Global Employment Law Updates 2026: Americas
A summary of upcoming employment law changes across North and South America in 2026, with practical impact for employers.
Employment law developments across the Americas in 2026 reflect a mix of regulatory reform, increased worker protections, and greater scrutiny of employer practices at both federal and local levels. While the pace and scope of change varies by country, employers will need to stay alert to updates affecting pay practices, termination rules, benefits, and workplace compliance. The following overview summarises the most relevant legislative changes expected across the region and their potential impact on employers.
Argentina
Argentina is expected to consider a comprehensive labour reform agenda during 2026 following the submission of a wide-ranging Labour Modernisation Bill to the Senate in December 2025. The proposals aim to modernise the existing employment framework, reduce litigation, encourage formal job creation, and increase organisational flexibility. As the measures remain under legislative discussion, employers should monitor developments closely, as adoption could result in significant changes to employment contracts, workforce management practices, and termination costs.
Proposed Reforms to the Employment Contract Law
The draft reform package proposes substantial amendments to Employment Contract Law No. 20,744 and related regulations. Key elements under discussion include clearer rules governing managerial authority and organisational flexibility, allowing employers to adjust work modalities, internal organisation, and methods of operation provided essential employee rights are not adversely affected. Where changes cause material or moral harm, employees would retain the right to treat the contract as terminated without cause.
The proposals also seek to expand the range of benefits that may be treated as non-remunerative, including certain welfare and social benefits, and to permit broader use of electronic means for wage payments, payslips, notices, and employment certificates. Collective bargaining agreements may be allowed greater scope to introduce flexible working time arrangements, such as overtime banks and compensatory rest systems, subject to minimum rest and working time protections.
Changes to annual leave rules are also contemplated, including the ability to split vacations into shorter periods, while ensuring periodic summer leave entitlements. Revisions to sick leave verification procedures and the creation of an approved register of medical experts are likewise under consideration.
Employment Status, Registration, and Platform Work
A central feature of the proposed reform is clarification of the distinction between employment relationships and independent services. The draft bill would limit the presumption of employee status where independence can be demonstrated through objective documentation, such as written contracts, invoicing, and payment records. Joint liability rules in subcontracting arrangements may also be revised, potentially reducing principal employer exposure where statutory documentary controls are satisfied.
The proposals further envisage the digitalisation and centralisation of labour registration through the Revenue and Customs Control Agency (ARCA). Employment records would be maintained electronically, with failures to register continuing to give rise to a presumption in favour of the worker. These measures are intended to streamline compliance, improve traceability, and reduce litigation linked to formal registration breaches.
In addition, a special legal regime is proposed for platform-based service providers, particularly in the mobility and delivery sectors. Under this framework, platform workers would not be presumed to be employees, but minimum protections would apply, including access to training, personal accident insurance, transparency regarding working conditions, full receipt of tips, and internal complaint mechanisms.
Severance Reform and Labour Assistance Fund
The draft legislation proposes significant changes to termination and severance arrangements. A new Labour Assistance Fund (Fondo de Asistencia Laboral – FAL) would be established, funded through mandatory monthly employer contributions calculated as a percentage of wages subject to pension contributions. The fund would be ring-fenced for labour-related purposes and intended to cover severance and other termination-related obligations.
Severance calculation rules would also be clarified, particularly where variable remuneration applies, using defined averaging periods to reduce uncertainty and disputes. If enacted, these measures would represent a material shift in how termination costs are structured and financed by employers.
Proposed Employment and Hiring Incentives
Alongside the labour law reforms, draft measures propose temporary financial incentives to promote employment formalisation and job creation. These include reduced employer contributions, debt and penalty forgiveness for employment regularisation, and tax benefits linked to productive investment, with enhanced incentives targeted at micro, small, and medium-sized enterprises.
Alongside the labour law reforms, draft measures propose temporary financial incentives to promote employment formalisation and job creation. These include reduced employer contributions, debt and penalty forgiveness for employment regularisation, and tax benefits linked to productive investment, with enhanced incentives targeted at micro, small, and medium-sized enterprises.
Additional provisions are expected to address the interaction between formal employment and existing social assistance programmes, as well as incentives for hiring workers transitioning from the public sector. While implementation timelines remain uncertain, employers may wish to assess how these measures could influence future recruitment strategies if enacted.
Brazil
Brazil is expected to introduce targeted regulatory changes in 2026, with a particular focus on workplace health and safety obligations and remuneration governance within the insurance sector. While the scope of reforms is narrower than in some neighbouring jurisdictions, the compliance impact for affected employers may be significant.
Expanded Occupational Health and Safety Requirements
This change reflects an increased regulatory focus on mental health, stress-related factors, and other psychosocial conditions arising in the workplace. Employers should review existing risk assessments, update internal procedures, and consider whether additional training or support mechanisms are required to address these risks effectively.
Increased Labour Inspections and Enforcement Capacity
Labour inspection activity is expected to intensify in 2026 following the federal government’s authorisation to appoint a significant number of new labour inspectors. This expansion is intended to strengthen oversight of working conditions, regulatory compliance, and occupational safety standards across sectors.
As a result, employers may face more frequent audits, closer scrutiny of employment practices, and faster enforcement responses. Businesses should ensure that documentation, payroll records, health and safety programmes, and HR processes are aligned with current legal requirements and readily available for inspection.
Service-Based Contracting and Employment Classification
In 2026, the Federal Supreme Court is expected to issue a decision in Theme 1389, which may clarify the legal boundaries between employment relationships and service provision through legal entities. While the outcome remains uncertain, the ruling could establish binding criteria regarding subordination, autonomy, and jurisdictional competence in disputes involving service-based contracting arrangements.
Employers relying on independent contractor or legal entity models may wish to map existing arrangements, assess exposure to misclassification risks, and prepare contingency plans depending on how judicial guidance develops.
Work on Holidays in the Commerce Sector
The Ministry of Labour has postponed the entry into force of Ordinance No. 3,665/2023 until 1 March 2026. The ordinance reinstates the requirement for a collective bargaining agreement to authorise work on public holidays in the commerce sector, aligning regulatory practice with existing legislation.
Employers operating in retail and commerce should use this transitional period to review collective bargaining coverage and prepare for compliance once the rules take effect.
Remuneration Governance in the Insurance Sector
New rules taking effect in January 2026 will introduce enhanced remuneration governance requirements for insurance companies and insurance intermediaries. The reforms are aimed at ensuring that compensation structures support sound risk management and long-term financial sustainability.
Under the new framework, remuneration policies for certain senior and risk-influencing roles must be aligned with prudent risk-taking, with part of variable compensation deferred over multiple years. The use of malus and clawback provisions will also be required, alongside measures to prevent incentives that could encourage excessive risk.
Affected employers will need to identify which roles fall within scope, revise remuneration policies, and implement appropriate governance arrangements, including formal oversight and periodic policy reviews.
Pay Transparency and Workplace Equality
Employers with 100 or more employees remain subject to Brazil’s Equal Pay Law requirements, including periodic salary transparency reporting and strengthened internal mechanisms for addressing discrimination and harassment complaints. These obligations are expected to remain an enforcement priority in 2026, supported by enhanced digital reporting systems and inspection activity.
Digitalisation of Labour Compliance
Brazil’s ongoing digital integration of labour oversight systems, including eSocial and digital FGTS reporting, will continue to expand in 2026. These systems enable closer monitoring of employment data, payroll, social security contributions, and compliance with labour obligations. Employers should ensure data accuracy, system integration, and internal controls are robust to mitigate compliance risks.
Canada
Ontario: New Job Posting Obligations
Public job advertisements will need to include either the expected compensation or a salary range, subject to specified limits. Employers will also be required to disclose whether artificial intelligence is being used at any stage of screening, assessment, or selection. In addition, job postings must not include any requirements relating to prior Canadian work experience.
Further obligations include clarifying whether a role represents a genuine vacancy, notifying candidates of the status of their application within 45 days of their last interview, once a hiring decision has been made, and retaining copies of job postings and related application materials for a defined retention period. Employers should review their recruitment workflows, documentation practices, and use of automated hiring tools ahead of these changes.
British Columbia: Pay Transparency Reporting
Employers should familiarise themselves with the reporting framework, assess workforce data in advance, and ensure they are prepared to meet the publication deadline using the province’s reporting tools.
British Columbia: Proposed Expansion of Serious Illness and Injury Leave
While no implementation date has been confirmed, employers should monitor legislative developments closely and consider how an expanded unpaid leave entitlement could affect workforce planning, accommodation practices, and existing leave policies.
Quebec: Changes to Occupational Health and Safety Requirements
Employers operating in Quebec should assess their current compliance position and ensure appropriate governance, policies, and internal processes are in place well ahead of the new requirements.
Colombia
Colombia enters 2026 in the midst of one of its most significant periods of labour reform in recent years. A wide-ranging labour law overhaul enacted in mid-2025 is already in force but requires phased implementation and further regulatory guidance throughout 2026. At the same time, proposed pension reforms remain under constitutional review and, if upheld, are expected to begin rolling out next year.
Together, these developments will have material implications for workforce planning, payroll costs, working time arrangements, and compliance management.
Reduction in the Statutory Working Week
As part of a gradual reduction programme introduced under earlier legislation, Colombia’s maximum statutory working week will fall to 42 hours in July 2026, down from the current 44 hours.
Employers will need to reorganise working schedules to comply with the reduced limit while continuing to provide at least one mandatory weekly rest day. Employment contracts, internal policies, payroll systems, and overtime calculations will all require review, particularly for employers operating shift-based or continuous operations. Many organisations may also need to consider productivity measures or training initiatives to offset the impact of reduced working hours.
Increased Surcharges for Work on Rest Days and Public Holidays
The 2025 labour reform introduced a phased increase to premium pay for work carried out on mandatory rest days (typically Sundays) and public holidays. From July 2026, the applicable surcharge will rise to 90%, with a further increase planned in subsequent years.
Employers should ensure payroll systems are updated to reflect the new rates, review contractual provisions referencing rest day work, and assess the financial impact of the increased premiums as part of workforce cost planning.
Expansion of Night-Time Working Hours
From December 2025, the definition of night work will be expanded to cover the period from 7:00 p.m. to 6:00 a.m., instead of the current 9:00 p.m. start time. Although the night-work surcharge rate remains unchanged, the longer night period will increase the number of hours attracting premium pay.
This change will have direct payroll and scheduling implications, particularly for employers operating evening or rotating shifts.
Regulation of Digital Platform Workers
New rules are expected in 2026 to formally regulate work performed through digital platforms, covering both employee-style and independent contractor arrangements. The framework introduces obligations around transparency of engagement terms, limits on exclusivity for independent workers, identity verification, data protection compliance, and social security contributions.
Inclusive Employment Quotas
From June 2026, employers will be subject to mandatory hiring quotas for employees with certified disabilities. The requirement is calculated based on total headcount and increases incrementally as workforce size grows.
Organisations should put systems in place to track compliance, maintain appropriate records, and ensure existing eligible employees are properly accounted for. Many employers may also wish to engage specialist organisations to support inclusive recruitment practices.
Pension Reform: Pending Constitutional Review
Key changes would affect contribution structures, including mandatory contributions to the public pension system up to a defined earnings threshold, with excess amounts redirected to private funds. Employers should prepare for potential payroll changes and ensure clear communication with employees once the legal position is confirmed.
Mandatory Updates to Employee Handbooks
Employers will be required to update employee handbooks by June 2026 to reflect new disciplinary procedures and other changes introduced under the labour reform. This presents an opportunity to consolidate all recent legislative updates into a single, compliant document.
Removal of Certain Family and Recreational Benefits
In line with the reduction in working hours, existing obligations to provide periodic family days and certain recreational or training hours during working time will be phased out from July 2026. Internal policies should be updated accordingly.
Social Security Contributions for Part-Time Work
New regulations expected in early 2026 may allow partial social security contributions for certain categories of part-time workers and small businesses. An associated incentive programme aimed at improving compliance among micro-enterprises is also anticipated. Employers should monitor regulatory guidance and prepare to adjust contribution processes where relevant.
Employment Incentives for Older Workers
The labour reform also introduces incentives aimed at encouraging the recruitment and retention of older workers. While detailed regulations are still pending, the practical effects of these measures are expected to emerge during 2026. Employers may wish to review workforce planning strategies to assess whether these incentives could be leveraged once fully implemented.
Mexico
Mexico is expected to see several important labour law developments in 2026, with proposed reforms focusing on working time, workplace conditions, reporting mechanisms, and employee benefits. While not all measures have been finalised, employers should closely monitor legislative progress and begin forward planning where appropriate.
Minimum Wage Adjustments
For the general minimum wage (rest of the country), the daily rate will increase by 13%, rising from MXN 278.80 to MXN 315.04. This adjustment comprises an Independent Recovery Amount (Monto Independiente de Recuperación – MIR) of MXN 17.01, together with an additional percentage increase.
In the Northern Border Free Zone, the daily minimum wage will increase by 5%, from MXN 419.87 to MXN 440.87, without application of the MIR mechanism.
CONASAMI has also approved increases ranging from 5% to 13% for 61 professional minimum wage categories, depending on the role and geographic zone.
Employers should review payroll structures, employment contracts, and collective bargaining arrangements to ensure compliance with the new statutory rates. Particular attention may be required where salary scales, bonuses, or benefits are calculated by reference to the minimum wage.
Proposed Reduction of the Maximum Working Week
A major reform under consideration would reduce the statutory maximum working week from 48 hours to 40 hours, through amendments to the Constitution and the Federal Labour Law. The proposal is expected to be formally submitted by the end of 2025, with legislative approval anticipated during the first half of 2026.
If enacted, the reform is likely to involve a phased transition period, as seen in other Latin American jurisdictions. Employers would be required to maintain existing pay levels while reducing working hours, potentially creating a significant operational and cost impact. Organisations should begin assessing workforce structures, shift patterns, and contractual arrangements to prepare for a possible implementation.
Mandatory Seating Requirements (“Ley Silla”)
Recent amendments to the Federal Labour Law introduced new obligations requiring employers to provide suitable seating for employees, enabling periodic rest during the working day without compromising productivity or health.
Employers must assess each role to determine whether seating can be accommodated at the workstation. Where this is not feasible, appropriate rest areas and rest periods must be provided. Compliance inspections focusing on documentary evidence are expected to increase, making it important for employers to carry out ergonomic assessments and update workplace policies accordingly.
Digital Labour Accident and Complaint Reporting Platform (SIQAL)
Mexico’s labour authorities have proposed the introduction of a centralised digital system for reporting workplace accidents, incidents, and labour law complaints. This platform would allow workers to submit confidential reports directly to the authorities, potentially triggering inspections without prior notice.
Given the reduced barriers to filing complaints, employers should strengthen internal reporting channels, address employee concerns proactively, and ensure compliance processes are robust in order to minimise regulatory exposure.
Other Labour Law Proposals Under Discussion
Additional employment law reforms may be debated during 2026, including proposals to increase statutory bonuses and seniority-related payments, as well as the introduction of new paid leave entitlements for bereavement and preventative medical screenings.
While no immediate action is required, employers should remain alert to developments and be prepared to respond should these measures progress through the legislative process.
How Beyond Borders HR Supports Mature Organisations
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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