Throughout 2024, businesses across Europe have navigated waves of transformative regulatory changes impacting operations. Some are designed to enhance workplace standards and foster inclusivity, while others are intended to ensure compliance in a rapidly evolving landscape.
From groundbreaking AI regulations to updated employment laws and diversity initiatives, these shifts are redefining how organizations manage their people, engage contractors and approach day-to-day operations.
This blog explores the most significant legislative updates across key European countries and at the EU level. The goal is to offer insights to help businesses stay ahead following a year of pivotal change.
United Kingdom: enhancing flexibility and employee support
The UK has implemented several regulatory changes in 2024, reflecting a commitment to improving workplace conditions and fostering employee well-being.
- National Minimum Wage Increase: As of April 1, 2024, the National Minimum Wage for workers aged 21 and over has risen to £11.44. This historic increase underscores the government’s commitment to addressing the cost of living and improving standards for workers across sectors.
- Paternity Leave Flexibility: Starting April 6, 2024, fathers and partners can split paternity leave into two periods during the first year of a child’s life. This is aimed to provide families with more tailored support.
- Flexible Working Rights: Employees now have the right to request flexible working arrangements from their first day on the job. They can make two requests annually. Employers must respond within two months, streamlining the process of creating adaptable work environments.
- Carer’s Leave: Employees with caregiving responsibilities are entitled to one week of unpaid leave annually, effective April 6, 2024. This leave can be postponed only if its approval would significantly disrupt operations.
- Family-Related and Sick Pay Increases: Family-friendly payments and statutory sick pay rates have been adjusted upwards to reflect the growing cost of living. The objective is to offer employees better financial support during family or medical leave.
Denmark: enhancing compliance with the EU Working Time Directive
Effective July 1, 2024, Denmark has amended its own Working Time Act, requiring employers to record daily working hours for all employees. This aligns with the EU Working Time Directive, regulating rest breaks, annual leave and limits on working hours.
The mandate presents administrative challenges, particularly for businesses lacking existing time-tracking systems. While flexible registration methods allow tailored solutions, organizations must address employee privacy concerns and data protection.
Employers must also manage opt-out agreements for exceeding the 48-hour weekly limit, adhering to strict conditions under collective agreements. These updates highlight the importance of robust compliance systems and proactive HR strategies.
Germany: transparency in works council remuneration
Germany has amended the Works Constitution Act to provide clarity on works council remuneration.
The updated law specifies benchmarks for determining pay comparability at the time the office is assumed. It also outlines the potential for redetermination if operational circumstances change.
Employers are encouraged to establish work agreements to promote fair and transparent practices.
Netherlands: preparing for changes in self-employment regulations
The Dutch Tax Authorities are lifting the enforcement moratorium on pseudo-self-employment beginning January 1, 2025. Organizations are advised to:
- Identify existing self-employed workers.
- Assess contracts for potential requalification risks.
- Reconsider contractual terms to maintain compliance.
This change highlights the importance of proactive evaluation and adjustments in workforce management.
Businesses should be mindful of how they engage independent contractors (ICs), aligning these arrangements with evolving compliance standards. Engaging an Agent of Record (AOR) can help support payment, administration and regulatory adherence in IC engagement.
Spain: advancing gender equality and inclusivity
Spain is leading the charge on gender equality and workplace inclusivity through new legislation.
- Gender Equality in Leadership: The Organic Law 2/2024 mandates balanced representation (40-60%) of women and men in leadership and representative roles. The law also introduces a company equality officer role to oversee adherence.
- Sexual Orientation Discrimination Measures: A new Royal Decree requires companies with over 50 employees to negotiate sexual orientation equality measures. Smaller companies may choose to opt in. If no agreement is reached within three months, default measures apply, underlining the urgency of compliance.
The AI Act sets new global standards for AI
The EU AI Act introduced a phased implementation process starting in August 2024, with obligations extending into 2027. Its provisions are designed to ensure artificial intelligence (AI) systems are safe, ethical and transparent. Key impacts include:
- Risk-Based Classification: AI systems are categorized into prohibited, high-risk and minimal-risk tiers, with corresponding obligations. Businesses must assess their AI applications to determine risk levels and implement measures in risk management, human oversight and data transparency.
- Transparency and Documentation: Providers of high-risk and general-purpose AI models must maintain detailed technical documentation, conduct risk assessments, and comply with copyright laws. This instills accountability and fosters trust.
- Governance and Penalties: Businesses must establish robust governance frameworks and assign human oversight for AI systems. Non-compliance could result in fines of up to €35 million or 7% of global turnover, making adherence crucial.
Platform Workers Directive: securing rights for gig economy workers
Adopted in October 2024, the Platform Workers Directive mandates that gig workers receive appropriate employment status based on their work arrangements. Key provisions include:
- Granting workers access to employee benefits where applicable.
- Addressing complexities in time registration and weekly working hour limits.
- Requiring employers to manage collective agreements proactively.
These changes reflect a growing global crackdown on how companies engage ICs, reinforcing compliance with evolving labor regulations. The directive is set to be transposed across member states over the next two years.
Staying ahead of regulatory changes
The regulatory landscape across Europe in 2024 reflects a commitment to fairer, more inclusive and adaptable workplaces. From enhanced worker rights to new inclusion measures and EU-wide AI regulations, businesses face a complex landscape of evolving requirements.
Proactive compliance, robust HR strategies and legal expertise are key to turning these challenges into opportunities for growth and innovation.
Contact us to learn how our cross-border HR solutions can help you thrive in the years to come.