Labor & Unions

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As sweeping reforms converge to redefine workplace standards, employer responsibilities and employee rights, 2026 will require global businesses to balance rapidly evolving workplace regulation with the need to safeguard commercial interests.

Global regulation shifts in focus

Across the UK, the Americas and Europe, three key themes dominate: equity, openness and flexibility.

In the UK, the recent Employment Rights Act will broaden protection against unfair dismissal by reducing the qualifying period from two years to six months and removing the existing caps on compensation. These changes are anticipated from January 2027. The act will create other significant changes in 2026 and into 2027, including measures strengthening union influence; broadened thresholds for collective consultation and increased associated penalties for breaches; severe restrictions on imposing contractual variations, improved job security for zero- and low-hours workers; and broadened protections against harassment. In short, there will be a seismic shift to the compliance landscape. Employers will need to stay alert, as many of the finer details remain unknown.

The European Union is taking a proactive approach to strengthen its global competitiveness, aiming to boost innovation and economic growth. However, core worker protections are likely to remain strong with employers facing a wave of new regulation including the Pay Transparency Directive, the AI Act, and a revised framework for European Works Councils. Meanwhile, the Quality Jobs Roadmap forms part of the EU’s strategy to generate and maintain sustainable, high-quality employment. This potentially includes legislative measures to safeguard workers’ rights while adapting to ongoing technological, economic, and societal developments.

Recent employment law developments across Asia Pacific and Latin America also reflect a strong focus on worker protection, flexibility and fairness. Wage reforms are prominent, with South Korea and multiple Philippine regions announcing significant minimum wage increases, while Malaysia’s Gig Workers Bill enhances rights and security for nontraditional workers. Broader labor rights are evolving through measures like South Korea’s Yellow Envelope Act, which expands union protections, while Singapore’s Workplace Fairness Act seeks to ensure fair treatment for employees, including by providing greater protection against workplace discrimination. In Latin America, labor reforms are continuing, with Brazil seeking to strengthen equal pay compliance, Colombia modernizing its labor inspection regime, Mexico proposing reforms to strengthen workers’ rights and Argentina seeking to introduce sweeping changes to modernize labor relations while fostering competitiveness.

Overall, these changes underscore a regional trend toward safeguarding employee well-being, regulating digital work environments and ensuring equitable treatment across diverse employment models.Continue Reading A Year of Workforce Transformation Prioritizing Fairness

New York’s employment landscape is undergoing sweeping changes. Recent legislation introduces new compliance challenges across nearly every facet of workplace regulation—from pay transparency to leave entitlements, wage and hour rules, employment agreements, and more.

Employers will need to revise policies, contracts, and day-to-day practices to stay compliant and avoid costly missteps. The time to act…

The Employment Rights Bill is close to being finalized. This article is an updated version of our August article, reflecting the most recent developments. In short, and as predicted, the House of Commons has rejected non-government amendments that the House of Lords made to the Bill in July, thereby restoring the government’s stated policy intentions.…

As part of our newly launched Doing Business in Canada Guide 2025, Chapter 13 on Labour and Employment offers a comprehensive overview of the legal landscape that governs the Canadian workplace. Whether your organization operates under federal jurisdiction or within one of Canada’s provinces or territories, understanding the dual framework of employment regulation is…

As AI adoption accelerates across workplaces, labor organizations around the world are beginning to take notice—and action. The current regulatory focus in the US centers on state-specific laws like those in California, Illinois, Colorado and New York City, but the labor implications of AI are quickly becoming a front-line issue for unions, potentially signaling a new wave of collective bargaining considerations. Similarly, in Europe the deployment of certain AI tools within the organization may trigger information, consultation, and—in some European countries—negotiation obligations. AI tools may only be introduced once the process is completed.

This marks an important inflection point for employers: engaging with employee representatives on AI strategy early can help anticipate employee concerns and reduce friction as new technologies are adopted. Here, we explore how AI is emerging as a key topic in labor relations in the US and Europe and offer practical guidance for employers navigating the evolving intersection of AI, employment law, and collective engagement.

Efforts in the US to Regulate AI’s Impact on Workers

There is no specific US federal law regulating AI in the workplace. An emerging patchwork of state and local legislation (e.g. in Colorado, Illinois and New York City) address the potential for bias and discrimination in AI-based tools—but do not focus on preventing displacement of employees. In March, New York became the first state to require businesses to disclose AI-related mass layoffs, indicating a growing expectation that employers are transparent about AI’s impact on workers.[1]

Some unions have begun negotiating their own safeguards to address growing concerns about the impact that AI may have on union jobs. For example, in 2023, the Las Vegas Culinary Workers negotiated a collective bargaining agreement with major casinos requiring that the union be provided advance notice, and the opportunity to bargain over, AI implementation. The CBA also provides workers displaced by AI with severance pay, continued benefits, and recall rights.

Similarly, in 2023 both the Writers Guild of America (WGA) and Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) negotiated agreements with the Alliance of Motion Picture and Television Producers (AMPTP) that include safeguards against AI reducing or replacing writers and actors. WGA’s contract requires studios to meet semi-annually with the union to discuss current and future uses of generative AI—giving writers a formal channel to influence how AI is deployed in their industry. The SAG-AFTRA contract requires consent and compensation for use of digital replicas powered by AI.Continue Reading Navigating Labor’s Response to AI: Proactive Strategies for Multinational Employers Across the Atlantic

Tune into our annual Global Employment Law webinar series as we bring the world to you.

Our Global Employment Law Fastpass webinar series is here again! Every June, we offer four regionally-focused webinars to help you stay up-to-speed on the latest employment law developments around the world. From tariffs and economic uncertainty to the use…

With nearly two-thirds of U.S. companies mandating formal return-to-work policies, employers may face challenges in enforcing RTO practices. Multinational employers should be aware of five key considerations and practical solutions to avoid potential roadblocks.

Click here to continue reading this article.

Original article published in Law360.

Special thanks to co-presenters Jose Larroque, Ma. Rosario Lombera, and Javiera Medina-Reza.

In a climate marked by high levels of insecurity, immigration issues and the anticipated renegotiation of the Trade Agreement between Mexico, the United States and Canada, proposed labor reforms under Mexico’s first female president, Claudia Sheinbaum Pardo, aim…

2024 was a ‘super year’ for elections. Half of the world’s population – some 4.7 billion people – went to the polls in 72 countries. Political shifts often lead to significant changes in employment laws. We’re here to help you prepare for the changes ahead and to stay ahead of the curve on employment law developments…

Companies with a US workforce can expect material changes to employment laws under the Trump administration, with impacts felt across their business operations. President-elect Trump’s first term, his campaign platform, and the typical shifts in a Democratic to Republican transition provide clues about what’s to come: federal agencies, policies and rules will become more business-centered and many of the Biden-era worker-focused protections will be rolled back.

Below are four major shifts we anticipate:

(1) Significant shifts in US Department of Labor policy

The end of the DOL’s 2024 final overtime rule. On November 15, 2024, a federal judge in Texas blocked implementation of the DOL’s final rule in its entirety, thereby preventing the agency from instituting increases to the salary thresholds for the “white collar” overtime exemptions under the Fair Labor Standards Act. While the government may appeal the judge’s order before the change in administration, any such appeal is likely to be short-lived come January 2025.

Accordingly, employers can halt plans to change their compensation levels or exempt classifications in response to the now-blocked rule. If such changes have already been made, employers should consult with counsel on how best to unwind undesirable changes, if any.

A lower burden for employers to classify workers as independent contractors under federal law. Trump will likely reverse Biden’s worker-friendly contractor classification efforts, making it easier for businesses to classify workers as independent contractors, and pivoting away from the Biden administration’s 2024 DOL independent contractor rule.

Notwithstanding this easing at the federal level, employers must remember that, under US and state law, there is no single test for independent contractor classification. Many states have their own tests, which are often more stringent than federal law and that apply to state wage and hour claims. Moreover, even within the same states, different tests will apply to unemployment claims, workers’ compensation, wage and hour, and taxation.Continue Reading Back to Business: Trump’s Second Term and the Four Major Shifts Employers Should Expect