The International Bar Association (IBA) Global Employment Institute (GEI) has published its 14th Annual Global Report, identifying the growing influence of artificial intelligence (AI) and digitalisation, persistent skills shortages and employee wellbeing as the key issues shaping employment law and human resources (HR) practice worldwide.
Based on responses from lawyers in 48 countries, the 14th Annual Global Report: National regulatory trends in human resources law examines legal and workplace developments during 2024 and part of 2025, highlighting how governments, employers and regulators are responding to rapid technological change, evolving workforce models and increasing compliance expectations. The report offers a comparative insight into how workplaces and regulatory frameworks are being shaped across different regions.
A central finding of the report is that AI is being increasingly used in recruitment, workflow automation, employee monitoring and data analysis, raising legal and ethical concerns around transparency, employee rights and data protection. As only a limited number of jurisdictions currently have employment specific AI legislation, regulatory approaches remain fragmented. Nevertheless, the report notes a clear global trend towards greater scrutiny and governance of workplace AI. Global projections suggest that automation may displace around 85 million jobs, while up to 97 million new roles could emerge, pointing to workforce transformation rather than mass unemployment.
IBA GEI Council Members Björn Otto and Todd A Solomon took lead responsibility for coordinating and drafting the report.
Dr Otto, a partner at international law firm CMS, based in Cologne, Germany, commented: 'This year's report reflects how rapidly artificial intelligence is being integrated into everyday working practices across many countries. What only recently emerged as a developing trend is now influencing how work is organised and decisions are made in a growing number of workplaces. This swift uptake of AI is prompting employers and regulators alike to consider its legal and practical consequences, as technology becomes an increasingly normal part of working life.'
Other areas highlighted in the report that lawyers working in the field of employment and other related sectors should be aware of include:
Mr Solomon, a partner based in Chicago, in the United Staes, at global law firm McDermott Will & Schulte, commented: 'Questions around mental health are increasingly moving into the core of workplace regulation. What is becoming apparent across countries is not only greater awareness, but a growing expectation that employers actively assess and manage psychosocial risks, even where legal frameworks remain fragmented or still evolving.'
- Skilled workforce shortages
Alongside technological change, the report highlights skill shortages as a structural issue affecting labour markets in many regions. As of June 2025, 54 per cent of organisations in the United Kingdom reported skill shortages, a figure that reflects similar patterns observed in several other countries surveyed. Demographic developments, including ageing populations and the migration of skilled workers, are contributing factors. In response, governments and employers are increasingly focused on upskilling and reskilling initiatives (observed in Portugal and France, among other jurisdictions), alongside more targeted immigration measures (see Japan and Singapore). The latter strategy often leads to employers facing challenges in integrating foreign workers with current immigration regulations, prompting countries to either ease immigration rules (Spain, for example), or facilitate entry for highly skilled workers while restricting low-skilled labour immigration (Sweden, for instance).
- Employee wellbeing and mental health
Featuring prominently in the report are the areas of employee wellbeing and mental health, with the long-term effects of the COVID 19 pandemic, combined with increased workloads and blurred boundaries between work and personal life, continuing to place pressure on employees. Several jurisdictions have responded by introducing new measures addressing psychosocial risks, workplace stress and flexible working arrangements. In parts of Canada, for example, occupational health and safety frameworks have been amended to explicitly include psychological wellbeing, while other countries report a rise in employer-led prevention and support initiatives. Despite these developments, legal standards remain uneven and mental health continues to emerge as an area of growing compliance risk.
- Working time arrangement and flexibility
Flexible working arrangements remain firmly embedded in many workplaces. The report notes that remote and hybrid work continues to appeal to a significant share of workforces. At the same time, many organisations are introducing clearer expectations around office presence, with return-to-office-models commonly requiring between three and five days per week on site. These developments are accompanied by increasing legal attention to working time compliance, occupational health and safety obligations for remote workers and the right to disconnect. Within the past few years, many governments have moved from temporary pandemic measures towards some form of durable legal frameworks or guidelines that recognise flexible working time and formalise rights to request flexible or remote work.
- Employment disputes
Across jurisdictions employment disputes remain a key concern. The report confirms that disputes relating to termination and dismissals continue to be the most frequently litigated employment issues in the majority of countries surveyed. Remuneration related claims represent the second most common category, with some labour authorities reporting that up to three quarters of individual cases concern pay related matters such as unpaid wages, overtime or benefits. The report also notes increasing attention on disputes arising from organisational change, including technology driven restructuring.
- Labour legislation
In addition, the report highlights ongoing efforts to modernise labour legislation in response to new forms of work, platform based employment and evolving contractual models. Within the European Union, the forthcoming implementation of the Pay Transparency Directive in 2026 is expected to further affect employer practices relating to remuneration, reporting obligations and equality. The report also identifies emerging workplace related impacts resulting from the climate crisis, with countries such as Chile, France and New Zealand beginning to address related implications for labour law and practice.
Key recommendations from the report include:
- investing in skills development and long term workforce planning. Employers and governments are encouraged to prioritise upskilling and reskilling initiatives, adopt skills based workforce planning and make effective use of targeted immigration frameworks to address persistent talent gaps;
- developing clear governance frameworks for the use of AI at work. Given the rapid increase in workplace AI adoption and the uneven state of regulation, organisations should proactively establish internal policies on AI use, data protection and employee oversight, to include assessing legal risks, ensuring transparency and preparing the workforce through training rather than reacting only once disputes arise; and
- integrating wellbeing and mental health into core compliance and risk management. Employee wellbeing, particularly mental health, is moving beyond purely being an issue for HR and into the realm of governance and compliance. Employers are advised to assess psychological risks, align policies with evolving legal expectations and ensure that wellbeing considerations are embedded into workplace structures, especially in flexible and hybrid work environments.
Overall, the 14th IBA GEI Annual Global Report illustrates that employers, policymakers and legal practitioners will need to develop more adaptable and transparent workplace frameworks that balance innovation, operational efficiency and employee protection in an increasingly automated and data-driven global economy.
