Cross-Border Catch-Up: Key Changes in International Employment Law in 2025

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Maya Barba: Welcome to the Cross-Border Catch-Up, the podcast for global employers who want to stay in the know about cutting-edge employment issues worldwide. I’m Maya Barba, and I’m here with my colleague Skye Hao. We’re cross-border attorneys here at Ogletree Deakins, and today we’re going to discuss the hot topics in international employment law for the first half of 2025. 2025 is shaping up to be a year of significant transformation in employment laws across the world. I’d say that the key theme that we’re seeing is change. From legislative reforms to new case law, employers everywhere are facing a rapidly evolving legal landscape. As a quick snapshot, there’s a few things I want to touch on. First, we’re seeing many countries introducing or updating laws affecting worker rights, working conditions, and employer obligations. We’re seeing jurisdictions that are pausing legislative changes due to political uncertainty, while some are moving full steam ahead. So let’s get into it. Skye, what are some developments that you’ve been seeing or want to touch on today?

Skye Hao: Yeah, thanks, Maya. One of the most talked-about developments is the EU Pay Transparency Directive. This directive aims to narrow the gender pay gap by increasing transparency and enforcement. Although EU member states have until June 2026 to fully implement it, companies are being urged to prepare now because compliance will be complex and potentially burdensome. Other countries like Ireland are extending requirements for gender pay gap reporting to more employers in 2025.

Maya Barba: Thanks, Skye. So, it sounds like the key takeaway is that if you are an employer and you operate in Europe, pay transparency should be high on your agenda.

Skye Hao: Yes. In addition, there is a global trend towards tightening up the enforceability of non-compete clauses. For example, Singapore is on the verge of significant change regarding non-compete clauses in the employment contract. The Ministry of Manpower is set to introduce new guidance in 2025 that will impact the enforceability of restrictive covenants. Specifically, the guidance will highly likely to further narrow down the enforceability of non-compete even for executive-level employees, and also the U.S. and a few other countries are moving to ban or restrict non-compete or require compensation for them.

Maya Barba: Thanks, Skye. Could you speak a little bit more to what this actually means for employers?

Skye Hao: Yeah. Employers should expect more scrutiny of restrictive covenants from local authority and should pay close attention to the development and careful drafting, enforcing non-compete clauses. The next hot topic is the gig economy and platform workers. As gig and platform work continue to challenge traditional employment definitions, Brazil is considering a new measure to define and regulate minimum working conditions for platform workers like ride-share drivers. There are other countries like Canada and other countries are expanding protections for gig, casual, and part-time workers. In addition, the next hot topic is the right to disconnect and flexible work. As you know, work-life balance is a top priority worldwide. Australia has introduced a right to disconnect, allowing employees to refuse work-related contact outside of working hours unless refusal is unreasonable. The right will extend to small business employees in August 2025. Similarly, Canada’s implementing policies that limit after-hours work communication. The Czech Republic is giving employees more say in scheduling their working hours. The bottom line is employers need to rethink expectations around availability and respect boundaries between work and personal life in certain countries.

Maya Barba: Thanks for that, Skye. That’s fascinating. I think one topic that I’d love to touch on that we’re hearing a lot about lately is AI in the workplace. Could you speak to that?

Skye Hao: Yes, of course. AI has been a hot, hot topic. I feel like it since start two to three years before. We see Australia and EU are considering new regulations on the use of AI in the workplace, particularly regarding employee rights and health and safety risks. Employers must stay alert to new regulations that may affect, recruit, monitor, and make decision-making process that related to the AI.

Maya Barba: AI is definitely the space to watch, and I think there’ll be a lot of interesting changes for employers in the years and even months to come. A few more highlights that I’d like to touch on that we’re seeing. First, starting with China. We’re seeing China gradually increase the statutory retirement age and introduce more flexible retirement options. Another key development is the United Arab Emirates is expanding mandatory health insurance obligations to more regions and we’re also seeing South Africa launching a remote working visa to attract international talent. So those are just some other more recent developments that I wanted to highlight. Anything else, Skye?

Skye Hao: Yeah, thank you, Maya. To sum up, 2025 is a year of rapid and far-reaching change international employment law perspective. The main theme is greater transparency, more protections for non-traditional workers, and enhance work-life balance and a stronger focus on employee well-being.

Maya Barba: Thanks, Skye. This is great and thanks for joining us for today’s Cross-Border Catch-Up. Follow us to stay in the know about cutting-edge employment issues worldwide.

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