The latest annual report from the International Bar Association's (IBA) Global Employment Institute (GEI) highlights new developments in the world of work and updates other key employment law issues. The research, undertaken with lawyers from 53 countries, reveals the global labour market experienced significant shifts in 2024 and 2023, driven by evolving workplace dynamics and technological advancements, and that the use of artificial intelligence (AI) has become more prevalent, offering improvements in efficiency, personalisation and decision-making.
The 13th Annual Global Report: National regulatory trends in human resources law (the Report), also demonstrates that alternative work arrangements continue to evolve, reflecting diverse cultural, economic, and organisational priorities and that there has been a discernible return to the office in contrast to the previous Annual Report. Focus on a robust economy and economic interests continue to be very important.
IBA GEI Council Member Björn Otto and IBA GEI Advisory Board Member Todd A Solomon took lead responsibility for coordinating and drafting the report.
Mr Otto, a partner at the international law firm CMS, based in Cologne, Germany commented: 'This year's report highlights how AI is further reshaping workplaces, improving efficiency and decision-making, while also introducing challenges like job displacement and ethical concerns. As technology becomes integral to the modern working world, countries see both the possibilities and challenges of AI. Moving forward, businesses must invest in retraining, address ethical issues, and ensure AI complements human creativity, while the legal framework continues to evolve.'
Mr Solomon, a partner based in Chicago in the United States at the global law firm McDermott Will & Emery, added: 'Recent geopolitical events have a profound impact on workplace policies not just in the United States, but all across the globe. It will be interesting to monitor how policies such as DEI [diversity, equity, and inclusion] and ESG [environmental, social, and governance] initiatives continue to change in the coming year.'
As well as highlighting the impact of AI, the Report addresses a number of societal and worldwide concerns. Global conflicts such as the ongoing Russia-Ukraine war and the renewed outbreak of the Israel-Palestine conflict in October 2023 significantly impacted labour markets. These conflicts not only placed psychological and emotional stress on affected employees, particularly those with direct ties to the regions, but also created tensions within workforces as differing opinions on the conflicts surfaced and challenged workplace cohesion. These wars also affected the flow of migration, with many people fleeing their homeland.
Additionally, absenteeism due to stress and mental health issues has risen, prompting employers worldwide to take proactive measures to support employee wellbeing in these areas. Initiatives range from psychological support programmes and mental health leave to flexible work arrangements and additional paid leave to avoid negative impacts on workplace culture and efficiency, if left unaddressed. However, despite a rising understanding of the significance of mental health in the workplace, in many of the countries surveyed there remains a lack of significant legal advances.
Some statistics from the GEI Report:
- In Canada, 71 per cent of employees expressed a desire to gain new roles. In previous GEI Annual Reports, during the pandemic and soon after, phenomena such as the 'Great Resignation' and 'Quiet Quitting' were a large focus in some countries as people re-assessed their lives. According to the current GEI research, those trends continue. However, in Lithuania, Pakistan, Russia, Sweden and Ukraine there appears to be greater workforce stability with committed staff staying in their jobs.
- In China's technology industry, 87 per cent of programmers surveyed had serious concerns about being dismissed or being unable to find new employment after turning 35, as many job advertisements restricted applications for those under 35. The number and type of roles for older workers is becoming restricted, creating an imbalance in skills and abilities across Chinese workforces.
- In Latvia, 42 per cent of surveyed employers have integrated AI into their work. Luxembourg highlights 35 per cent of employers that use external AI. Several countries anticipate a rise in the use of AI in the near future, with 36 per cent of Canadian employers estimating AI will boost productivity and 41 per cent of employers in the United Kingdom acknowledging its potential.
Areas highlighted in the Report of which lawyers working in the employment and other related sectors should be aware include the:
Rise in retirement age and improved parental leave
Many countries are extending the working years of their residents as the threshold for retirement and receiving a government pension rises. Though few respondents expressed confidence in their country's pension provision, no large-scale improvements have been made in many countries and there has been minimal progress in incentivising longer working lives. France was highlighted in the report as a country that underwent change in pension reform in 2023. Parental leave will be used when calculating retirement benefits. In Italy employed parents can now take two month's additional leave at 80 percent pay levels.
Need to align workplace policies with human rights protection
Continued commitment to human rights protection emphasises the need to align workplace policies with human rights standards, even in the absence of significant legislative changes. For example, in Singapore this year, the Workplace Fairness Act became law to protect staff against discrimination, and in South Korea, an amendment to the country's Civil Act strengthened personal rights in law.
Importance of data protection and privacy
There have been a number of legislative changes as well as employer-driven developments where lawyers must remain up-to-date and respond to changing needs and requirements. In Spain, the Data Protection Agency produced a guide around the use of biometric data when tracking work time, and a further ruling said that companies who intended to review policies on the use of digital devices would have to include employee representatives in the decision-making process.
Download the latest thirteenth report here
