For recruitment agencies placing contractors across Europe, keeping up with EU employment law changes is essential for staying compliant and protecting your clients. The free movement of workers across EU member states and the ability to make contractor placements easily from your home office via solutions like Workwell Global are the main reasons recruitment agencies jump on hiring opportunities across the EU.
Before we dive into the country-specific changes, it’s worth highlighting the new EU directives that are becoming increasingly important in 2025.
But with opportunity comes the challenge of navigating evolving employment law across the region. That’s why in this blog, we’ve broken down the latest updates, covering the following countries:
Key EU Directives Impacting All Member States
As the European employment landscape undergoes significant transformation, recruitment agencies and their clients must stay ahead of key EU directives that are reshaping contractor engagement across all member states. These legislative developments are not optional they are redefining compliance standards and operational expectations for hiring across borders.
1. Transparent and Predictable Working Conditions Directive
The Transparent and Predictable Working Conditions Directive (2019/1152) is now embedded in national law across most EU countries.
It mandates that employers clearly communicate essential employment terms, including probation periods, working hours, and rights related to secondary employment.
Recruitment agencies must ensure contractor documentation is fully aligned with these requirements to avoid legal exposure and maintain trust with clients and workers.
2. Work-Life Balance Directive
The Work-Life Balance Directive (2019/1158) has introduced minimum standards for paternity, parental, and carers’ leave, as well as the right to request flexible working arrangements. While implementation varies by country, the direction is clear work-life balance is now a legal standard, not a discretionary benefit.
Recruitment professionals must factor these rights into contract design, offer negotiations, and retention strategies.
3. Pay Transparency Directive
The Pay Transparency Directive (2023/970) sets a new benchmark for equity in compensation. By June 2026, companies with 100 or more employees must disclose gender pay gaps and conduct regular pay audits.
Recruitment agencies supporting large employers should begin reviewing compensation structures and internal reporting mechanisms now to ensure readiness and compliance.
4. EU Directive on Adequate Minimum Wages
The Adequate Minimum Wages Directive (2022/2041) is driving a renewed focus on fair pay across the EU. While some countries have already updated their legislation, others are navigating complex political landscapes.
Recruitment agencies must monitor national developments closely and ensure contractor pay rates remain compliant with evolving minimum wage standards.
5. Health and Safety at Work Directive
The Health and Safety at Work Directive (89/391/EEC) remains the cornerstone of workplace safety across Europe. Although there are no major amendments specific to 2025, the directive continues to underpin Occupational Safety and Health (OSH) policy and is reinforced by related legislative activity, particularly in response to digitalisation, remote work, and emerging occupational risks.
Recruitment agencies must verify that client workplaces, including remote setups meet current safety standards. If you’re unsure how to manage this, speak to an Employer of Record (EOR) who can help ensure every worker is set up compliantly and safely from day one.
Workwell Global offers global EOR solutions tailored to recruitment agencies placing whoever, wherever helping you manage risk, maintain compliance, and protect your contractors no matter where they’re working.
Are you interested in simplifying this process? Book a 1:1 call with our team to get started.
6. Posted Workers Directive
The Posted Workers Directive (2018/957) continues to ensure that contractors posted to another EU country receive the same core employment conditions as local workers.
With enforcement efforts ramping up, agencies placing contractors across borders must rigorously uphold posted worker rights to avoid penalties and reputational damage.
7. Artificial Intelligence Act EU Regulation
Looking ahead, the EU Artificial Intelligence Act is poised to reshape employment regulation. By August 2026, organisations using AI in hiring, monitoring, or dismissal must meet strict standards for transparency, fairness, and human oversight.
Recruitment agencies leveraging AI tools such as automated screening or candidate ranking must prepare for compliance by auditing systems and ensuring ethical governance.
Belgium Employment Law Updates
Belgium Employment Contract Changes
The Belgian government has discussed labor market reforms, including the possible reintroduction of a trial or probationary period, which had been abolished in 2014. Under the proposed change, employers would be able to terminate the contract during the trial period with one week’s notice.
After this initial period, the standard notice periods would apply, depending on the duration of the contract.
However, as of May 2025, there is no officially confirmed legislation or public record stating that this change has been implemented or will take effect specifically on January 1, 2025.
Notice dismissal from the Employer
At the time of writing (May 2025), the notice dismissal from the employer in Belgium must observe the following notice periods in contracts:
- Zero to less than three months = one week notice period
- From three months to less than four months = three weeks notice period
- From four months to less than five months = four weeks notice period
- From five months to less than six months = five weeks notice period
- From six months to less than nine months = six weeks notice period
- From nine months to less than twelve months = seven weeks notice period
- From twelve months to less than fifteen months = eight weeks notice period
- From fifteen months to less than eighteen months = nine weeks notice period
- Eighteen months to less than twenty-one months = ten weeks notice period
- Twenty-one months to less than twenty-four months = eleven weeks notice period
- From two years to less than three years = twelve weeks notice period
Notice dismissal from the Employee
Under Belgian employment law, the notice periods for terminating an employment contract are the same for both manual and non-manual (white-collar) workers. These notice periods apply when the employer initiates the dismissal process.
- Zero to less than three months = one week notice period
- From three months less than four months = two weeks notice period
- Six months to less than twelve months = two weeks notice period
- From twelve months to less than eighteen months = 4 weeks notice period
- Eighteen months to less than twenty-four months = 5 weeks notice period
- From two years to less than four years = 6 weeks notice period
Proposed legislative changes included in the Federal Coalition Agreement
NEW Workwell Global Update added July 2025
While Belgium’s current dismissal notice periods remain unchanged as of May 2025, further labour market reforms are under active consideration as part of the Federal Coalition Agreement. These proposals, targeted for implementation in 2025, include the reintroduction of a six-month probation period (abolished in 2014) during which contracts could be terminated with one week’s notice.
Additional measures aim to modernise working time arrangements, such as annualising average hours worked and removing the restriction that part-time roles must represent at least one-third of full-time hours. The reforms also propose increasing the cap on voluntary overtime to 360 hours annually (or 450 in the hospitality sector), with the first 240 hours exempt from tax.
In terms of health-related provisions, large employers would be required to reimburse 30% of the sick pay provided by RIZIV during the second and third months of an employee’s absence, following the initial 30-day period. Furthermore, the number of uncertified sick days permitted per year would be reduced from three to two.
These proposed changes reflect Belgium’s broader effort to balance labour flexibility with fiscal and social responsibility, though formal legislation is still pending.
These EU employment law changes mean recruitment agencies placing contractors in Belgium will need to reassess contract terms and liability clauses to ensure full compliance and risk mitigation under the updated labour employment framework
Bulgaria Employment Law Updates
Amendment to the Foreigners in the Republic of Bulgaria Act
Effective: January 2025
In January the Bulgarian government approved draft amendments to the Foreigners Act affecting the conditions for entry and residence of non-EU nationals seeking highly qualified employment. These amendments allow EU Blue Card holders to change employers after the first 12 months without requiring additional permits.
Employee Paid Annual Leave in Bulgaria
Employees in Bulgaria become eligible for a minimum of 20 working days of paid annual leave after completing four months of service, as outlined in the Bulgarian Labour Code. This reflects Bulgaria’s commitment to modernising its labour laws and aligning with EU standards.
With these employment law changes in Bulgaria, recruitment agencies benefit from simplified long-term contractor mobility and a wider talent pool to choose from if placing non-EU nationals in Bulgaria.
Introduction of the Unified Electronic Employment Record (UEER) – Digital Labour Book
NEW Workwell Global Update added July 2025
While these changes reflect Bulgaria’s alignment with broader EU mobility goals, the country is also accelerating its digital transformation in employment administration. From 1 June 2025, the traditional paper labour book will be replaced by the Unified Electronic Employment Record (UEER), also known as the Digital Labour Book. This system mandates that all salary changes be reported digitally from the same date.
The move is designed to enhance transparency, streamline employment record keeping, and support more efficient regulatory oversight in line with EU-wide digitalisation trends.
Cyprus Employment Law Updates
Cyprus Eases Work Permit Rules to Address Labor Shortages
Effective: January 2025
To address labor shortage and attract talent Cyprus has revised its labor and immigration policies regarding the employment of non-EU nationals, particularly in specialised sectors such as IT, Life Sciences, and Maritime industries.
However, while the introduction of new work permit rules has been discussed, specific confirmation of their implementation has not yet been verified through official announcements or sources.
These are only policy recommendations. The Recommendation ‘Europe on the Move’ will be submitted to the Council for its consideration and adoption.
EU employment law changes such as these create new cross-border hiring opportunities and the opportunity for recruitment agencies to help clients source and hire talent for clients desperately seeking contractors with specialised skills markets with labor shortages
Denmark Employment Law Updates
Workers Amendments in Denmark
Effective: January 1st 2025
The Danish parliament amended the Act on Posting of Workers to impose stricter requirements on foreign companies posting workers in Denmark. Notably, service providers must ensure that all worker can present valid ID to the Danish authorities. Additional registration requirements in the Register for Foreign Service Providers (RUT) will come into effect in January 2026 as confirmed by the Danish Posting of Workers Act and the Danish Immigration Act.
Denmark’s Time Registration Law
On 23 January 2024, the Danish Parliament adopted new rules on working time registration. The rules will enter into force on 1 July 2024 and introduce a new obligation for employers to implement a time recording system making it possible to measure each employee’s daily working time.
The current law status in Denmark shows that the Time Registration Law is active and enforceable for 2025. All employers need to have a time registration system in place to document daily working hours, adhering to the law.
Foreign companies placing contractors in Denmark will have to ensure they are prepared to meet the new ID presentation requirements by January 1st, 2025. Recruitment agencies should begin preparing for the enhanced RUT registration requirements, which will require significant documentation starting January 1st, 2026.
Employment law changes like these are exactly why recruitment agencies turn to an Employer of Record in Denmark. An Employer of Record (EOR) acts as the legal employer for workers, managing all employment-related obligations, including drafting contracts, processing payroll, handling tax withholdings, and administering benefits, while also assuming employment-related risks and ensuring compliance with Danish labor laws to mitigate potential legal disputes.en placing contractors in Denmark.
Upcoming Employer Obligations in Denmark
NEW Workwell Global Update added July 2025
Denmark continues to strengthen its employment regulations with a focus on transparency and worker protections. Since 1 July 2024, all employers must record employees’ daily working hours under the new time registration law.
From June 2025, companies with 35 or more employees will also be required to publish gender pay gap reports, include salary ranges in job ads, and disclose pay-setting criteria. In addition, from 1 July 2025, employers providing housing to posted workers must meet new minimum standards.
These updates follow earlier changes affecting foreign contractor placements, including ID requirements from January 2025 and enhanced RUT registration obligations from January 2026.
Finland Employment Law Updates
Finland Three Month Unemployment Rule
Effective: April 1st 2025
To promote work-based immigration so Finland receives the labour it requires to address shortages, the government introduced a ‘three-month unemployment rule’ for foreign workers from April 1st 2025.
Foreign workers holding work-based residence permits in Finland are now allowed a three month period to secure new employment if their current employment ends prematurely. The three-month period applies regardless of the remaining validity of their residence permit.
To ensure that foreign workers have sufficient income to support themselves during their stay in Finland, the income threshold for foreign workers applying for a residence permit has been raised to €1600 per month per 1st of January 2025.
This is part of the Aliens Act to ensure financial stability of foreign workers.
These EU employment law changes impact recruitment agencies if you are placing foreign workers in Finland applying for a residence permit with clients. You must check that work and residence permits are valid, give foreign workers the same rights as Finnish employees, notify the Finnish Immigration Service when hiring non-EU/EEA workers, and keep accurate records of their employment.
Finland’s Co-operation Act Reform
NEW Workwell Global Update added July 2025
A recent update that may impact your business is Finland’s planned reform of its Co-operation Act, which significantly raises the threshold for full compliance. Once in effect, the Act will apply to employers with 50 or more employees, up from the current threshold of 20.
Employers with 20 to 49 employees will still be subject to simplified obligations under the revised framework. The reform is intended to reduce the administrative burden for smaller businesses while maintaining structured employee dialogue requirements for larger organisations.
France Employment Law Updates
France Hiring Prioritisation Proposal
Effective: 2025
The far right Rassemblement National party in France has proposed only a policy requiring employers to prioritise French candidates over foreign applicants. There is also a proposal to introduce increased tax costs for employers who hire non-EU workers.
For now, recruitment agencies have a clear opportunity to support hiring into France’s in-demand roles. France’s official “shortage professions” list, regularly updated by the national employment agency (France Travail), highlights sectors like healthcare, engineering, and technology where easier visa routes apply.
Greece Employment Law Updates
Greece Social Security Contribution Adjustments for Overtime and Holiday Work
Effective: 2025
Greece has introduced a reduction in social security contributions for overtime, night shifts, and work on Sundays or public holidays. Specifically, contributions for these types of work will now be calculated based on the standard hourly wage corresponding to regular eight-hour employment.
Greece Overhauls Labour Law with Focus on Flexibility and Worker Wellbeing
NEW Workwell Global Update added July 2025
A recent development in Greece is the introduction of the Fair Labour for All bill, passed in June 2025. The legislation simplifies hiring procedures through a single digital form and introduces greater flexibility in working hours, allowing up to 13 hours per day under specific conditions. It also strengthens worker protections by enabling more flexible annual leave planning and expanding parental benefits.
Additionally, the bill enhances health and safety standards, reflecting Greece’s broader effort to modernise its labour framework while balancing flexibility with employee welfare.
Hungary Employment Law Updates
Hungary Guest Worker Regulation Overhaul
Effective: January 1st 2025
Effective on the 1st of January, Hungary implemented Government Decree 450/2024 introducing stricter regulations on the employment of guest workers in Hungary.
Nationals from select third countries are now eligible for guest worker permits in Hungary. The decree currently includes countries such as Georgia, Armenia, and the Philippines, while others like Belarus and Russia are not explicitly confirmed in official sources. Additional eligible countries may be added through a list published by the Minister for Foreign Affairs.
Employment law changes like these require recruitment agencies to closely track nationality-specific quotas and eligibility criteria when making contractor placements in Hungary.
Ireland Employment Law Updates
Ireland Sick Pay Updates
Effective: January 1st 2025
The increase to 7 days’ entitlement in 2025 has not yet been officially confirmed. As it stands, the entitlement remains at 5 days, although an increase to 7 days is still expected.
Possible Upcoming Changes to Employment Classification
Employment classification in Ireland remains a hot topic highlighted by the Supreme Court’s ruling in Revenue Commissioners v Karshan Midlands Ltd t/a Domino’s Pizza and the subsequent adoption of the five-factor employment status test.
The WRC and High Court have begun to apply this five factor employment status test throughout 2024 and further case law developments can be expected in Ireland in 2025.
The five-factor employment test is a framework used to determine whether a worker is classified as an employee or an independent contractor. It evaluates the following key aspects:
- Control: Examines how much control the employer has over the worker’s tasks and work methods.
- Integration: Looks at how integrated the worker is within the business, indicating their role in operations.
- Economic Reality: Considers the financial dependency of the worker on the employer.
- Mutuality of Obligation: Assesses whether there is an obligation for the employer to provide work and for the worker to accept it.
- Other Factors: Includes any additional relevant criteria that may influence the classification.
Employment law changes of this kind highlight the importance of correct employment classification when placing contractors in Ireland. Did you know using an Employer of Record in Ireland, like Workwell Global, can help you classify and payroll contractors correctly in compliance with local employment law in Ireland?
Italy Employment Law Updates
Updated Laws to Increase Employment Flexibility in Italy
Effective: January 12th 2025
This law aims to streamline and expedite several legislative and procedural requirements with a particular focus on increasing flexibility within employment for both companies and employees.
These employment law changes offer recruitment agencies better operational adaptability when making contractor placements across Italy.
The Netherlands Employment Law Updates
Netherlands Contractor Classification Enforcement
Effective: January 1st 2025
From January 2025 the Dutch Authorities started policing the rules around deemed employment laid down in the Wet DBA.
The Wet VBAR is a proposed law in the Netherlands that aims to clarify whether a contractor (ZZP’er) is truly self-employed or should be classed as an employee. It’s designed to prevent false self-employment and is still under discussion, with implementation expected within the next year.
If an independent contractor (ZZP’er) works under conditions similar to those of an employee, he should be classified as such meaning that, depending on the actual situation, either the agency or the client should pay tax and social security contributions accordingly.
New legislation that aims to provide a clarification of the criteria for deemed employment (Wet VBAR) is still under discussion. As it is considered a mere codification of already existing case law, Parliament has questioned the need for it and has suggested passing the newly introduced presumption of employment separately.
Employment law changes across these areas in The Netherlands mean recruitment agencies must closely evaluate contractors’ status when making placements and prepare for new regulatory requirements. To learn more about how to place contractors compliantly, watch back our live webinar with our in-house Netherlands employment expert.
Postponement of Licensing Legislation in The Netherlands
The licensing for recruitment agencies that was intended to be introduced in 2024 has been postponed twice since then.
The introduction of a licensing system for recruitment agencies originally scheduled for 2024 has now been formally postponed. The Minister for Social Affairs and Labour has confirmed implementation will begin 1 January 2028, with policing and enforcement from that date onwards.
Recruitment agencies planning to continue operating under transitional rules will need to register with the Ministry between 1 November 2026 and 1 January 2027, and can begin the application process from 1 January 2027. The final deadline to apply is 1 July 2027.
From January 2028, any recruitment agency operating without a license and clients associated with those agencies may be subject to fines.
Netherlands Moves to Strengthen Worker Security and Clarify Employment Status
NEW Workwell Global Update added July 2025
Two significant legislative proposals currently under review in the Netherlands are set to reshape the landscape for flexible work and employment classification. The Flexible Workers Increased Security Act, submitted to Parliament in May 2025, introduces stricter rules around temporary and on-call work.
If passed, it will extend the break period between successive contracts from six months to five years, prohibit zero-hour and min/max contracts, and require temporary agency workers to be offered a permanent contract after three years down from the current 5.5 years.
In parallel, the Wet VBAR, submitted in July 2025, aims to clarify the legal distinction between employment and self-employment. It introduces a set of indicators to assess worker status and establishes a presumption of employment for individuals earning below €36 per hour. These proposals are part of a broader effort to reduce labour market fragmentation, prevent false self-employment, and promote long-term job security.
Stay tuned to our page for updates on The Netherlands employment law and what these changes mean for recruitment businesses operating in this market.
Austria Employment Law Updates
Austria Skilled Worker List Expansion
Effective: 2025
Austria has expanded its skill shortage occupation list, to address labor shortages in specific professions. As such, there seems to be labor demands, particularly in fields such as healthcare, IT, engineering, and skilled trades.
The addition of roles to the shortage occupation list highlights the need for recruitment agencies services to help clients fill roles for niche, in-demand sectors within the occupation list.
Once you’ve found the talent, leave the rest to us. As your specialised Employer of Record in Austria, Workwell Global ensures your hires are set up quickly and compliantly with payroll, benefits, and statutory requirements all taken care of.
Austria Plans Labour Reforms Focused on Flexibility and Fair Hiring
NEW Workwell Global Update added July 2025
Austria is signalling upcoming labour reforms as part of the new government’s agenda, though formal legislation is still in development. Key initiatives include pilot programmes for four-day workweeks and trust-based working hours, aimed at increasing flexibility and productivity.
The government has also committed to simplifying labour laws to reduce bureaucracy and streamline compliance. At the same time, efforts to strengthen enforcement against wage and social dumping are being paired with plans to ease restrictions on hiring international workers reflecting a dual focus on fair labour standards and labour market accessibility.
Portugal Employment Law Updates
Portugal Youth Tax Incentives
To combat the emigration of young professionals, the Portuguese government has enhanced tax incentives for young workers. Young workers are exempt from Income Tax on salaries up to € 28,000 for the first year, whereas partial tax reductions will be applied for up to 10 years.
Portugal’s Youth Personal Income Tax (IRS Jovem) offers partial income tax exemptions for self-employed individuals up to age 35.
The scheme provides:
• A 100% tax exemption in the first year, gradually decreasing over a 10-year period
• A cap on exemptions set at 55 times the Social Support Index (IAS)
Designed to support young professionals, this measure encourages self-employment and career development in early working years.
Employment law changes like these make Portugal more appealing for young professionals and may increase the talent pool available for recruitment agencies to help clients fill job roles in Portugal.
Spain Employment Law Updates
Spain Working Hours Reduction Law
Effective: February 4th 2025
On the 4th of February Spain’s Council of Ministers approved a draft law reducing the maximum ordinary working hours from 40 to an annual average of 37.5 hours per week without affecting the employee’s salary. However, this change has not yet been implemented, and further steps are required before it becomes law.
This EU employment law changes will require recruitment agencies to adapt to the new regulations, particularly when negotiating contracts or managing client delivery timelines. This highlights the need for companies to adjust employment contracts and collective bargaining agreements to comply with the new law.
For more information watch back our How to Compliantly Place and Payroll Contractors in Spain webinar.
Czech Republic Employment Law Updates
Czech Republic Labour Code Amendments
Effective: January 1st 2025
Effective on the 1st of January the Czech government implemented a flexible amendment to the Labour Code.
Notable changes are:
- Extended probationary period- The probationary period for non-managerial employees has been increased from 3 to 4 months, while for managerial positions its been extended from 6 to 8 months.
- Revised notice period commencement – Under the new regulation, notice periods will now begin on the day the termination notice is delivered to the employee, rather than starting from the first day of the following month.
Czech Republic Expands Labour Code Reforms with More Flexibility
NEW Workwell Global Update added July 2025
Building on these changes, a second phase of the Labour Code amendment commonly referred to as the Flexinovela came into effect on 1 June 2025 and introduced the following changes:
- Self-scheduling of working hours – Employees can now organise their own working hours within predefined parameters agreed with the employer.
- Simplified termination procedures – Certain dismissal processes have been streamlined, reducing administrative burden and improving clarity for both employers and workers.
These employment law changes increase contractual flexibility and redefine notice timelines, requiring recruitment agencies to adjust terms in client and contractor agreements accordingly.
Sweden Employment Law Updates
Sweden Blue Card Regulation Changes
Effective: November 2024
As of Late November 2024 the Swedish parliament adopted legislation that will amend Sweden’s Blue Card regulations and align them with the new EU Blue Card Directive.
The key changes are:
- The minimum salary threshold has been reduced from 1.5 times to 1.25 times the average gross annual salary in Sweden.
- The minimum contract length has been reduced from 12 months to 6 months, aligning with the revised EU Blue Card Directive.
- The new legislation enhances mobility for Blue Card holders, making it easier to change employers. Blue Card holders can now switch to another highly qualified job without applying for a new Blue Card, requiring only notification to the Swedish Migration Agency.
These EU employment law changes expand access to skilled non-EU professionals and create more agile placement conditions for recruitment agencies across Sweden.
Stay Compliant with EU Employment Law Changes in the EU for 2025
If your recruitment agency actively engages contractors in the EU, these EU employment law updates could redefine how you approach your recruitment processes.
Navigating the complexities of payroll and compliance for contractors in the EU can be a challenge for recruitment agencies expanding globally. However, with the right expertise and partnership, it becomes a smooth and efficient process.
That’s where Workwell Global makes it work for you. We help recruitment agencies hire talent; whoever and wherever in the world. Our team provides expert guidance in areas such as contractor payroll management and classification, allowing you to focus on placing talent while we handle the administrative and regulatory requirements.
Talk to our experts to find out how we can make navigating EU employment laws work for you.
Disclaimer: The information provided here does not, and is not intended to, constitute legal advice. Instead, the information and content available are for general informational purposes only.