Employment Law Alert International – January 2025

Belgium

Looking forward – one thing on the horizon for 2025 for Belgium:

1. Training registration tool – deadline extended until April 2025 (see below).

Updates from 2024 Q4:

Inflation and impact on salaries. The salary indexation for January 2025 has been set at 3.58% for companies residing under Joint Committee 200. This has an impact on the mandatory indexation of salaries as the indexation rate is determined on the evolution of the consumption price index. For companies residing under the Joint Committee number 200, the mandatory indexation of salaries occurs once per year on 1 January. Salaries have been raised by the indexation rate as from 1 January 2025.

Training registration tool – deadline extended until April 2025. The Federal Learning Account (“FLA”) is a digital database containing all the relevant data for listing and managing employees' entitlement to training (read more about this here). From the launch of the platform (from 1 April 2024), all companies had in principle six months to comply and transmit their data to the government. Therefore, initially, all companies were supposed to register training entitlements in the FLA by 1 December 2024, but the actual introduction of the FLA has given rise to political debate. Pending a final decision on the FLA, the Chamber's Social Committee therefore approved a draft Act on 22 November 2024 to extend the deadline for registering training and training entitlements from 1 December 2024 to 1 April 2025.

New salary limits for work permits as from 1 January 2025. From 1 January 2025, new salary thresholds for work permits have been introduced, affecting non-European Economic Area (EEA) citizens seeking employment in Belgium. These changes, which have been regionalised, allowing each region to set its own salary standards for work or single permits, apply to highly qualified staff, executive staff and those applying for a European Blue Card. The updated monthly gross salary limits in the Brussels-Capital Region are as follows: highly qualified staff must earn at least €3,703.44, executive staff €6,647.20 EUR, and European Blue Card holders €4,748. Applicants must also meet other criteria to qualify for these permits.

Please contact our Belgian team for further detail on any of the above.

England

Looking forward – three things on the horizon for 2025:

• Employment Bill - we will monitor as this progresses through Parliament, alongside any secondary legislation and consultations to enact changes.
• The Equality (Race and Disability) Bill to be published for pre-legislative scrutiny.
• The Economic Crime and Corporate Transparency Act 2023 has provisions relating to failure to prevent fraud coming into force from September.

Update from 2024 Q4:

EHRC updates guidance and publishes new 8 step guide on preventing sexual harassment at work as new obligations for employers come into force. On 26 October 2024 the Worker Protection (Amendment of Equality Act 2010) Act 2023 came into force, introducing a new obligation on employers to take reasonable steps to prevent sexual harassment by their own workers and by workers of third parties (such as clients and customers). On 26 September 2024 the EHRC published an updated version of its final technical guidance, together with an 8 step guide. Significantly, the final guidance now makes clear that a worker cannot bring a stand-alone claim in the employment tribunal for third party harassment. It also expressly states that an employer is unlikely to be able to show that they have complied with the duty if they have not carried out a risk assessment. The guidance includes additional factors which should be taken into account when determining whether a step is reasonable for an employer to take and more examples of what constitutes reasonable steps.

Read our recent Employment Law Alerts covering recent cases and developments in the UK.

France

Looking forward – two things on the horizon for 2025:

1. Consultation of the CSE on sustainability information.
2. Women on Board ordinance.

Updates from 2024 Q4:

French Administrative High Court (‘Conseil d’Etat’) decision on the presumption of resignation. The French Administrative High Court has clarified the conditions under which an employer can consider that an employee is presumed to have resigned when they cease to show themselves at work with no justification. In particular, the High Court states that the employer must specify, within the formal notice given to the employee, the consequence of the employee’s absence and of a potential termination for presumed resignation.

Consultation of the CSE on sustainability information: new obligation in 2025. Starting 1 January 2025, certain companies will be required to consult their Social and Economic Committee (CSE) on sustainability information included in their management report. The CSE will be consulted on sustainability information covering environmental, social, and governance (ESG) aspects, as well as the means to obtain and verify these details. In addition, the content of the Economic, Social, and Environmental Database (BDESE) will be updated to include this new sustainability information, replacing the non-financial performance declaration (DPEF).

These new obligations apply to:

• Large companies required to include sustainability information in their management report.
• Parent companies of large groups, which may be exempt if the sustainability information is included in a consolidated group report.
• Listed SMEs, which will also be required to comply.

These new obligations will be implemented progressively over the next 2 years depending on the type of company:

• 2025: Large companies and listed parent companies that meet certain employees and revenue thresholds.
• 2026: Other large companies and parent companies of large groups that do not meet the above thresholds.
• 2027: Listed SMEs (with a potential 2-year deferral option).

This reform aims to enhance corporate transparency on sustainability issues and involve the CSE more actively in these processes.

Women on Board ordinance. An ordinance transposing the Women on Boards Directive (the “WoB Directive”) was adopted on 15 October 2024. This ordinance reinforces the already existing requirements, notably by including new individuals (such as employees’ representatives in boards) into the calculations of representation, as well as extending the obligations to new companies.

Please contact our French team for further details on any of the above.

Germany

Looking forward – three things on the horizon for 2025:

1. Minimum wage increase.
2. AI and associated innovations coming along with legal requirements, eg mandatory trainings for employees.
3. Employment contracts via email – see below.

Updates from 2024 Q4:

Employment contracts no longer required to be in wet ink from January 2025. To reduce bureaucracy the German government decided to abolish the paper copy requirement for employment contracts, which was previously mandated by the German Evidence Act during implementation of the EU Transparency Directive. Starting from 1 January 2025 employers can now, in most cases, only send employment contracts electronically unless the employee specifically requests a hard copy version. This only applies if the contract can be accessed, stored, and printed by the employee. Employers should ask the employee to confirm receipt of the document and in case of absence of a confirmation, employers may consider handing over the documents in written form as a precaution. This change may alleviate the administrative burden on employers, although we advise to continue obtaining confirmation of the contract terms from employees for their records, e.g. by returning a scanned copy of the countersigned employment contract.

However, paper copy requirements will persist for specific employment contract types, including fixed-term and post-contractual non-competition agreements which must be wet-ink signed by both parties on the same physical document in order to be valid and effective. Similarly, notices of termination and separation agreements must continue to be signed in wet ink.

Please contact our German team for further details on any of the above.

Hong Kong

Looking forward – one thing on the horizon for 2025:

1. Abolition of the mandatory provident fund offsetting arrangement will take effect on 1 May 2025.

Updates from 2024 Q4:

District Court ruling that food delivery platform workers are not employees but independent contractors. In the recent case of Gurung, Sanjayaman v Deliveroo Hong Kong Limited [2024] HKDC 1932, the applicant, a food delivery rider of Deliveroo, sought compensation under the Employees’ Compensation Ordinance after suffering a traffic accident during the food delivery to Deliveroo’s customers. Deliveroo applied to strike out the claim on the basis that the applicant was not an employee. The Court adopted certain indicia of employment and ruled that the applicant was not an employee of Deliveroo. These include control (but this was not the sole determining factor), the applicant’s integration with the alleged employer’s business, whether the applicant provided his own equipment and assumed investment and management responsibility, whether the applicant could profit from sound management, could hire his own helpers and could perform his own business in the area, the degree of financial risk taken by the applicant, the parties’ own views of their relationship, incidence of tax and insurance and traditional structure of the trade and arrangements within it.

The Court also distinguished the facts under a separate Labour Tribunal case which held that delivery workers of another food delivery platform, “Zeek”, were employees, finding that Zeek’s workers had less flexibility on the working arrangement and were not able to delegate responsibilities.

Please contact our Hong Kong team for further detail.

Italy

Looking forward – two things on the horizon for 2025:

1. New ANAC guidelines on whistleblowing – expected to be approved in the next months.
2. Transposition of Minimum-wage Directive – not yet transposed despite the deadline expired on 15 November 2024.

Updates from 2024 Q4:

Resignation from employment for unjustified absence. A new law, effective from 12 January 2025, provides that unjustified absence from work for more than 15 days (or beyond the term provided for by the applicable NCBA) will lead to employment termination by voluntary resignation of the employee, unless the employee proves that force majeure, or employer-caused circumstances, prevented him/her from communicating the reasons for the absence.

Probationary period for fixed-term contracts. For employees on fixed-term contracts only, the duration of the probationary period is now determined as one working day for every 15 days of employment, with a minimum of 2 days and a maximum of 15 days for contracts lasting less than six months, and up to 30 days for longer contracts between 6 and 12 months.

Parental leave. For 2025 only, the 2024 Budget Law provides an additional month of parental leave taken by both parents within the sixth year of the child's life paid at 80% of the salary, bringing the number of months of parental leave paid at 80% to three months.

Ban on surrogacy abroad. A new law came into force recently introducing a complete ban in Italy on surrogacy. Existing stringent provisions have been strengthened further by introducing increased severe penalties for those who attempt to bypass the law by engaging in surrogacy abroad.

Please contact our Italian team for further details on any of the above.

Netherlands

Looking forward – three things on the horizon for 2025:

1. Amended legislative proposal the Assessment of Employment Relationships and Legal Presumption (Clarification) Act – expected to be presented in Q1 2025 - see below.
2. Legislative proposal for the implementation of the Pay Transparency Directive – expected to be presented in Q3 2025.
3. Legislative proposal on the extension of the transition period to the new pension (to 1 January 2028 instead of 1 January 2027) – expected to be discussed in the House of Representatives in January 2025.

Updates from 2024 Q4:

Pseudo-self-employment. As of 1 January 2025 the enforcement moratorium in relation to cases of pseudo-self-employment has lifted. This means that organisations making use of services by self-employed persons could become subject to audits and inquiries by the Dutch Tax Authorities (“DTA”) in order to assess whether indeed the agreement with a self-employed person is characterised correctly, or whether the working relationship under review should be requalified as an employment relationship instead, resulting in, most importantly, significantly additional payroll withholding tax obligations at company level and related fines (up to 100% of taxes incorrectly not withheld). While it has been made clear that the Dutch Tax Authorities will not impose fines during this year, from 1 January 2026 onwards, fines may be imposed (also with a retro-active effect over the year 2025). The foregoing merely relates to the tax related risks of pseudo-self-employment. From a civil-law perspective, re-qualification has its own risks (both from an employment and a pension law perspective). In that respect, please note that the amended legislative proposal the Assessment of Employment Relationships and Legal Presumption (Clarification) Act (Wet verduidelijking beoordeling arbeidsrelaties en rechtsvermoeden) is expected to be presented to the House of Representatives in Q1 2025.

Whistleblowing legislation. A concept general administrative order on the possibility of anonymous whistleblowing has been delayed after receiving numerous critical remarks. The current timing on this general administrative order is unclear. In December 2024, the responsible Minister announced that a legislative proposal to amend the Whistleblowers Protection Act will be prepared in Q1 2025. Among other things, the aim of the legislative proposal will be to enhance the enforcement of the Whistleblowers Protection Act by providing the House for Whistleblowers with more enforcement possibilities. We continue to monitor the developments on this topic.

Delay to proposed admission system for posting workers. If adopted, the proposed admission system for temporary employment agencies and other companies that provide labour will mean that they may only post workers if they are authorised to do so by the Ministry of Social Affairs and Employment. However, companies that do lend personnel, if it is not their core business, could ask the ministry for a dispensation. Originally, the proposed admission system was due to come into force in January 2027, however, the Minister for Social Affairs and Employment informed the House of Representatives that entry into effect of the Act (if adopted) per 1 January 2026 (and subsequent enforcement of the Act as per 1 January 2027) is no longer considered realistic. A further assessment of the possibilities for implementation is scheduled to take place in Q1 2025. We are closely monitoring these developments.

Please contact our team in the Netherlands for any further detail.

People’s Republic of China

Looking forward – two things on the horizon for 2025:

1. The number of public holidays increasing from 11 to 13 - see below.
2. Gradual delay of the statutory retirement age and flexible retirement policy.

Updates from 2024 Q4:

Increase in the number of public holidays. On 10 November 2024, the Regulations on Public Holidays for National Annual Festivals and Memorial Days (“Regulations”) have been amended and took effect on 1 January 2025. While the seven categories of public holidays remain unchanged, the total number of public holidays has increased by two days: one additional day for Spring Festival and another for Labour Day. Therefore, from 2025 onwards, the number of public holidays increases from 11 to 13.

The amended Regulations also introduce a new provision clarifying that public holidays can be adjusted and combined with adjustments to regular working schedules and paid annual leave to create longer holiday periods. It further specifies that, except in special circumstances, the number of consecutive working days before or after public holidays generally should not exceed six. This codifies the practice of adjusting rest days to create extended holiday periods.

The number of working days of employees throughout the year has also been revised to tie in with the update of public holidays. On 1 January 2025, the Notice of Ministry of Human Resources and Social Security on the Conversion of the Average Monthly Working Hours and Wages of Employees for the Whole Year was published. According to this notice, the number of working days per year decreased from 250 to 248, and the average number of working days per month is decreased from 20.83 to 20.67. In calculating wages, since the number of pay days (i.e., the total number of statutory public holidays and working days) remains unchanged, the number of pay days per month is still calculated on the basis of 21.75 days.

Employers should ensure compliance with the amended Regulations and the public holiday schedule issued by the State Council, safeguarding employees’ rights to rest on public holidays. If employees are required to work on the newly added public holidays, employers must pay 300% of the employee’s daily wage as statutory overtime pay. Employers are advised to review and adjust their leave policies to align with these changes to avoid potential non-compliance risks.

Further provisions for the flexible retirement policy. In line with the delayed retirement age and flexible retirement policies implemented from 2025, the Ministry of Human Resources and Social Security and other relevant departments issued the Interim Measures for the Implementation of the Flexible Retirement System on 1 January 2025, which refined the provisions and requirements related to flexible retirement with the following key points:

• Principle of flexible retirement: after reaching the minimum contribution period for basic pension, employees may voluntarily choose to flexibly retire early or delay their retirement, with the maximum period of advancement or delay not exceeding three years, nor may it be earlier than the original statutory retirement age (60 for men and 50 for women or 55 for women who are technicians or in managerial positions).
• Retirement notice procedures: Employees choosing flexible early retirement must inform the employer in writing at least three months in advance; if the employer and the employee agree on flexible delayed retirement, the employer should specify the period of delay and other matters in writing, at least one month in advance.
• Pension payment: The employer shall submit an application for a basic pension to the social insurance agency no later than the month in which the employee chooses to retire; employees will receive their basic pension from the month following the date in which they choose to retire.

The PRC update has been provided by May Lu, Managing Partner at Shanghai YaoWang Law Offices.

Singapore

Looking forward – three things on the horizon:

1. Singapore's long-awaited Workplace Fairness Bill, expected to be passed in 2025, will introduce new discrimination protections and grievance-handling requirements.
2. Amendments to Singapore's Child Development Co-Savings Act, effective 1 April 2025, introduce enhanced paternity leave, expanded shared parental leave, and stronger protections for fathers and adoptive parents.
3. Singapore's Platform Workers Act 2024 mandates CPF contributions and work injury compensation for gig workers, marking a shift towards greater financial security and rights for platform workers.

Updates from 2024 Q4:

Workplace Fairness Bill introduced. Introduced to the Singapore Parliament on 12 November 2024, the Workplace Fairness Bill is a pivotal piece of legislation designed to advance employment equity in Singapore. This legislation is expected to become operational between 2026 and 2027. The legislation aims to protect employees from discriminatory practices in hiring, dismissals, and appraisals, thereby establishing a framework for fair employment practices. The legislation delineates a variety of protected characteristics, including age, nationality, sex, marital status, pregnancy, caregiving responsibilities, race, religion, language proficiency, disability, and mental health conditions. It acknowledges exceptions for specific job requirements and allows a preference for Singaporeans and Permanent Residents, ensuring such preferences are not deemed discriminatory.

A key requirement for employers under this Bill is the development and dissemination of grievance-handling processes, providing a clear avenue for employees to report and resolve instances of workplace discrimination. Additionally, the Bill explicitly prohibits any retaliatory actions by employers against employees who report discrimination, thereby strengthening worker protections. A second bill, expected to be introduced in 2025 and also taking effect in 2026 and 2027, will focus on detailing claims procedures and amending the existing Employment Claims Act. Breaches of the proposed legislation could lead to corrective actions, fines, and financial penalties, with the Ministry of Manpower empowered to initiate civil lawsuits against errant employers.

Together, the Workplace Fairness Bill and the anticipated second bill represent a significant advancement towards creating a more inclusive and supportive work environment in Singapore. The proposed legislation aims to complement, not replace, the existing Tripartite Guidelines on Fair Employment Practices, marking a critical step in enhancing fair employment practices and protecting workers' rights.

Parental leave changes (additional shared and increased paternal). Significant amendments to the Child Development Co-Savings Act (CDCA) were passed in the Singapore Parliament on 13 November 2024, marking a significant enhancement in support for working parents effective from 1 April 2025. These amendments introduce an enhanced Government-Paid Paternity Leave (GPPL), extending it to four weeks for eligible fathers of Singaporean children born on or after this date, and establish a revamped Shared Parental Leave (SPL) scheme, allowing parents to share up to 10 weeks of paid leave.

This SPL scheme will be phased in, starting with six weeks from 1 April 2025 and expanding to 10 weeks by 1 April 2026. Additionally, the legislation mandates a minimum notice period of four weeks for employees planning to take any form of parental leave, aiming to balance the needs of both employers and employees. Furthermore, it extends employment protections to fathers and adoptive parents, making it unlawful to dismiss employees on GPPL or Adoption Leave (AL), as is currently unlawful in relation to dismissing female employees on maternity leave. These legislative changes underscore Singapore's commitment to fostering a supportive environment for families, promoting active fatherhood, and ensuring caregiving is viewed as a shared responsibility.

The Platform Workers Act (2024). Passed in September 2024 and put in force sequentially across October and November 2024, the Platform Workers Act 2024 is designed to regulate platform operators and platform workers in the gig economy. It introduces mandatory Central Provident Fund (CPF) contributions for platform workers, enhancing their financial security by ensuring they have access to housing and retirement savings. This is complemented by the inclusion of platform workers under the Work Injury Compensation Act (WICA), providing them with coverage for medical expenses, lost wages, and compensation for permanent incapacity or death, thus offering a safety net. The Act also outlines a phased approach for CPF contributions, aiming for parity with traditional employment contributions over five years. These provisions mark a shift towards recognising the rights and contributions of gig workers, balancing the flexibility of gig work with the stability of traditional employment benefits. However, the Act may also lead to increased operational costs for platform operators, possibly resulting in higher service fees for end customers. Despite these challenges, the legislation may be seen as an advancement towards a more equitable and sustainable gig economy in Singapore, ensuring a fairer deal for platform workers.

Please contact our team in Singapore for any further detail.

Spain

Looking forward – three things on the horizon for 2025:

1. 2025 to see a reduced work week to 37.5 hours and enhanced digital disconnection rights.
2. Potential regulatory changes to align dismissal severance compensations with actual damages and individual circumstances.
3. An Internship Statute may see light in 2025.

Updates from 2024 Q4:

Hearing required prior to a disciplinary dismissal. The Supreme Court has revised its doctrine, emphasising the necessity for employees to have the opportunity to defend themselves before facing disciplinary dismissal. It has unanimously decreed that employers must conduct a preliminary hearing before proceeding with any disciplinary dismissals. However, this requirement applies only to future dismissals, as the ruling is not retroactive. The Court highlights that terminating employment due to conduct or performance issues without first allowing the employee a chance to respond to the accusations breaches Article 7 of ILO Convention No. 158. Employers must modify their disciplinary procedures to include a stage of prior hearing before proceeding with the dismissal. This involves properly documenting the notifications and allowing the employee to present their version of the facts.

A right to defence for employees and their families. From 4 December the Organic Law 5/2024 came into effect protecting workers and their family members from negative consequences if they take actions to defend their rights. The new law states that workers have the right to be compensated if they suffer any negative consequences for defending their rights. This means that if a worker takes legal action regarding their employment rights, they should not be punished with things like salary cuts, reprisals, or even being fired. An additional provision expands this protection for workers from negative consequences not only when they take action themselves but also when their legal representatives do so on their behalf. This protection also extends to the worker's spouse, domestic partner, and close relatives (up to the second degree of relationship) who work in the same company, even if they did not take the action themselves. Employers must ensure they have correct disciplinary procedures and policies in place.

For further information on the above, please see our November Employment Flash or contact our Spanish team.

UAE / ADGM

Looking forward – three things on the horizon for 2025 for the UAE / ADGM:

1. ADGM Employment Regulations effective from 1 April 2025 - see below.
2. Landmark DIFC Ruling: impact of the first discrimination case - see below.
3. Emiratisation Expansion: 2025 compliance deadlines and penalty updates for small establishments - see below.

Updates from 2024 Q4:

ADGM Employment Regulations (applies only in the Abu Dhabi Global Market). The ADGM Employment Regulations, set to take effect on 1 April 2025, introduce significant changes reflecting global work practices and enhancing clarity for employers and employees. Key amendments include new provisions for remote and hybrid working, part-time employment, and termination due to unauthorised absence. Notable updates cover the removal of statutory overtime pay, and employers may now obtain an employee’s consent in writing to opt-out of the maximum weekly working time limit. There are also enhanced entitlements for adopting parents and nursing breaks for female employee’s returning from maternity leave. End-of-service gratuity will now apply to all terminations regardless of the reason for termination, and the cap of two years pay has been removed. Protections against discrimination and victimisation have been strengthened, including enhanced remedies for employees. These updates aim to modernise workplace practices while ensuring fairness and efficiency for all stakeholders.

Landmark DIFC discrimination and victimisation ruling (applies only in the Dubai International Financial Centre). In the landmark case of Mahmood v Standard Chartered Bank DIFC, the first-ever discrimination and victimisation case decided under the DIFC Employment Law, Mr Shiraz Mahmood alleged unfair treatment, victimisation, and dismissal on the grounds of his race and nationality. He also claimed the bank failed to provide a safe and harassment-free workplace. The court found no evidence to support these allegations, concluding that Mr Mahmood’s treatment was based on concerns about his communication style rather than his race or nationality. His redundancy was deemed part of a legitimate restructuring process, free from discriminatory or retaliatory motives. This significant ruling affirmed that the bank acted lawfully and set a precedent for future claims under the DIFC Employment Law.

Emiratisation expansion (applies only onshore in the UAE – outside the free zones). The Ministry of Human Resources and Emiratisation (“MOHRE”) has extended Emiratisation targets to include small establishments employing 20 to 49 individuals across 14 key economic sectors. Under the new requirements, these establishments must have employed at least one UAE national by the end of 2024 and an additional UAE national by the end of 2025. Failure to comply will result in significant financial penalties. Small establishments that do not meet the 2024 hiring requirement will face fines of AED 96,000 in January 2025. For non-compliance with the 2025 target, the fine will increase to AED 108,000 in January 2026. These obligations are in addition to existing requirements for larger businesses employing 50 or more staff. Companies are urged to take timely action to meet these deadlines to avoid penalties.

For further detail on the above, please contact our team in the Middle East.