Employment law 5 in 5: October 2025

At a glance

• European Works Council changes
• Developments in the Middle East
• Employment developments in the US
• Strengthened worker protections in Mexico
• Join our upcoming events

European Works Council changes

On 9 October 2025, the European Parliament adopted a revised European Works Council (EWC) Directive, introducing sweeping changes to how EWCs are established and operate. Member States must implement the Directive by 2027, with most provisions effective in 2028. Key reforms include expanded worker rights, increased employer obligations (covering expert fees, legal costs, and training), and stricter rules on information sharing. Legacy exemptions under Articles 13 and 3 are revoked, requiring previously exempt businesses to establish EWCs. The Directive also broadens the definition of 'transnational matters', mandates gender balance targets, and strengthens subsidiary requirements if negotiations fail. Employers must fund EWC operations and training, while sanctions for non-compliance will be tougher, including financial penalties.

Developments in the Middle East

Bahrain broadened unemployment benefits, expanding eligibility and increasing payments to strengthen protection for jobseekers. Saudi Arabia introduced stricter workforce rules for the tourism sector, with higher Saudization quotas and compliance reporting to promote local hiring. Qatar announced new labour fees and exemptions, aiming to simplify administrative processes and reduce costs for priority sectors. The UAE unveiled approved private-sector work models with new employer responsibilities; granted the Minister of Human Resources and Social Development new powers to regulate employment of dependents of legal foreign workers; and released a new employment guide with guidance on types of leave, wage regulations, and other worker rights.

Employment developments in the US

In the US, the EEOC now has a quorum and can issue formal guidance in support of the Administration’s goals. The US Citizenship and Immigration Services (USCIS) also issued updated guidance on the applicability of the new USD100,000 H-1B fee.

At the state level, California Governor Gavin Newsom signed new laws on topics ranging from wage theft and workplace rights to personnel records, equal pay, pay reporting, family leave, reductions in force, and repayment agreements. Elsewhere, Delaware became the latest state to enact a pay transparency law; Philadelphia amended its criminal records law; the Massachusetts Supreme Judicial Court held that retention bonuses are not 'wages' for purposes of the state’s wage act; and New York City expanded employee rights under its Earned Safe and Sick Time Act.

Strengthened worker protections in Mexico

Mexico introduced a digital platform for workplace complaints and accident reporting. A major labour law proposal seeks to reduce the standard workweek from 48 to 40 hours, aligning with international trends toward shorter working hours. Additionally, new legislative initiatives propose expanded employee leave entitlements, including longer parental leave and enhanced breastfeeding rights, such as extended breaks and improved facilities.

Join our upcoming events

Our APAC Employment Seminars will take place in Shanghai (6 November), Singapore (10 November), and Hong Kong (12 November), featuring legal updates, a panel on “rightsizing” strategies as alternatives to redundancy, and an interactive case study on restrictive covenants. These sessions will explore emerging trends shaping the future of work across Asia Pacific and provide practical guidance on workforce strategies. Additionally, join our Nordic Employment Law Update Webinar on 27 November for an overview of key developments in Finland, Norway, Denmark, and Sweden. Topics include legislative reforms, pay transparency implementation, whistleblower protections, and recent case law on terminations and discrimination.