Paul Hastings Unveils "Mapping the Trends: The Global Employer Update 2025"

• Workplace well-being and pay standards are under the spotlight, with local counsel in 28 jurisdictions making the increase in the national minimum wage a key issue for 2025.
• AI adoption in the workplace continues to dominate, ahead of an era with evolving regulations across multiple jurisdictions.
• New legislative developments remain limited, with regional variations related to race, ethnicity, sexual orientation, disability or age.

LONDON (January 30, 2025) – Offering crucial insights into key employment law developments across 87 jurisdictions, global law firm Paul Hastings LLP has released the latest edition of its comprehensive guide, “Mapping the Trends: The Global Employer Update 2025.”

Compiled from feedback provided by lawyers in the firm’s global employment practice, as well as an extensive network of local employment law counsel across 87 jurisdictions, the research highlights the latest legislative developments shaping the global employment law landscape.

Well-being, pay standards and the impact of emerging AI technology are identified as the most pressing issues and trends, while clear gaps emerge, as in previous years, with respect to new legislative developments and regional variations related to race, ethnicity, sexual orientation, disability or age. For example, sexual harassment is a big focus for lawmakers in the U.K., U.S., Europe, Australia, Central and South America, but is notably absent from developments in  Africa, Asia and the Middle East, despite countries in those regions proposing measures to improve the safety and well-being of female employees.

Suzanne Horne, Head of the Paul Hastings International Employment practice, comments:

“2025 may be the most dynamic year yet for global employers. Heightened focus on employee well-being, the increased scrutiny on pay, and the introduction of national AI laws and legislation are just some of the developments and complexities that employers will need to navigate. We are watching the new U.S. administration, given the role of the U.S. as a key influencer on the international employment law landscape.

“Our research highlights how local realities are shaping global strategies in real-time, as laws adapt to these trends. From sharpened reporting standards to responsible AI use cases, staying agile and informed will be critical for businesses wanting to stay ahead of the curve on developments throughout the year.”

Raising the Bar on Working Conditions and Employee Well-being

Increasing awareness of ESG issues and reporting obligations on sustainability, equality, working conditions and human rights is driving global efforts to enhance employee well-being through a myriad of new laws and proposals with the goal of improving working conditions. These range from traditional measures, such as new health and safety laws, to increased family-friendly leave and new protections related to improving women’s health, reducing working hours, and addressing harassment and bullying.

The EU also took action by passing the Platform Workers Directive in November of 2024, and some non-EU governments have debated new laws aimed at establishing minimum protections for platform workers.

These initiatives will be welcomed by many global employers, as they reflect a post-pandemic focus on the fiscal and societal benefits of a healthier, more productive workforce and raise the bar for all.

Key Legislative Changes and Proposals

Law/legislation implemented	Nation(s)*
New health and safety laws	Angola, Chile, Malaysia, the Netherlands, Serbia, Taiwan
Increased family-friendly leaves and new protections related to women’s health	Czech Republic, Hungary, India, Indonesia, Jordan, Mozambique, South Korea
New sick leave rights and protections	Canada, Estonia, France
Greater recognition in law for remote and agile working practices	Austria, Bulgaria, Ireland, Pakistan, Peru, Qatar, Singapore, Turkey
Recognition of the right to disconnect	Australia, Kenya, Mauritius, Slovenia
Reduction of working hours	Brazil, Colombia, Mexico, Spain
Tackling harassment and bullying	Australia, Chile, Israel, Poland, U.K.
Gender and race equality laws	Denmark, Italy, South Africa

Pay Under Scrutiny

The issue of pay remains a key focus in 2025, reflecting ongoing economic challenges worldwide. Employers face mounting pressure due to the correlation between rising wages, social security costs and benefits tied to salaries.

In 28 jurisdictions, increases to the national minimum wage are a key issue for 2025. This includes EU member states affected by the Adequate Minimum Wage Directive, which was to be transposed by November 2024. However, questions remain over the EU’s authority in this area, potentially complicating the EU’s role in protecting worker rights.

Meanwhile, the EU Pay Transparency Directive, which requires implementation by June 2026, is driving early legislative efforts in some countries. It mandates increased transparency and requires employers to address the challenging concept of “work of equal value” seen in the costly U.K. supermarket and retail cases involving equal pay, adopt certain recruitment and hiring practices, and report data involving the gender pay gap.**

Pay transparency already is a reality in the U.S., with 14 states, including New York and California, having laws that mandate disclosure of pay scales in job postings. These requirements complement existing audit requirements for equal pay across many countries worldwide, and this heightened focus on pay will remain a key theme globally throughout 2025.

The Era of Widespread AI Adoption h2

The report highlights the significant impact of AI adoption in 2025, as jurisdictions like the U.S. and the EU compete to lead in responsible AI use.

The EU AI Act, effective August 2024, introduced extra-territorial rules and severe penalties for breaches involving high-risk AI systems – up to €35m or 7% of annual global turnover. Even non-EU businesses must prepare for compliance before its full implementation in August 2026.

AI is reshaping workforce planning, recruiting and training, as well as employee engagement and cybersecurity. Governments and unions in the UK, and elsewhere, are working to craft strategies and legislation to address its workplace impact.

As AI adoption accelerates, employers must prepare for the potential legal challenges that will inevitably follow.

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* List of nations not exhaustive

** The first reports, for those companies with 150 employees or more, will be due from June 2027

About Paul Hastings

With widely recognized elite teams in finance, mergers & acquisitions, private equity, restructuring and special situations, litigation, employment and real estate, Paul Hastings is a premier law firm providing superior intellectual capital and execution globally to the world’s leading investment banks, asset managers and corporations. Learn more at paulhastings.com.