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Friday, November 21, 2025

European Labor Law Updates: Key Developments You May Have Missed - JD Supra

Europe’s labor law landscape is evolving rapidly, with significant implications for multinational companies operating across the continent. Whether you’re managing a workforce, handling compliance, or structuring cross-border operations, staying ahead of these changes is critical. Here are eight key areas with the biggest impact on employers that were identified in the European Commission’s most recent Flash Reports on Labour Law.

Quick Overview of Key Developments

1. Working Time: Belgium, France, Greece, and the Netherlands introduced new rules on overtime, flexible working hours, and the inclusion of allowances in holiday/sick pay calculations.

2. Collective Agreements: Courts in Austria and Croatia are tightening rules on the application of collective agreements, particularly for foreign employers. Liechtenstein has introduced new provisions on employee participation in cross-border restructuring, aligning with EU Directive 2019/2121.

3. Dismissal Protection: Austria clarified dismissal rules for cross-border employees. France reinforced that employers must provide training before dismissing for incompetence.

4. Fixed-Term Work: Cyprus, Germany, Lithuania, and Portugal have issued rulings and legislation to prevent the abuse of fixed-term contracts, ensuring compliance with EU Directive 1999/70/EC.

5. Parental Leave: Belgium, France, and Spain have expanded parental leave rights, including new provisions for foster parents, same-sex couples, and extended maternity...



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