LOOKING AHEAD TO 2025
INTERNATIONAL
2024 PREDICTIONS RECAP
More AI Transparency for HR and Hiring Tools AI’s role in employment — especially in hiring, performance management, and data analytics — is likely to see strict oversight in several countries. The EU’s AI Act will likely inspire similar legislation elsewhere, with mandatory disclosures when AI is used for workplace decision-making. Companies may need to give employees the right to opt out of AI-driven processes, especially when it impacts career progression or compensation. Key focal points will be transparency in algorithms and avoiding hiring discrimination. The Rise of “Right to Disconnect” Laws While the “right to disconnect” has gained traction in the EU, we expect other regions to implement similar regulations, especially in Asia and the Americas. These laws will likely cover work-from-home policies, limiting after-hours communication, and regulating response times. Countries like Japan and South Korea, where burnout is a significant concern, may lead Asia in introducing such protections. Enhanced Pay Equity and Transparency Rules Pay equity efforts have already seen significant momentum in the EU and UK — and 2025 will likely bring a surge in similar laws globally. This could extend to mandatory salary range disclosures for job postings, detailed internal audits on pay discrepancies, and stricter enforcement mechanisms — and large multinational companies may need to ultimately disclose gender pay gaps. Additionally, pay transparency could be expanded to include a range of demographics, not just gender. Prioritizing Employee Well-Being and Mental Health Employee well-being, including mental health, will move from being a perk to a mandated corporate responsibility in many countries. Regulatory bodies may implement metrics for psychosocial risks in the workplace, and mental health protections could be built into workplace standards. Many governments, notably in Europe and North America, could implement guidelines requiring employers to take measurable steps to support employee mental health. New Regs on Short-Term “Digital Nomad” Employment The popularity of digital nomad visas will prompt new laws distinguishing between traditional employment and short-term, location-flexible work arrangements. Countries will likely create specific digital nomad legislation that include labor, benefits, and tax obligations. This could lead to a global patchwork of regulations, making it more complex for companies to manage and hire digital nomads.
Major Focus on Data Privacy
MORE OF 2024 IN REVIEW
As we predicted, multinational businesses grappled with new data privacy laws, regulations, and rulings in 2024. For example, new rules took effect in Brazil regulating international data transfers, and Brazil’s Superior Court of Justice recently offered helpful data privacy guidance. Understanding and navigating data privacy laws in every jurisdiction in which you operate has become more important than ever, which Dutch officials made clear by imposing a staggering penalty on Uber. Additionally, companies doing business in Mexico will want to keep updated on the country’s comprehensive data privacy framework.
Massive Award Granted in International Trade Secrets Dispute A recent federal appeals court ruling applied a U.S. trade secrets law to sales outside the country, finding that Motorola was entitled to $407 million in damages from a foreign competitor for trade secrets misappropriation. For businesses with an international workforce, this is likely a welcome development. The Defend Trade Secrets Act (DTSA) provides robust protections for employers, and now there is strong precedent for how it can be used to punish foreign acts. However the ruling also comes with a few cautions. Vietnam Took Steps Toward Major Overhaul of Trade Union System As global manufacturers pivot away from China and set their sights on Vietnam, the country’s labor and employment landscape is rapidly changing. This surge in demand from Europe and the U.S. has not only sparked economic growth, but also amplified pressure on Vietnam to modernize labor standards and safeguard workers’ rights.
Increased Use of PEOs and Employers of Record
To keep up with business needs and hire an ever more global workforce, we predicted more companies would turn to professional employer organizations (PEOs) and employers of record (EORs) in foreign countries where they have a relatively small workforce – and we were right. Click here for an example regarding temporary employment and professional employer organizations (PEOs) in Germany.
HOW’D WE DO ON OUR PREDICTIONS? We got the predictions RIGHT
UK Introduced Landmark New Employment Rights Bill
The bill aims to end unfair employment practices and help deliver economic growth. According to the United Kingdom’s Prime Minister’s Office, this is set to be the biggest upgrade to worker’s rights in a generation.
Nan Sato, CIPP/E, CIPP/C
William D. Wright
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Partner and Co-Chair, International Practice Group Philadelphia/New York nsato@fisherphillips.com
Partner and Co-Chair, International Practice Group Philadelphia/Washington, D.C. wwright@fisherphillips.com
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