With the fabulous Paris Olympics behind us, we still confront a world rife with wars and conflicts. The Russia-Ukraine war continues, while the Israel conflict adds uncertainty to the region and sparks political discussions at workplaces. In 2024, a record number of elections will shape the employment law landscape and influence the global political and economic agenda. Employees around the globe are demanding more from their employers, while international unions are actively institutionalizing.
HR Policy Global’s Take: To help you prepare for the rest of the year, we've compiled a thorough list of topics to focus on pay trends, DEI and ESG, AI in the workplace, working time, employee benefits, and union rights. Meanwhile, check out our upcoming global events to equip yourself with valuable insights and knowledge.
Topic 1: Minimum Salary and Pay Transparency and Equity
Minimum Salary Increase around the world: The latest OECD statistics reveal that inflation has surged year-on-year in the G20, reaching a record high of 6.9% since March 2023. Employers face continued upward pressure on wages due to ongoing inflation while legislators and policymakers push significant increases in the minimum wage.
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Notably, The EU Adequate Minimum Wages Directive, set to be implemented in all EU member states by November, significantly emphasizes the union involvement in wage-setting. Additionally, the incoming President of Mexico will likely continue to implement double-digit minimum salary raises, increasing salary compression pressures for employers.
Pay transparency and equity requirements are trending.
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With the EU Pay Transparency Directive set to take effect soon, and only two pay cycles remaining before implementation, employers must start preparing now.
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In the UK, the Labour Party has pledged to expand pay reporting obligations to include ethnicity and disability.
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Several states in the US have enacted laws requiring pay disclosure to job applicants, and this trend is set to continue.
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In Brazil, employers face challenges with the biannual gender pay gap reporting.
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Meanwhile, in Australia, the Workplace Gender Equality Agency has taken a significant step by publishing gender pay gaps for private sector employers for the first time, signaling the government’s commitment to tackling pay inequity.
Relevant events and webinars:
Topic 2: DEI and ESG
Diversity, Equity, and Inclusion continue to be hot topics, but they vary greatly around the world. Global employers must stay alert to unique cultural challenges in each country and keep up with new developments to effectively address their employees' needs.
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By the end of this year, EU member states need to transport the Women on Boards Directive to their national laws, which means large listed company in the EU must adopt a target to ensure that women hold at least 40% of its non-executive director positions or 33% of all its board positions by 30 June 2026.
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Last summer, the US Supreme Court made a landmark decision, ruling against affirmative action in college admissions. This ruling has spotlighted the potential risks tied to employer DEI programs. DEI will almost certainly become a more contentious issue in the upcoming presidential elections.
ESG was originally used to assess sustainability, but it now drives a broad range of responsible business practices within a company. Legislation around the world increasingly targets this area. Notably, there are two important EU directives spotlighting ESG issues: the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D) will significantly expand reporting obligations for employers. We have seen that global unions proactively leverage the “hard laws” to have a bigger influence on businesses.
Relevant events and webinars:
Topic 3: AI in the Workplace
Published this month, the EU AI Act extends its reach beyond EU borders, affecting both EU-based employers using AI systems and those outside the EU whose AI outputs are used within the EU. Similar regulations are expected to fill this regulatory gap around the world.
The biggest challenge for global employers is that the Act's risk-based approach focuses on AI system utilization, categorizing many workplace AI applications as high-risk. This classification imposes obligations like ensuring proper oversight, informing workers’ representatives, and guaranteeing relevant and representative data. We will continue to monitor this emerging area.
Relevant events and webinars:
Topic 4: Working Hours and Right to Disconnect
Several countries in Latin America have been actively reducing maximum working hours and we anticipate seeing the trend continue.
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Starting in July 2024, Colombia will slash the maximum weekly working hours to 46, with plans to further cut this limit to 42 hours by 2026.
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Chile is on a similar path, having passed legislation last year to trim the work week from 45 to 40 hours by 2028.
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In Mexico, Congress is preparing for a final vote on a bill that aims to reduce weekly working hours from 48 to 40.
The right to disconnect has garnered significant attention in recent years as more employees work remotely. Several European countries are implementing new legislation that empowers employees to refuse monitoring, reading, or responding to work-related contact outside working hours, unless the refusal is deemed unreasonable. Australia will also implement a similar legislation on August 26. These new laws are likely to create problems for employers in balancing individual employees’ well-being and organizational productivity.
Relevant events and webinars:
Topic 5: Employee Benefits
In the coming years, we expect to see a greater emphasis on supporting employees' family life globally. Governments are actively enhancing parental leave and family care policies to address slow population growth. These benefits are also essential for companies to attract and retain talent amid a labor shortage.
New development on parental leaves:
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EU: Fathers get 10 days paid paternity leave, parents get 4 months parental leave (2 months paid and non-transferable), and carers get 5 days of leave per year.
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UK: Unpaid carer’s leave introduced, and paternity leave made more flexible.
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Singapore: From January 2024, paternity leave entitlement doubled from two to four weeks and unpaid infant care leave doubled from six to 12 days for parents of children under two.
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Australia: Increasing paid parental leave from 20 weeks to 22 weeks from July this year, and boosting it to 26 weeks by 2026. Last year, flexible unpaid parental leave raised from 30 to 100 days.
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South Africa: Pending a constitutional court decision, all parents are entitled to four months’ parental leave, which they can share between themselves.
New developments on family care
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Colombia: Employers must have a breastfeeding room and allow paid breastfeeding breaks until a child is two years old.
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Spain: Employees can accumulate breastfeeding leave without needing a collective agreement or individual negotiation.
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South Korea: Supreme Court ruling supports employees refusing unfair work instructions due to parenting needs.
Relevant events and webinars:
Topic 6: Labor Rights and Collective Bargaining
We are witnessing a troubling trend as countries increasingly legislate for greater collective rights and trade union powers. Unlike traditional grassroots campaigns, this new top-down tactic allows unions to leverage government power to organize and even institutionalize.
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The European Commission has proposed significant reforms to the European Works Council (EWC) Directive, aimed at strengthening EWCs' influence and increasing their requests. These changes will enhance EWCs' ability to enforce their legal rights and shorten the timeframe for their establishment.
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Germany: Proposed law to regulate Works Councils' pay during work duty release.
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China: New legislation requires trade unions to play a more active role in dispute resolution.
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South Korea: Bill expanding businesses' collective bargaining obligations and reducing damages for workers in strikes.
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UK: Labour Party proposes new trade union rights to simplify organizing process.
Relevant events and webinars:
