Issue 126
Welcome to the latest edition of our international employment news update.
In this edition we look at:
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AI drives record job losses in UK compared to global rivals
Britain is losing more jobs to artificial intelligence than any other major economy, with companies reporting net job losses of 8% over the past year, the highest rate among the US, Japan, Germany, and Australia, according to research by Morgan Stanley.
The investment bank surveyed businesses using AI for at least a year across sectors including retail, real estate, transport, healthcare equipment, and cars. Whilst British firms reported average productivity gains of 11.5%, comparable to their American counterparts, the net effect in the UK has been workforce reduction. By contrast, US businesses have created more jobs than they have eliminated.
AI's impact strikes UK workers at a particularly vulnerable moment. Unemployment has reached a four-year high, with minimum wage increases and employer national insurance contribution rises squeezing hiring. The companies surveyed identified entry-level roles requiring two to five years' experience as most at risk.
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New NDA restrictions to protect workers from harassment and discrimination
The UK government has introduced reforms to limit employers' use of non-disclosure agreements (NDAs) in cases of workplace harassment and discrimination. The new measure, brought in as part of the Employment Rights Act 2025, means that NDAs preventing workers from speaking out about relevant harassment or discrimination (or their employer's response to such allegations) will be rendered void.
Importantly, the reforms do not affect legitimate NDAs protecting commercially sensitive information or trade secrets, nor do they override existing whistleblowing protections. The changes will not apply retrospectively and will commence after consultation, with the implementation date to be announced. Following consultation, the government may also extend coverage beyond the standard worker definition to include agency workers and the self-employed.
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US government scraps workplace anti-harassment guidance
The US Equal Employment Opportunity Commission (EEOC) has voted to rescind its 2024 guidance on workplace harassment, eliminating enforcement rules requiring employers to provide bathroom, dress code, and pronoun accommodations for LGBTQ+ workers. The EEOC withdrew the 190-page document, following President Trump's recent executive order recognising two immutable sexes, claiming that the guidance exceeded the Commission's authority. Despite this shift in enforcement, Title VII continues to prohibit sex-based discrimination, including sexual orientation and gender identity claims, and courts remain free to interpret the law independently.
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France introduces additional birth leave to combat plummeting fertility rates
France has accelerated the introduction of supplementary birth leave amidst concerns around the birth rate reaching historic lows. With deaths outpacing births in 2025 for the first time since the First World War and the fertility rate dropping to just 1.56 children per woman, the French government has brought implementation forward by over a year, despite the administrative burden of the fast track.
The new right aims to reverse declining birth rates by improving work-life balance and promoting workplace gender equality. All parents can now claim up to two months' additional leave following standard maternity, paternity, or adoption leave. Parents can take the leave consecutively or split it into two one-month blocks and may coordinate timing with their partner or stagger it as needed. The measure applies regardless of employment status and offers flexibility in how families structure their early parenting time.
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Dutch MPs push to delay clampdown on freelancer compliance checks
Dutch MPs have urged the government to postpone tougher enforcement measures on companies that misclassify employees as freelancers. The tax office has plans to intensify inspections and impose fines on non-compliant businesses under rules that came into force in 2016 but have been ignored until now. These presume individuals are self-employed where they carry financial risks, use their own equipment, possess specialist expertise, and market themselves as freelancers.
MPs are calling for a three-month delay to the implementation of the legislation, citing concerns about sectors heavily reliant on freelance workers, such as healthcare, and proposing that inspectors should only fine those that deliberately violate the rules. Around 1.2 million people in the Netherlands currently work as freelancers. The Social Affairs Ministry has said that around 200,000 of these freelancers should be on standard contracts of employment.
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UK non-profits launch trade union training for employers
The statutory authority, Acas, and HR professionals' organisation, the CIPD, have announced a partnership to deliver new training aimed at helping employers to navigate relationships with trade unions following the significant legislative changes under the Employment Rights Act 2025. The training will cover trade union roles and rights, collective bargaining, early conflict prevention, dispute resolution mechanisms, and building trust-based workplace cultures.
The Employment Rights Act 2025 marks a significant shift in industrial relations, making union recognition and workplace access considerably easier for trade unions. The programme is intended to address these new statutory rights to help employers understand the legislative overhaul, prevent conflicts before they escalate, and create stable workplace environments.
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Surge in UK graduates claiming unemployment benefits
The number of unemployed graduate benefit claimants has soared by 46% since 2019, with 707,000 now claiming government support, according to the Centre for Social Justice (CSJ). One in three of these graduates cite health problems as preventing work, with ill-health claims more than doubling from 117,000 to 240,000 since the pandemic.
The CSJ attributes the crisis to an education system 'obsessed' with university participation at the expense of technical training. In its analysis, the CSJ found that for every three British people opting for a university course, only one received vocational training. By contrast, the ratio in the Netherlands is 2:1, and in Germany, 1:1.
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