Be Global: Employment law in 5

Prepare: New EU rules on AI, corporate sustainability and equality

The EU Artificial Intelligence Act enters into force on 1 August 2024 when a phased implementation of the Act's rules will begin. These include obligations on employers who deploy AI within the EU, with certain employment-related uses of AI (such as in recruitment) deemed to be high risk. The Corporate Sustainability Due Diligence Directive entered into force on 26 July 2024 and EU Member States must transpose the directive into national law by 26 July 2026. The directive creates legal liability for companies related to human rights violations within their supply chains. In May 2024, the Council formally adopted two directives to strengthen the role of equality bodies across the EU. The directives lay down requirements to enable equality bodies to engage in the prevention of discrimination and awareness raising activities, to deal with cases of discrimination, and to assist victims.   

Use our EU Directive Tracker to monitor directives that impact employers.

Trending now: Right to disconnect

The global trend for implementation of employee rights to disconnect from work continues. In Australia, the right to disconnect law will be effective from 26 August 2024 for many Australian businesses and from 26 August 2025 for small businesses. In Canada, a new bill introduces a requirement that employers implement a policy on disconnecting from work. In the UK, the new Labour government's legislative priorities were recently set out in the King’s Speech. Although a disconnection right was not expressly mentioned, the government did commit to Labour's New Deal for Working People, so the right to switch off is expected as part of the forthcoming Employment Rights Bill.

Monitor:  Sexual harassment at work

Measures to prevent sexual harassment at work are a focus for legislators across the globe. In Chile, on 1 August 2024, Karin’s Law will take effect, placing new requirements on employers to prevent harassment and violent behaviour. In the UK, new laws will place an obligation on employers to take reasonable steps to prevent workplace sexual harassment from 26 October 2024. In advance of this, the EHRC is consulting on updates to technical guidance which will assist employers to understand their legal obligations. In South Africa, a new code creates new obligations for employers and employees to prevent harassment.   

Watch:  Equality targets seek to effect change

The EU Directive requiring gender balance on corporate boards has recently been transposed by the Spanish government. As the new law sets additional requirements and extends the scope of affected entities beyond the directive's requirements, it may face legal challenge. In South Africa, amendments to the Employment Equity Act impact on employers’ obligations in respect of affirmative action, equity plans and sector targets. In Denmark, a draft bill is under consultation which includes a recommendation that the boards and other collective management bodies of certain institutions and companies in the public sector should have a balanced male/female composition.

Focus on the US

Litigation over the FTC rule banning non-competes continues. On 23 July, a federal court in Pennsylvania added to the existing confusion when it denied the plaintiff’s motion for a preliminary injunction in a ruling based on findings that diverged significantly from those in the Texas case. A ruling in the Texas case is expected by 30 August. Meanwhile, employers face a challenging compliance landscape as the rule’s 4 September 2024 effective date approaches. On 26 July, the NLRB released its Fair Choice–Employee Voice Final Rule which makes three key changes that favour unions. At the state level, among other changes, Massachusetts became the latest state to pass a pay transparency bill (awaiting the governor’s signature) and California’s new Heat Illness Prevention in Indoor Places of Employment regulation took effect.

The next edition of Be Global: Employment law in 5 will be in September 2024 when we expect to be able to update you on the labour market plans of new governments in France and the Netherlands; share more details on the UK government's employment and equality law reforms; and trail the latest GENIE guide on recording working hours.