Global Employment Law Updates 2026: Asia-Pacific
A summary of upcoming employment law changes across the Asia-Pacific region in 2026, with practical impact for employers.
Employment law developments across the Asia-Pacific region in 2026 reflect a combination of structural reform, expanding employee protections, and evolving regulatory oversight. While the scope and pace of change differ widely by jurisdiction, employers can expect increased focus on pay standards, workplace conduct, social insurance coverage, and compliance obligations.
The following overview outlines the most significant employment law updates anticipated across the region and the practical considerations for employers operating in Asia-Pacific.
Australia
Australia continues to see significant employment law reform, with several changes already in force and others expected to take effect through 2026. These developments strengthen employee protections across pay equity, workplace conduct, flexibility, and termination, and require employers to reassess contracts, policies, and workforce strategies.
Payday Superannuation Contributions
Each payment of ordinary time earnings will trigger a seven-day deadline for super contributions to be received by the employee’s super fund. Limited exceptions will apply, including payments to new employees with less than two weeks’ service and irregular payments made outside the normal payroll cycle, such as one-off bonuses or reimbursements.
Gender Equality Target-Setting for Large Employers
Affected employers must choose three targets from a prescribed list covering areas such as workforce gender composition, pay equity, flexible working arrangements, and the prevention of sexual harassment. At least one target must be numerical, while others may be action-based, such as conducting pay gap analyses or structured employee consultation.
Private-sector employers will nominate targets during the 2025–26 reporting period (1 April to 31 May 2026), while public-sector employers will do so between 1 September and 31 October 2026. Progress will be measured against baseline data submitted in the year preceding each three-year reporting cycle. Employers that fail to select targets or demonstrate progress risk public identification by WGEA and loss of a compliance certificate, which may affect eligibility for government contracts.
Expansion of Government-Funded Paid Parental Leave
The portion of leave reserved for each parent in a couple on a “use-it-or-lose-it” basis will increase from three to four weeks, encouraging shared caregiving. Single parents will retain access to the full 26-week entitlement. The scheme continues to allow flexible use of leave over a two-year period following birth or adoption. Employers should ensure HR systems and employee communications reflect the expanded entitlements and increased flexibility.
Paid Parental Leave Following Stillbirth or Infant Death
Review of the National Employment Standards (NES)
While certain areas such as flexible work, casual employment, parental leave, and family and domestic violence leave are excluded due to recent reforms, the review may result in significant changes to other core entitlements. Matters under consideration include increasing the minimum annual leave entitlement from 20 to 25 days, strengthening redundancy pay provisions, removing small business exemptions, and reassessing redundancy frameworks in light of technology-driven job displacement.
The committee is currently receiving submissions, and any legislative outcomes are expected to shape employer obligations from 2026 onwards.
Apprenticeship Incentives and Employer Payments
Eligible employers may receive payments of up to AUD 5,000, paid in two instalments during an apprentice’s first year of training. At the same time, the existing Priority Hiring Incentive for non-KAP occupations will be reduced, with the maximum payment decreasing from AUD 5,000 to AUD 2,500 for apprentices undertaking a Certificate III or higher qualification outside the KAP list.
Employers should assess whether current or planned apprenticeship roles fall within priority classifications and factor revised incentive levels into workforce planning decisions.
Reforms to Non-Compete Clauses
Proposed amendments to the Fair Work Act 2009 would prohibit non-compete clauses for employees earning below the high-income threshold, currently set at AUD 183,100. In parallel, amendments under consideration to the Competition and Consumer Act 2010 may restrict or prohibit wage-fixing and non-solicitation arrangements between businesses. If implemented, these reforms would significantly limit post-employment restraints for a large segment of the workforce and increase reliance on alternative protections such as confidentiality, intellectual property provisions, and longer notice periods.
Prohibition on NDAs in Sexual Harassment Settlements (Victoria)
Proposed legislation in Victoria is expected to prohibit the use of non-disclosure agreements to settle sexual harassment claims unless confidentiality is specifically requested by the complainant. This represents a shift away from default confidentiality in settlement arrangements and will require employers to adjust settlement templates, complaint-handling processes, and internal training to reflect a more transparent framework.
‘Same Job, Same Pay’ Reforms
Multi-Employer Bargaining
Amendments to the Fair Work Act now permit multi-employer bargaining, allowing unions to initiate bargaining across multiple employers without demonstrating majority employee support. This change has expanded the scope for coordinated bargaining and is expected to increase union activity, particularly in industries with traditionally fragmented workforces or expiring enterprise agreements.
Flexible Working Requests
The Secure Jobs, Better Pay reforms have strengthened employees’ rights to request flexible working arrangements. Recent case law highlights that refusals are subject to increased scrutiny and must be supported by clear, role-specific, and well-documented business grounds. Employers are therefore required to apply greater care and consistency when assessing flexible work requests.
Redeployment Obligations in Redundancy Situations
A recent High Court decision has clarified that employers’ redeployment obligations in redundancy cases must take into account all relevant circumstances, including the possibility of operational changes such as insourcing work, restructuring duties, or replacing contractors with employees facing retrenchment. This clarification reinforces the need for a broad and well-documented redeployment assessment before proceeding with terminations.
China
Employment regulation in China continues to evolve through a combination of policy initiatives and judicial interpretation rather than wholesale legislative reform. Measures introduced in 2025 will carry through into 2026, with a particular focus on employment stability, access to financial support, and clearer rules governing labour disputes and restrictive covenants.
Employment Stabilisation Policies and Social Insurance Relief
New policies introduced in mid-2025 aim to strengthen employment stability by expanding access to employment-related financing. More financial institutions are expected to participate in stabilisation loan programmes, improving availability for businesses and easing funding pressures. At the same time, tighter oversight of subsidies and loans has been introduced, with enhanced review processes and ongoing monitoring to ensure appropriate use of public funds.
Temporary relief measures are also available for employers experiencing genuine operational difficulties. Eligible businesses may apply to defer contributions to pension, unemployment, and work injury insurance schemes for an approved period, without incurring late payment penalties. Employers should monitor local implementation rules closely, ensure applications are accurate, and maintain detailed records in anticipation of audits or inspections.
Supreme People’s Court Interpretations on Labour Disputes
Revised judicial interpretations issued by the Supreme People’s Court in 2025 introduce a series of clarifications affecting employment contracts, post-termination obligations, and employer liabilities. These interpretations will have a practical impact on dispute resolution throughout 2026.
Key points include reinforced consequences for failing to enter into a written employment contract, with employers exposed to enhanced wage liabilities unless specific legal exceptions apply. The guidance also clarifies circumstances in which employers may seek compensation where employees leave before completing an agreed service period linked to special benefits or training, provided the employer is not at fault.
In addition, the interpretations refine the enforceability of non-compete restrictions, reinforcing the principle that such clauses must be limited to roles involving genuine access to sensitive information and should not be used to unduly restrict labour mobility.
Strengthened Guidance on Non-Compete Agreements
Further compliance guidance issued in late 2025 sets out clearer expectations for lawful non-compete arrangements. Employers must be able to identify the specific trade secrets or confidential information requiring protection and demonstrate that any restrictions imposed are necessary and proportionate.
Broad or overly restrictive non-compete clauses may be challenged, particularly where employees only have access to general business information. Employers are expected to notify affected employees of the scope of confidentiality obligations and the interests being protected. During 2026, organisations should review existing restrictive covenants, refine contractual language where needed, and monitor how courts apply the updated guidance in practice.
Hong Kong
Revised Threshold for Continuous Employment
From January 2026, the criteria used to determine whether an employee is in continuous employment will be adjusted. While the concept of a four-week employment period remains central, the method for assessing qualifying working hours within that period will become more flexible.
Under the revised framework, a week may count towards continuous employment if either a minimum weekly hours threshold is met, or if the employee has remained employed over a four-week period with total working hours reaching a specified cumulative level. This alternative calculation is designed to capture employment relationships that do not follow consistent weekly schedules.
As a result, more employees are expected to meet the continuous employment threshold and become entitled to statutory benefits, including paid annual leave, sickness allowance, family-related leave, and severance or long service payments.
Minimum Wage Policy
Trade Unions (Amendment) Ordinance
Penalties for non-compliance will also increase, requiring employers engaging with unions to be mindful of the revised regulatory environment.
The gig economy and platform workers
The regulation of platform work and the gig economy is also expected to evolve further. In October 2025, legislation was passed to establish a licensing framework for ride-hailing platforms. Once implemented, platforms will be required to hold a dedicated licence and comply with prescribed operational conditions.
These include eligibility requirements for drivers, such as age thresholds, clean driving records, and mandatory assessments, as well as vehicle age limits. The new regime is expected to come into force no earlier than October 2026.
In parallel, the government has signalled its intention to strengthen protections for platform workers more broadly, with further legislative proposals expected following consultations with platform operators, labour representatives, academics, and the insurance sector. Work-injury compensation is anticipated to be a key focus of these reforms.
Addition of Easter Monday Holiday
Changes to statutory holidays will continue as part of Hong Kong’s gradual alignment of statutory and general holidays. From 2026 onwards, Easter Monday will be designated as a statutory holiday, increasing the total number of statutory holidays to 15.
This forms part of the phased reforms introduced under the Employment (Amendment) Ordinance 2021, which aim to raise the total number of statutory holidays to 17 by 2030. Employers should ensure holiday entitlements and payroll systems reflect the additional statutory holiday and that eligible employees receive statutory holiday pay in accordance with the Employment Ordinance.
India
However, the transition is far from complete. While the overarching legislation is now operative, many implementing rules, schemes, and state-level regulations remain pending. As a result, 2026 will be a critical year for employers as the practical application of the new framework continues to evolve across different states.
Code on Wages
The Code also harmonises provisions on working hours, overtime, permissible deductions, statutory bonuses, and full-and-final settlements. While the Code is already in effect, further notifications and state rules are expected in 2026. Employers should review payroll structures, working time policies, and deduction practices to ensure alignment with the revised framework, while also checking consistency with applicable state legislation.
Social Security Code
Although the Code is operational, detailed schemes and state-specific rules are still awaited. Employers should monitor central government announcements closely and be prepared to update payroll and compliance processes as new contributions and reporting requirements are clarified.
Industrial Relations Code
Employers should assess how the revised definition of wages may affect severance-related calculations and monitor further guidance on union recognition and verification procedures, particularly in workplaces with multiple unions.
Occupational Safety, Health and Working Conditions Code
Further rules are expected to be issued during 2026, both at central and state level. Employers should continue tracking regulatory developments, update registration and reporting processes, and ensure health and safety practices remain aligned with emerging requirements.
Indonesia
Indonesia is expected to undergo further employment law reform through 2026, following ongoing constitutional challenges to the existing manpower framework. Anticipated changes may affect core employment regulation, outsourcing arrangements, and employer reporting obligations, requiring close monitoring by organisations operating in the country.
New Manpower Law
The Constitutional Court has ordered the government to enact a new manpower law by 1 November 2026. This directive follows multiple judicial reviews of the current Manpower Law framework, under which several provisions of Law No. 13 of 2003 and its 2023 amendments were found to be inconsistent. A number of implementing government regulations have also been questioned due to insufficient legislative delegation.
While the content of the new law has not yet been published, it is expected to consolidate and clarify key aspects of employment regulation. Employers should monitor legislative developments closely and be prepared to review employment contracts, internal policies, and workforce management practices once the new law is enacted.
Outsourcing Arrangements
Recent legislative changes removed the traditional distinction between outsourcing of personnel and outsourcing of work. Further regulations are expected in 2026 to clarify which categories of work may be outsourced and under what conditions.
Until clearer guidance is issued, employers should closely track regulatory developments and be prepared to reassess existing outsourcing structures to ensure compliance with the revised framework once implementing rules are released.
Reporting Obligations for Job Vacancies
Potential penalties under the proposed framework may include suspension of access to manpower-related services, such as approvals for amendments to company regulations. Employers should ensure that vacancy reporting processes are consistently followed and prepare for stricter enforcement once the new rules take effect.
Japan
Japan is set to introduce a series of employment law reforms through 2026 that significantly expand employer responsibilities in relation to harassment prevention, workplace equality, and occupational health and safety. These changes will require updates to policies, training frameworks, and internal reporting processes.
Mandatory Measures Against Customer Harassment
From 1 October 2026, employers will be required to implement measures to protect employees from harassment by customers, business partners, facility users, and other external parties. This marks a clear shift away from treating harassment solely as an internal workplace issue, extending employer responsibility to conduct originating outside the organisation.
Supporting the Balance Between Medical Treatment and Work
From 1 April 2026, employers will be required to make reasonable efforts to support employees who are balancing ongoing medical treatment with work responsibilities. While framed as an obligation to make efforts rather than a strict mandate, expectations will centre on flexible working arrangements, workload adjustments, and internal consultation processes aligned with MHLW guidelines.
Employers should review existing absence management, reasonable accommodation, and flexible working practices to ensure they are capable of supporting employees managing long-term health conditions.
Strengthened Protections Against Sexual Harassment in Recruitment
Japan is extending sexual harassment prevention obligations beyond current employees to include job seekers, students, interns, and other applicants. Employers will be required to take proactive steps to prevent harassment across all stages of recruitment, including interviews, internships, alumni networking activities, and other early-career engagement programmes.
Required measures will include establishing internal policies and providing targeted training to personnel involved in recruitment activities, in accordance with forthcoming MHLW guidance. The effective date has not yet been fixed but will be set within 18 months from the promulgation of the amended legislation. Noncompliance may result in administrative guidance and public disclosure.
Enhanced Gender Pay Gap and Workforce Transparency Requirements
From April 2026, employers with 101 or more employees will be required to publicly disclose gender pay gap data and the proportion of female managers within their workforce. These enhanced disclosure obligations are intended to strengthen transparency and accountability around workplace equality.
In addition, employers seeking special government certification will be required to disclose measures taken to prevent sexual harassment of job seekers. Organisations should begin preparing data collection processes and reviewing internal reporting structures to meet these new requirements.
Expanded Occupational Safety and Health Obligations
Sole proprietors will be recognised both as protected individuals and as parties subject to certain obligations under the legislation. Occupational accident reporting requirements will also be expanded to cover incidents involving sole proprietors, and operators of hazardous worksites will be expected to coordinate safety measures for all personnel on site.
Stress check obligations will be extended to smaller workplaces that were previously exempt, with the effective date to be specified within three years from promulgation.
In addition, from April 2026, employers will be expected to implement targeted safety measures for senior workers, including adjustments to the physical work environment, job duties, and training, reflecting Japan’s ageing workforce.
Employers should review health and safety frameworks, contractor management practices, and employee wellbeing initiatives to ensure readiness for the phased rollout of these reforms.
Malaysia
Malaysia is set to introduce several key employment law changes in 2026, affecting payroll, employee insurance, and obligations around new hires. Employers should review internal processes to ensure readiness for the upcoming regulatory requirements.
Revised Minimum Salary Thresholds for Expat Employment Pass Holders
The revised Employment Pass categories will apply to new applications and renewals submitted from 1 June 2026, with the following salary bands:
- Employment Pass Category I: MYR 20,000 and above per month
- Employment Pass Category II: MYR 10,000 to MYR 19,999 per month
- Employment Pass Category III: MYR 5,000 to MYR 9,999 per month
These thresholds represent a substantial increase from the current framework, particularly for Category I roles, where the minimum salary has effectively doubled. Employers should review all expatriate positions to confirm that role seniority, responsibilities, and compensation levels align with the revised categorisation.
Higher Salary Requirements for Manufacturing Sector Roles
In the manufacturing and manufacturing-related services sector, stricter salary requirements will apply for Employment Pass Category III positions. For these roles, the minimum monthly salary will increase to MYR 7,000, exceeding the general Category III threshold.
This higher sector-specific requirement reflects the government’s intent to further limit lower-paid expatriate employment in sectors with strong local talent availability. Manufacturing employers should assess whether existing and planned Category III roles will continue to qualify under the revised criteria or require reclassification or salary adjustments.
Employer Notification Duties
Expanded Employment Insurance Coverage and Benefits
The EIS will extend coverage to include gig and casual workers, alongside standard employees. The updated scheme introduces enhanced benefits, including:
- A mobility allowance of RM1,000
- Increased re-employment allowance (50%)
- Training allowance of up to RM30 per day
- An increased training fee cap of RM7,000
Employers should monitor developments and adjust administrative processes to ensure proper reporting and employee access to the new benefits.
Prohibition on Recovering Employer Contributions
Employers will only be permitted to deduct employees’ contributions from wages. Recovering the employer’s portion of contributions from employees will be prohibited. Organisations should review employment contracts and amend any clauses that previously allowed recovery of employer contributions.
Non-Employment Injury Insurance
The new LINDUNG 24/7 scheme will provide coverage for non-employment-related injuries. Employees with multiple employers must nominate a single employer for contribution deductions. Employers are responsible for remitting both the employer and employee portions to SOCSO and must ensure accurate payroll deductions in line with the prescribed rates.
Stamp Duty Exemption Increase
The wage threshold for stamp duty exemption on employment contracts will increase from RM300 to RM3,000 per month, effective 1 January 2026. Employers should update payroll and employment documentation to reflect the new threshold.
Gig Workers Bill 2025
The bill establishes minimum terms for gig workers, provides access to the Gig Workers Tribunal for dispute resolution, and introduces protections including transparency in automated decisions, the right to human review, and mandatory SOCSO registration for platform-based workers. Employers engaging gig workers should review contracts and ensure registration for SOCSO where required.
New Zealand
A range of employment law changes are expected to take effect in New Zealand through 2026, alongside reforms already implemented in 2025. Together, these developments affect industrial action, pay equity, leave entitlements, termination practices, and collective bargaining, and may require employers to review employment agreements, payroll systems, and workforce management approaches.
Minimum Wage Increase for 2026
The adult minimum wage in New Zealand will increase to NZD 23.95 per hour from 1 April 2026, representing a rise of 45 cents from the current rate of NZD 23.50. The training and starting-out minimum wages will also increase to NZD 19.16 per hour, maintaining their position at 80% of the adult minimum wage.
For a full-time employee working 40 hours per week, this change equates to an increase of approximately NZD 18 per week or NZD 936 per year before tax. Employers should review payroll systems and wage structures to ensure compliance ahead of the April 2026 implementation date.
Health and Safety Reform Focused on Critical Risks
At the same time, regulators continue to emphasise the importance of addressing psychosocial hazards, including stress, fatigue, bullying, and excessive workload pressures. Employers should ensure that health and safety frameworks, risk registers, and internal policies address both physical and mental wellbeing, as enforcement attention increasingly spans both areas.
Privacy Act Amendment: New Information Privacy Principle 3A
Under the new rule, organisations must take reasonable steps to inform individuals that their personal data has been collected indirectly, aligning New Zealand’s privacy regime more closely with international standards applied in Australia and the EU. Employers should review data-collection practices, assess reliance on third-party providers, update privacy notices, and ensure staff are trained to identify when notification requirements are triggered.
Partial Pay for Partial Strikes
Employers are now permitted to deduct pay from employees who participate in partial strike action. Deductions may be calculated either by reference to the specific duties not performed or by applying a standard 10% reduction. This change provides greater clarity and flexibility for employers managing partial industrial action.
Equal Pay Claims
Recent reforms have narrowed the scope of equal pay claims. Employees must now demonstrate both historical and ongoing undervaluation of work, and the role in question must have been at least 70% female-dominated for a minimum of ten years. Internal comparators must be used wherever available, and claims cannot proceed without an appropriate comparator. These changes significantly raise the evidentiary threshold for equal pay claims.
Pay Transparency
Employees now have an explicit right to discuss their pay without fear of adverse treatment. Any retaliation or disadvantage suffered as a result of pay discussions may give rise to a personal grievance. Employers should ensure policies and management practices do not discourage lawful pay transparency.
Proposed Replacement of the Holidays Act
Independent Contractor Status
The test requires, among other conditions, a written agreement confirming non-employee status, freedom to work for others, no obligation to accept work or maintain availability, the ability to subcontract, protection against termination for refusing additional tasks, and a reasonable opportunity to seek independent advice before entering the arrangement.
Further clarification will allow businesses to vet subcontractors for role-specific qualifications or require criminal record checks where justified by the nature of the work. Employers should review contractor arrangements carefully once the legislation is finalised to ensure continued compliance.
Grievance Remedies
Proposed changes aim to reduce available remedies where an employee has contributed to the circumstances giving rise to a personal grievance. While the right to bring a grievance would remain, compensation and other remedies may be reduced in cases involving employee misconduct or contributory behaviour.
Unjustified Dismissal Claims for High Earners
Under proposed reforms, employees earning above NZD 180,000 would no longer be able to bring unjustified dismissal claims. A transitional period is expected to allow employers and affected employees to renegotiate employment agreements, including termination-related provisions.
Termination Discussions
Further proposed changes would permit employers to initiate termination discussions with employees without the content of those discussions being relied upon in subsequent claims. This is intended to encourage earlier and more open conversations around exit arrangements, subject to good-faith obligations.
Union Relations
The government is expected to remove the “30-day rule” requiring new employees to be employed on collective agreement terms for their first 30 days. This change would provide greater flexibility at the start of employment and reduce the automatic extension of collective agreement conditions to new hires.
Employment Relations Amendment Bill
Key proposals include the removal of the “30-day rule”, meaning new employees would no longer be required to start employment on collective agreement terms where a collective is in place. Employers would also no longer be required to provide an “active choice” form or pass on union-supplied information to new hires.
The Bill further proposes restricting access to personal grievance remedies, particularly where employee conduct contributes to the dispute. Remedies may be reduced or removed entirely in cases involving serious misconduct, contributory behaviour, or procedural errors that do not undermine the overall fairness of the employer’s actions.
Philippines
Several regulatory developments introduced in 2025 will continue to shape employer compliance obligations in the Philippines throughout 2026. The changes affect foreign employment, dispute resolution procedures, and workplace health and safety, requiring employers to review processes and documentation carefully.
Employment of Foreign Nationals
These changes have been effective since 9 February 2025. Employers should ensure that visa and work permit processes are aligned with the updated requirements and that internal compliance checks are in place for AEP applications and related job postings.
Revised Mediation Rules under the Single-Entry Approach (SENA)
Employers engaging in SENA mediation should familiarise themselves with the revised procedures to ensure efficient handling of disputes and to maximise the opportunity for early resolution.
Occupational Health and Safety (OSH) Regulations
New occupational health and safety regulations effective from 16 May 2025 introduce more tailored compliance requirements. These include industry- and establishment-specific obligations, recognition of emerging work arrangements, and expanded equivalency rules for OSH personnel qualifications, training, and reporting. The enforcement framework has also been updated to include graduated penalties for wilful violations.
Employers should review existing OSH policies, training programmes, and reporting systems to ensure alignment with the revised standards.
Suspension of SEBA Certifications
Employers should take this procedural change into account when managing collective bargaining relationships and responding to union-related requests.
Singapore
Singapore is continuing to strengthen its workplace equality and family-support framework, with key reforms expected to take effect during 2026 and 2027. Employers should begin reviewing internal policies, grievance processes, and leave administration to ensure readiness for the next phase of implementation.
Revised COMPASS Framework for Employment Passes
Key updates are as follows:
| Feature | Earlier Rule (2025) | 2026 Update | Impact |
|---|---|---|---|
| Employment Duration | 1–6 years cumulative cap | No fixed cap | Allows longer periods of employment |
| Age Limit | Up to 60 years | Increased to 63 years | Expands eligibility for older workers |
| Performing Artiste Permit | Scheme in place | Ends June 2026 | Permit category discontinued |
| S Pass Salary Floor | SGD 3,000 | SGD 3,300 | Higher salary threshold for skilled workers |
| Application Process | Paper-based and partially online | Fully digital | Streamlined and faster processing |
Workplace Fairness Act (WFA)
Key features include:
- Statutory Tort of Discrimination: Employees will have a legal right to seek remedies, including damages or reinstatement, for discriminatory actions throughout the employment lifecycle. Employers should ensure recruitment, appraisal, promotion, and termination processes are objective, documented, and free from bias.
- Formal Grievance Procedures: Employers will be required to implement written grievance-handling processes for complaints related to discrimination and harassment. Processes must include inquiry, review, communication of outcomes, and confidential record-keeping.
- Anti-Retaliation Protections: Employees raising grievances in good faith will be protected from retaliation, even if complaints are unsubstantiated. Employers must embed these safeguards in HR policies and ensure supervisors and HR personnel are trained.
- Structured Dispute Resolution: The WFDRB introduces a formalised pathway including internal grievance handling, mandatory mediation, and adjudication before the Employment Claims Tribunal (up to SGD 250,000) or the High Court. Employers should familiarise HR teams with these procedures and consider legal guidance for high-value claims.
Employment Act Review
Areas under consideration include a possible increase in minimum statutory annual leave entitlements, which currently range from seven to fourteen days depending on length of service. The review may also reassess the salary thresholds that determine eligibility for overtime pay, which are presently set at SGD 4,500 per month for workmen and SGD 2,600 for non-workmen who are not professionals, managers, or executives.
In addition, changes may be proposed to the automatic transfer of employment provision under Section 18A of the Employment Act, which has drawn criticism in practice. Employers should follow consultation outcomes carefully and be prepared to review employment contracts, leave policies, and payroll practices if amendments are introduced.
Expansion of Shared Parental Leave
From 1 April 2026, eligible working parents will be entitled to ten weeks of paid shared parental leave, an increase from the current six-week entitlement. This expansion is intended to promote greater shared caregiving responsibilities and workforce participation.
Employers should update parental leave policies, internal guidelines, and payroll systems to reflect the extended entitlement, and ensure managers are equipped to plan for longer shared leave periods across teams.
Changes to Retirement and Re-employment Ages
Singapore will further raise statutory age thresholds to support longer workforce participation. From 1 July 2026, the statutory retirement age will increase to 64, while the re-employment age will rise to 69, up from the current thresholds of 63 and 68 respectively.
South Korea
South Korea will see wide-ranging employment law changes take effect through 2025 and 2026, with significant implications for labour relations, wage compliance, and employee family-related entitlements. Employers operating in the country will need to prepare for a more regulated and enforcement-driven environment.
Minimum Wage Rise
Proposed Amendment to Shift Employment Insurance Eligibility from Hours-Based to Income-Based
The Ministry of Employment and Labour has proposed amendments to the Employment Insurance Act that would fundamentally change eligibility for unemployment insurance benefits. The draft legislation would replace the current working-hours-based eligibility standard with an income-based threshold. Under existing rules, employees who work fewer than 15 hours per week on average over a four-week period do not accumulate qualifying employment periods for unemployment benefits. The proposed amendment would allow eligibility regardless of working hours, provided the employee’s wages exceed a minimum income level to be set by regulation.
Reform of Trade Union and Labour Relations Framework
A key feature of the reform is the restriction on employers’ ability to claim damages against unions and workers in connection with industrial action. These changes are expected to strengthen collective labour activity and alter the balance of risk in disputes.
Employers should anticipate increased complexity in collective bargaining and industrial relations strategy, and review internal policies to ensure alignment with the revised legal framework.
Enhanced Sanctions for Late Wage Payments
South Korea has significantly strengthened enforcement mechanisms for wage payment compliance. From late 2025, delayed wage payments will attract higher financial, administrative, and criminal consequences.
Interest on unpaid wages will apply at a high annual rate and will now extend to current employees, not only former workers. Employers with repeated arrears may be publicly disclosed to credit institutions, face restrictions on financing, and lose access to government subsidies. In serious cases, late payment may result in criminal liability, including restrictions on overseas travel and the loss of non-prosecution protections, even if wages are later settled.
Employees affected by intentional or repeated delays may also seek enhanced damages, substantially increasing employer exposure. As a result, timely and accurate wage payments will be critical to risk management.
Expansion of Family-Related Leave and Flexible Working Rights
Earlier reforms introduced in 2025 substantially expanded employee entitlements relating to childcare, parental leave, and pregnancy protection.
Childcare leave periods have been extended, with greater flexibility in how leave is taken and broader eligibility for parents caring for children with additional needs. Reduced working hours for childcare purposes will now apply until a later child age and may be extended where statutory leave has not been fully used.
Paternity leave entitlements have doubled, while leave related to fertility treatment has also been expanded, including mandatory paid days. Pregnancy protection rules now apply earlier in pregnancy, with enhanced safeguards for high-risk cases. Additional protections apply in situations involving premature birth, miscarriage, or stillbirth, with longer statutory leave periods in place.
Employers should update rules of employment, HR policies, and payroll systems to reflect the expanded entitlements and ensure that supporting documentation and certification processes are handled consistently.
Thailand
Thailand is implementing a series of employment law changes through late 2025 and 2026 that will affect employer cost planning, statutory benefits administration, and workforce reporting obligations. Employers should begin preparing well in advance to ensure a smooth transition.
Mandatory Employee Welfare Fund Contributions
Employers with more than ten employees will be required to register with the Fund unless they already operate a provident fund or an equivalent approved scheme. Organisations should assess existing benefit arrangements, budget for the additional statutory cost, and monitor further regulatory guidance ahead of implementation.
Expanded Family Leave and Employee Protections
In addition, a new form of paid spousal childbirth support leave will apply, allowing employees time off around the birth of a child. These changes will require updates to internal leave policies, payroll systems, and employee communications.
The amendments also extend employment-style protections to certain service contractors working under government supervision, narrowing the distinction between employees and contractors in the public sector context.
New Annual Workforce Reporting Obligations
Employers with ten or more employees will be subject to a new annual reporting requirement, mandating submission of employment and working conditions data at the start of each year. Employers should establish internal processes to capture and validate workforce data accurately and on time.
Vietnam
Vietnam is introducing a series of labour and social insurance reforms between 2025 and 2026 that will directly affect payroll administration, contract management, and expatriate workforce planning. Employers operating in Vietnam should begin reviewing internal systems to ensure readiness.
Minimum Wage Increase for 2026
- Region I will be set at VND 5,310,000 per month (approximately VND 25,500 per hour),
- Region II at VND 4,730,000 (VND 22,700/hour),
- Region III at VND 4,140,000 (VND 20,000/hour), and
- Region IV at VND 3,700,000 (VND 17,800/hour).
This adjustment represents an average increase of around 7% compared to the previous rates and reflects the government’s effort to align wage floors with inflation and living costs. Employers should adjust payroll systems and labour cost planning to incorporate the revised minimum wage levels from the start of 2026.
Expanded Coverage for Unemployment Insurance
From January 2026, the scope of labour contracts subject to unemployment insurance will widen significantly. Under the new Law on Work, employees engaged under contracts of one month or longer will fall within the unemployment insurance regime, lowering the previous three-month threshold.
This change will bring a broader segment of the workforce into statutory coverage.
- Employees engaged under fixed-term labour contracts with a duration of one month or longer, expanding coverage beyond the previous three-month threshold.
- Part-time employees whose monthly earnings are equal to or exceed the minimum salary used as the basis for compulsory social insurance contributions under the 2024 Social Insurance Law.
- Individuals working under agreements that may be described differently but, in substance, constitute a paid employment relationship, where the work is performed under the management, supervision, and direction of another party.
Employers should review all existing contract types, identify newly covered employees, and ensure payroll systems accurately calculate, deduct, and remit the required contributions.
New Maximum Cap on Unemployment Benefits
While the method for calculating unemployment benefits remains unchanged under the Employment Law 2025, a new upper limit has been introduced to place a ceiling on monthly benefit payments. From 1 January 2026, unemployment benefits will be capped at five times the applicable regional minimum wage in force during the employee’s final month of unemployment insurance contributions.
This measure is intended to support the long-term sustainability of the unemployment insurance fund, particularly in higher-income cases, while preserving the underlying contribution-based structure of the system.
| Zone | Previous cap (until 31 December 2025) | New cap (from 1 January 2026) |
|---|---|---|
| Zone I | VND 24,800,000 | VND 26,550,000 |
| Zone II | VND 22,050,000 | VND 23,650,000 |
| Zone III | VND 19,300,000 | VND 20,700,000 |
| Zone IV | VND 17,250,000 | VND 18,500,000 |
In addition to introducing a benefit cap, the Employment Law 2025 shortens the waiting period before unemployment benefits are paid. Eligible employees will now begin receiving benefits from the 11th working day following submission of a complete application, rather than from the 16th day as under the current rules.
Changes to the Basis for Statutory Insurance Contributions
Vietnam has abolished the use of a fixed “base salary” for calculating statutory insurance contributions. Instead, contributions will be calculated using a reference salary issued periodically by the Government.
This reform requires employers to closely monitor official announcements on reference salary levels and adjust payroll configurations accordingly. Failure to update contribution calculations in line with revised reference salaries may lead to compliance risks.
Introduction of Electronic Labour Contracts
The decree establishes that e-contracts will have the same legal validity as traditional paper contracts, and requires that identifiers and digital signatures be used in compliance with electronic transactions law and data protection requirements.
Employers should begin preparing their systems for secure digital contract execution, digital identity management, and integration with the central platform to ensure compliance before the mid-2026 deadline.
More Flexible Rules for Expatriate Employees
Recent changes have eased several restrictions applicable to foreign nationals working in Vietnam. Expatriates may now work for up to 90 days per year without a work permit, and the previous minimum experience requirement for foreign experts has been removed.
Transfer of Labour Authority to the Ministry of Home Affairs
Employers should update internal compliance workflows and confirm the correct authorities and contact points for ongoing labour matters.
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.
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 2026 brings.
