Issue 120
Welcome to the latest edition of our international employment news update.
In this edition we look at:
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New US$100,000 fee for highly skilled workers
In a disruptive announcement last week, President Trump imposed a US$100,000 application fee for the USA's long-standing H-1B visa programme. After confusion and uncertainty rippled through the international labour market and tech industry on Friday, the White House clarified that the new fee will only apply to new visa petitions and is not retroactive to existing visa holders or renewals. Nevertheless, this drastic increase (up from about US$1,500) presents significant cause for concern among employers and skilled workers, especially Indian nationals who have historically dominated the programme.
The US government's stated goals are to curb abuses of the highly skilled visa system and to prioritise American workers. But many companies have criticised the decision, warning that such a steep financial hurdle could result in work being offshored, hampering US innovation and economic growth. The tech industry is particularly impacted due to its heavy reliance on foreign talent, with Microsoft, Meta, Apple, and Google all among the largest beneficiaries of the programme.
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Dutch companies warn against increasing salary requirements for work permits
The Dutch government has announced plans to raise the minimum salary requirements for highly skilled migrant visas, sparking concern among tech and public utility firms. These businesses have warned that such measures, if introduced, would make recruitment significantly more difficult, especially for smaller companies. The salary threshold for a non-EU 'knowledge migrant' under the age of 30 is currently EUR4,171 per month, but this is set to increase by up to EUR600 under the current government plans. Following evidence of widespread misuse of the scheme by employers bringing in workers for jobs like hairdressing and cleaning, the plan is designed to tackle abuses to the visa scheme. While officials say that reform will curb exploitation of the system, companies warn it could limit access to key talent and hinder business growth.
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Government crackdown on UK visa licences
The Home Office has reported a record number of visa sponsor licence revocations, with 1,948 employer licences withdrawn between July 2024 and June 2025, more than double the previous year's figure. This sharp increase reflects a clamp down on abuses within the immigration system, targeting sectors like social care, hospitality, retail, and construction. Data shows that these are the sectors in which rule-breaking is most common, with reports of underpaying migrant staff, facilitating entry to circumvent immigration processes, and failing to provide promised work. Improved data sharing and intelligence has contributed to this surge in enforcement, signalling a shift away from reliance on physical compliance checks.
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Large employer reasonable adjustments for stress and anxiety
British Airways has lost a disability discrimination tribunal after dismissing a cabin crew member suffering from work-related stress and anxiety that prevented her from flying. The tribunal found that BA failed to make reasonable adjustments for Ms Clifford, who had worked at the airline for over 40 years with an exemplary record until the pandemic began. BA dismissed her in December 2022, in a phased return to work. BA was found to have offered unsuitable alternative roles, including ground duties at a fast-paced Heathrow help hub that exacerbated her condition. The judge criticised BA's 'substantial failure' to follow its own policies, and upheld the claims of disability discrimination, failure to make reasonable adjustments, and unfair dismissal.
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Paid leave: French Supreme Court pursues compliance with EU law
The French Supreme Court has issued two recent rulings aligning national law with EU provisions. The decision enables employees who fall ill during their paid leave to postpone and reschedule their leave days. The ruling comes after a formal EU infringement procedure against France earlier in 2025 for non-compliance with the Working Time Directive (2003/88/EC).
In addition, the court ruled that paid leave days must be included when calculating weekly overtime hours for employees whose work time is counted on a weekly basis. Previously, only actual hours counted, so employees on paid leave could miss out on overtime pay even if their total working hours exceeded the legal threshold.
For further information on both of these rulings, view the below links:
Read more: Sick Leave
Read more: Overtime Accounting
Workplace surveillance: monitoring at what cost?
One third of UK businesses use 'bossware' software to track employee activity, including emails, browsing history, logins and logouts, and even screen content. The use of monitoring software has increased significantly in recent years, driven in large part by the proliferation of remote and hybrid working practices. While some employers see this as a means by which to protect data and improve productivity, many managers have expressed concerns about the risk of damaging employee trust, privacy, and morale. The Information Commissioner's Office has stressed the importance of transparency and proportionality in such monitoring to avoid creating a Big Brother culture.
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Desk move demotion awarded GBP21,400 in damages
The branch manager of a Hertfordshire estate agent was awarded GBP21,400 after an employment tribunal found he had been constructively and unfairly dismissed following a perceived demotion. The claimant resigned after transferring branch and being told that his managerial duties were to be split with a more junior colleague. Moreover, the claimant's desk was situated in the middle of the office rather than at the back where the branch manager traditionally sits. The tribunal found in favour of the claimant, stating that the desk move had symbolic significance and amounted to a breach of the implied term of trust and confidence in the employment relationship. This case highlights the risks of perceived demotion in respect of alterations to employee roles.
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Austria's partial pensions plan
The National Council has passed a pension reform in Austria, enabling older employees to receive part of their pension while continuing to work reduced hours as they gradually transition into retirement. Partial retirement will be restricted and a sustainability mechanism put in place to stabilise the Austrian pension system. This reform has attracted mixed reaction but is viewed as a necessary step to keep people working for longer and maintain pension security against a backdrop of ageing population concerns.
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Increasing momentum for equal UK parental leave
The number of UK employers offering equal parental leave has risen to 165, providing fathers and non-birthing parents with the same paid time off as mothers. This progressive step has been welcomed for encouraging greater gender equality and helping to close the gender pay gap by keeping women in the workplace. On average, these employers offer 20 weeks of fully paid parental leave, with some providing up to six months, far exceeding the UK's statutory minimum of two weeks paternity leave. Firms with such policies report improved recruitment, retention, and workplace culture, reinforcing the broader socio-economic benefits of equal parental leave.
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Poland pilots shorter workweek
Nearly 2,000 employers in Poland have applied to join a government-led pilot to test decreased working hours with no reduction in pay. The one-year programme will start in January 2026, with working time cut incrementally by 10% in the first half of the year and 20% in the second. This pilot is designed to assess improvements to employee wellbeing, productivity, work-life balance, and reduction in burnout. Backed by the Labour Fund, the programme will provide up to 20,000 zloty (approximately EUR4,700) per employee to cover salary costs connected with reduced working hours. Applicants include both private firms and public institutions, and those selected for the scheme will be announced in mid-October.
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