Employment law 5 in 5: July 2026

At a glance

• Monitor: Implementation of the EU Platform Work Directive
• Review: Pay transparency in the EU and beyond
• Prepare: Reform package in Germany
• Focus: New measures in the Middle East
• Attend: Upcoming events

Monitor: Implementation of the EU Platform Work Directive

On 24 July 2026, Italy's government approved draft legislation transposing the European Union Platform Work Directive, which aims to improve conditions for platform workers and regulate algorithmic management. You can find a summary of the Directive here. The legislation would introduce a presumption of employment status for platform workers and new transparency and oversight requirements for automated decision-making systems. Italy is one of the first Member States to start the transposing process following Germany's proposal in May and Sweden's proposal in March, potentially reflecting a broader EU push to regulate platform work. The Italian legislation is expected to take effect by the end of this year.

Review: Pay transparency in the EU and beyond

The compliance deadline for the EU’s Gender Pay Transparency Directive continues to drive activity across Europe. The European Commission has reconfirmed its full commitment to enforcement. Greece implemented the Directive with additional obligations beyond the EU minimum. Estonia took an initial step toward implementation by requiring pre-interview salary disclosure and banning pay-history questions, though several obligations remain outstanding. Meanwhile, Romania’s draft implementing bill is under additional review after the country’s Legislative Council raised concerns over salary confidentiality and mandatory pay structures.

Outside the EU, the United Kingdom government launched a consultation on wide-ranging equal pay reforms and on extending equal pay-style protections to race and disability. In the United States, a Virginia law took effect on 1 July 2026, requiring good-faith salary ranges in job postings and banning reliance on salary history, with a private right of action for breaches.

Prepare: Reform package in Germany

The German government announced a wide-ranging labour market, tax, and social policy reform package on 2 July 2026, with several key employment law implications. The proposals would expand employers’ ability to extend fixed-term contracts without objective justification and to rehire employees on a new fixed-term basis. The package would also significantly tighten sickness certification rules by abolishing telephone-issued sick notes and requiring employees to provide medical certificates from the first day of absence. The package proposes a new statutory severance-based route to end employment for high earners, starting in 2027. It also introduces more favourable tax treatment for certain premiums and severance payments.

Focus: New measures in the Middle East 

Oman's Ministry of Labour issued a new regulation updating the trade union framework on 13 July 2026, covering union formation and registration, board elections, and the creation of a committee to investigate violations affecting union members and representatives. On 26 June 2026, Qatar formally recognised part-time and freelance work by tightening licensing for recruitment offices, clarifying the use of non-compete clauses, and strengthening dispute resolution and wage protection. In Saudi Arabia, a phased Saudisation program for accounting and finance roles now requires covered employers to meet rising quotas for Saudi nationals in these positions.

Attend: Upcoming events

Following the South African Employment Law Update seminar at DLA Piper’s Johannesburg office on 4 August 2026, the firm will host a webinar on employment law updates in New Zealand on 18 August 2026.