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
Amendments to the Employment Contract Law
Annual leave rules have been amended to allow vacations to be split into agreed periods of no less than one week, which may be taken at any time of the year — a departure from the previous requirement to take leave in a single block between October and May. Severance calculations have also been revised: payments not made on a monthly basis, such as holiday pay and the annual bonus, will be excluded from the calculation base, and variable remuneration will be averaged over the preceding six months.
Employment Status, Registration, and Platform Work
A central feature of the reforms 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.
The law also permits wage bargaining at company level, establishing that a sector-wide collective agreement may not override a company-level agreement on lesser matters — a significant shift from Argentina’s traditional union structure in which sector federations set terms for all affiliated workers. The reform also establishes a specific legal regime for platform-based workers in the ride-hailing and delivery sectors, classifying them as independent service providers rather than employees, while requiring platform operators to provide accident insurance and basic training.
From 1 January 2027, several special labour statutes — including those covering travelling sales representatives, journalists, and glass industry workers — will be repealed, with affected workers falling under the general labour regime.
Severance Reform and Labour Assistance Fund
A central pillar of the reform is the creation of Labour Assistance Funds (Fondos de Asistencia Laboral — FAL), separate ring-fenced reserves that employers must establish to cover severance obligations. Mandatory monthly contributions are set at 1% of pensionable wages for large companies and 2.5% for micro, small and medium-sized enterprises. The funds will be managed by entities authorised by the National Securities Commission (CNV) and are scheduled to come into force on 1 June 2026, with the possibility of a six-month extension by the executive. Employers participating in the FAL will receive an equivalent reduction in their employer contributions to the social security system.
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.
Legal Challenges and Implementation Timeline
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
Full enforcement, including the imposition of fines, will begin on 26 May 2026. Financial penalties for violations of workplace safety regulations may reach BRL 7,000, with separate penalties of up to BRL 4,000 for workplace health breaches. During the initial enforcement period, labour inspectors are expected to prioritise guidance over immediate sanctions, but employers in high-risk sectors such as banking, healthcare, and telemarketing should be prepared for closer scrutiny. Employers should also be aware that employees may use documented psychosocial risks identified in the PGR to support future litigation claims for work-related mental health conditions.
Employers should review existing risk assessments, update internal procedures, and consider whether additional training, management development, or employee support mechanisms are needed to demonstrate meaningful compliance before the enforcement date.
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
Following a period of postponement, Ordinance No. 3,665/2023 came into force on 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 confirm that appropriate collective bargaining coverage is in place and that shift arrangements for public holidays are documented accordingly.
Remuneration Governance in the Insurance Sector
New rules which took effect in January 2026 introduced 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
Alberta: Extended Long-Term Illness and Injury Leave
Effective 1 January 2026, Alberta extended its long-term illness and injury leave entitlement from 16 to 27 weeks per calendar year. Employees who began leave prior to 1 January 2026 may have their leave duration adjusted accordingly, with a new medical certificate required if the revised end date falls outside the period covered by the original certificate.
This change brings Alberta into alignment with British Columbia, Ontario, and several other Canadian provinces that have adopted the 27-week standard in line with the federal Employment Insurance Sickness Benefits programme. Employers operating across Canadian provinces should review their leave policies to ensure consistent compliance with the applicable provincial standard in each jurisdiction.
Ontario: New Job Posting Obligations
From 1 January 2026, employers in Ontario with 25 or more employees are subject to new requirements for publicly advertised job postings. These changes are aimed at improving transparency and fairness in recruitment.
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: Expansion of Serious Illness and Injury Leave
The Employment Standards (Serious Illness or Injury Leave) Amendment Act 2025 (Bill 30) received Royal Assent on 27 November 2025 and is now in force. The legislation amends the British Columbia Employment Standards Act to provide eligible employees with up to 27 weeks of unpaid, job-protected leave within a 52-week period where they are unable to work due to a serious personal illness or injury that prevents them from working for at least one week. The 52-week period is measured from the date the employee first takes leave under the provision.
To qualify, employees must obtain a certificate from a health practitioner confirming their inability to work, the date the inability began or is expected to begin, and the anticipated return-to-work date. Leave may be taken in consecutive or non-consecutive units of one or more weeks. Employees returning to work who are subsequently unable to continue due to the same condition may resume the leave without a new certificate, provided the 27-week entitlement has not been exhausted within the 52-week period.
Employees on this leave have the same rights as those on other protected absences, including the right to be reinstated to the same or a comparable position. Employers should update leave policies, train HR personnel, and review absence management processes to ensure compliance.
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 was 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: Approved, Awaiting Final Implementation Date
The reform introduces a pillar-based structure under which all workers will contribute up to 2.3 times the minimum wage to the public pension administrator (Colpensiones), with contributions above that threshold directed to private funds. Those within ten years of retirement age as of 30 June 2025 will be required to transfer to the new system by 16 July 2026. Employers should prepare for potential payroll changes and ensure clear communication with employees once the legal position is formally 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
On 3 March 2026, the decree amending Article 123 of the Mexican Constitution to reduce the statutory maximum working week from 48 to 40 hours was published in the Official Gazette of the Federation (Diario Oficial de la Federación) and entered into force on the same date. The reform follows approval by both chambers of Congress and ratification by the majority of Mexico’s state legislatures. Mexican Congress now has a 90-day period from 3 March 2026 to enact the corresponding amendments to the Federal Labour Law.
The reduction will be implemented gradually, with the current 48-hour week remaining in place during 2026, followed by a two-hour annual reduction beginning on 1 January 2027:
- 1 January 2027: 46 hours per week
- 1 January 2028: 44 hours per week
- 1 January 2029: 42 hours per week
- 1 January 2030: 40 hours per week
The reform expressly prohibits any reduction in employees’ wages or benefits as a result of the reduced working hours. The rules on overtime have also been revised at constitutional level: overtime is now capped at 12 hours per week, distributable across up to 4 hours per day and a maximum of four days, with the first 12 overtime hours attracting double pay and any excess attracting triple pay. Individuals under 18 years of age are prohibited from working overtime.
The remainder of 2026 will effectively serve as a transition period for employers to conduct operational and financial impact assessments, review employment contracts, collective bargaining agreements, and internal regulations, and prepare workforce and scheduling structures for the phased implementation beginning in January 2027.
Workplace Violence Prevention
On 15 January 2026, a decree was published in the Official Gazette amending the Federal Labour Law to introduce new obligations focused on preventing workplace violence and discrimination, with particular emphasis on protections for women. The reform establishes a joint obligation for both employers and employees to maintain violence-free workplaces. Employers should review existing workplace conduct policies, update internal reporting channels, and ensure management training reflects the new statutory framework.
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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Get in touch with Beyond Borders HR today to ensure your organisation is ready for the changes 2026 brings.
