Essential Insights for International HR and Compliance Teams

As global mobility and talent strategies deepen, employers across Asia, Europe, the UK, and the UAE must stay abreast of evolving employment laws. This guide highlights the critical regulatory changes unfolding in 2025 and also outlines the implications and preparations needed to stay compliant and competitive.

Asia

China – Phased Retirement & Contract Stability

Phased Retirement for Older Workers

Implemented in late 2024, the new rules now allow older employees to shift to part-time roles rather than fully retiring.

Action: Introduce phased retirement options and update HR policies accordingly.

Automatic Conversion of Fixed-Term Contracts

Shanghai courts increasingly treat successive fixed-term contracts as permanent roles.

Action: Introduce breaks between contracts and monitor cumulative durations to manage conversion risk.

Hong Kong – Mandated Pension Changes and Contract Flexibility

Abolition of MPF Offsetting (effective from 1 May 2025)

Employers will no longer offset MPF payments against severance or long-service entitlements.

Action: Retain 12 months of wage records and budget for increased separation liabilities.

More Employees Eligible for Full Benefits (forthcoming)

Moving to 68 hours over four weeks as the threshold, enabling more part-time workers to access full benefits.

Action: Review part-time roles and prepare for broader benefit coverage.

Insolvency Fund Extension Under Review

The cap for ex-gratia insolvency payments may rise.

Action: Monitor reforms and assess potential employer contributions.

Singapore – Strengthened Equality & Harassment Protections

Stronger Anti-Discrimination Laws

Protections for race, gender, disability, age, and orientation now extend from hiring to dismissal.

Action: Update DEI policies and training programmes.

Mandatory Harassment Framework

Employers must implement reporting and response protocols.

Action: Publish procedures and ensure timely incident resolution.

Europe & UK

Belgium – Board Diversity & Probation Reforms

EU Board Gender Mandate

New regulations increase female representation and disclosure obligations.

Action: Audit board composition and update public reporting.

Regulated Probation Periods

Notice periods and duration caps are now standardised.

Action: Align employment contracts and manager training accordingly.

Denmark – Movement Toward a Statutory Minimum Wage

While Denmark traditionally relies on collective bargaining to regulate wages, discussions continue around introducing a statutory minimum wage, particularly considering EU-wide developments and the Pay Transparency Directive.

Action: Although no formal legislation has been passed as of mid-2025, employers should monitor national debate and EU alignment closely, particularly for roles outside collective agreements, and be ready to adjust wage frameworks if a statutory rate is introduced.

European Union – AI, Transparency & Workforce Engagement

The EU is pressing ahead with significant workplace reforms in 2025:

AI Act: In force from August 2024, it regulates AI systems used in HR (e.g. recruitment, monitoring), requiring transparency, human oversight, and risk management.

Pay Transparency Directive: Member states must implement this by June 2026, introducing requirements to disclose salary bands, justify pay gaps, and report on gender pay equity.

European Works Councils Reform: Proposals to strengthen employee consultation rights are in development, potentially affecting multinational employers with EU-based workforces.

Action Required:

Conduct an AI compliance audit, prepare to align job adverts and salary structures with pay transparency standards, and monitor developments in works council obligations

Germany – Embracing Digital Employment Practices

From January 2025, Germany permits employers to issue key employment terms digitally, under amendments to the Verification Act (Nachweisgesetz). This includes employment contracts and essential conditions, provided they remain accessible and verifiable.

Action: Employers should adopt secure digital signature tools, review onboarding processes, and ensure proper documentation storage to comply with updated recordkeeping standards.

Ireland – Auto-Enrolment and Expanded Sick Leave

Ireland will roll out its long-awaited Automatic Enrolment Retirement Savings System in mid-2025, requiring employers to enrol eligible employees into a government-backed pension plan. Contributions will be matched by the employer and partially by the state.

At the same time, the phased expansion of Statutory Sick Leave continues, giving employees greater entitlement to paid sick days (up to 10 days annually by 2026).

Action: Employers must prepare payroll systems for pension contributions and monitor employee eligibility. Policies on sick leave should be updated to reflect the increased entitlements.

Italy – Stricter Rules for Temporary and Fixed-Term Employment

Agency Worker Parity

Temporary agency workers receive the same pay and benefits as direct hires.

Action: Review agency contracts and equalise compensation.

Fixed-Term and Probation Restrictions

New rules have sharper guidelines on renewals, notice and probation periods.

Action: Revise contracts and termination procedures.

Updated Resignation Protocols

Employers must follow stricter formalities during resignations.

Action: Ensure exit processes meet legal requirements.

Netherlands – Wage Increases, Transparency & Agency Rules

Statutory Minimum Wage Rise (July 2025)

Hourly minimum increases to €14.40.

Action: Adjust payroll rates and inform staff.

Pay Transparency Directive Applied

Requires disclosure of salary ranges and equity rationale.

Action: Update job postings and internal pay reviews.

Agency Worker Rights & Small Business Severance Cap

Enhanced agency protections: small employers face capped severance.

Action: Amend agency contracts and severance policies.

Sweden – Embracing Pay Transparency

Sweden is advancing its compliance with the EU’s Pay Transparency Directive, mandated by October 2025. Employers will need to:

• Compile and report pay data, including salary ranges and metrics around gender and ethnicity pay gaps
• Publish salary bands in job advertisements and internal communications

Action:

• Conduct a comprehensive pay audit to identify disparities
• Update recruitment materials with clear salary bands
• Implement reporting systems to track pay equity annually and stay on the right side of regulation

United Kingdom – Wages, Sponsorship & Fraud Liability

National Minimum Wage Increases

Annual uplifts for multiple tiers.

Action: Review and adjust payroll rates.

Sponsorship Rule Changes (2025)

Restrictions include barring cost recovery from migrants and enhanced monitoring of sponsored workers.

Action: Update contracts and sponsorship processes, strengthen fraud controls.

Employer Criminal Liability

Companies may be prosecuted if their employees commit fraud under insufficient prevention controls.

Action: Establish robust internal compliance and oversight measures.

UAE (ADGM) – Comprehensive Employment Reform

The updated Employment Regulations 2024 of the Abu Dhabi Global Market (ADGM) came into effect on 1 April 2025. Key changes include mandatory employer-paid visa and ID processing, the introduction of new remote work categories, and expanded family leave provisions—such as paternity leave, adoption rights, and support for miscarriage-related absences. Employers are now required to issue written contracts within one month of employment and maintain English-language employment records on-site.

Action: Review all employment contracts, update internal policies, and train HR teams in new obligations. End-of-service entitlements must be paid within 21 days, and visa cancellations cannot be tied to waivers. Non-compliance may result in fines or legal exposure.

Preparing for 2025: Key Actions for Employers

• Audit and digitise HR documentation including contracts, remote agreements, and AI disclosures

• Implement pay transparency through audits, reporting, and public salary bands

• Review workforce models to ensure agency compliance, retirement pathways, and contracted worker parity

• Update payroll systems to manage increases in minimum wage, pensions, and sick leave entitlements

• Strengthen compliance frameworks for visa sponsorship, fraud prevention, and internal controls, particularly under UK and UAE rules

How Access Financial Can Help You Stay Ahead

When compliance becomes a strategic advantage, global employers need local expertise and systems that work across borders. Access Financial provides the following:

• Tax & Legal consultations and support

• Comprehensive payroll administration and workforce solutions (EoR / AoR, Employed, Self-employed & Limited company solutions)

• Immigration assistance

Next Step: Book Your Global Compliance Health Check 2025 is redefining workplace regulation. Avoid surprises. Future-proof your operations with Access Financial. Schedule a consultation today