In the Pipeline - December 2024

Whistleblowing

December 2021 onwards

• The EU Whistleblowing Directive introduced various measures to protect whistleblowers, which cover not just employees and workers but also self-employed contractors, former employees and workers, and job applicants.
• Key features of the Whistleblowing Directive include:
  • Employers with 50 or more staff are required to establish secure internal whistleblowing channels and procedures
  • Employers must provide feedback to whistleblowers within a reasonable time (and a maximum of three months)
  • A whistleblower may choose to report to a regulator without reporting internally to their employer first
  • A whistleblower does not need be acting in good faith or in the public interest to gain protection under the law
• EU countries were required to implement the Whistleblowing Directive by 17 December 2021 (although private sector employers with 50 to 249 employees had until 17 December 2023 to establish internal whistleblowing channels).
• The UK already has comprehensive whistleblowing laws in place, but some elements of the directive are wider than UK laws. For example, the directive requires employers to put in place internal whistleblowing channels, and it applies to job applicants and self-employed contractors as well as employers and workers.

Parents and Carers

August 2022 onwards

• The EU Directive on work-life balance for parents and carers grants new rights including:
  • Ten days of paid leave for fathers or second parents, to be taken around the birth of a child
  • A right to four months' parental leave, of which two months are paid and non-transferable between parents
  • Up to five working days' unpaid leave per year for carers    
  • The right for working carers to request flexible working arrangements.
• EU member states were required to implement the Directive by August 2022.
• In the UK, employees may take paternity leave and shared parental leave. In April 2024, a new to unpaid carers' leave came into force, and all employees can request flexible working from day one. The UK Government plans to make changes to the flexible working process and review the family leave system (see Family Rights and Flexible Working above).

Zero Hours and Irregular Hours Workers

August 2022 onwards

• An EU Directive on Transparent and Predictable Working Conditions aims to introduce more certainty for zero hours or irregular hours workers, and includes:
  • A requirement for employers to provide workers who have an unpredictable work pattern with a written statement of the number of guaranteed hours and pay
  • A ban on probationary periods longer than six months (unless justified)
  • A right to request more predictable working conditions after six months
  • A right to compensation if an assignment is cancelled at short notice.  
• EU member states were required to implement the Directive by August 2022.
• The UK Government plans to give zero hours workers the right to a regular hours contract and the right to notice of shifts and cancellation compensation (see Casual/Zero Hours Workers above). 

Minimum Wage

November 2024

• The EU Directive on adequate minimum wages requires EU member states to provide an adequate statutory minimum wage, promote collective bargaining and improve enforcement and monitoring.
• EU member states were required to implement the Directive by 15 November 2024.
• The UK has had minimum wage laws in place since 1998. The Government is planning to make some changes to minimum wage rates (see National Minimum Wage above). 

Corporate Sustainability Reporting

2025

• The Corporate Sustainability Reporting Directive (CSRD) came into force on 5 January 2023. Organisations which are covered by the Directive will be required to report on various ESG matters, including in relation to their workforce and in their value chains.
• EU member states had to implement the directive by 6 July 2024, and the first reports, for larger organisations already reporting non-financial information, will apply for financial years beginning on or after 1 January 2024.We have produced a briefing on the progress of member states in implementing CSRD.
• The Directive does not have to be implemented in the UK, but non-EU businesses could have reporting requirements if they have significant business in the EU, and even those not in scope can expect to receive CSRD-related requests for information.  

Equal Pay

June 2026

• The EU Directive on equal pay and pay transparency introduces various measures to improve equal pay enforcement and transparency.
• Under the Directive, employers with at least 250 employees will be required to publish gender pay gap information annually, and employers with at least 100 employees will have to publish this information every three years.
• The Directive also introduces measures relating to pay in recruitment and promotion including:
  • A requirement for employers to inform job applicants about the starting salary/pay before interview
  • A ban on asking job candidates about their pay history
  • A right for workers to ask employers for information about pay levels and pay and promotion criteria
• EU member states are required to implement the Directive by 7 June 2026.
• UK employers with 250 or more employees have been required to publish annual gender pay gap reports since 2018. The UK government will require employers to publish a diversity action plan to address their gender pay gap (see Pay Gap Reporting) above. 

Board Diversity

June 2026

• A new Directive on improving gender balance among directors of listed companies will require listed companies in the EU to have at least 40% female non-executive directors or at least 33% female executive and non-executive directors, by 30 June 2026.
• There are voluntary targets for female representation on boards in the UK but no indication that there will be any compulsory targets in the foreseeable future. 

Artificial Intelligence

2026

• The European Parliament has approved an AI Act to harmonise AI rules across the EU, which would cover AI systems used by employers in the EU.  Most of the provisions in the Act are expected to come into force in 2026.
• Separately, the European Commission has adopted a proposal for a Directive which will introduce liability for damage related to the use of artificial intelligence (AI), which will extend to the use of AI in employment (such as discrimination arising from a recruitment process using AI technology). There is no date yet for when the Directive is likely to be published. 
• The new UK government has pledged to work with workers, trade unions and employers to ensure that there are adequate safeguards for the use of AI in employment. 

Corporate Sustainability Due Diligence

2027

• The Corporate Sustainability Due Diligence Directive will introduce new due diligence duties for organisations to take active steps to identify and manage adverse human rights and environmental impacts in their operations (including their workforce) and chains of activities.
• Both EU and non-EU companies with significant EU turnover are covered by the Directive.
• The Directive is in final form and must be implemented by member states by 26 July 2026. The first compliance deadline for the very largest companies is 26 July 2027, with all in-scope companies needing to comply by 26 July 2029.
• We have published a briefing on the new Directive and how businesses can prepare.  

Gig Economy "platform workers"

• A new EU Directive will improve working conditions for individuals working through digital labour platforms (such as taxi or food delivery apps).
• Under the Directive:
  • There would be a list of criteria to decide whether the platform operator is an "employer"
  • Businesses would be required to inform workers of the ways in which they use algorithms for example for monitoring and work allocation
  • Workers would have the right to contest automated decisions and have them rectified
• The Directive will come into force on 1 December 2024, and member states will be required to implement it by 2 December 2026. 
• In the UK, the new Government has pledged to create a single worker status which would improve the rights of all workers, including those in the gig economy (see Employment Status above).

Remote Working

In April 2024, the European Commission launched a consultation on possible new EU legislation to ensure fair remote working and the right to disconnect. The consultation closed in June 2024 and the response is awaited.