European Union: Labor Law to Watch

In brief

Employers in the EU face major regulatory changes in 2026, particularly the Pay Transparency Directive which must be implemented by Member States by June. Rules on high-risk AI systems under the AI Act come into effect in August, although these could be postponed in proposals under the digital omnibus package. The Platform Work Directive must be implemented in national legislation by December and revisions to the European Works Council (EWC) framework could prompt early requests for new or revised EWC arrangements. Meanwhile, ongoing efforts to simplify regulation while continuing to protect worker rights mean several EU initiatives will need to be monitored in the year ahead.

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