Work/Life - international employment news update

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Issue 122

Welcome to the latest edition of our international employment news update.

In this edition we look at:

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EU Pay Transparency Directive: countdown to compliance

The EU Pay Transparency Directive (2023/970), the most comprehensive pay equity law in decades, requires all 27 EU member states to transpose its provisions into national law by 7 June 2026. The directive aims to enhance salary transparency, enforce equal pay, and mandate pay gap reporting across Europe. While some countries like Belgium, Poland and Malta have partially enacted the directive already, others are still working through draft proposals, with the Netherlands delaying implementation until 2027. Employers across the EU are encouraged to prepare ahead of the national transposition deadline by auditing pay data, adjusting HR policies, and readying for the stringent transparency and reporting standards to avoid the risk of non-compliance.

Paul Callaghan will be hosting a webinar on this topic on 20 November at 4pm. Details to follow soon.

Prince Andrew police investigation: the lasting impact of 'historic' misconduct

The Metropolitan Police are investigating allegations that Prince Andrew asked one of his publicly funded police bodyguards to obtain confidential information about Virginia Giuffre, the woman who accused him of sexual assault. According to reports, Andrew allegedly gave the officer Giuffre's date of birth and social security number in an attempt to uncover damaging material that could be used in a smear campaign against her.

Following the announcement that Andrew is to relinquish his title as Duke of York, these claims add renewed scrutiny to his long-term pattern of misconduct. If the allegations prove to be true, the conduct could raise legal implications under data protection and public office legislation, both of which prohibit the misuse of official powers and confidential data for personal advantage or reputational protection. These are echoes of reports on the Al Fayad/Harrods claims, which are subject to a revised compensation fund.

Dutch fines for misclassification of self-employed workers

The Dutch government will begin actively fining employers who incorrectly treat staff as self-employed contractors, following years of limited enforcement. This change ends a long-standing moratorium that restricted enforcement to cases of deliberate misclassification. Under the new regime, tax authorities will impose correction obligations, back-taxes, penalties, and interest, even where there is no malicious intent. Companies will have one year to adapt, with no punitive fines during this transition provided they can show compliance efforts.

These reforms aim to protect workers who operate as employees but are labelled self-employed, combatting false self-employment and restoring labour market balance. Employers engaging Dutch freelancers should reassess their contracts, audit their workforce, and ensure that classification aligns with working arrangements to avoid exposure.

Poland's labour law overhaul

Poland is gearing up for a sweeping overhaul of its labour law framework, with seven major reforms scheduled for implementation in January 2026. Key changes include counting self-employment, contract work, and periods of running a business toward workers' seniority, unlocking enhanced employee rights such as extended leave and higher tenure bonuses. While welcomed by employees, these changes raise concerns among employers who face the challenge of updating HR and payroll systems to ensure retroactive compliance.

Additional reforms aim to expand collective bargaining coverage, introduce stricter pay transparency, and outlaw unpaid internships by guaranteeing minimum compensation. The government also plans to implement the EU Platform Work Directive (2024/2831), formalising employment arrangements for gig economy roles like couriers and food delivery workers.

Austria to extend freelance workers' rights

Starting in 2026, Austria will enact new rules to grant freelance workers protections that are similar to those enjoyed by regular employees for the first time. These include a statutory minimum notice period of four weeks (increasing to six weeks after two years of service) and the ability to conclude collective agreements specifically for freelance workers. The first month of freelance work will be considered a probationary period with termination possible mid or end month. These new rules aim to curb issues around lack of security and benefits for freelancers, instead providing minimum wage standards, better termination rights, and access to collective bargaining arrangements for the first time.

Labour unions sue US Government over social media surveillance

Three major US labour unions have filed a federal lawsuit accusing the Trump administration of violating First Amendment rights by monitoring and penalising visa holders' social media activity based on their political viewpoints. The lawsuit, filed in New York, challenges a government programme that uses AI to monitor lawful non-citizens online presence. Union members have reported self-censorship and withdrawal from union activities due to fear of visa revocation, demanding an end to 'unconstitutional' viewpoint-based surveillance.

Dutch regulators demand human option amidst rising chatbot complaints

Dutch privacy and competition authorities have issued strict guidance to companies using chatbots for customer service, requiring that the option for customers to speak with a human employee must always be available. Businesses must disclose when customers are interacting with a chatbot and ensure that it does not provide misleading, evasive, or incorrect information. Current consumer law requires direct and effective communication, but regulators warn this threshold is frequently not met in practice, and complaints about chatbots are on the rise. Research cites lack of human contact as a major frustration, with chatbots making it increasingly difficult for customers to reach human support. From August 2026, the new EU AI Act will require businesses across the EU to inform users when they interact with automated systems. Dutch regulators have urged the European Commission to go further and mandate that AI chatbots should be fair, recognisable, accessible, and never misleading.

Slovakia launches second phase of youth employment initiative

Slovakia's successful 'Right to First Employment' initiative is entering its second phase, aiming to create over 5,000 new jobs for young people under 30 with limited prior work experience. Under this programme, employers receive reimbursement of up to 80% of the employee's wages over an initial period of nine months. To benefit from the subsidy, employers must retain these workers for an additional six months after the subsidised period to ensure long-term job sustainability.

Hungary faces potential double-digit minimum wage increase

Trade unions in Hungary are pushing for minimum wage increases of 12% for unskilled workers and 10% for skilled workers in 2026. The negotiations involve key union associations and employers' groups, with talks continuing in the hope of reaching agreement by early November. Employers have cited slower GDP growth as a reason by which to propose smaller hikes of 7-10%. They are also seeking government support through payroll tax cuts to offset rising wage costs. The minimum wage increase aims to improve income levels for both unskilled and skilled workers, though Hungary's minimum salary requirements remain among the lowest in the EU.

UK businesses ring alarm bells over potential tax hikes

The Institute of Chartered Accountants (ICAEW) has issued a stark warning that further tax rises on UK businesses in the upcoming Budget could severely damage the jobs market, with 56% of employers indicating that they would cut jobs or freeze hiring if corporate taxes increase again. The UK unemployment rate has already hit a four-year high of 4.8%, partly due to the Chancellor's National Insurance increases earlier this year. The ICAEW cautioned that the looming threat of raising GBP30 billion in tax revenues risks stalling business investment and innovation due to the uncertainty and concerns over reaching a fiscal tipping point.

Services and Groups Employment, pensions & mobility