Global employment trends and what's ahead: 2025 in review and 2026 preview

Global employers are preparing for a new era of workforce planning, compliance, and innovation. Economic and geopolitical uncertainty, rapid technological disruption, and fragmented regulation are rewriting the rules of employment worldwide.

In this report, we identify top trends impacting global employers – and what may come in the new year.

For GENIE subscribers, we have produced country-by-country reviews of 2025 and 2026 previews for 52 jurisdictions across EMEA, Asia Pacific, and the Americas. If you are not yet a GENIE subscriber, you can register here. Please note that GENIE is a resource for clients of DLA Piper.

As always, please contact any member of DLA Piper's Employment Group or your DLA Piper relationship attorney with questions about how these developments may impact your workforce.

Global report

1. Workforce strategies under pressure

Geopolitical and economic uncertainty, as well as technological disruption, are impacting workforce strategies and risks.

• Political transitions and instability can lead to significant shifts to the employment law landscape – or delays of planned reforms. In the United States, companies are assessing the potential impacts of new priorities under the Trump Administration, including diversity, equity, and inclusion (DEI) considerations; religious discrimination and accommodation; and immigration reform. In Europe, various countries (e.g., France, Netherlands, Poland, Portugal, Spain) face political instability, coalition challenges, leadership changes, or legislative uncertainty, impacting governance and delaying employment law reforms.
  
  
• Shifts in trade and global value chains can mean restructuring, closing facilities, and / or expanding into new jurisdictions. These projects involve managing diverse employment law requirements, as every country presents its own set of laws, regulations, and business practices. For more information on mass layoffs and collective redundancies, GENIE subscribers can view GENIE’s country guides.
  
  
• Rapid artificial intelligence (AI) development and adoption are starting to disrupt labour markets and reshape sectors and roles. According to the World Economic Forum's Future of Jobs Report 2025, AI will transform 86 percent of businesses by 2030. Entry-level jobs are already feeling the squeeze. Employers are assessing how AI may impact their workforce needs and assessing compliance obligations, including those under new and existing discrimination, data privacy, and labour laws.
  
  
• More restrictive immigration policies are raising costs and creating workforce mobility considerations. Moving employees to different locations can be more difficult, and companies may consider ramping up recruitment in certain jurisdictions.
  
  
• Heightened security, sanctions, and export controls can mean more compliance programs and training and restricted access to controlled technical data or technologies (which can implicate anti-discrimination laws in some countries). Some companies are strengthening background checks to address concerns, including 'laptop farms' used to simulate multiple individuals working remotely for fraudulent purposes.

Amid these challenges, some employers are exploring both traditional and more creative flexible engagement models, such as contingent worker, agency-of-record, employer-of-record, and contractor-of-record models. Companies seeking to expand rapidly into a new country may also consider the BOT (Build-Operate-Transfer) model of outsourcing. While these models can address challenges, they also raise risks, such as misclassification and complex terminations. Local rules concerning labour leasing, working hours, overtime, and forms of employment can also limit the possibilities of implementing flexible models. In addition, there can be grey areas of risk, as local laws may not yet have developed to recognise new models.

2. A wave of pay transparency and gender equality measures

Some jurisdictions are moving toward greater pay transparency and gender equality in the workplace. For example:

• European Union countries are working toward a deadline of 7 June 2026 to implement the EU Gender Pay Transparency Directive. While some countries are making progress, others (e.g., Netherlands) have announced delays.
  
  
• In the US, more states enacted or strengthened pay transparency and reporting laws (e.g., California, Delaware, Massachusetts) in 2025. Bills are pending in other jurisdictions, including New York and New York City.
  
  
• In Ontario, pay transparency obligations under the Working for Workers Four and Five Acts take effect on 1 January 2026.
  
  
• In Japan, companies with more than 100 employees will be impacted by new reporting requirements that take effect on 1 April 2026.
  
  
• Protections for employees who discuss or inquire about pay are now in force in New Zealand.
  
  
• In South Africa, a proposed bill would require salary ranges in job postings, allow open discussion of pay, and restrict employers from basing offers on a candidate’s previous pay.

With more developments expected in 2026, employers are considering gender pay issues as part of their overall risk assessment strategy. In particular, some EU employers are considering preparatory audits to mitigate risk under the Pay Transparency Directive.

For information on equal pay and mandatory gender pay gap reporting in over 50 jurisdictions, access our Gender Pay Transparency Guide and EU Gender Pay Transparency Directive Tracker.

3. Workplace AI under scrutiny

As AI becomes more embedded in the workplace, jurisdictions around the world are enacting laws to regulate its use – particularly in recruitment, performance management, and employee monitoring.

For example, under the EU AI Act, high-risk AI systems face a sweeping compliance framework from 2 August 2026 (although some provisions may be simplified and / or delayed). In the US, states like Colorado, Utah, and Texas have passed comprehensive laws; others (e.g., California, Illinois) focus on employment-specific uses. Meanwhile, a new Executive Order signed by President Trump seeks to limit state regulation. In Italy, employers must disclose AI logic and consult with trade unions on AI use. Other jurisdictions have enacted new employment-specific laws or are considering legislation (e.g., Peru, New South Wales).

Employers are preparing for litigation and compliance challenges. A federal court in California recently allowed preliminary certification of an age discrimination lawsuit involving an AI screening tool. GenAI systems can operate as 'black boxes,' making it difficult to explain or defend employment decisions. Employers are encouraged to conduct thorough due diligence on AI tools, understand each tool’s intended function, and maintain human oversight in decision-making processes. Some laws also require bias audits and disclosure of results.

AI tools used in hiring and monitoring often process sensitive personal data, raising privacy concerns – especially when assessing well-being, burnout, or disengagement.

Consultation obligations are another key topic. In Germany, for example, to use workplace AI systems, an employer must comply with the Works Constitution Act, which gives the works council co-determination rights whenever technical tools (including AI systems) are introduced that monitor employees’ behaviour or performance. Many jurisdictions require engagement with employee representatives when new technologies affect roles or lead to layoffs. Notably, some jurisdictions (e.g., New York) now require employers to disclose whether automation or AI contributed to layoffs or business closures.

To stay ahead, employers are encouraged to proactively assess their use of AI in the workplace, including mapping current and planned AI deployments and engaging legal, human resources, and data privacy teams to develop robust governance frameworks.

See our AI Laws of the World tool, which summarises AI laws and proposed regulations across more than 40 jurisdictions. Access the firm’s Focus on Artificial Intelligence topic hub and listen to the DLA Piper AI and Employment Podcast for additional insights.

4. DEI divergence

The DEI landscape shifted in 2025. In the US, President Trump’s Executive Order, 'Ending Illegal Discrimination and Restoring Merit-Based Opportunity,' is directed at private-sector DEI preferences, mandates, policies, programs, and activities. Given the potential for wide-ranging regulatory exposure, including under the False Claims Act, many companies operating in the US have been assessing their specific risk through a review of their internal and external DEI policies and programs.

Elsewhere, countries continue to enact new laws promoting DEI. In December 2024, the deadline passed for EU Member States to implement laws to improve gender balance on corporate boards, and companies must meet targets by June 2026. A new law in Australia requires employers with 500 or more employees to set three gender equality targets and make progress against them over a three-year period. In the United Kingdom, further guidance is anticipated following the Supreme Court ruling on the meaning of 'man' and 'woman' in the Equality Act 2010. Separately, the UK government is considering ethnicity and disability pay gap reporting for large employers.

Faced with conflicting obligations, many global employers are localising DEI strategies and emphasising concepts such as belonging, respect, fairness, and dignity.

5. Expanding and diversifying leave laws

Global employers continue to see a trend toward expanding and diversifying leave entitlements, with a focus on supporting family, health, and well-being in the workplace. New and proposed laws:

• Expand parental, birth, and adoption leave (e.g., Spain, Denmark, Chile, Botswana, Thailand, South Africa, New Zealand).
  
  
• Increase leave for employees caring for children or other family members (e.g., Japan).
  
  
• Provide leave rights for health and medical needs, including hospitalisation, serious illness, chronic or disabling diseases, and screenings (e.g., Ireland, Italy, Bahrain, Peru, Botswana, British Columbia).
  
  
• Provide neonatal and child health leave (e.g., Italy, Illinois).
  
  
• Provide bereavement leave (e.g., the UK, Australia, New Zealand).
  
  
• Address challenges including pregnancy (e.g., the United Arab Emirates, New York City), breastfeeding (e.g., Mexico, Illinois, Puerto Rico), menstruation (e.g., Karnataka, Thailand), postnatal support (e.g., Brazil, the UAE), menopause (e.g., Rhode Island) and reproductive events (e.g., the UK, Illinois, France, Australia).
  
  
• Protect employees taking leave to address family- or gender-based violence (e.g., New Zealand, Illinois, New York City).
  
  
• Provide job-protected leave for employees affected by public health directives, disasters, or military service (e.g., Quebec).

There is also a trend toward more flexible and accessible leave structures, such as hourly accrual from day one, immediate eligibility, and / or streamlined processes (e.g., Germany, New Zealand, the UAE, British Columbia, Spain).

For global employers, rapid changes to leave rights coupled with increasing mental health claims are creating complexities, particularly as they look to actively manage underperforming employees. Employers must consider obligations under leave, disability, and accommodation laws, which vary by country, during the discipline and termination process.

6. The great return?

More employers are pushing for more days in the office in 2026. At the same time, the concept of a standard workweek may be shifting, with some jurisdictions seeing a push for hybrid and flexible work (including abroad), shorter workweeks, and a right to disconnect.

Implementing return-to-office policies can raise various issues, from steps required to enforce a policy (e.g., incorporation into internal work rules, translation, notification, consultation with collective groups), to laws providing some form of work from home and reasonable accommodation obligations.

On the regulatory front, some countries are formalising the right to flexible and remote work, with new regulations to balance business needs and employee wellbeing. For example:

• Oman released comprehensive regulations governing remote work arrangements.
  
  
• In Australia, the Victorian state government announced plans to introduce legislation granting employees the right to work from home two days per week, with exemptions for roles that cannot be performed remotely.
  
  
• A draft bill in Spain would reduce the standard working week from 40 to 37.5 hours (with no reduction in salary), mandate a digital timekeeping system, and introduce a right to digital disconnection.
  
  
• A draft bill in Thailand would limit standard working hours to 40 per week (down from 48), require weekly rest days, and increase annual leave.
  
  
• Chile’s phased reduction of the maximum weekly working hours from 45 to 40 continues, with a decrease to 42 hours in 2026.
  
  
• Poland launched a pilot program to explore reduced working hours, including four-day workweeks, shortened daily hours, or additional days off.

Employers in some jurisdictions are reviewing and updating remote and flexible work policies to reflect new laws and risks.

7. Immigration and workforce mobility reforms

Governments are updating immigration and workforce policies to limit migration, address skills shortages in key sectors, and support economic strategies. Measures include:

• More restrictive requirements and considerations (e.g., the UK, the US, Italy).
  
  
• Increasing fees (e.g., the UK, Qatar). For example, in the US, a proclamation signed by President Trump aims to curb abuses in the H-1B program by introducing a USD100,000 payment with each petition.
  
  
• Enhanced data-sharing requirements, aided by digitised borders. The EU introduced a new Entry / Exit system on 12 October 2025, and the European Travel Information and Authorisation System is expected to start in late 2026. The UK’s Electronic Travel Authorisation (ETA) was introduced earlier this year.
  
  
• Increased enforcement activity and financial penalties for non-compliance (e.g., the UK, the US, Oman, Nigeria).
  
  
• More protections for local workers (e.g., Hong Kong, the UAE, Oman, Saudi Arabia, Bahrain).
  
  
• Widening the scope of right-to-work check requirements (e.g., the UK).
  
  
• Prioritising entry of skilled workers (e.g., Saudi Arabia, Portugal, the US).

The return of business travel and continuation of hybrid working arrangements also prompt key considerations. Employers are encouraged to conduct frequent checks on compliance obligations, including monitoring short-term assignments and 'workcations,' to maintain lawful status.

Non-compete agreements are another area of reform. In the US, the Federal Trade Commission is cracking down on the use of non-compete agreements, especially in healthcare and low-skilled sectors. States also continue to enact laws to protect worker mobility, including restrictions on repayment agreements (e.g., Virginia, Wyoming, California). Other countries (e.g., UK, China, Australia) are similarly imposing or considering new standards for non-competes.

8. Navigating workplace divides

Political, controversial, and religious activity in the workplace can create challenges for employers, including:

• The potential for workplace conflict and disruption due to political or social statements or actions by employees, customers, or third parties.
  
  
• The need to balance competing rights and interests in the workplace, such as freedom of expression, privacy, and non-discrimination.
  
  
• Legal and reputational consequences of taking or not taking a position on geopolitical, cultural, and social issues.
  
  
• Increased scrutiny and pressure from stakeholders, such as shareholders, regulators, and the public, on environmental, social, and governance (ESG) initiatives and performance.
  
  
• Increased labour activity.

Protections for political speech and off-duty conduct vary across jurisdictions. New laws, court decisions and enforcement activity are further complicating the landscape. In the US, more states (e.g., New York, New Jersey, Hawaii, California, Washington, Rhode Island) are enacting captive audience laws that prohibit an employer from requiring employees to participate in meetings about religious or political matters. At the federal level, the Equal Employment Opportunity Commission is expected to increase its focus on religious discrimination and accommodation. A UK Court of Appeal decision underscores the importance of careful, context-specific assessments in cases involving the manifestation of beliefs.

Companies are carefully weighing whether and how to respond to issues of the day in a manner consistent with their corporate values and legal obligations; how to navigate employee discussions at work; and how to respond to employees who may engage in controversial activities outside of the workplace. Clear guidelines for conduct and communication – at work and online – may help to reduce conflict.

9. Enhanced fairness and anti-discrimination laws

Jurisdictions continue to focus on workplace fairness, with employers increasingly required to implement comprehensive policies, provide training, and ensure effective complaint and resolution procedures to comply with legal standards.

New and proposed laws:

• Expand the scope of anti-discrimination and anti-harassment protections (e.g., Transgender Protection Rules in India, a broader definition of harassment in South Korea, protection against forced retirement in Ireland, broad anti-discrimination grounds in Botswana).
  
  
• Require new procedures, written policies, training, and / or reporting (e.g., Singapore, Nova Scotia, India).
  
  
• Limit the use of confidentiality agreements (e.g., Illinois, the UK).
  
  
• Address other forms of harassment (e.g., 'bullying' in Nova Scotia, customer harassment in Japan).
  
  
• Increase fines and enforcement powers (e.g., Quebec, Norway).
  
  
• Create new whistleblower obligations, including formalising reporting channels (e.g., Spain, Japan).

With more laws expected in 2026, employers are encouraged to update policies, train staff, and ensure robust complaint procedures.

10. Reforms to dismissal, probation, and contractual flexibility

Countries are revisiting rules around dismissal, probation, and contract changes to balance flexibility with worker protection. For example:

• The UK’s Employment Rights Bill will reduce the qualifying period for unfair dismissal rights from two years to six months and restrict 'fire and rehire' practices. Employers are encouraged to review contract terms in preparation for the new rules.
  
  
• A Tripartite Working Group is reviewing Singapore’s Employment Act 1968 to ensure adequate protections for different groups of workers while reducing regulatory costs for businesses.
  
  
• The UAE announced six approved employment models for private-sector work, with new requirements for contracts, recordkeeping, and more.
  
  
• Italy extended fixed-term contract flexibility through 31 December 2026 to support labour market adaptability.
  
  
• A Supreme Court decision in China provides for double-salary liability for employers that fail to execute written contracts and strengthens mandatory open-term contract obligations.
  
  
• A new dismissal code in South Africa brings flexibility and clarity to performance management processes.

Employers are encouraged to consider new obligations as they assess employment models, manage employee performance, and weigh terminations or reductions in force.

Learn more

Employers are encouraged to continually monitor developments around these issues. To learn more about the implications of these developments for your business, please reach out to any member of DLA Piper’s Employment Group or your DLA Piper relationship attorney.