The Asia-Pacific (APAC) region saw a wave of regulatory changes in 2024, reshaping employment contracts, data protection and visa policies. For businesses operating across these diverse markets, adapting to constant regulatory changes has become essential for compliance and effective workforce management.
In this blog post, we provide an overview of key regulatory developments that recently swept across APAC. This includes new employment restrictions in Singapore, enhanced employee protections in Australia, Japan’s digital nomad visa and more. These insights aim to help organizations stay ahead in an evolving region, equipping them to navigate and thrive despite change.
Singapore’s employment law shift: EOR visa application ban and employment pass regulation changes
In a significant regulatory shift, Singapore’s Ministry of Manpower (MOM) has implemented a ban on Employer of Record (EOR) service providers from applying for work visas for their clients’ employees.
EOR providers traditionally facilitate international hiring by managing administrative and compliance responsibilities on behalf of companies. This is especially helpful for organizations lacking a physical presence in Singapore. However, under the new regulation, foreign employees hired through EORs are no longer eligible for work visas. This change requires companies to explore alternative solutions, potentially establishing a direct employment relationship or setting up formal entities to operate in Singapore.
This policy shift underscores Singapore’s strategic focus on controlling foreign worker admissions while fostering fair competition for local talent. By limiting the role of EORs in hiring foreign employees, MOM encourages companies to develop a more tangible local presence. In turn, this policy is aimed at supporting Singapore’s sustainable workforce development goals.
Alongside the EOR restrictions, MOM has also announced progressive adjustments to Singapore’s S Pass and Employment Pass (EP) requirements. The goal is to enhance the quality and skill level of foreign workers.
For S Pass, qualifying salaries will be incrementally raised so holders fall within the top one-third of local Associate Professionals and Technicians. Minimum qualifying salaries for EP applications will also be raised. The threshold for non-financial sectors will reach SGD 5,600 (about USD 4,200) and SGD 6,200 for the financial sector by January 2025.
Australia: a new era in employee rights and FTC regulations
Australia has introduced sweeping labor reforms aimed at strengthening employee rights, enhancing work-life balance and closing loopholes in temporary employment.
Australia’s “Right to Disconnect” law grants employees the right to disengage from work-related communications outside of standard working hours. This regulation reflects a growing global movement to protect employee well-being by encouraging a healthy work-life balance. The purpose is to shield workers from the pervasive “always-on” culture that has arisen with remote work.
Fixed-Term Contract (FTC) regulations are also undergoing major changes to prevent overuse. The Australian government has imposed limits on the duration and renewal of FTCs, limiting them to a maximum of two years. Renewals are allowed only under specific circumstances. This change aims to enhance job security for employees by curbing indefinite contract renewals that can create uncertainty and insecurity in employment.
The “Closing Loopholes” bill is another cornerstone reform that addresses casual employment arrangements and contract work. This bill seeks to redefine casual work so that workers classified as “casual” do not miss out on the benefits and job protections typically provided to permanent employees. The legislation closes gaps in employer obligations to casual workers. For example, it mandates converting casual roles to permanent under certain conditions.
Vietnam advances in personal data protection and work permits
Vietnam recently implemented Decree 13/2023/ND-CP, which established new personal data protection requirements for employers. This decree mandates that companies acting as data controllers obtain explicit employee consent for personal data processing.
Companies must also submit personal data dossiers to the Department of Cyber Security and Hi-tech Crime Prevention (A05) for review. Compliance will involve impact assessments for cross-border data transfers, underscoring Vietnam’s push for enhanced data security and privacy in an increasingly digital workplace.
The new regulation loosens qualifications and experience criteria for foreign employees, easing intracompany transfers and clarifying managerial role documentation. Additionally, foreign employees in Vietnam now have a streamlined application process for certain exempt categories. These include foreign lawyers and spouses of Vietnamese citizens.
Japan’s digital nomad visa: supporting the remote work movement
Japan has joined the ranks of countries offering digital nomad visas, providing a unique option for remote workers with an existing foreign employer. This six-month visa requires an income of 10 million JPY (approximately $62,166 USD) and is available to citizens of countries with visa-free entry agreements.
Applicants must work for a company registered outside Japan or operate their own foreign business. This offers flexibility for business owners, freelancers and contractors who meet the eligibility criteria.
This visa aligns with Japan’s strategy to attract skilled foreign professionals while managing local employment considerations. Holders of the digital nomad visa cannot access certain services, like local bank accounts or long-term accommodations. However, they are exempt from Japan’s non-permanent resident taxes. This policy positions Japan as an attractive location for remote professionals.
Non-compete agreements in APAC: new developments
In the realm of employment law, APAC countries are increasingly scrutinizing non-compete clauses.
Recent court rulings in the region have shed light on the enforceability of these agreements. In Singapore, the courts clarified that non-compete clauses are only valid if they protect “legitimate business interests,” encouraging employers to consider less restrictive alternatives for safeguarding sensitive information. Similarly, in Hong Kong, restrictive covenants intended solely to prevent competition are unlikely to hold up in court unless there is a demonstrable business justification.
These developments reflect a growing trend in APAC countries to balance employer protection with fair employee mobility. Many employers are now adopting confidentiality and non-solicitation agreements as alternatives. These can provide necessary protections without unreasonably restricting former employees’ career opportunities.
AI regulations: comparing APAC and EU approaches
While the EU’s General Data Protection Regulation (GDPR) sets a unified standard for data protection and artificial intelligence (AI) ethics across Europe, the APAC region remains fragmented in its regulatory approach to AI. This diversity presents challenges for multinational companies operating across multiple APAC jurisdictions, where compliance requirements vary significantly.
Several APAC countries are, however, taking steps toward more cohesive AI regulation. Hong Kong has introduced a data protection framework for AI, while Malaysia is poised to release a national AI code of ethics. Japan, meanwhile, is considering a combination of soft and hard laws to oversee AI technologies, aiming to balance innovation with ethical responsibility.
Although APAC’s approach lacks the uniformity of GDPR, it signals a gradual shift toward comprehensive AI governance. It is likely that forthcoming regulations will continue to prioritize privacy, security and transparency.
Looking ahead: staying informed and proactive
These developments underscore the APAC region’s evolving commitment to fair employment practices, data privacy and balanced technology regulation. Employers must stay vigilant and adaptable, maintaining compliance with local mandates while embracing fair and transparent practices.
By staying informed and proactive, businesses can effectively navigate these regulatory complexities. This due diligence fosters a compliant, competitive environment that attracts top talent and supports sustainable growth in an interconnected world.
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