical working arrangements. This wider scope may require employers to reassess who falls within their compliance obligations.
Key requirements are expected to include the publication of pay levels or salary ranges in job advertisements, a prohibition on asking candidates about pay history, gender-neutral recruitment processes, and the use of clear and accessible pay-setting criteria. Employees will gain the right to request information about their own pay level as well as average pay levels, broken down by gender, for comparable roles.
Employers with 100 or more employees will be subject to mandatory gender pay gap reporting, with the first reports expected to cover 2026 pay data for employers with at least 150 employees. While smaller employers are not required to report under the Directive itself, national legislation may extend these obligations further. Early review of pay structures and job evaluation methodologies will be critical, particularly where pay systems are decentralised or historically opaque.
Unified Monthly Employer Report (JMHZ)
The JMHZ system replaces this fragmented approach with a single, standardised monthly report submitted through a centralised system. The aim is to reduce administrative burden, eliminate duplication, and simplify communication with state authorities. While the legal framework takes effect from January 2026, the obligation to submit reports under the new system will apply from 1 April 2026.
This reform will require employers to ensure that HR and payroll systems can generate and submit data in the prescribed format and that internal teams are familiar with the revised submission process and timelines.
Earlier Reporting for Foreign Employees
Changes effective from 1 October 2025 tighten employer obligations when hiring foreign nationals. Employers will now be required to notify the Labour Office before a foreign employee starts work, rather than on the start date itself.
The obligation applies broadly, covering all foreign workers, including EU citizens and individuals with free access to the Czech labour market. Failure to comply may result in fines of up to CZK 3,000,000, making procedural accuracy particularly important.
Employers should ensure that onboarding processes are adjusted to accommodate earlier notifications and that all categories of foreign workers are correctly identified and reported in advance.
Expanded Employee Registration Requirements
Further administrative changes will take effect from 1 April 2026, introducing stricter rules around employee registration. All employees must be registered in the employee records before they commence work.
For Czech citizens, registration may be completed either fully or partially prior to the start date. Where partial registration is used, the remaining required information must be submitted within eight days of commencement. Registration of regular employees will also require a broader set of data fields than before.
Where employees are already registered prior to 1 April 2026, employers will be required to submit additional information after 31 March 2026 to meet the expanded requirements. From 1 July 2026, the full scope of new data obligations will apply. Employers will need to ensure HR and payroll systems are capable of capturing and managing the increased volume of employee data.
Electronic Reporting of Workplace Injuries
At the same time, new rules clarify health and safety requirements for construction sites, including obligations relating to health and safety coordinators and protocols for safe movement on site. These changes are intended to improve oversight, consistency, and data sharing in relation to workplace accidents and safety compliance.
Employers should review internal safety procedures, accident reporting workflows, and audit processes to ensure alignment with the new electronic reporting framework.
Mandatory Employer Contributions to Retirement Savings
A new obligation applies from 1 January 2026 requiring employers to contribute to retirement savings for certain employees performing hazardous work. Where an employee works in a third risk category role and completes at least three shifts in a month, the employer must contribute 4% of the social security assessment base, calculated on gross salary, towards the employee’s retirement savings.
This change introduces additional payroll complexity, particularly in industries where hazardous work classifications apply. Employers will need to ensure that payroll systems can accurately track eligibility, calculate contributions, and support employee communications regarding their entitlements.
Denmark
Denmark is expected to introduce a mix of EU-driven reforms and domestic legislative changes in 2026, with a particular focus on pay transparency, workplace safety reporting, parental leave funding, and protections for the self-employed. While some measures are still subject to parliamentary approval, employers should begin planning for their potential impact.
Implementation of the EU Pay Transparency Directive
Denmark is required to transpose the EU Pay Transparency Directive into national law by 7 June 2026. The Directive is designed to strengthen equal pay protections and will introduce new obligations affecting recruitment, pay-setting, and internal transparency.
Employers will be expected to apply objective, gender-neutral criteria when determining pay and evaluating roles. Job applicants will gain the right to see starting salaries or pay ranges during recruitment, and employers will no longer be permitted to ask candidates about their salary history. Employees will also have enhanced rights to access information about pay levels and pay-setting practices.
Gender pay gap reporting will apply to larger employers on a phased basis, depending on headcount. While reporting obligations are expected to begin from June 2027 for the largest employers, organisations should use 2026 to review pay structures, job evaluation frameworks, and HR systems to ensure they can support future reporting and information requests.
Changes to Workplace Accident Reporting
A new bill proposes to adjust Denmark’s rules on reporting workplace accidents. If adopted, employers would only be required to report accidents where the employee’s absence exceeds three days beyond the day of injury, rather than the current one-day threshold.
Importantly, incidents that are likely to give rise to compensation claims or legal proceedings would still need to be reported, regardless of the length of absence. The change is expected to come into force on 1 July 2026, subject to parliamentary approval. Employers should review internal reporting procedures to ensure they reflect the revised threshold while continuing to meet broader health and safety obligations.
Possible Increase in Barsel.dk Contributions
If approved, the higher rate would apply from 1 January 2026. Employers should factor this potential increase into workforce cost planning and budgeting for 2026, particularly where headcount levels are high.
Improved Parental Leave Rules for the Self-Employed
New rules are expected to improve access to parental leave benefits for self-employed individuals. Under the proposed changes, parental benefits may be calculated based on salary income earned up to five years before the individual became self-employed, providing greater flexibility for those with mixed employment histories.
In addition, self-employed individuals would be allowed to work up to 3.5 hours per week during parental leave without a reduction in benefits. These changes are scheduled to take effect from 1 January 2026 and are primarily informational, with no direct action required from employers.
Finland
Finland is expected to introduce a broad range of employment law changes during 2026. While some reforms are already clearly defined, others will depend on final legislation and the development of case law. Employers should monitor developments closely and be prepared for gradual shifts in employment practices.
Lower Threshold for Dismissal on Individual Grounds
From 1 January 2026, the legal threshold for terminating an indefinite employment contract on individual grounds may be lowered from a requirement for a “proper and weighty reason” to a “proper reason.” While this signals a potential easing of dismissal rules, the real impact will only become clear as courts begin to interpret and apply the new standard. Employers should therefore proceed cautiously and follow case law developments before changing dismissal practices.
Tax-Free Legal Advice Costs Paid by Employers
A new provision in the Income Tax Act will allow employers, from 1 January 2026, to cover legal advice costs for employees on a tax-free basis in certain situations. This applies where the legal matter arises directly from the employee’s work duties, serves the employer’s interests, and does not involve prior unlawful intent or double compensation. Employers choosing to offer this benefit should clearly define eligibility criteria and communicate the conditions internally.
Changes to Fixed-Term Contracts, Layoffs, and Re-Employment Obligations
Legislative proposals expected to enter into force in 2026 would make it easier to use fixed-term contracts in limited situations, particularly for first-time hires or where more than five years have passed since previous employment. Other proposed changes include reducing the minimum layoff notice period from 14 to 7 days and limiting re-employment obligations to employers with 50 or more employees. While no immediate action is required, employers should be prepared to update contract templates and HR processes once the final rules are confirmed.
EU Pay Transparency Directive
Finland plans to implement the EU Pay Transparency Directive largely in line with its minimum requirements, with key amendments expected by 18 May 2026. Employers should expect new obligations around pay transparency, access to pay information, and potential reporting duties. Reviewing pay structures, job evaluation methods, and data systems ahead of time will help reduce compliance risks once the rules come into force.
Occupational Safety and Health (OSH) Cooperation Personnel Registration
From 2 April 2026, employers will be required to report information on occupational safety and health cooperation personnel to a new central register maintained by the Occupational Safety and Health Centre. This will replace the existing registration framework and may require updates to internal reporting and HR systems.
Platform Work and Other Developments
France
France is preparing for several employment law developments in 2026, with a strong focus on family-related leave, pay transparency, and the cost of employment exits. While some measures are still at proposal stage, employers should begin factoring these changes into workforce planning and policy reviews.
Additional Birth and Adoption Leave
Legislation expected in 2026 or early 2027 would introduce a new period of additional birth leave, allowing employees to take up to two extra months in addition to existing maternity, paternity, or adoption leave. This leave could be taken at any point until the child turns three and may be shared between parents, either taken simultaneously or alternately.
The proposed compensation structure would be funded by the State, with 70% of net salary for the first month and 60% for the second month. While employers would not bear the direct wage cost, longer and more flexible leave periods are likely to affect workforce availability and resourcing. Employers should monitor the legislative process closely and prepare for extended absences linked to childbirth or adoption.
Pay Transparency and Equal Pay Obligations
France must transpose the EU Pay Transparency Directive into national law by 7 June 2026, introducing a significant shift in how pay information is disclosed and monitored. Once implemented, employers will be required to include salary ranges in job advertisements and will no longer be permitted to ask candidates about their previous remuneration.
Employers will also need to provide employees with access to information on their individual pay levels and average pay by gender for comparable roles. In addition, organisations will be required to disclose the criteria used to determine pay and job classifications, alongside enhanced reporting obligations on gender pay gaps and changes to the existing equality index framework.
Importantly, the burden of proof in pay discrimination claims will shift towards employers, increasing litigation risk where pay structures are unclear or inconsistent. In anticipation of these changes, employers should begin reviewing remuneration policies, identifying potential pay gaps, and preparing internal systems for increased transparency and reporting.
Higher Cost of Mutual Termination Agreements
From 1 January 2026, subject to the draft bill being passed, the employer contribution payable on compensation arising from a mutual termination agreement (rupture conventionnelle homologuée) is expected to increase from 30% to 40%. This change would significantly increase the cost of using mutual termination as an exit route.
While no immediate action is required, employers should factor the higher contribution rate into future workforce restructuring decisions and reassess the financial viability of mutual termination agreements compared with other exit options.
Germany
Germany is set to see a number of important employment law developments through 2026, including changes already in force that employers must embed into practice, as well as upcoming reforms linked to EU legislation and public procurement rules. While not all proposals are finalised, employers should begin preparing for increased transparency and compliance expectations.
Enhanced Maternity Protection Following Miscarriage
Germany has recently strengthened statutory maternity protection for employees who experience a miscarriage. From 1 June 2025, employees may be exempt from work for a period ranging from two to eight weeks, even where the miscarriage occurs before the 24th week of pregnancy, unless the employee expressly chooses to continue working.
Where a miscarriage occurs from the 12th week of pregnancy onwards, employees also benefit from enhanced protection against dismissal for a period of four months. These changes significantly extend existing safeguards and require sensitive handling at workplace level.
Employers should ensure HR teams and line managers are fully aware of these updated protections and review internal policies or guidance relating to pregnancy, maternity protection, and absence management to ensure they reflect the current legal position.
Public Tenders and Collective Bargaining Compliance
Germany is planning to introduce new rules affecting companies bidding for public contracts with a value of EUR 50,000 or more. Under the proposed law, businesses would be required to guarantee working conditions that comply with applicable collective bargaining agreements. This would cover key areas such as pay, working time, rest periods, and holiday entitlements.
Although the law is expected to come into force in 2026, companies interested in public sector work should begin reviewing their employment terms well in advance. Ensuring alignment with relevant sector-level collective agreements will be essential to remain eligible for public tenders once the new requirements apply.
Implementation of the EU Pay Transparency Directive
Germany is preparing to transpose the EU Pay Transparency Directive into national law by 7 June 2026, with a draft bill expected in January 2026. The new framework is expected to introduce wide-ranging obligations aimed at strengthening equal pay enforcement and increasing transparency.
Likely measures include mandatory salary disclosure in job advertisements, a prohibition on asking candidates about previous pay, and enhanced employee rights to access pay information for comparable roles. Larger employers will also face regular gender pay gap reporting obligations, with additional compliance steps where unjustified pay gaps exceed defined thresholds.
Employers should use the lead-up period to review remuneration structures, introduce clear and gender-neutral pay-setting criteria, and prepare managers and recruiters for more restrictive rules around pay discussions and hiring practices.
Potential Reform of Working Time Rules
The German government is also considering reforms to working time regulation. One proposal under discussion would replace the current daily maximum of eight working hours with a weekly maximum of 48 hours, bringing domestic law more closely into line with EU standards. In addition, there are plans to clarify employers’ obligations to record working time in line with European Court of Justice case law.
At present, no draft legislation has been published, and the timing of any reform remains uncertain. While no immediate action is required, employers should monitor developments closely, particularly those operating flexible or trust-based working time models.
Hungary
Hungary will see a combination of regulatory, administrative, and transparency-focused employment law changes taking effect in 2026. These developments affect simplified employment arrangements, social security record-keeping, and pay transparency obligations stemming from EU legislation. Employers operating in Hungary should be prepared for tighter compliance expectations and increased reliance on digital systems.
Changes to Simplified Employment Rules
From 1 January 2026, amendments to Hungary’s simplified employment regime will apply to sectors such as agriculture, seasonal tourism, and casual work. The revised rules introduce changes to minimum remuneration levels, applicable tax charges, and the maximum duration for which simplified employment arrangements may be used within a year.
These changes are intended to improve transparency, reduce misuse of simplified contracts, and provide more structured support for seasonal agricultural employment. As simplified employment is widely used in Hungary for short-term and seasonal labour, employers relying on this framework will need to ensure that updated limits and remuneration requirements are reflected in contracts, payroll calculations, and workforce planning for 2026 onwards.
Transition to a Fully Digital Social Security Registry
Hungary is completing the shift away from paper-based social security booklets, replacing them with a mandatory electronic registry for social security and employment records. From 1 January 2026, physical booklets will no longer be used, and all employment-related records must be maintained digitally.
This change places greater emphasis on accurate electronic record-keeping and system integrity. Employers should ensure that all historical and ongoing employee data has been properly transitioned into compliant digital systems and that payroll providers and internal HR teams are aligned with the new requirements.
Implementation of the EU Pay Transparency Directive
Hungary must transpose the EU Pay Transparency Directive into national law by 7 June 2026. Once implemented, the Directive will introduce substantial new obligations aimed at strengthening gender pay equality and increasing transparency around remuneration.
Employers can expect requirements relating to salary bands, access to pay information, and potential reporting obligations on gender pay gaps. While detailed national implementing rules are still awaited, the Directive’s framework suggests that preparation will be essential, particularly for employers with structured pay systems or larger workforces.
Given that some reporting obligations may apply from 2026 onwards, early review of remuneration structures, job classifications, and recruitment practices will help reduce compliance risk once the Hungarian legislation enters into force.
Ireland
Ireland is expected to introduce a wide range of employment law changes through 2026, affecting pensions, pay transparency, equality protections, the use of AI in the workplace, and statutory leave entitlements. Several of these developments arise from EU-level legislation, while others reflect domestic policy reforms. Employers should begin assessing the combined impact on payroll, HR policies, recruitment practices, and workforce planning to ensure timely and consistent compliance.
Automatic Enrolment Retirement Savings – “My Future Fund”
The table below sets out the rates you, your employer, and the Government will pay:
| Year of the auto-enrolment scheme | Employee Contribution Rate | Employer pays | Government pays |
|---|---|---|---|
| 1 to 3 | 1.5% | 1.5% | 0.5% |
| 4 to 6 | 3% | 3% | 1% |
| 7 to 9 | 4.5% | 4.5% | 1.5% |
| 10 and after | 6% | 6% | 2% |
The employer and Government contributions stop when your salary reaches €80,000 for that year.
While employees will be able to opt out after six months, employers will need to register on the My Future Fund portal before the end of 2025, update payroll systems, and ensure employee communications are handled carefully, as employers are not permitted to provide financial advice or discourage participation.
EU Pay Transparency Directive
Ireland is required to transpose the EU Pay Transparency Directive into national law by 7 June 2026, bringing significant changes to recruitment and pay practices. Employers will be required to disclose salary ranges in job advertisements, remove pay history questions from hiring processes, and respond to employee requests for pay information. Where an unjustified gender pay gap of 5% or more exists, employers may also be required to carry out a joint pay assessment. Many organisations are already reviewing pay structures and conducting internal equal pay audits to prepare for these transparency obligations.
Gender Pay Gap Reporting Portal
EU AI Act – Use of AI in the Workplace
EU AI Act – Digital Omnibus Reforms
Later in 2026, proposed Digital Omnibus reforms are expected to simplify certain EU digital and AI compliance requirements. While these changes aim to reduce regulatory burden, employers using AI systems should continue to monitor developments closely and ensure that any updates to policies and procedures are applied consistently across their organisations during the transition period.
Pregnancy Loss Leave
Contractual Retirement Ages
Equality Law – Socio-Economic Disadvantage
Health Screening Leave
Italy
Italy is introducing a broad set of employment law reforms spanning remuneration, pay transparency, artificial intelligence, employee protections, trade union representation, and financial incentives. Some measures are already in force, while others will be rolled out through implementing decrees and secondary legislation during 2026. Together, these changes point to increased scrutiny of pay practices, stronger worker protections, and higher compliance expectations for employers.
Worker Remuneration and Collective Bargaining Reform
Implementing decrees are expected by 18 April 2026. In the meantime, employers should closely monitor legislative developments and begin reviewing remuneration structures, minimum wage compliance, and the interaction between individual contracts and applicable collective agreements. The reform may also require updates to internal pay transparency policies once secondary rules are finalised.
EU Pay Transparency Directive Implementation
Italy is preparing to implement the EU Pay Transparency Directive in 2026, introducing new obligations aimed at addressing gender pay inequality and strengthening employee access to pay-related information.
Employers will be expected to apply gender-neutral pay criteria, disclose initial pay levels or ranges during recruitment, and provide information on average pay levels for comparable roles. Existing pay secrecy clauses will need to be removed or rendered unenforceable.
To prepare, employers should begin mapping remuneration structures, identifying potential gender pay gaps, and developing internal processes for pay reporting and employee information requests. Early preparation will be particularly important for employers with complex or decentralised pay systems.
Artificial Intelligence in Employment Decisions
Employers will be required to inform employees about the use of automated decision-making or monitoring tools, particularly where such systems affect recruitment, performance evaluation, disciplinary action, or work organisation. The use of AI must also comply with existing privacy and equality laws.
Employers should take this opportunity to map all AI-driven tools used within HR, monitoring, or workforce management, review privacy and disciplinary policies, and ensure clear, accessible employee communications are in place.
Additional Protections for Workers with Serious Illnesses
Eligible employees may take up to 24 months of unpaid leave (either continuously or in intervals) once other statutory and contractual leave entitlements have been exhausted. During the period of absence, the worker will retain their job and will not be able to carry out other work activities.Additionally, at the end of the period of leave, the worker has priority access to agile working, where this is compatible with the tasks that they are required to perform.
From 2026, affected workers, as well as parents of minors with serious illnesses, will also be entitled to 10 hours of paid leave per year for medical appointments.
Employers should review leave policies, employment contracts, and NCBA provisions to ensure consistency with the new rules and be prepared to manage extended absences in a compliant and sensitive manner.
Trade Union Representation Rights
A significant development for industrial relations arises from Constitutional Court Judgment No. 156/2025, effective 30 October 2025. The ruling allows Rappresentanze Sindacali Aziendali (RSAs) to be established by trade unions that are comparatively more representative at national level, even if they did not participate in the applicable collective bargaining process.
This change broadens the scope for workplace union representation and may increase the likelihood of formal union presence within companies. Employers should reassess existing union representation arrangements and be prepared to respond to requests for RSA establishment.
State Budget Law and HR Impact
Italy’s 2026 State Budget, expected to be approved by the end of 2025 and effective from 1 January 2026, includes a range of measures affecting employers. These include tax relief initiatives, social security exemptions, support for parenthood, financing of the Wage Guarantee Fund, extensions to APE Sociale, and pension-related reforms.
While the final text is still pending, employers should monitor the approval process and assess how the new measures may affect workforce planning, remuneration structures, and long-term HR costs.
New Incentives Framework and Anti-Relocation Measures
Preferential access to incentives will be given to companies holding gender equality certification, those hiring workers with disabilities beyond mandatory quotas, and employers promoting youth and female employment. The draft also introduces stricter anti-relocation rules, including advance notification obligations and penalties for non-compliance, such as forfeiture or repayment of incentives received.
Employers should review existing and planned incentive arrangements, assess eligibility criteria, and ensure relocation strategies comply with the new notification and compliance requirements.
Lithuania
EU Pay Transparency Directive
Lithuania will transpose the EU Pay Transparency Directive by 7 June 2026, introducing new obligations around salary transparency and gender pay equality. Employers will be expected to review how pay is structured and communicated, ensure that remuneration criteria are gender neutral, and be able to explain differences in pay for comparable roles.
Employees will gain the right to request information about pay levels and average remuneration by gender, and larger employers may be subject to formal pay gap reporting requirements. Companies are advised to assess their remuneration frameworks well in advance, identify any unexplained pay gaps, and update internal policies so that transparency requirements can be met consistently.
Language Requirements for Foreign Employees
From 1 January 2026, foreign employees who provide services to residents in Lithuania or sell goods will be required to demonstrate basic proficiency in the Lithuanian language. This requirement applies for the first two years following the issuance of a residence permit and also covers seasonal workers.
Employers hiring foreign nationals into customer-facing or service roles should factor this requirement into their onboarding and workforce planning processes, ensuring that language proficiency is verified where necessary and supported appropriately.
Luxembourg
Luxembourg is expected to see a high volume of legislative activity through 2026, with reforms spanning pay transparency, immigration, pensions, youth employment, working time, and contract structures. While many proposals are still at draft stage, employers should closely monitor developments, as several changes may require adjustments to HR policies, payroll processes, and workforce planning once finalised.
Pay Transparency and Equal Pay Obligations
Luxembourg will be required to transpose the EU Pay Transparency Directive (Directive (EU) 2023/970) by 7 June 2026. A draft bill is anticipated towards the end of 2025 or in early 2026. Once enacted, the legislation is expected to introduce new obligations around pay transparency, including disclosures during recruitment and enhanced rights for employees to access pay-related information. Although no immediate action is required, employers should be prepared to review pay structures and internal reporting once the draft law is published.
Youth Employment Schemes and Internship Reforms
Reform of the Pension System
A wide-ranging pension reform is under consideration, introducing longer contribution periods for early retirement (to be fully phased in by 2030), an increase in the overall contribution rate from 24% to 25.5% from 2026, and greater flexibility for recognising study-related periods. The draft also introduces the option of progressive retirement. While no implementation date has been announced, employers should monitor developments closely, particularly where workforce planning and retirement strategies are concerned.
Single Permit Reform for Third-Country Nationals
Luxembourg is preparing to transpose Directive (EU) 2024/1233 by 21 May 2026, introducing significant changes to the single permit regime for third-country nationals. The reform is expected to shorten processing times, extend permit validity, and allow greater employer mobility after six months. It also introduces defined periods of unemployment protection while tightening withdrawal grounds. At the same time, the investor residence permit will be abolished and family reunification rules tightened. Employers sponsoring foreign nationals should prepare for updated permit procedures and compliance requirements once the law enters into force.
Protection of Staff Delegates During Suspension
A draft law seeks to strengthen protections for staff delegates during periods of suspension. Under the proposal, salary and benefits would be maintained for at least three months, or until a criminal decision is issued, with costs borne by the Employment Fund. Employers should monitor legislative progress and be ready to update internal procedures affecting employee representatives.
Sports Sector Employment and Sports Leave
Retail and Craft Sector Opening Hours
A draft law is expected to modernise and clarify the rules governing opening hours in the retail and craft sectors. While no effective date has been announced, the reform aims to provide a clearer regulatory framework for businesses operating in these industries.
New Leave Entitlement for Blood Donation
Another draft amendment proposes granting employees four hours of paid leave for blood donation, supplementing the existing provisions on extraordinary leave. Employers should watch for further developments, as this would require updates to leave policies once enacted.
Sunday Work Premiums
Proposed legislation would permit up to eight hours of Sunday work, subject to a 70% wage premium. Although still at draft stage, this change could affect scheduling and payroll practices in sectors that operate on Sundays.
Minimum Wage Directive Implementation
Luxembourg is also expected to implement the EU Directive on adequate minimum wages in the first half of 2026. The draft law introduces new criteria for minimum wage revisions and establishes a consultative body. Employers should monitor progress to assess any impact on wage structures.
Job Retention Plans and Economic Committee Powers
Gradual Early Retirement Flexibility
Proposals are also underway to make gradual early retirement more flexible. The draft would allow the required 75% working time threshold to be assessed as an average over the preceding five years, rather than requiring continuous compliance. This change is intended to better reflect real working patterns.
Ban on Zero-Hour Contracts
One of the more significant proposed reforms is the prohibition of zero-hour contracts, with a new minimum working time threshold of 10 hours per week. This measure is expected to be introduced in the first half of 2026. Employers using zero-hour arrangements should begin reviewing alternative contractual models.
Additional Draft Laws to Monitor
Several further proposals remain under discussion, including new leave for fostering minors, extended pension insurance periods for parents of young children, alignment of protections between self-employed individuals and employees, and revised rules on combining early pensions with other income. While no effective dates have been announced, these measures may influence leave policies, contractor arrangements, and retirement planning in the future.
Netherlands
The Netherlands is preparing for several substantial employment law reforms that could significantly reshape the use of flexible labour, self-employment, agency work, and contractual protections. While some measures are still progressing through Parliament, employers should be aware that parts of these reforms may begin to take effect during 2026, with further changes following in 2027.
Increase in Statutory Minimum Wage
From 1 January 2026, the statutory minimum hourly wage will increase. The updated rates apply across age categories and will affect all employees paid at or near the minimum wage threshold.
Minimum hourly wage levels for individuals participating in the vocational training pathway (BBL) will also be increased. Employers engaging apprentices or trainees under BBL arrangements should review pay structures to ensure compliance with the revised rates.
Changes to Statutory Benefits and Allowances
Several statutory benefits will be adjusted upwards from 1 January 2026, including social assistance and employee-related income support schemes such as unemployment, sickness, disability, and survivor benefits. While these benefits are administered by public authorities, changes may affect payroll coordination, employee queries, and HR guidance, particularly in termination or long-term absence scenarios.
Wage Cost Benefit for Older Employees
For employment contracts starting on or after 1 January 2024, the wage cost benefit for older employees will be abolished with effect from 1 January 2026. Contracts entered into before this date will remain eligible under the existing rules. Employers relying on this incentive should review eligibility and adjust workforce cost projections accordingly.
Flex Work Bill and the Future of Flexible Contracts
A key reform is the extension of the mandatory break between successive temporary contract chains to five years, replacing the current six-month gap. Importantly, this extension would no longer allow deviations through collective labour agreements. In addition, zero-hour and on-call contracts would be largely prohibited, except for students. Employers would instead be required to offer contracts with a minimum number of guaranteed hours, allowing only limited upward flexibility.
The proposal also significantly affects agency work. Agency workers would be entitled to the same employment terms as comparable employees at the host company, and the insecure agency phase would be shortened to 52 weeks. Although this equal treatment rule is expected to take effect on 1 July 2026, employers should note that similar requirements will already apply under the ABU collective labour agreement from 1 January 2026.
Alongside restrictions on flexible work, the Bill introduces measures intended to make permanent contracts more attractive, including reduced wage obligations during economic downturns, temporary unemployment benefits, and greater flexibility for smaller employers to replace long-term sick employees. Other elements of the Bill are likely to come into force from 1 January 2027.
Clarifying Employment Versus Self-Employment
The new proposal introduces a more structured sub-test for assessing whether work is performed “in service of” another party. Under this approach, work would be considered employment where it is carried out under supervision or organisational control and where the individual does not operate predominantly for their own account. The concept of “own account” focuses on entrepreneurial activity both within and beyond the contractual relationship.
If adopted, the Bill is expected to enter into force on 1 July 2026. Employers that rely heavily on self-employed individuals, particularly in lower-paid or operational roles, should prepare for closer scrutiny by the tax authorities and take proactive steps to prevent false self-employment.
Restrictions on Non-Competition Clauses
Crucially, non-compete clauses would become subject to mandatory compensation, set at 50% of the employee’s last salary for the duration of the restriction. The effective date of this measure is not yet confirmed. Its entry into force depends on approval by both parliamentary chambers (Tweede Kamer and Eerste Kamer). Once enacted and published in the Staatsblad or Staatscourant (the official Government Gazette), the law will take effect.
While the exact timing is not yet confirmed, the measures are expected to be introduced during 2026. Employers should anticipate the need to revise contract templates and reassess whether non-compete clauses remain commercially viable.
Pay Transparency Obligations
The Netherlands will also need to implement the EU Pay Transparency Directive, with national legislation expected towards the end of 2026. Once transposed, employers will be required to disclose starting salaries or pay ranges in job advertisements, eliminate questions about salary history, and ensure recruitment processes and job titles are gender-neutral.
Employees will gain enhanced rights to access pay policies and comparative pay information, and employers with more than 100 employees will be subject to gender pay gap reporting obligations. Employers should begin reviewing reward frameworks and internal pay structures to prepare for these transparency requirements.
Transition Payment Compensation Scheme
A further proposal under review concerns the compensation scheme for transition payments (statutory severance) in cases of dismissal due to long-term incapacity for work. The proposal would limit state compensation for these payments to small employers with fewer than 25 employees, leaving larger employers to bear the full cost.
The Bill remains under review following advice from the Council of State, and its final form is not yet clear. Depending on the outcome, employers may either see the compensation obligation removed altogether or face increased financial exposure when dismissing employees after long-term illness.
Poland
Poland will see a broad range of employment law changes in 2026, including pay transparency obligations, updates to seniority and employment records, and strengthened protections against mobbing and harassment. Many of these measures are still undergoing the legislative process, so final dates and details may vary. Employers should monitor developments closely to ensure compliance and update internal policies where necessary.
EU Pay Transparency Directive
Poland is transposing the EU Pay Transparency Directive in two stages. From 24 December 2025, employers must provide job applicants with clear information on starting salaries or salary ranges, relevant collective bargaining agreement provisions, and internal remuneration policies. Job adverts and titles must use gender-neutral language, and employers may no longer request information about an applicant’s current or previous salary.
Further provisions, expected in Q2 2026, introduce comprehensive transparency obligations for existing employees. Employers will need to evaluate roles based on skills, effort, responsibility, and working conditions, provide pay information upon request, and report gender pay gap data if they have 100 or more employees. Early preparation of reporting systems, job evaluation processes, and pay transparency protocols will be crucial.
Length of Service Adjustments
Reform of the State Labour Inspectorate
Minimum Wage Updates
Upcoming legislation will exclude certain allowances, bonuses, and awards from minimum wage calculations in stages, with criminal penalties for non-compliance. The phased exclusions are expected to begin in 2027 (special duty allowances) and continue until 2029 (bonuses and awards). Employers should review remuneration structures and adjust base salaries where necessary.
Strengthened Mobbing and Equal Treatment Rules
Deregulation and Administrative Updates
Several deregulatory laws are progressing through Parliament, introducing changes such as:
- Centralized ICT systems for employment records and communication with ZUS.
- Relaxed formal requirements for documents and employee requests.
- Adjusted deadlines for leave cash-outs.
- Electronic verification of diplomas and confirmations of health and safety training.
Many changes are already in force, while others will take effect once the relevant law is adopted. Most do not require immediate preparation, but HR and payroll systems should be ready to accommodate updates.
Internship Regulations
Internship rules will be formalised with written contracts, assigned supervisors, paid leave, and minimum salary requirements (35–100% of the national average). Maximum duration is six months. Employers planning to hire interns should review practices, update templates, and adjust pay and planning in preparation for compliance.
Spain
Spain continues to implement wide-ranging labour and social security reforms aimed at strengthening pension sustainability, improving transparency, and expanding employee protections. Several measures will take effect from January 2026, while others are expected later in the year, subject to final legislation.
Changes to Retirement Calculations and Contribution Gaps
From 1 January 2026, the calculation of the regulatory base for state pensions will be extended to cover 348 consecutive months, with only the 324 highest contribution months taken into account. In practice, this means pension calculations will span a longer period, close to 29 years, while allowing lower-earning months to be excluded. The reform also includes mechanisms to partially fill contribution gaps, with specific measures designed to reduce gender-related pension disparities. Employers will need to ensure payroll data and contribution histories are accurately maintained to support the revised calculation approach.
Increase in Social Security Contributions
Social security contribution rates will rise from 1 January 2026. The intergenerational equity mechanism (MEI) will increase to 0.90%, with the majority borne by employers. In parallel, the solidarity contribution applied to higher earnings will also increase across its income tranches. These changes will directly affect employment costs, requiring updates to payroll systems and budgeting for higher employer contributions.
New Legal Framework for Scholarship Holders and Interns
Draft legislation expected in 2026 will redefine the legal status of scholarship holders and trainees. The proposals introduce clearer requirements around structured training plans, limits on tutor-to-trainee ratios, access to workplace services, rest periods, and compensation for expenses incurred during placements. Once enacted, employers engaging interns or trainees will need to reassess programme design to ensure compliance with the new standards.
Sustainable Mobility Obligations
Extension of Birth and Childcare Leave
Birth and childcare leave entitlements will be extended by three additional weeks, with single-parent families entitled to up to 32 weeks in total. While the legislative framework takes effect in July 2025, additional weeks may be requested from 1 January 2026 for qualifying events occurring after August 2024. Employers will need to update leave policies, HR systems, and payroll processes to reflect the expanded entitlements and manage longer periods of absence.
EU Pay Transparency Directive
Spain is required to transpose the EU Pay Transparency Directive into national law by June 2026. The Directive will introduce new obligations around pay disclosure, including transparency on employee remuneration and salary information provided to candidates. While no draft legislation has yet been published, employers should expect increased reporting and disclosure requirements and begin reviewing pay structures and internal data processes in preparation.
Sweden
Sweden is expected to introduce several employment law updates in 2026, many of which are driven by EU legislation or reflect broader policy shifts in labour mobility, social security, and family-related protections. While some changes are already confirmed, others are still moving through the legislative process and will require close monitoring.
Implementation of the EU Pay Transparency Directive
Sweden is preparing to implement the EU Pay Transparency Directive, which will introduce new obligations around pay disclosure and gender pay gap reporting. Employers will be required to provide greater transparency to both job applicants and employees regarding salary levels and pay-setting practices.
The reforms are also expected to strengthen cooperation with trade unions, particularly in the context of annual salary surveys, and large employers will need to submit gender pay gap reports to the Discrimination Ombudsman. An official draft bill is expected in January 2026, with the legislation likely to take effect from 1 June 2026.
Employers should keep a close watch on the draft legislation and begin reviewing pay structures, internal salary review processes, and data collection practices in anticipation of these new requirements.
Stricter Rules for Labour Migration
Sweden is proposing tighter rules for labour migration, which will have a direct impact on employers hiring non-EU nationals. Under the proposed changes, the salary threshold for work permits will rise to 90% of the national median salary, currently around SEK 33,390 per month. The reforms would also allow certain professions to be excluded from eligibility and introduce a requirement for comprehensive health insurance.
In addition, EU Blue Card permits would be extended to a maximum validity of four years, providing longer-term certainty for highly skilled workers. These changes are expected to come into force on 1 June 2026. Employers relying on third-country nationals should track developments closely and be prepared to reassess salary levels and permit compliance once the rules are finalised.
Extended Right to Absence for Child Care (VAB)
Employees’ rights to temporary parental leave for the care of a child (VAB) are set to expand. The proposed changes would allow employees to take VAB leave not only for caring for a sick child, but also to attend school meetings or participate in investigations by social services where the child has a disability or illness.
This extension is expected to apply from 1 January 2026. While no immediate action is required from employers, HR teams should be aware of the broader scope of permissible absences when managing leave requests.
Temporary Reduction in Employer Social Contributions for Young Workers
To support youth employment, Sweden plans a temporary reduction in employer social security contributions for employees aged 18 to 23. For this group, contributions will be reduced to 20.81% (down from 31.42%) on monthly salaries of up to SEK 25,000.
The reduction is expected to take effect from 1 April 2026 and remain in place until 30 September 2027. Employers do not need to take any specific action but should ensure payroll systems apply the correct rates during the relevant period.
New Income-Based Unemployment Insurance Rules
While no employer action is required, HR teams should be aware of the new framework, as it may influence employee expectations during restructurings or terminations.
Switzerland
Switzerland is expected to introduce a series of employment-related reforms in 2026, affecting unemployment insurance administration, short-time working arrangements, recruitment obligations, cross-border teleworking, and public-sector employment conditions. While some measures are technical in nature, several will have practical implications for HR processes, workforce planning, and cross-border compliance.
Reform of the Unemployment Insurance Framework
Alongside this shift, accompanying ordinance changes are expected to simplify enforcement, expand access to work placements, and strengthen digital and e-government processes. While employers will not be directly responsible for administering these changes, they may notice adjustments in how regional employment offices operate, particularly in relation to short-time work, placements, and administrative interactions.
Extended Maximum Duration of Short-Time Working Compensation
Under an urgent amendment to Swiss unemployment legislation, the maximum duration of short-time working compensation has been extended from 18 to 24 months. This extended period applies between 1 November 2025 and 31 July 2026.
Once the 24-month limit is reached, a six-month waiting period must pass before a new framework period can begin. Employers who rely on short-time working arrangements should factor this extended duration, and the subsequent cooling-off period, into workforce planning and business continuity decisions, particularly in sectors exposed to economic volatility.
Expansion of Mandatory Job Vacancy Reporting
From 1 January 2026, the obligation to report job vacancies to regional employment offices will apply to a wider range of occupations. More roles are expected to exceed the 5% unemployment threshold, increasing coverage from approximately 6.5% to 10.8% of all professions.
The reporting process itself will remain unchanged. Employers must notify the regional employment office of a vacancy and observe a five-day waiting period before advertising the role publicly, during which registered jobseekers are given priority. Newly affected roles are expected to include positions in catering, cleaning, office and reception support, and hotel services, meaning many service-sector employers will be impacted for the first time. Recruitment teams should review role classifications carefully to avoid non-compliance.
Cross-Border Teleworking and the France–Switzerland Tax Agreement
If this threshold is exceeded, France will tax the portion of remuneration attributable to teleworked days beyond the 40% limit. Employers with cross-border workers will need to define clear teleworking policies, establish reliable systems to track teleworking days, and prepare for mandatory reporting of teleworking rates to the Swiss Federal Tax Administration. The first data exchange is expected in January 2027, covering teleworking activity during 2026.
Changes to Federal Personnel Employment Rules
Additional reforms include expanded use of trust-based working hours, updated probation rules for certain police roles, revised conditions for employees posted abroad, and a general obligation to repay severance compensation if an individual is re-employed. While these changes apply primarily to federal employers, they reflect a broader policy direction towards performance-based remuneration and flexibility, which may influence wider employment practices over time.
United Kingdom
Creation of a Fair Work Enforcement Body
The Employment Rights Bill also provides for the creation of a new Fair Work Agency, expected to become operational during the 2026–2027 implementation period. This body will bring together existing labour market enforcement functions, including those relating to minimum wage compliance, holiday pay, agency work, and statutory sick pay.
The agency will be granted expanded investigatory and enforcement powers, including the ability to initiate inspections without a worker complaint, require production of employment records, and impose civil penalties for non-compliance. In practice, this represents a shift towards more proactive enforcement rather than complaint-led regulation.
Employers should ensure that payroll records, working time data, contractual documentation, and compliance processes are audit-ready, as enforcement activity is expected to increase once the agency is fully established.
Strengthened Role of ACAS and Mandatory Early Resolution
Further changes under the Employment Rights Bill are expected to strengthen the role of ACAS in dispute resolution. While early conciliation already applies to most employment tribunal claims, reforms are expected to increase emphasis on early engagement and settlement, particularly for dismissal, flexible working, and pay-related disputes.
Employers may face greater procedural scrutiny where they fail to engage constructively during the ACAS early conciliation stage. This reinforces the importance of consistent decision-making, clear written reasoning, and timely legal input before disputes escalate to tribunal proceedings.
Employment Tribunal Reforms and Increased Litigation Risk
Alongside the reduction in the unfair dismissal qualifying period, tribunal reforms are expected to increase overall claim volumes from 2026 onwards. While the Bill does not fundamentally restructure the tribunal system, the combination of expanded employee rights, higher financial exposure, and enhanced enforcement is likely to make litigation more accessible and attractive to claimants.
Unfair Dismissal Qualifying Period
The Employment Rights Bill received Royal Assent on 18 December 2025 after which the qualifying period for bringing an unfair dismissal claim has reduced from two years to six months and this provision will come into effect from 2027. While earlier proposals suggested removing the qualifying period entirely, the revised approach still represents a significant expansion of employee protection. Employers are likely to see increased scrutiny of probationary dismissals and early-stage performance management, making robust documentation, fair processes, and well-designed probation frameworks increasingly important.
Removal of the Cap on Unfair Dismissal Compensation
As part of the compromise reached on reforming the unfair dismissal qualifying period, last-minute amendments to the Employment Rights Bill remove the statutory cap on compensation for unfair dismissal claims.
Currently, compensation is limited to the lower of 52 weeks’ gross pay or a fixed statutory maximum. Under the revised framework, this cap would be removed entirely, significantly increasing potential exposure, particularly in cases involving senior or high-earning employees.
While final commencement dates are still subject to confirmation, the change is currently expected to take effect from January 2027, alongside the reduced six-month qualifying period. Taken together, these measures are likely to materially increase dismissal-related risk, raise settlement values, and make early resolution more challenging.
Flexible Working Requests
Further reforms to flexible working are now expected to come into force in 2027. Employers will face stricter requirements when refusing a request, including demonstrating that the refusal is reasonable and providing a clear, evidence-based explanation. As tribunal scrutiny increases, organisations may need to reassess how flexible working is embedded into workplace culture, not just policy, particularly for roles traditionally viewed as less adaptable.
Statutory Sick Pay Reform
Collective Redundancy Thresholds
Changes to redundancy consultation rules are expected in 2027, expanding the trigger for collective consultation from 20 or more redundancies at a single establishment to 20 or more across the employer’s entire undertaking. This shift could result in ongoing consultation obligations for larger, multi-site employers and will require earlier assessment of restructuring plans, particularly where workforce reductions occur in stages or across locations.
Increased Protective Awards for Collective Redundancy Breaches
From April 2026, the maximum protective award for failure to comply with collective consultation requirements is expected to double from 90 days’ pay to 180 days’ pay. This substantially raises financial exposure where processes are mishandled, reinforcing the importance of early planning, clear communication, and careful record-keeping during redundancy exercises.
Trade Union Law Reforms
A broad package of trade union reforms will be introduced in tranches between 2026 and 2027. Early changes will shorten notice periods for industrial action, simplify ballot processes, extend the duration of strike mandates, and remove the requirement for picket supervisors. Later phases will make it easier for unions to gain recognition, allow electronic voting, introduce a duty to inform employees of their right to join a union, and expand union access to workplaces. Additional protections for union representatives, including safeguards against blacklisting, will also be strengthened. Collectively, these reforms are expected to shift the balance of industrial relations and increase union activity across many sectors.
Zero and Low-Hours Contracts
Proposals relating to zero and low-hours contracts are still being debated, but are currently expected to take effect in 2027. Employers may be required to offer qualifying workers a guaranteed-hours contract based on hours worked over a reference period, alongside providing reasonable notice of shifts and compensation for cancelled or curtailed work. If implemented as proposed, these measures could significantly increase administrative complexity and labour costs, prompting some employers to reconsider existing workforce models.
Fire and Rehire Practices
From October 2026, dismissals linked to an employee’s refusal to accept contractual changes commonly referred to as “fire and rehire” will generally be treated as automatically unfair. A limited exception will apply where changes are genuinely necessary to address severe financial difficulties threatening business viability, and where alternatives could not reasonably have been avoided. In practice, this will narrow the circumstances in which contractual change strategies can be lawfully pursued and increase the importance of meaningful consultation and negotiation.
Duty to Prevent Sexual Harassment
A new statutory duty will require employers to take all reasonable steps to prevent sexual harassment in the workplace from April 2026. This obligation will extend beyond colleague behaviour to include harassment by third parties such as clients, customers, and contractors. Further regulations are expected to clarify what “reasonable steps” mean in practice, but employers are already expected to strengthen policies, conduct regular training, assess risk areas, and ensure reporting mechanisms are effective. Whistleblowing protections will also be expanded to explicitly cover disclosures relating to sexual harassment.
Enhanced Protection During Pregnancy and Family Leave
Regulations expected in 2027 will significantly restrict dismissals during pregnancy, maternity leave, and a six-month period following return to work, except in limited circumstances. Similar protections may be extended to other forms of statutory family leave, including adoption, shared parental, neonatal care, and paternity leave, subject to further consultation. These changes will require careful handling of dismissals and redundancies involving protected employees, supported by strong planning and documentation.
Day-One Rights for Family and Bereavement Leave
From April 2026, paternity leave and unpaid parental leave will become day-one rights. Parents will also gain the ability to take paternity leave after shared parental leave, increasing flexibility following birth or adoption. In addition, a new day-one right to one week of unpaid bereavement leave will be introduced, including in cases of pregnancy loss before 24 weeks. Employers will need to update family leave policies and HR systems to reflect these expanded entitlements.
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:
- Compliance Expertise: Our team stays ahead of legislative updates, ensuring your policies meet legal standards across jurisdictions.
- Strategic Support: We offer practical solutions to help you align workplace practices with legal obligations while fostering a positive work environment.
- Professional Guidance: Our team specialises in addressing the complexities of cross-border HR challenges, offering personalised solutions to your workforce.
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Get in touch with Beyond Borders HR today to ensure your organisation is ready for the changes 2026 brings.
