Regulatory updates
for Global Employers

On May 6, 2025, the Spanish government approved a draft bill proposing to reduce the standard working week from 40 to 37.5 hours without salary reduction. The bill also mandates a digital timekeeping system to record working hours and breaks, with employer compliance required by December 31, 2025, under penalty of fines.

Additionally, it introduces an unwaivable right to disconnect, protecting employees from work communications outside working hours and promoting work-life balance.

Luxembourg’s Labour Code requires all salaries, wages, and pensions to be adjusted according to the wage index, a public order rule applying to all employees regardless of salary. Based on April 2025 inflation data, the new wage index value of 968.04 points will take effect on May 1, 2025, resulting in a 2.5% increase.

Employers must apply this adjustment to avoid fines ranging from EUR 251 to EUR 25,000, with penalties doubling for repeat violations within two years.

France has announced several updates to employer social contribution rates, effective from 1 May 2025. Employers should take note of the following changes:

• The general reduction rate (T-value) has been slightly lowered to 0.3193 for companies with fewer than 50 employees and to 0.3233 for companies with 50 or more employees.
• The employer unemployment insurance contribution rate has been reduced from 4.05% to 4.00%
• A flat-rate deduction of €0.50 per overtime hour has been introduced for companies with 50 to 249 employees.
• The pooled share of the contribution rate for workplace accidents and occupational diseases (AT/MP) has increased from 0.46% to 0.50%.

The Czech Republic has approved a flexible amendment to the Labour Code, which is expected to take effect on 1 June 2025, pending presidential approval.

Key changes include the removal of mandatory initial medical examinations for employees performing light work without health risks, unless requested by the employee or employer.

Employers will also have the option to implement health promotion programs to improve employee health and disease prevention, with further details to be outlined in a decree by the Ministry of Health.

Starting 1 May 2025, employers in Hong Kong will no longer be permitted to offset statutory severance or long service payments with accrued mandatory provident fund (MPF) contributions.

This regulation aims to safeguard employees' entitlements by ensuring that only voluntary employer contributions and gratuities based on length of service can be used for offsets.

Argentina's government has published General Resolution No. 5671/2025, introducing income tax relief measures for individuals affected by adverse weather conditions.

The resolution extends filing deadlines for affected taxpayers, with new deadlines based on Unique Tax Identification Codes, and applies the measures to the 2024 fiscal period. Additionally, notifications for failure to file or pay will be suspended for qualifying individuals.

On April 9, 2025, Newfoundland and Labrador presented its 2025 budget, confirming that personal income tax rates will remain unchanged and tax brackets will continue to be indexed to inflation. This means there will be no adjustments needed for payroll withholding requirements. Additionally, the eligibility threshold for the Seniors’ Benefit will now be linked to the Consumer Price Index, which may provide additional support to older employees or those with eligible dependents. Employers' payroll obligations remain stable with no immediate cost or compliance changes for those engaging employees in the province.

Starting 6 April, parents of babies requiring neonatal care are entitled to up to 12 weeks of additional leave and pay, on top of existing maternity or paternity leave, if eligible. This new entitlement is designed to provide critical support to families during challenging times, allowing parents to focus on their newborn’s recovery without the financial burden of taking unpaid leave. The UK government aims to improve the work-life balance for families, particularly those with premature or sick infants in neonatal care.

The Latvian State Revenue Service has updated its guidelines on individual income tax for employees of foreign employers working in Latvia.

Foreign employers are now required to withhold and remit personal income tax for their employees in Latvia, with payments due by the 23rd of each month and reports by the 15th. Employers should ensure they comply with these updated reporting and payment deadlines to avoid penalties.

Angola’s tax authority has released a draft Personal Income Tax Code (IRPS) for public consultation. The proposal seeks to unify the existing tax system by introducing a single code with five income categories and progressive rates up to 25%, and it would tax residents on worldwide income. If enacted, the new rules are expected to take effect on January 1, 2026.

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