Navigating the Global Employment Landscape: Paul Hastings Unveils "Mapping the Trends: The Global Employer Update 2025"

• Workplace wellbeing and pay standards are under the spotlight, with local counsel in 28 jurisdictions raising the increase in the national minimum wage as a key issue for 2025.
• AI adoption in the workplace continues to dominate, with an era of evolving regulations across multiple jurisdictions ahead.
• New legislative developments remain limited in respect of race, ethnicity, sexual orientation, disability or age, and regional variations persist.

Offering crucial insights into key employment law developments across 87 jurisdictions, global law firm Paul Hastings has released the latest edition of its comprehensive guide, “Mapping the Trends: The Global Employer Update 2025.”

Compiled from feedback provided by members of the Paul Hastings Employment practice worldwide as well as an extensive network of local employment law counsel across 87 jurisdictions, the research highlights the latest legislative developments shaping the global employment law landscape.

Wellbeing, pay standards and the impact of emerging AI technology are identified as the most pressing issues and trends, while clear gaps emerge – as in previous years – in respect to new legislative developments related to race, ethnicity, sexual orientation, disability or age. Regional variations also persist, for example sexual harassment, a big focus for law makers in the UK, U.S., Europe, Australia, Central and South America, is notably absent from developments in in Africa, Asia and the Middle East, despite countries in those regions proposing measures to improve the safety and wellbeing of female employees.

Suzanne Horne, head of the International Employment practice of Paul Hastings, comments:

“2025 may be the most dynamic year yet for global employers. Heightened focus on employee wellbeing, the increased scrutiny on pay, and the introduction of national AI laws and legislation are just some of the developments and complexities that employers will need to navigate. We are keeping a watching brief on the new U.S. administration given the role of the U.S. as a key influencer on the international employment law landscape.

“Our research highlights how local realities are shaping global strategies in real-time, as laws adapt to these trends. From sharpened reporting standards to responsible AI use cases –staying agile and informed will be critical for businesses to stay ahead of the curve on developments throughout the year.”

Raising the bar on working conditions and employee wellbeing

Rising awareness of ESG issues and reporting obligations on sustainability, equality, working conditions and human rights is driving global efforts to enhance employee wellbeing through a myriad of new laws and proposals aimed at improving working conditions. These range from traditional measures such as new health and safety laws to increased family friendly leave and new protections related to women’s health, reduced working hours, and addressing harassment and bullying.

The EU has also taken action by passing the Platform Workers Directive in November 2024, and some non-EU governments have debated new laws aimed at establishing minimum protections for platform workers.

These initiatives will be welcomed by many global employers and reflect a post-pandemic focus on the fiscal and societal benefits of a healthier, more productive workforce, raising the bar for all.

Key legislative changes and proposals

Pay under scrutiny

The issue of pay remains a key focus in 2025, reflecting ongoing economic challenges worldwide. Employers face mounting pressure due to the correlation between rising wages, social security costs, and benefits tied to salaries.

In 28 jurisdictions, increases to the national minimum wage are a key issue for 2025. This includes EU member states affected by the Adequate Minimum Wage Directive, which was to be transposed by November 2024. However, questions remain over the EU’s authority in this area, potentially complicating the European Union’s role in protecting worker rights.

Meanwhile, the EU Pay Transparency Directive, requiring implementation by June 2026, is driving early legislative efforts in some countries. It mandates increased transparency, requiring employers to address the challenging concept of “work of equal value” seen in the costly UK supermarket and retail equal pay cases, adopt certain recruitment and hiring practices and report gender pay gap data**.

Pay transparency is already a reality in the U.S., with 14 states, including New York and California, having laws that mandate pay scale disclosure in job postings, complementing existing equal pay audit requirements across many countries worldwide. This heightened focus on pay will remain a key theme globally throughout 2025.

The era of widespread AI adoption

The report highlights the significant impact of AI adoption in 2025, as jurisdictions like the U.S. and the EU compete to lead in responsible AI use.

The EU AI Act, effective August 2024, introduces extra-territorial rules and severe penalties for breaches involving high-risk AI systems – up to €35m or 7 per cent of annual global turnover. Even non-EU businesses must prepare for compliance before its full implementation in August 2026.

AI is reshaping workforce planning, recruiting, training, employee engagement and cybersecurity. Governments and unions in the UK and elsewhere are working to craft strategies and legislation to address its workplace impact.

As AI adoption accelerates, employers must prepare for the potential legal challenges that will inevitably follow.

* List of nations not exhaustive

** The first reports, for those companies with 150 employees or more, will be due from June 2027