Global employment trends and what's ahead: 2024 in review and 2025 preview

Global employers are preparing for changes to the labor and employment landscape in 2025, including evolving employee expectations about the role of work in their lives, increasing regulation, growing use of generative AI, and escalating geopolitical tensions. The impact of recent elections is also expected to be a factor in the coming year.

Employers continue to navigate return to office mandates, with many opting for a structured hybrid working model to attract and retain talent. Others are leveraging freelancers and contractors and/or increasing global digital jobs – while navigating new laws protecting workers in all forms of work (eg, casual, platform).

Regardless of where and how we work, numerous surveys point to claims of increased worker stress and anxiety. More employers and lawmakers are taking steps to address employee well-being across all life stages.

Multijurisdictional compliance remains challenging as jurisdictions enact new laws on myriad employment issues, including pay transparency, the use of AI, privacy, harassment and discrimination, health and safety, and more.

In this report, we identify top trends impacting global employers – and what may come in the new year. 

We also have produced country-by-country reviews of 2024 and 2025 previews for 44 jurisdictions across EMEA, Asia Pacific, and the Americas. Access the global report and country content on our GENIE site for clients of DLA Piper. If you are not yet a GENIE subscriber, you can register here.

As always, please reach out to any member of DLA Piper's Employment group or your DLA Piper relationship attorney with questions about how these developments may impact your workforce.

Employee well-being remains a top priority

Employee well-being remains a top priority, with many employers and lawmakers considering various measures to support their workers' physical, mental, and emotional health, such as:

• Increasing mental health protections (eg, Peru, UAE).
• Allowing leave for various reasons, such as caregiving, childcare, medical screenings and appointments, school commitments, domestic violence, and other crimes (eg, US – California, Canada – Ontario, Poland, Romania).
• Reducing the work week (eg, Chile, Colombia, Mexico) or introducing flexible work schedules, such as four-day work weeks.
• Addressing challenges unique to women such as pregnancy, breastfeeding, and reproductive events (eg, Bahrain, South Korea, the US – Massachusetts and Illinois).
• Improving parental and family leave (eg, China, Ireland, Poland, Singapore, Spain).
• Addressing health and safety issues, such as workplace violence and extreme heat (eg, the US – California and New York, Chile).
• Recognizing or debating some form of a right to disconnect (eg, Australia, Canada, Italy, the EU, Slovenia).
• Leveraging AI and other technologies to automate mundane tasks and relieve stress.

These and similar measures are expected to continue in 2025.

Employers grapple with return to office and hybrid working issues

Despite well-publicized return to office mandates, research suggests the pandemic permanently increased work from home (WFH), with many employees seeking jobs that allow for hybrid working.

Employers bringing workers back to the office are reviewing various issues, from steps required to enforce a return to office policy (eg, incorporation into internal work rules, translation, notification, or consultation with collective groups) to new laws and proposals providing some form of right to request to work from home (eg, the UK, Romania, Singapore, Ireland) and collective bargaining and reasonable accommodation obligations. Risks related to discipline or dismissal for failure to return also vary by country.

At the same time, jurisdictions continue to propose and enact new laws regulating WFH and “working from anywhere,” including minimum standards for telework, rights of remote workers, and minimum content for WFH contracts (eg, Austria, Canada, the EU, Croatia, Oman, Peru).  

The era of pay transparency is here

Pay equity and transparency are key issues for global employers as more jurisdictions introduce laws and regulations to review pay gaps:

• EU countries are working toward a deadline of June 7, 2026 to implement the EU Pay Transparency Directive.
• In the US, more states enacted pay transparency laws (eg, Massachusetts, District of Columbia, New Jersey, Vermont).
• In Canada, new rules related to pay transparency in job postings were passed into law in Ontario, with obligations expected to expand to other provinces in 2025.
• Other countries, including Australia and Brazil, also have enacted or introduced pay transparency legislation.

In response, some employers are preparing to conduct pay audits, review their compensation policies and practices, and comply with new reporting and disclosure obligations.

For information on the approach taken to equal pay and mandatory gender pay gap reporting in 57 jurisdictions, access our Gender Pay Transparency Guide.

Employers prepare for a new age of engagement

Various reports point to increasing activism by employees and stakeholders on issues such as climate change, human rights, diversity and inclusion, and corporate governance. For example, recent surveys suggest Generation Z and millennial workers are more likely to switch jobs due to environmental concerns or to pressure their employers to act on climate change.

Rising engagement can amplify challenges for employers, including:

• The potential for workplace conflict and disruption due to political or social statements or actions by employees, customers, or third parties.
• The need to balance competing rights and interests in the workplace.
• Legal and reputational consequences of taking, or not taking, a position on geopolitical, cultural, and social issues.
• Increased scrutiny and pressure from stakeholders, such as shareholders, regulators, and the public, on environmental, social, and governance (ESG) initiatives and performance.
• Increased labor activity.

Many employers are developing and implementing policies and strategies to manage these issues, such as delivering clear and consistent guidelines on acceptable and unacceptable conduct and communication in the workplace and on social media.

Regulators home in on AI and privacy risks

AI and data privacy are transforming the workplace, creating new opportunities and challenges for employers. As AI adoption surges, myriad compliance frameworks are being established to ensure the responsible development, deployment, and use of this emerging technology.

In particular, the EU AI Act establishes a comprehensive regulatory framework for AI, with different obligations depending on the risk level of the AI system. In the US, legislation is advancing at the federal level, while states continue to enact laws addressing AI in the employment context (eg, Illinois, Colorado)

An abundance of AI requirements is challenging employers, who must determine whether, when, and how to comply with them all. Many companies are adopting a reasoned approach, with documentation to explain the “how” and the “why,” if and when regulators ask. See our AI hub for more developments and insights.

Employers are also paying attention to the privacy and security risks associated with AI and data, especially as more jurisdictions adopt or update data protection laws and regulations (eg, Canada – Quebec, China, Germany, Italy, Oman).

New laws increase worker protections

Employers are reviewing their agreements, policies, and practices in response to new laws that expand protections against discrimination and harassment, protect gig and “employee-like” forms of work, and promote worker mobility.

Recent developments include:

• New harassment and discrimination protections in various jurisdictions, such as Chile, Denmark, Ireland, Italy, Peru, Romania, Singapore, South Africa, Spain, the UK, and the US.
• New and proposed protections for gig, casual, and part-time workers in countries like Australia, Belgium, Canada, Croatia, Czech Republic, India, the Netherlands, New Zealand, Norway, Oman, Singapore, Sweden, and the US.
• Trends toward promoting worker mobility by banning noncompetes, limiting who can be restricted, requiring compensation, reducing duration and geographic restriction, refusing to enforce overbroad restrictions, and requiring notice (eg, the US).

Increased worker protection will likely continue into 2025 and beyond. For example, the UK's Employment Rights Bill has been called “the most extensive overhaul of workers' rights in generations” and will increase protection against dismissal and contract change, as well as enhance rights for low-hours workers and trades unions.  

Managing underperformers and the “nice exit”

While reductions in force continue for some employers, managing underperforming employees is another way to manage labor costs and build a high-performance culture.

When it comes to performance management, the legal basis for termination can vary by country. Documented evidence of sustained underperformance, such as multiple performance improvement plans (PIPs), consistent meetings, and coaching, may be required.

Employers are also facing new laws in some jurisdictions. For example, in Spain, employers are now required to provide employees with a chance to defend themselves prior to any disciplinary dismissal, and in the UK, the right to claim unfair dismissal will become a “day one” right, subject to a statutory probationary period.

A “nice exit” – giving employees the option of a settlement proposal in lieu of a performance improvement plan or offering a “voluntary” retirement program – can be an attractive option in jurisdictions with onerous obligations.

Geopolitics impact workforce planning

Geopolitical trends and risks are influencing key business decisions, giving rise to a host of employment issues, eg:

• Shifts in supply chains can mean restructuring, closing facilities, and/or expanding into new jurisdictions.
• Escalating global sanctions and export controls can affect processes related to hiring and managing employees. For example, additional compliance programs and training may be required or individuals may be restricted from accessing controlled technical data or technologies. Anti-discrimination laws may also come into play in some jurisdictions.
• National elections and transitions of political leadership can reshape the labor and employment landscape. The Economist called 2024 the biggest election year in history, with more than 70 countries and territories conducting national elections. Employers are already seeing changes as a result (eg, the UK Employment Rights Bill), with more shifts anticipated in 2025, including in the US under the incoming Trump administration. See our US presidential election hub for more insights. 

Learn more

Employers are encouraged to continually monitor developments around these issues. To learn more about the implications of these developments for your business, please reach out to any member of DLA Piper’s Employment group or your DLA Piper relationship attorney.