Global Employment Tax and Compliance Newsletter. March 2025

While headlines focus on AI, geopolitics, and market shifts, compliance changes are unfolding in the background — country by country, rule by rule.

This edition brings together what global employers actually need to track now: legal reforms, payroll rules, wage updates, and new obligations that rarely make the news, but directly impact how you hire, pay, and retain talent.

We’ve also included perspectives from our team on the state of global employment — how startups scale without legal baggage to why trust, not speed, is still the backbone of this industry.

🇧🇪 Belgium: Work Resumption Premium

Employers can claim a €1,000 premium per employee returning gradually after illness or incapacity (minimum phased return: 3 months). Employees must have approval from a health insurance physician and retain their disability benefits during this period.

• Effective: Retroactive from 1 April 2023 to 31 March 2025.
• Employer action: Submit applications through your insurer.

Equal Overtime Pay for Part-time Employees

Proposed legislation would grant part-time employees overtime pay from the first hour worked, removing the current threshold (12 hours per month).

• Status: Awaiting legislative approval.
• Employer action: Review overtime policies; monitor legal updates.

Mandatory Appointment of a Person of Trust

Companies with 50+ employees will be required to appoint a designated “person of trust” to manage workplace issues. Currently, this role is optional.

• Status: Pending confirmation.
• Employer action: Prepare for compliance if nearing or exceeding the 50-employee threshold.

🇨🇿 Czech Republic: Labour Code Amendments

Proposed Labour Code changes (expected in April 2025) currently before Parliament include:

• Longer probation periods: Up to 4 months (8 months for managers), extendable mid-probation.
• Notice period changes: Notice to begin from delivery date; breaches of duty reduce notice to 1 month.
• Foreign currency salaries: Allowed for specific employee groups.
• Parental leave protection: Employees guaranteed same job until child turns two.
• New compensation fund: Employer-funded insurance replaces existing severance pay (currently minimum 12 months’ salary) for occupational injuries/diseases.
• Potential at-will termination: Under discussion, with certain limitations.
• Restrictions proposed: Ending the “operational reasons” exemption for denying long-term care leave; prohibiting pay secrecy clauses.

Employer actions:
Monitor legislative process closely; review and prepare adjustments to internal employment policies accordingly.

🇨🇿 Czech Republic: Upcoming Legislation (Expected January 2026)

Unified Employer Reporting (“JMHZ”) Proposal

Employers will submit a single “Unified Monthly Employer Report” (JMHZ) electronically, consolidating existing separate reports to various state bodies (social security, labour office, statistical, and tax authorities). Submissions due by the 20th of the following month.

• Employer action: Prepare internal reporting systems for streamlined compliance.

Proposed New Immigration Rules: Employers as Guarantors

Employers will formally act as guarantors for foreign employees entering and residing in the Czech Republic. Responsibilities include direct authority communication via a dedicated web portal and supervising employees’ compliance with residency terms. Non-compliance risks fines up to CZK 100,000 (~€4,000).

🇩🇰 Denmark: New Employee Accommodation Standards

A proposed law outlines minimum standards employers must meet when providing employee accommodation. Key requirements include:

• Adequate sanitation (toilets, water, drainage)
• Maximum two persons per room (exceptions for families or larger spaces)
• Protection from humidity, cold, heat, and noise
• Daylight access and proper ventilation (windows)
• Adequate heating and comfortable indoor climate

Impact date: 1 July 2025
Employer actions: Ensure accommodation complies; Danish Working Environment Authority will enforce standards.
Risk: Non-compliance may result in corrective orders by authorities.

🇩🇰 Denmark: EU Minimum Wage Directive Legal Challenge

Denmark has filed a legal case against the EU Minimum Wage Directive, arguing it violates EU treaties by interfering in wage-setting—a competence reserved for individual member states. This action reflects Denmark’s commitment to preserving its collective bargaining model.

Current Status

• Advocate General recommended annulling the directive, supporting Denmark’s position.
• Final decision from the EU Court of Justice is pending.

Impact

• If annulled: National wage-setting autonomy reinforced.
• If upheld: EU gains greater influence over national minimum wages; Denmark will need periodic reporting on collective agreements and lowest salary rates.

Employer action:
No immediate compliance steps required, but employers should closely monitor the final EU court ruling to prepare for potential changes.

🇪🇺 EU: Key Updates on Employment-Related Directives

Several EU employment directives recently finalised or awaiting national transposition include:

• Minimum wages
• Transparent and predictable working conditions
• Work-life balance
• Gender Balance on Corporate Boards Directive
• Whistleblowing protections
• Corporate sustainability reporting and due diligence
• Pay transparency
• Platform worker regulations
• AI corporate sustainability
• Traineeships
• Forced labour regulation

Additionally, amendments (the “Omnibus” Directive) may revise reporting requirements for sustainability and due diligence, aiming to ease burdens on businesses. Until officially adopted, current obligations remain in effect.

Impact date: Ongoing
Employer action: Monitor national implementations closely; adapt internal policies promptly to maintain compliance.
Risk: Non-compliance risks financial penalties and reputational harm.

🇪🇺 EU: AI Act and Employment – Key Compliance Requirements

The EU AI Act classifies employment-related AI applications as “high risk,” notably when used for:

• Candidate selection, hiring, and promotions
• Employee evaluations and performance management
• Termination decisions
• Task allocation based on personal traits or behaviours

Employers deploying such AI systems (including some located outside the EU) face stringent obligations:

• Comprehensive data governance, technical documentation, and transparency
• Mandatory human oversight of AI-driven processes
• Required AI literacy training for all relevant staff from February 2025

Impact Dates

• Majority of rules effective from 2 August 2026
• Select AI-literacy obligations start February 2025

Employer Actions and Risks
Implement AI-literacy training, establish robust governance frameworks, conduct compliance assessments of AI tools, and actively monitor ongoing usage.

Non-compliance penalties include fines up to 7% of global annual turnover for prohibited AI uses and up to 3% for other violations.

🇮🇹 Italy: Renewed Collective Bargaining Agreement

A new National Collective Bargaining Agreement (NCBA) for industrial sector executives includes:

• Increased minimum annual gross salary:
  • €80,000 (2025), €85,000 (2026)
• Mandatory variable remuneration schemes (e.g., Management by Objectives)
• Enhanced travel allowances
• Extended job protection for executives with oncological conditions
• Increased parental leave indemnities
• New marriage leave entitlement (15 days)
• Restrictions on transferring executives aged 55+, those with disabled children, or executives aged 50+ with minor children
• One-time 6% salary allowance (based on 2024 earnings, payable March 2025) for executives meeting specific criteria:
  • Employed since at least 1 January 2019
  • 2024 annual salary ≤ €100,000
  • No salary increase or additional compensation from previous renewal until current NCBA

Validity period: 1 January 2025 – 31 December 2027.

🇳🇱 Netherlands: Proposed Legislation on Flexible Employment Contracts

The Netherlands is consulting on the “More Security for Flexible Employees Act,” aiming to limit the use of on-call contracts and replace them with “basic contracts,” specifying minimum guaranteed working hours. On-call arrangements would be restricted mainly to students and temporary workers in their first year of employment.

Proposed changes include:

• Minimum guaranteed hours in all fixed/indefinite contracts.
• Break period extending from 6 months to 5 years to reset fixed-term employment chains, potentially converting repeated short contracts to indefinite employment.

Effective Date: Not before 1 January 2026 (exact date pending). Employers likely to receive a 6-month transition period.

Employer Actions
Plan to review and update employment contracts. Maintain accurate employee records for 5 years post-employment to manage contract-chain compliance.

Risks
Incorrect contract management risks claims; improper use of fixed-term contracts may result in involuntary indefinite employment obligations.

🇳🇱 Netherlands: Proposed Changes to Non-Competition Clauses

Draft legislation proposes significant changes to non-competition clauses in employment contracts:

• Maximum duration of non-competition clauses limited to 1 year post-employment.
• Required geographical limits specified in clauses.
• Mandatory justification stated explicitly within employment contracts.
• Employers must notify employees of clause activation at least 1 month before contract termination.
• Compensation required: at least 50% of the employee’s most recent monthly salary for each month under the restriction, unless higher amounts agreed.

Impact Date: Pending (awaiting confirmation).

🇸🇦 Saudi Arabia: New Saudisation Requirements

Pharmacy Sector (Effective 27 July 2025)

Mandatory Saudisation targets set:

• Pharmacies, clinics, medical complexes: 35%
• Hospitals: 65%
• Other pharmacy activities: 55%

Employer Action: Adjust hiring practices to meet quotas by deadline.

Risks: Non-compliance penalties up to SAR 100,000; potential 30-day business closure or permanent shutdown.

Dentistry Sector (Phased Implementation)

• Phase 1: 27 July 2025
• Phase 2: 27 January 2026
• Mandatory Saudisation in private dental practices.

Employer Action: Comply by phased dates; review workforce regularly.

Risks: Penalties up to SAR 100,000; risk of business suspension or closure.

Technical Engineering Sector (Effective 27 July 2025)

• Minimum 30% Saudisation required for technical engineering roles.
• Employer Action: Assess workforce composition; ensure compliance by deadline.
• Risks: Financial fines (up to SAR 100,000) and temporary or permanent business closure for severe violations.

Accountancy Sector (Effective 27 October 2025)

• Mandatory 70% Saudization rate for accounting professions, phased in over five years from October 2025.

Employer Action: Review workforce composition; progressively implement Saudisation targets.

Risks: Non-compliance penalties up to SAR 100,000, potential 30-day business closure, or permanent shutdown in serious cases.

Singapore 🇸🇬: Upcoming Parental and Paternity Leave Legislation

The Singapore government is rolling out new leave policies aimed at better supporting parents. Starting in 2025, significant changes will be made to paternity and parental leave entitlements.

Key Changes

• Paternity Leave Extension: From 1 April 2025, working fathers with Singaporean children born on or after this date will be entitled to four weeks of Government Paid Paternity Leave (GPPL), an increase from the current two weeks.
• New Parental Leave Framework: A new system will replace the existing shared parental leave scheme. From 1 April 2025, parents will share six weeks of paid leave, increasing to ten weeks from 1 April 2026. This new entitlement is in addition to the existing maternity and paternity leave provisions.

Effective Dates

• Paternity Leave Extension: Effective from 1 April 2025.
• Parental Leave: Implementation begins on 1 April 2025 (six weeks) and fully takes effect on 1 April 2026 (ten weeks).

Employer Implications

Employers must update their leave policies and systems to reflect these changes by April 2025. Failure to do so may lead to non-compliance risks. It is also important to inform employees of these new entitlements on time to ensure a smooth transition.

🇸🇬 Singapore: Workplace Fairness Bill Passed

Singapore Parliament has passed the Workplace Fairness Bill (effective 2026 or 2027), aimed at preventing workplace discrimination. It prohibits adverse employment actions based on protected characteristics:

• Age, nationality, race, religion, language
• Sex, marital status, pregnancy, caregiving responsibilities
• Disability and mental health conditions

Employers must establish internal grievance processes. Breaches may result in mandatory educational workshops, administrative fines, or civil penalties.

Employer Action:
Review internal policies and procedures in line with the bill’s recommendations; prepare for compliance requirements.

Implementation: Anticipated in 2026 or 2027.

🇪🇸 Spain: New Rules for Contract Termination Due to Salary Payment Delays

From 3 April 2025, new criteria allow employees to terminate contracts if salary payments are delayed more than 15 days past the agreed date. Employees may also request contract termination (with compensation) if three full monthly payments are unpaid, even if these months aren’t consecutive, or if salary delays occur across six months.

Employer Action
Ensure timely payment of salaries to prevent contract termination risks and potential compensation claims.

🇪🇸 Spain: Parental Leave Pay – Anticipated Reform

Spain is expected to transpose the EU Work-Life Balance Directive (2019/1158) in 2025, potentially introducing mandatory remuneration for parental leave under Article 48a of the Workers’ Statute.

In a recent ruling, the Barcelona Administrative Court No. 1 recognised a civil servant’s right to compensation for unpaid parental leave, citing the Directive’s intent—even though it has not yet been formally transposed into Spanish law.

Employer Action and Risks
Monitor developments closely and assess internal leave policies in anticipation of change.

Uncertainty remains over whether employers or Social Security will bear the cost of future parental leave pay.

🇦🇪 UAE (Abu Dhabi Global Market): New Employment Regulations

The ADGM Employment Regulations 2024 introduce key changes impacting contracts, leave entitlements, visa responsibilities, and discrimination protections. Coming into force on 1 April 2025, these updates apply to employers within the ADGM jurisdiction.

Highlights

• Visa and Permits: Employers must cover all visa and Emirates ID costs, including cancellation on termination. Employee payment or waivers are not permitted.
• Probationary Periods: Employees may take annual leave with employer approval and are entitled to sick leave. No entitlement to hajj or maternity/paternity leave during this period.
• Employment Contracts: Must be issued within one month of employment starting.
• Remote Work: New categories introduced—fully remote, overseas fully remote, and UAE-based fully remote employees.
• Family and Leave Rights: Expanded rights include paid maternity leave for adoptive mothers (child aged ≤5), paternity leave within two months of birth/adoption, and paid leave for stillbirths or miscarriages.
• Wage Payments & End-of-Service: Wages must be paid within 14 days. End-of-service (EOS) benefits apply regardless of dismissal reason if service threshold is met. Minimum payout is 50% of final salary for EOS purposes.
• Ramadan Hours: Muslim employees entitled to 25% working hour reduction.
• Discrimination & Victimisation: Broader definitions and protection apply. Victimisation recognised as a separate offence.
• Employer Liability: Employers may be held responsible for employee actions during the course of employment.
• Termination: EOS is always payable. Payments must be made within 21 days. Visa cancellations cannot be tied to settlement waivers, and pay in lieu of notice requires employee consent.
• Records: Employers must retain contracts confirming ADGM jurisdiction. Records must be in English, accessible on-site, and fines may apply for non-compliance.
• Scope: The Regulations do not apply to employers with dual licences under UAE federal law.
• Employer implications/action needed: Review contracts, update internal records policies, and ensure HR teams are trained.

Employer Action and Risk

Review employment contracts, visa processes, remote worker classifications, and grievance procedures to comply with the new ADGM standards.

Delays or non-compliance may result in financial penalties.

🇬🇧 United Kingdom: National Minimum Wage

The UK Government has updated the remit of the Low Pay Commission (LPC), linking National Minimum Wage (NMW) rates to the cost of living. Age bands will be removed to equalise the adult rate by eliminating the separate 18–20-year-old band. Additionally, employers must pay NMW for travel time, where applicable.

From April 2025, the NMW rates will be:

• 21 and over (National Living Wage): £12.21/hour
• 18–20 year olds: £10.00/hour
• 16–17 year olds: £7.55/hour
• Apprentices: £7.55/hour

Impact date: 6 April 2025
Employer implications/action needed: Employers must ensure they are paying at or above the new NMW rates and that they include travel time in pay calculations where required. Regular audits of pay practices are advised to avoid accidental non-compliance.
Employer risk: HMRC enforces NMW breaches strictly, without distinguishing between intent and oversight. Employers face back pay claims for up to 6 years, penalties, and reputational damage.

Employer Action and Risk
Review wage structures and audit payroll compliance in light of the new thresholds. Employers must stay ahead of rate changes and ensure no eligible worker is underpaid, even inadvertently.

HMRC takes enforcement seriously. Whether underpayment is accidental or deliberate, penalties can include back pay for up to six years, fines, and reputational fallout.

New Website: Get to the Info You Need, Faster

We’ve redesigned our website to help you find what you need faster — whether you’re hiring internationally, estimating payroll, or checking compliance requirements.

We’ve rebuilt our website to help you move faster when hiring, paying, or managing people across borders.

Whether you’re checking payroll requirements, estimating costs, or looking up compliance rules — it’s now easier to:

• Understand how to solve specific global hiring challenges
• Navigate by business need, not service category
• Access tools like the Global Payroll Calculator and Compliance Guide.

The new structure reflects how hiring decisions actually get made — with sharper content, simpler navigation, and direct paths to action.

Rebuilding Credibility in Global Employment

In his latest piece, Nick Ganzha, CEO of Acumen International, responds to the recent corporate espionage scandal by confronting a deeper industry shift: global hiring is being overtaken by scale-driven tactics, investor pressure, and loss of ethical clarity.

He points to a growing problem — not legal misconduct in isolation, but the erosion of trust across the sector. What once relied on human expertise and partnership is becoming fragmented by automation, diluted messaging, and short-term growth agendas.

Nick argues that global employment isn’t a zero-sum game. The industry was built on collaboration between providers, not rivalry. Long-term client confidence depends on consistency, transparency, and ethical discipline — not volume, velocity, or valuation.

His message is clear: to stay credible, the global employment industry must be accountable — not just operationally, but in how it chooses to grow.

Acumen’s Partner Ecosystem: Built for Global Growth

The assumption that Global EOR providers with their own legal entities offer better service or compliance is flawed. Entity ownership doesn’t guarantee deep local knowledge, broad coverage, or hiring agility.

In this article, Maria Savva, Global Operations Director at Acumen International, explains:

• Why businesses need hiring support beyond major hubs.
• How entity-first models fall short in emerging or complex markets.
• Why effective compliance depends on local enforcement insight and operational maturity.
• How Acumen’s vetted global partner network enables hiring in 190+ countries, including underrepresented or high-risk locations.

Real global hiring requires more than a corporate footprint. It takes on-the-ground expertise, flexible infrastructure, and a partner ecosystem built for scale.

Why the Future of Work Is Global-First

Why Global-First Companies Retain Talent and Scale Smarter

Most companies don’t plan to become global employers — it happens reactively. This article challenges that approach, arguing that businesses are stronger when they build for international hiring from the start.

Key takeaways:

• Global-First employers treat compliance, payroll, and benefits as foundational — not afterthoughts.
• They retain talent by ensuring local payroll accuracy, legal benefits, and clear employment structures.
• A Global Employer of Record (EOR) helps companies hire and pay internationally without setting up entities or risking misclassification or PE exposure.
• The Global Payroll Calculator enables smarter hiring decisions by comparing real employment costs across countries.

Businesses that build for global hiring upfront avoid costly mistakes, improve retention, and move faster across borders.

Global Hiring Playbook for Startups

Global Hiring for Startups: Speed Without the Risk

Startups often need to hire internationally before they’re ready to set up entities. A Global Employer of Record (EOR) makes that possible — enabling fast, compliant hiring without legal overhead.

This article breaks down:

• When and why startups should use a Global EOR
• How it supports lean, compliant expansion without misclassification risks
• When it makes sense to transition to setting up a local entity
• What investors look for: compliance, cost control, and M&A readiness
• How tools like a Global Payroll Calculator help avoid hidden employment costs.

For founders, it’s about scaling without distraction. For investors, it’s risk mitigation built into the hiring model.

Before You Go

International hiring doesn’t follow a template. It’s shaped by context — legal, cultural, operational — and by the people you bring in.

Over the years, we’ve worked through that complexity with companies scaling into new markets, often under pressure. What we’ve learned, we share.

• Real scenarios.
• Practical insights.
• Global hiring strategies that actually work.

Because global growth starts and succeeds with people.