APAC Employment Forecast 2026

APAC employmentforecast 20262 DLAPIPER.COMContentsOverview ...................................................................................................................3Acknowledgment .....................................................................................................4Australia ....................................................................................................................5Cambodia ..................................................................................................................6China ..........................................................................................................................7Hong Kong SAR.........................................................................................................8India ...........................................................................................................................9Indonesia.................................................................................................................10Japan ........................................................................................................................11Macao SAR...............................................................................................................12Malaysia...................................................................................................................13Myanmar .................................................................................................................14New Zealand ...........................................................................................................15Singapore ................................................................................................................16South Korea.............................................................................................................17Taiwan .....................................................................................................................19Thailand...................................................................................................................20Vietnam ...................................................................................................................21DLA Piper in Asia Pacific ......................................................................................22About DLA Piper’s Employment Group..............................................................23DLAPIPER.COM 3OverviewDLA Piper’s APAC Employment Team has prepared its annual employment law forecast,summarising the major legislative developments and key trends across the regionin 2025. The forecast also highlights the important issues and emerging trends thatemployers in APAC should consider as they plan for 2026.This publication covers 16 jurisdictions across the Asia Pacific region, including Australia,Cambodia, China, Hong Kong, India, Indonesia, Japan, Macao, Malaysia, Myanmar,New Zealand, Singapore, South Korea, Taiwan, Thailand and Vietnam.This guide does not constitute legal advice; rather, it provides a general overview anddiscussion of the topics addressed. For employment-related legal advice, please contactthe DLA Piper professionals listed in this guide.Carl BlakePartnerAuckland+64 21 477 [email protected] ColquhounPartnerHong Kong+852 2103 [email protected] NasudaPartnerTokyo+81 3 4550 [email protected] ScampionPartnerAuckland+64 9 916 [email protected] CatanzaritiPartnerMelbourne+61 438 792 [email protected] SmailPartnerSingapore+65 6512 [email protected] ChoiPartnerBeijing+852 2103 0488/+86 150 1137 [email protected] SuntheerapornPartnerBangkok+66 2 686 [email protected] CarterPartnerTokyo+81 3 4550 [email protected] WangPartnerShanghaiShanghai Kaiman Legal+86 21 6021 [email protected] DLAPIPER.COMAcknowledgmentWe would like to express our gratitude towards the following leading local law firms formaking continuous important contributions to this annual publication by sharing theirinsights in relation to the employment law forecast 2026 for their jurisdictions.• Andersen Cambodia• DFDL• Eiger Law• Kim & Chang• Makarim & Taira S.• Peter Ling & Van Geyzel• Lektou - Advogados e Notários• Trilegal• VNA LegalDLAPIPER.COM 5AustraliaSignificant changes will impact all employers with employees in Australia in 2025.Paid parental leave• Starting 1 July 2026, the paid parental leave coverage thatis available will increase from 24 weeks to 26 weeks.• Employers are now prohibited from cancelling pre-approved,employer-funded paid parental leave in the case of stillbirthor infant loss. The legislation applies to a child is stillborn ordies on or after 7 November 2025.Statutory superannuationFrom 1 July 2026 employees must pay an employee’s statutorysuperannuation payment guarantee concurrently with ordinarysalary and wages. Any contributions must be paid into anemployee’s superfund within seven business days of payday.Previously it only needed to be paid quarterly.Restraints of trade• Restraints of trade, including non-compete, non-solicitation,and non-disclosure clauses are commonly used inemployment contracts to protect business interests.• We are expecting legislation to be introduced duringthe course of 2026 to regulate or restrictpost-employment restraints.• Our expectation remains that non-competes will not bebanned completely, however the more likely scenario islimits being placed on non-competes such as non-competeclause being limited to only being enforceable for thoseabove the high income threshold (currently 183,100 andindexed on 1 July each year for inflation).• It is not clear whether any such legislation will operatefor new employees or contracts of employment enteredinto after the legislation is introduced or whether it willbe retrospective and apply to existing employees andemployment contracts.AI legislation• The NSW Government introduced a work health and safetyBill into the Parliament at the end of 2025 to amend theprimary duty of care of a person conducting a businessor undertaking (“PCBU”) to ensure as far as reasonablypracticable that worker health and safety is not put atrisk from the use of digital work systems (the definition of‘digital work systems’ will include algorithms, automation,AI and online platforms).• There will be a specific duty that a PCBU so far as reasonablypracticable must ensure that worker health and safety is notput at risk from allocation of work by a digital work systemand must consider whether the allocation of work creates orresults in:• excessive/unreasonable workloads;• use of excessive/unreasonable metrics to assess andtrack a worker’s performance;• excessive/unreasonable monitoring/surveillance ofworkers; and• discriminatory practices/decision-making in the conductof business.• Further, the Bill will give WHS entry permit holders(e.g. union officials) the right to require a PCBU to providethem reasonable assistance to access and inspect a digitalwork system relevant to suspected WHS Act contraventions.• The Bill is expected to pass in early 2026 and otherkey states may consider similar legislation.6 DLAPIPER.COMCambodiaIncrease in the minimum wage for 2026Effective from 1 January 2026, the minimum wage forworkers in the garment, textile, footwear, travel goods,and bag industries has increased by USD2 (approximately 1%)compared with 2025. The new minimum monthly wages areUSD210 for regular workers and USD208 for probationaryworkers. Piece-rate workers will be paid the higher of theiractual earnings or the applicable minimum wage.Digitalised declaration of opening enterpriseand procedures for notifying changes• All enterprises, including newly established and existingenterprises, are required to register and create an accountat the Labour Automated Centralised Management System(“LACMS”) and obtain a digital declaration of openingenterprise to fulfil the additional compliance obligation.• Any changes to the entity’s information registered withthe Ministry of Labour and Vocational Training (“MLVT”),including a change of enterprise name, owner or director,suspension of operations, office address, permanentclosure or other amendments, must be submitted throughthe LACMS, along with the supporting documents,depending on the nature of the change, as this replacesphysical submission.Use and maintenance of the digitalenterprise establishment book• The MLVT has introduced a digitalised enterpriseestablishment book, requiring all enterprises to registerand use a standardised template establishment bookthrough the LACMS. The establishment book will beissued in digital format and embedded with a QR code forlegal verification.• Enterprises are required to retain the digital enterpriseestablishment book and its supporting documents at theenterprise’s head office for labour inspection purposesand to preserve completed payroll books for a minimumof three years after their closure.Payroll record keeping and monthlysubmission requirements• Enterprises may use either a traditional payroll book ora computerised payroll system, provided that it bearsthe enterprise owner’s signature and official stamp. In allcases, it must register in the LACMS to receive a generatedQR code to ensure that it is valid for usage.• Enterprises must maintain payroll records for a minimumof three years and ensure they are available to labourinspectors at any time.• With the new obligation imposed, enterprises are requiredto prepare and submit monthly payroll informationthrough the LACMS using the MLVT’s prescribed template,no later than the 20th day of the following month.Changes in the procedure for applying forovertime work• Effective 6 May 2025, the MLVT has shortened thetimeline for filing overtime work notification from at leastseven working days to three working days prior to thecommencement of overtime work. The notification is nowfree of charge and not subject to comprehensive review bythe MLVT.• Terms and conditions regarding overtime work andsuspension of days off are provided.• Despite this, the enterprises must fill in all requiredinformation and documentation through the LACMS andretain such records for inspection by labour inspectorswhile the fundamental principles governing overtime workremain unchanged.Reforms to the individual and group labourdispute resolution frameworkOn 4 March 2025, the MLVT issued two regulationsreforming the framework for the resolution of individualand collective labour disputes. These regulations introducedetailed procedures that significantly clarify the disputeresolution process for both individual and group labourdisputes. The reforms aim to enhance procedural rigour,accountability, and efficiency by establishing a morestructured and transparent dispute settlement mechanism.DLAPIPER.COM 7ChinaJudicial guidance and non-compete rules• Supreme People’s Court’s Interpretation (II):Local courts are expected to further clarify this judicialinterpretation, particularly regarding:• the enforcement and reasonableness ofnon-compete clauses.• criteria for recognising de facto employment andco-employment relationships.• rules concerning reinstatement of employees.• Guidelines for Corporate Implementation ofNon-Compete Compliance: Although non-binding,these Guidelines provide detailed standards for employers.Their influence will grow in 2026, advising enterprises to:• refine the scope of personnel subject to restrictions.• set reasonable compensation and penalty terms.• expect stricter judicial review of breach cases.New forms of employment and gig economy• Expect further refinement of employment classifications inthe platform economy.• Sector-specific policies are anticipated, clarifying:• employment status recognition.• payment rules and occupational injury protections.• New case category for platform-based employmentdisputes has been introduced, effective from1 January 2026.AI regulation in the workplace• The amended Cybersecurity Law, effective on1 January 2026, has a newly added Article 20 whichspecifically addresses the security and development ofartificial intelligence (“AI”).• A comprehensive AI law is anticipated.• Ethical standards and data governance for workplaceAI use are expected to be formalised.Retirement age reform and protectionof older workers• Gradual increase in retirement age to continue:• men: from 60 to 63.• women: from 50/55 to 55/58, depending on role.• A new dual-case system for disputes involvingpost-retirement-age workers takes effect from1 January 2026:• those not receiving pensions but under employermanagement may claim employment rights.• those receiving pensions to be treated under servicecontract rules.• The authorities may accelerate the legislative process forthe Interim Provisions on the Protection of Basic Rights andInterests of Older Workers, further clarifying standardsfor safeguarding the rights of older workers regardingworking hours, rest and vacation time, occupational safety,and health.Social insurance and welfare compliance• Voluntary social insurance waiver agreements areexpressly invalid. Employers must ensure full socialinsurance contributions for all eligible workers, includingin cross-regional and labour dispatch scenarios.• Compliance with employee benefits such as sick pay andpaid leave will face increased scrutiny; companies mustformalise policies and retain records.Labour standards and occupational safety• Minimum wage, leave entitlements, social insurance andhousing fund contributions may be adjusted regionally.• The stringent review of flexible working hour systemapplications seen in some regions is a trend likely toexpand in 2026.• On 20 November 2025, the Ministry of Human Resourcesand Social Security issued the Opinions on Several IssuesConcerning the Implementation of the Work-Related InjuryInsurance Regulations (III), which further clarifies therules for work-related injury recognition in new scenariosarising from the widespread adoption of digital officepractices. Employers are strongly advised to reviewand update their internal policies and managementpractices, particularly those relating to remote and flexibleworking arrangements.8 DLAPIPER.COMHong Kong SARStatutory holiday increase• From 2026 onwards, Easter Monday will be added as astatutory holiday, and there will be 15 statutory holidaysin total.• Good Friday and the day following Good Friday will beadded as a statutory holiday in 2028 and 2030 respectively.Revised definition of “continuous contract”under the Employment Ordinance• The amendment to the definition of “continuous contract”under the Employment Ordinance (“EO”) has taken effecton 18 January 2026.• Unlike the previous “418” rule which is based on beingcontinuously employed for at least four weeks withat 18 hours worked each week, the new rule providesthat an employee will be regarded as employed undera “continuous contract” if they have been continuouslyemployed for at least four weeks, and in each of thoseweeks, they have worked either (i) at least 17 hours,or (ii) (where any week falls below 17 hours) a total of atleast 68 hours over the four-week period comprising thatweek and the three preceding weeks. This will requireemployers to conduct frequent audits of part-timeemployees who have fluctuating work patterns and whomay tip in and out of continuous employment status overrolling weeks.• Whether an employee is deemed to be employed undera ‘continuous contract’ determines entitlement to receivecertain statutory employee benefits such as paid statutoryholidays, statutory annual leave, statutory sicknessallowance, statutory maternity/paternity leave andstatutory severance payment and statutory long servicepayment. The new rule replaces the long-standing‘418 rule’, effectively relaxing the eligibility threshold forreceiving those statutory employee benefits under the EO.It helps prevent the exploitation of part-time, temporaryand casual workers.Adjustment to statutory minimum wageis expectedThe current statutory minimum wage (“SMW”) rate isHKD42.10 per hour. An adjustment to the SMW rateis expected to take effect on 1 May 2026, and that will be thefirst SMW rate derived from the new formula-based reviewmechanism which takes into account both inflation andGDP growth.Other employment related initiatives• According to the Chief Executive’s 2025 Policy Address,the Government is committed to working on an array ofemployment-related initiatives in 2026. Some of the keyinitiatives include, but are not limited to, the following:• the Government is taking steps to balance the need forimporting labour against the priority of employing localworkers. Under the Enhanced Supplementary LabourScheme, new measures have been introduced to helpensure that local job opportunities are not underminedwhilst businesses, genuinely unable to recruit locally,can have access to imported labour.• the Government will step up efforts to combatillegal employment.• continuing the enhancement of its training andcareer planning services, the Employees RetrainingBoard will strengthen its industry consultativemechanism, and identify demand for, and gaps in,core skills in a targeted manner to devise a skills-basedtraining framework. Legislative amendments to theEmployees Retraining Ordinance will follow to reinforcethese initiatives.• labour protections are also being expanded.The Government plans to improve work injurycompensation for digital platform workers. The LabourDepartment will also continue to step up inspectionand enforcement, promotion and publicity, as well aseducation and training, to build a stronger occupationalhealth and safety culture and reduce accidents.• a mid-term review of the Re-employment Allowance PilotScheme will be conducted in 2026 to explore additionalsupport for elderly and middle-aged workers.DLAPIPER.COM 9IndiaFrom reform to reality: India’s labour codestake effect• After a half decade of debate, deferral, and anticipation, inwhat is being hailed as the single largest labour reform sinceIndia’s independence, on 21 November 2025, the Ministry ofLabour and Employment brought into force the four landmarkLabour Codes - the Code on Wages, 2019, the IndustrialRelations Code, 2020, the Code on Social Security, 2020,and the Occupational Safety, Health and Working ConditionsCode, 2020 (the “Codes”) - consolidating 29 legacy labourstatutes into a unified framework. Interestingly, while theCodes have been brought into effect, the rules framedthereunder have not yet been notified. In this interim phase,employers will need to continue complying with the existingrules under the (repealed) labour laws, to the extent they arenot inconsistent with the Codes. State-specific labour laws willalso continue to apply and must be read harmoniously withthe Codes. The key areas of impact are as follows:• ‘Wages’, the hidden cost multiplier: Under the newdefinition of ‘wages’, benefits like gratuity and socialsecurity contributions must be calculated on all fixed/guaranteed pay components (subject to certain exclusions).This has materially increased employee benefit liabilities,with large players like Infosys, HCL and TCS reportingbetween INR9.56 - INR40 billion in additional cost impact.Employers must move quickly to audit wage structures andimplement strategies to mitigate the cost impact.• Contract labour under the microscope: Employersare now prohibited from engaging contract labourin an establishment’s ‘core activities’, barring certaincustomary and emergency exceptions. Employers withsignificant outsourced or vendor-driven workforcesmust now revisit what constitutes ‘core’, re-paper vendorarrangements, and where necessary, restructureengagement models to avoid enforcement risk.• Exit payments on a stopwatch: The Codes introducea two-day deadline for payment of unpaid wages ontermination, resignation, or closure. While it is hopedthat the state rules will soften these timelines, as ondate, companies will need to redesign exit playbooks toaccount for the expedited timelines.• Fixed-term employees, flexibility at a price: The Codesformalise parity between fixed-term and permanentemployees, including pro-rata statutory benefits andmaking gratuity payable to fixed-term employees afterone year at contract end, requiring organisations usingproject based/rolling fixed term hiring to reassess theirpractices factoring the cost impact.Beyond these headline changes, several key aspects -such as health and safety obligations, redesignedappointment letters, and the constitution of grievanceredressal committees - will be operationalised only uponnotification of the accompanying rules. With rules awaited,industry bodies are actively seeking flexibility within therule-making process. This remains a fast-evolving area,warranting close attention.Karnataka’s menstrual leave mandate:progressive policy, unsettled law• Karnataka has introduced one day paid menstrual leaveper month for menstruating employees aged 18 to52 years, applicable across factories and commercialestablishments statewide. While framed as a progressivemeasure, the policy has the effect of granting womenemployees 40% more paid leave than their malecounterparts, in addition to existing gender-specific leavessuch as maternity leave - reviving discussion aroundworkplace parity and the potential downstream impact onhiring decisions and cost allocation.• A key point of debate lies in how the leave has beenintroduced - through a standalone executive order,without amendments to existing labour statutes. This hasled to the order being challenged before the KarnatakaHigh Court on grounds including lack of legislative backingand absence of stakeholder consultation. While the ordercontinues to operate, the court has recognised the matteras one of public importance, with further clarity expectedthrough subsequent hearings. Businesses are monitoringdevelopments closely, with many deferring actions untilfurther clarity emerges.Mental health at work: misconduct,disability, and a shifting judicial lens• Mental health has moved to the centre of workplacedisputes, with employees increasingly invoking mentalhealth as a defence to alleged misconduct - mostcommonly in cases involving absenteeism and erraticbehaviour. Courts have responded by subjectingdisciplinary action in such cases to closer scrutiny.• The principle established in 2022 by the SupremeCourt in Ravinder Kumar Dhariwal v. Union of India thattermination for non-wilful conduct linked to mentalhealth is disproportionate and discriminatory - wasreiterated in 2025 by the Chhattisgarh High Court inSECL v. Ravi Shankar Mahant which declined to interferewith an order quashing the termination of an employeewith schizophrenia, holding that absences due to mentalhealth conditions cannot be treated as wilful misconduct.• These decisions reflect a recalibration of how misconductis assessed when mental health is involved. Employersare increasingly expected to assess termination decisionsthrough the lens of intent, capacity, and reasonableaccommodation, rather than treating misconduct asa binary question of compliance or breach.10 DLAPIPER.COMIndonesiaAmendment to the regulation onunemployment insurance• Government Regulation No. 6 of 2025 reduces the mandatorycontribution rate payable by the company under the Job LossInsurance (Jaminan Kehilangan Pekerjaan) programme from0.46% to 0.36% of the employee’s monthly wage.• The monthly cash benefit paid by BPJS Ketenagakerjaan toeligible employees upon termination has been increasedto a uniform rate of 60% of wages for up to six months,replacing the previous scheme of 45% for the firstthree months and 25% for the following three months.Obligation to establish an OccupationalSafety and Health (“OSH”) Committee• Ministry of Manpower (“MOM”) Regulation No. 13 of 2025revokes the outdated 1987 regulation. The new regulationseparates the role of OSH Committee (internal body) fromthe appointment of OSH Specialist (profession) in light ofmultiple derivative regulations to avoid misinterpretationand inconsistency.• The formation of OSH Committee now applies tocompanies employing 100 employees or more andto companies engaged in high-risk activities, regardlessof headcount, aligning with the risk-based and businesslicensing approach.Prohibition on retention ofemployee documentsUnder MOM Circular Letter No. M/5/HK.04.00/V/2025,the MOM has clarified that employers are prohibitedfrom requiring or retaining employees’ original diplomasor personal documents as a condition or securityfor employment.Non-discrimination and age requirementsin recruitmentThe issuance of MOM Circular Letter No. M/6/HK.04/V/2025,affirms the prohibition on discrimination in recruitment.The letter states that age requirements in the recruitmentprocess are only permitted where they are objectively justifiedby the nature or characteristic of the role and where they do notlimit equal access to employment opportunities. For instance,field construction work is more reasonably assigned to youngerworkers who generally have stronger physical capacity.Period for termination claim• With the ruling of Constitutional Court DecisionNo. 132/PUU-XXIII/2025 dated 17 September 2025,an employee may now file a lawsuit within one year aftermandatory mediation or conciliation efforts to resolvea termination dispute have failed, rather than from thedate they were notified of termination.• For employers, an extended statute of limitations prolongsthe unresolved termination period and the employer’spayment obligations introduced by Court DecisionNo. 168/PUU-XXI/2023. While the Supreme Court,through Circular Letter No. 5 of 2015, introduced theconcept that employers are only required to pay salariesfor up to six months while seeking resolution, the practicalapplication of this guidance remains uncertain.Minimum wagesFor 2026, provincial minimum wages (UMP) across Indonesiagenerally increased by approximately five to seven percent(5-7%), with the minimum wages for DKI Jakarta rising by6.17% to IDR5,729,876, effective 1 January 2026.DLAPIPER.COM 11JapanAfter several minor changes or updates to labour andemployment laws in 2025, 2026 will have some significantchanges. As summarised below, the changes that are comingin 2026 are meant to expand the scope of mandatory pay gapdisclosures, make the whistleblower protection system moreaccessible for employees, and codify measures to preventcustomer harassment. In addition, the Japanese Governmentis considering amendments to the Labour Standards Act,which is the most fundamental statute in Japanese labourlaw, and these amendments may materialise in the latter halfof 2026 or in 2027.Amendments to the gender paygap requirements• The amendments require companies with 101 or moreemployees to disclose the gender pay gap and the ratio ofwomen in management positions. This legislation changewill take effect on 1 April 2026. Specifically, the followingchanges are scheduled to be made:• for companies with 301 or more employees, prior to theamendment, they were required to disclose the genderpay gap along with at least two other indicators. After theamendment, these companies must disclose the genderpay gap, the ratio of women in management positions,and at least two additional indicators.• for companies with 101 to 300 employees, prior tothe amendment, they were required to disclose atleast one indicator. After the amendment, thesecompanies must disclose the gender pay gap, the ratioof women in management positions, and at least oneadditional indicator.Amendments to the whistleblowerprotection law• This legislation change will take effect on 1 December 2026.The most significant changes are as follows:• independent contractors are also permitted to makewhistleblowing reports.• any disciplinary action taken by a company against anemployee on the grounds that the employee has madea proper whistleblowing report is rendered invalid.• criminal penalties will be possibly imposed on companiesthat dismiss or discipline employees on the grounds thatthe employees have made proper whistleblowing reports.• acts that obstruct whistleblowing without justifiablegrounds are prohibited, and any agreements or similaracts based on such obstruction are rendered invalid.• acts intended to identify whistleblowers withoutjustifiable grounds are prohibited.Establishment of the law regardingcustomer harassmentThere has been no law specifically addressing customerharassment until now, but companies will finally be legallyobligated to take steps to address it. The amendment willdefine customer harassment under the law, impose dutieson companies to establish an internal system to preventcustomer harassment (to be detailed in forthcomingGovernment guidelines). The amendment also prohibitsany disadvantageous treatment of individuals who reportcustomer harassment. This legislation change will take effectat some point within 2026, although the exact date has notyet been determined.12 DLAPIPER.COMMacao SARMacao’s employment policy in 2025 was defined byconsolidation and clear signalling as the Governmentbalanced post‑pandemic growth with labour‑marketstabilisation and family support. In 2026, the emphasisturns to implementation. A statutory minimum wage uplifthas come into force, the maternity leave pay subsidy willremain in place through year‑end for eligible cases, and workcontinues on potential leave enhancements.Minimum wage uplift effective1 January 2026• The Legislative Assembly has approved an increase to thestatutory minimum wage to MOP35 per hour effectivefrom 1 January 2026. The corresponding proportionalbenchmarks are MOP280 per day, MOP1,680 per weekand MOP7,280 per month.• For output‑based and piece‑rate pay, employers mustensure that average hourly earnings meet or exceed theMOP35 threshold when calculated over the relevant payperiod. In practical terms, payroll engines, pay tables andemployment contract templates that reference statutoryminimums should be updated before the first 2026 payroll.Maternity leave subsidy scheme extendedthrough 31 December 2026• The Government has extended the private‑sectormaternity‑leave pay subsidy through 31 December 2026.Under the scheme, eligible employers pay the full statutory70 days of paid maternity leave and may then claimreimbursement for 14 days in respect of eligible Macaoresident employees.• The subsidy does not apply to publicly funded entities,gaming operators, educational institutions, companieswith more than 100 employees, or non‑resident workers.The extension maintains the framework introducedalongside the 2020 Labour Relations Law reform,which increased statutory paid maternity leave from56 to 70 days.Government agenda to increase maternityand annual leave (policy work underway)Throughout 2025, the authorities signalled that furtherincreases to statutory maternity leave and annual leave areunder active consideration. The Standing Committee forthe Coordination of Social Affairs is expected to conductpublic consultations, alongside an analysis of the long‑termsustainability of maternity‑leave subsidies. No definitiveparameters or timelines have been released.Practical forecasts and employeraction points• Implement the new wage floor by reconfiguringpayroll rules to the updated rate card and aligningremuneration clauses that reference statutory minimums.Where piece‑rate or output‑based pay is used, scheduleperiodic checks to confirm average hourly pay meets theMOP35 benchmark.• Operationalise the maternity leave subsidy. Build astandard DSAL reimbursement process with controlsaround the 150‑day filing deadline, ensure eligibilityscreening for employee residency and employer type,and maintain complete supporting records. Budget forthe upfront payment of the full 70 days to mitigatecash‑flow pressure.• Prepare for potential leave enhancements. Scenario‑planHR accrual rules, carry‑over limits and budgeting forincreased annual‑leave balances and any further maternityleave changes. Draft policy and handbook updates nowso they can be issued quickly once the legal positionis confirmed.DLAPIPER.COM 13MalaysiaEmployment Insurance System(Amendment) Bill 2025• The Employment Insurance System (Amendment) Bill 2025(“EIS Amendment Bill”) was passed by the Dewan Rakyat(House of Representatives) of the Malaysian Parliamenton 2 December 2025, and is due to be tabled before theDewan Negara (Senate) in early 2026.• The proposed amendments extend the coverage of theEmployment Insurance System Act 2017 and empowerSOCSO to provide employment services to casual workersand gig and platform workers.• The EIS Amendment Bill also introduces enhanced benefits,including a Mobility Assistance Allowance of RM1,000,and an increase in the rates for re-employment allowance,training fees, and training allowance.Gig Workers Act 2025• Malaysia’s historic Gig Workers Act was passed byParliament on 28 August 2025 (Dewan Rakyat/House ofRepresentatives) and 9 September 2025 (Dewan Negara/Senate), and gazetted on 31 December 2025. It is awaitinga commencement date to be fixed by the Minister ofHuman Resources.• The expansive and long-awaited Act with the overarchingaim of protecting the rights of gig workers comprises112 sections. The introduction of a specific legislationfor gig workers means that workers in the gig economyno longer fall through the gaps when it comes to beingentitled to basic legal rights.• Key provisions include the establishment of landmarkstatutory definitions of “gig worker”, “contracting entity”and “platform provider”, and the provision of a list ofmandatory terms and conditions to be included inservice agreements.• The Act also entitles gig workers to specified statutoryrights, and provides for a mandatory dispute resolutionmechanism, both internally as well as through aconciliation process before the Director General forIndustrial Relations.• The Act establishes a Gig Workers Tribunal, which will havejurisdiction to hear and determine any dispute or matterreferred to it, and grant binding awards with criminalpenalties for failure to comply.• Pursuant to the Act, platform providers will be requiredto register gig workers under the Self-Employment SocialSecurity Scheme and make deductions from the earningsof the gig worker and contribute to the social securityscheme on behalf of the gig worker.14 DLAPIPER.COMMyanmarMinimum wage update• The National Committee for Determining the MinimumWage issued Notification No. 1/2025 on 14 October 2025,which mandated a further MMK1,000 increase tothe daily remuneration for workers. This update,effective retroactively from 1 October 2025, is mandatoryfor all enterprises employing ten or more workers acrossall sectors and regions.• The total daily minimum wage has been raised to7,800 Kyats for an eight-hour workday.Wage Component Amount (MMK) StatusBase Minimum Wage 4,800 Fixed (since 2018)Previous Allowances 2,000 (MMK1,000 from October 2023 +MMK1,000 from August 2024)New 2025 Allowance 1,000 Effective 1 October 2025Total Daily Rate 7,800 Current RateThe breakdown of this total is as follows:DLAPIPER.COM 15New ZealandEmployment Leave Act• In September 2025, the Government announced thedecision to repeal the Holidays Act 2003 and replace thiswith the ‘Employment Leave Act’.• An array of changes have been proposed that wouldreform the current annual leave and sick leave systems,that include:• continuous accrual of annual leave and sick leavein hours from the commencement of employment,rather than being provided as lump sum entitlements.• sick leave entitlements being proportionate tocontracted hours.• an annual leave and sick leave compensation paymentat a rate of 12.5% of the worker’s ordinary hourly wagerate to apply to both casual workers without contractedhours, and for additional hours worked by other workersabove their contracted hours.• The bill has not yet been drafted or introduced to theparliamentary process.Employment Relations Amendment BillIn June 2025, the Employment Relations Amendment Bill wasintroduced to parliament. This:• provides a set of tests to apply to determine whethera person is an independent contractor or employee;• strengthens the ability to limit and reduce remediesfor personal grievances by 100% for an employee’scontributory behaviour to the situation that gave riseto the personal grievance; and• introduces a NZD200,000 wage and salary thresholdto raise certain personal grievances.• The bill is awaiting its third reading in parliament.Pay secrecyThe Employment Relations (Employee RemunerationDisclosure) Amendment Act 2025 was introduced inAugust 2025. The Act protects employees who choose todiscuss their remuneration by the creation of a new groundfor a personal grievance where an employer engages inadverse conduct for a remuneration disclosure reason.Exit discussions• In October 2025, the Education and Workforce Committeerecommended that the Employment Relations (Terminationof Employment by Agreement) Amendment Bill be passed.The bill allows an employer to seek to terminate theemployment relationship with mutual consent, enablingthe employer to request an employee execute a settlementagreement in return for specific compensation in full andfinal settlement of any cause of action arising out of theemployment relationship. The bill is awaiting second reading.• The bill is awaiting its third reading in parliament.Increase to minimum wage and updatesto KiwiSaver• From 1 April 2026, the statutory minimum adult wage willincrease to NZD23.95 gross per hour.• From 1 April 2026, the default rate of employee andemployer contributions for KiwiSaver will increase to3.5%, and 16-and 17-year-olds will qualify for employerKiwiSaver contributions.16 DLAPIPER.COMSingaporeEmployment Act reviewIn March 2025, the Ministry of Manpower (“MOM”)announced that the MOM will review the EmploymentAct in consultation with tripartite partners, to ensure that“we continue to strike the right balance between protectionfor workers and preserving flexibility for businesses.”The Employment Act is Singapore’s main labour legislationthat regulates the employer-employee relationship, ensuringminimum standards for working conditions and protectingemployment rights. We expect more details to be released indue course.ImmigrationChanges to Employment Pass salary criteria:Since 1 January 2025, the Employment Pass (“EP”) qualifyingsalary for new applications has been revised to at leastSGD5,600, and at least SGD6,200 for the financial servicessector, and the salary requirements increase progressivelydepending on the candidate’s age. This revised EPqualifying salary will also apply to the renewal of EPsthat are expiring from 1 January 2026. For S Passes, thequalifying salary threshold was raised to at least SGD3,300and at least SGD3,800 for the financial services sector from1 September 2025 onwards, and the salary requirements willincrease progressively depending on the candidate’s age.This revised S Pass qualifying salary will also apply to therenewal of S Passes that are expiring from 1 September 2026.The increases are driven by Singapore’s overall strategicgoal to uplift the quality of the foreign workforce,ensure competitiveness, and protect local professionals.Diversity and inclusion• Workplace Fairness Act (“WFA”): On 4 November 2025,Singapore’s Parliament passed the Workplace Fairness(Dispute Resolution) Bill, which establishes a disputeresolution framework for workplace discrimination claims.With this second bill passed, the full framework for workplacefairness claims has now been confirmed. The implementationtimeline has now been confirmed, with the WFA expected totake effect by end-2027. This will provide employers withmore time to familiarise and prepare themselves for thesenew statutory rules and obligations. Discrimination willbe statutorily defined as making an adverse employmentdecision because of any of the following protectedcharacteristics: (i) age, (ii) nationality, (iii) sex, maritalstatus, pregnancy status (including breastfeeding andwomen who express a desire to bear children), caregivingresponsibilities, (iv) race, religion, language ability,and (v) disability and mental health condition.• Increased shared parental leave: Under the SharedParental Leave (“SPL”) scheme, eligible working parents willbe provided with SPL, which is in addition to their maternityleave and paternity leave entitlements. Currently, eligibleparents enjoy six weeks of SPL, to be shared between bothparents. From 1 April 2026 onwards, eligible parents willenjoy 10 weeks of SPL, to be shared between both parents.This is intended to foster a pro-family environment bysupporting working parents in raising children.Retirement• In 2025, the monthly Central Provident Fund (“CPF”)Ordinary Wage (“OW”) salary ceiling (which is themaximum portion of an employee’s OW monthly wagethat is eligible for CPF contributions) was increased fromSGD6,800 to SGD7,400. The contribution rates for seniorworkers aged above fifty-five (55) to sixty-five (65) willbe increased by 1.5%. This includes a 0.5% increase fromthe employer’s share and 1% from the employee’s share.From 1 January 2026 onwards, the monthly CPF OW salaryceiling will be increased again from SGD7,400 to SGD8,000.This increase is intended to keep pace with rising wages.• The statutory minimum retirement age is currently63 years, and will be raised to 64 years from 1 July 2026.The statutory re-employment age will be correspondinglyraised from 68 to 69 years on 1 July 2026.DLAPIPER.COM 17South KoreaMinimum hourly wage for 2026: KRW10,320(effective from 1 January 2026)The total amount of regular bonuses and cash welfare benefitswill be included in the calculation of minimum wage.Amendment to the Trade Union and LabourRelations Adjustment Act (the “TULRAA”),commonly known as the “Yellow EnvelopeAct” (effective from 10 March 2026)The Yellow Envelope Act will become effective on10 March 2026. The key aspects of the Amendment areas follows:• Expansion of the scope of an ‘Employer’• this Amendment recognises an entity as an ‘employer’under the TULRAA if it has substantial and specificcontrol over working conditions, even if it is not the directemployer under an employment contract.• accordingly, if a contracting entity substantiallyand specifically controls or determines the workingconditions of a subcontractor’s employees, it may bedeemed an employer and be obligated to engage incollective bargaining with the subcontractor’s union.• Expansion of the scope of ‘Union Membership’• currently, the TULRAA stipulates that an organisation isnot considered a trade union if it allows non-employeesto join. This Amendment deletes this provision, therebyensuring the right to organise for various types ofworkers, including special employment workers andplatform workers, and aligning with recommendationsfrom international organisations such as the ILO.• Expansion of the scope of an ‘Industrial Dispute’• currently, the TULRAA defines an industrial disputeas “a state of dispute arising from a disagreementover claims concerning the determination of workingconditions, such as wages, working hours, welfare,dismissal, and other treatment.” This definition limitsindustrial disputes to disagreements arising during theprocess of determining working conditions applicable toall union members.• however, this Amendment redefines an industrial disputeas “a state of dispute arising from a disagreementover claims concerning the determination of workingconditions, such as wages, working hours, welfare,dismissal, the status of employees, and other treatment,and business management decisions that affect workingconditions, as well as from the employer’s clear violationof a collective bargaining agreement regarding mattersset forth in Article 92, Subparagraph 2, Items (a) through(d).” Thus, this change expands the scope of legitimateindustrial action.• Limitation on damage claims against unions• while the current TULRAA grants immunity to unionsor workers from liability for damages resulting fromlegitimate collective bargaining and industrial actions,this Amendment broadens this protection to coverdamages arising from “other activities of the trade union”as well.• it also clarifies that a union or worker is not liable fordamages caused to an employer when acting in defenseagainst the employer’s illegal acts. It prohibits employersfrom exercising their right to claim damages for thepurpose of interfering with union activities. Moreover,this Amendment outlines specific factors that courtsmust consider when determining the extent of individualliability for illegal acts committed by the union and/orworkers and provides a framework for such unionand/or workers to request a reduction in damages.In line with the above, the Ministry of Employment andLabour (the “MOEL”) has announced a legislative noticefor a partial amendment to the Enforcement Decree of theTULRAA (the “ED Amendment”) to facilitate a substantivecollective bargaining process. The key highlights of theproposed ED Amendment are provided below. EstablishingGrounds for Extension of Labour Relations CommissionDecision Period:• Establishing grounds for extension of Labour RelationsCommission (“LRC”) decision period: Currently, when anemployer fails to make a public announcement regardingthe fact of a request for bargaining, a trade union mayrequest the relevant LRC to address this situation. Thus,when the LRC receives such a request for correction,it shall decide thereon within 10 days from the date itreceives the request. However, under the ED Amendment,the LRC’s current 10-day decision-making period may beextended once by up to an additional 10 days, allowing fora maximum total of 20 days, as grounds for such extensionhave been established.18 DLAPIPER.COM• Clarification of criteria for separation and integrationdecisions of bargaining unit: The ED Amendmentestablishes clear criteria for the LRC when separatingor integrating bargaining units. In making suchdeterminations, the LRC must now consider additionalfactors, including the union’s scope, the commonalityof interests, the adequacy of representation by otherunions, potential inter-union conflicts, and the parties’preferences - expanding upon previous criteria such asdifferences in working conditions, types of employment,and bargaining practices.Permission of punishment against employerswith habitual wage payment delays underthe Amendment to the Employee RetirementBenefit Security Act (the “ERBSA”) (effectivefrom 11 November 2025)To strengthen sanctions against employers who intentionallyand repeatedly fail to pay wages and in line with the amendmentto the Labour Standards Act (the “LSA”), which now allowspunishment against employers (regardless of the victim’swill), the amendment of the ERBSA also allows punishment(regardless of the victim’s will) with respect to delays inretirement benefit payment against employers that are listedin the disclosure list pursuant to Article 43-2 of the LSA.DLAPIPER.COM 19TaiwanKey points on amendments to theOccupational Safety and Health Actregarding workplace bullyingFollowing a landmark legislative session in late 2025,workplace bullying is now legally defined in Taiwan for thefirst time. The official enforcement date is expected to beannounced within the next few months.A clearer definition of workplace bullyingWorkplace bullying refers to situations in which, during theperformance of duties in the workplace, employees use theirposition or power to exceed the necessary and reasonablescope of business needs and continuously engage inoffensive, threatening, ignoring, isolating, insulting, or otherinappropriate actions or words that harm a worker’s physicalor mental state. In severe cases, the conduct does not needto be continuous.Tiered prevention measuresTo address challenges faced by smaller businesses thatare unsure how to implement preventive measures,the amendment establishes basic principles for suchmeasures. Employers must formulate workplace bullyingprevention measures based on the scale of the enterprise.Employers must take immediate andappropriate measuresTo prevent employers from passively ignoring complaints,the amendments specify a proactive duty to respond.When employers become aware that a worker is a victim ofworkplace bullying, they must immediately take effective andappropriate measures.Clearly defined investigation andappeal proceduresIn order to address transparent, objective, and fairinvestigation processes, the amendments call forstandardised procedures. Employers must establish clearrules for investigations, mediation, and appeals to ensureobjectivity, fairness, and impartiality throughout the process.Establishment of an internalreporting mechanismThe amendment requires employers to establish andimplement internal reporting mechanisms. Employersmust provide reports at two stages: upon receiving aworker’s complaints and after the case has been processedand resolved.External relief channels (for cases involvinghigh-ranking executives)To resolve situations where no external investigationmechanism exists when the alleged perpetrator is one ofthe enterprise’s highest-ranking individuals, the amendmentestablishes an external complaint channel. Workers maydirectly file a complaint with the local competent authorityif the accused is one of the top persons in charge.Statute of limitations for complaints andduty to cooperate with investigationsTo ensure smooth investigations and procedural clarity,the amendments specify that complainants, accusedindividuals, and anyone invited to assist must cooperate withthe investigation. The law also sets a statute of limitations forfiling complaints to maintain legal certainty.20 DLAPIPER.COMThailandNew minimum wage requirements• Under the Wage Committee Announcement on MinimumWage Rates (No. 14), the new minimum wage rates will takeeffect from 1 July 2025 onwards.• The existing provincial wage bands remain unchanged;however, the Announcement introduces a new uniformminimum wage rate specifically for:• service establishments that sell food, alcoholicbeverages, or other beverages; and• hotel businesses, except hotels with no more than50 rooms.• For these business categories, the minimum wage is setat THB400 per day, applicable nationwide, regardlessof province.Employee Welfare Fund (“EWF”)enforcement timeline• On 26 August 2025, the Thai Cabinet resolved to postponethe enforcement of contributions to the Employee WelfareFund by 1 year. The EWF, which was originally scheduledto commence on 1 October 2025, will now take effect on1 October 2026.• The postponement aims to allow additional time for impactassessment and necessary legal amendments, particularlyin response to economic uncertainties and concerns raisedby employers regarding increased financial obligations.• To effectuate the postponement, three key legislativeamendments are required:• the new effective date for collection of contributions tothe EWF;• the contribution rates for both employers and employees(initially set at 0.25% of wages and increasing to 0.50%from October 2030); and• the criteria and procedures for disbursement of funds incases of resignation, termination, or death.Social security contribution ceiling• On 12 December 2025, the Royal Gazette published a newMinisterial Regulation concerning adjustments to SocialSecurity contribution calculations, which will take effect on1 January 2026.• The regulation introduces a phased adjustment tothe wage ceiling used for calculating contributions to theSocial Security Fund, aimed at ensuring appropriatenessand minimising impacts on insured persons and employers.Phased implementation• Phase 1 (2026 - 2028)• maximum wage ceiling: THB17,500• maximum contribution: THB875 per month• Phase 2 (2029 - 2031)• maximum wage ceiling: THB20,000• maximum contribution: THB1,000 per month• Phase 3 (2032 onwards)• maximum wage ceiling: THB23,000• maximum contribution: THB1,150 per monthMaternity, paternity andreporting requirementsThe amendments were published in the Royal Gazetteon 7 November 2025 and will take effect 30 days afterpublication, on 7 December 2025.Key highlightsExtended maternity leave• Maternity leave entitlement is increased from 98 days to120 days.• Employees are entitled to full wages for up to 60 daysduring the leave period.Additional leave for child health complications• If a newborn experiences health complications, disabilities,or risks of serious illness following the standard maternityleave, the mother is entitled to an additional 15 daysof leave.• During this period, compensation is provided at 50% of theemployee’s regular wage.Paternity/spousal leave for childcare• Introduces 15 days of paid leave for the spouse of aninsured female employee to assist with childcare.• This leave may be taken within 90 days before orafter childbirth.• Full wage compensation is provided throughout theleave period.Employer reporting obligations• Employers with 10 or more employees must submitan annual report outlining employment and workingconditions to the Department of Labour Protectionand Welfare.• The report must be submitted within January of each year.DLAPIPER.COM 21VietnamReduction of employers’ unemploymentinsurance contributions fordisabled employeesAs from 1 January 2026, employers are entitled to a reductionin compulsory unemployment insurance premiums that theyare required to pay for disabled employees, for a period ofup to 12 months when newly hiring and employing disabledemployees, with the Government to issue detailed guidancefor implementation.Expansion of participants in compulsoryunemployment insurance (“UI”)While previously compulsory UI only applied to Vietnameseemployees who work under indefinite term labour contractsor definite term labour contracts of three months ormore, the new Employment Law 2025, effective from1 January 2026, expands coverage of UI to Vietnameseemployees who work under indefinite term labour contractsor definite term labour contracts of one month or more,even if the contract has another name (i.e. a name other thana labour contract) and such contract specifies the paid work,salary and management, executive operation/ administrationand supervision by one contracting party.Electronic labour contracts From 1 July 2026, the entering into, amending,supplementing, suspending and terminating electroniclabour contracts must be carried out through an eContractsystem (to be provided by properly licensed eContractproviders), which system will be linked to the ElectronicLabour Contract Platform (a centralised national platform -which platform will be established and managed by theMinistry of Home Affairs and officially become operationalby 1 July 2026), allowing employees and employers to create,digitally sign, store, retrieve and manage electronic labourcontracts, as well as submit labour usage reports and certifyelectronic labour contracts. The use of electronic labourcontracts to replace paper-based labour contracts is notmandatory but is encouraged.Increase of maternity and paternity leaveWith effect from 1 July 2026, applicable to when givingbirth to a second child, female employees will be entitled tomaternity leave of seven months (increased from the currentsix months leave), and male employees will be entitled topaternity leave of 10 working days (increased from thecurrent five to seven working days off).Employee information registrationFrom 1 July 2026, employers must register and updatevarious employee information (including employees’ personalinformation; information on general education, vocationaleducation, higher education, vocational skill certification,and other certificates; information on employment statusand employment demand; information on social insuranceand unemployment insurance; and information oncharacteristics of the employees) with the relevant socialinsurance authority, which information will be updated andsynchronised with the national employee database.22 DLAPIPER.COMDLA Piper in Asia PacificBeijingHong KongSingaporeBangkokShanghai TokyoSeoulPerthMelbourne北京香港新加坡曼谷上海 东京首尔珀斯墨尔本布里斯班悉尼奥克兰惠灵顿BrisbaneSydneyAucklandWellingtonDLA Piper at a glance40+countries90+offices6,000+lawyers7globalpractice groups11global sectorsDLAPIPER.COM 23About DLA Piper’s Employment GroupDLA Piper’s Employment Group is a market-leadingglobal practice with a strong reputation for deliveringsolutions-based advice and supporting clients in theday-to-day management of their people. It includes over300 specialist lawyers globally, advising on a strategic andoperational level, on both contentious and non-contentiousmatters across the public and private sectors.We also regularly provide valuable guidance and insighton issues concerning employment law and practice indifferent regions.GENIE - Global Employment News, Insights and Events isa subscription only global employment law resource forour client’s global employment group. Designed to helpunderstand the employment and labour law essentials whenentering into or operating in new jurisdictions, GENIE allowssubscribers to review and compare laws across countriesand keep up-to-date with key HR legal developments aroundthe world.Please sign up for GENIE: geniesubscriptions.dlapiper.com/register.htmGlobal employment guides - Our Global EmploymentGuides cover a significant number of jurisdictions acrossEurope, the Americas, Asia-Pacific and Africa. These guideshighlight the key legal provisions and provide practicalguidance giving clients instant access to the information theyneed to assist them to understand, plan and implement theirglobal strategy in the areas including:• Guide to going global - Employment• APAC workplace investigation• Greater Bay Area - cross border employment and tax• Redundancies and reductions in force• Global whistleblowing guide• Gender pay transparency guidePlease visit our Employment portal:dlapiper.com/en/capabilities/practice-area/employment#insightsFor more information please email your usual contact atDLA Piper or [email protected] us:DLA Piper is a global law firm operating through various separate and distinct legal entities. Further details of these entities can be found at dlapiper.com. This publicationis intended as a general overview and discussion of the subjects dealt with, and does not create a lawyer-client relationship. It is not intended to be, and should not be usedas, a substitute for taking legal advice in any specific situation. DLA Piper will accept no responsibility for any actions taken or not taken on the basis of this publication.This may qualify as “Lawyer Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.Copyright © 2026 DLA Piper. All rights reserved. Feb 11 2026 | A31845-3