GLOBAL: Changing Employment Landscape, Global Labor Shortages Continue in 2022

January 07, 2022

The global labor and employment law landscape will be volatile in 2022 as the COVID-19 pandemic continues to create unpredictable economic and compliance challenges for multinational employers. Legislation and regulation on everything from supply chain standards to independent contractors, remote and telework, data privacy and gender equality will evolve in various forms across the globe.

Europe: Tom Hayes, Executive Director of BEERG, provides an excellent summary of what legislative changes employers can expect, including a proposed directive on an EU minimum wage, gender pay transparency laws across the EU, the employment status of platform workers, supply chain due diligence laws, GDPR, and how Brexit will affect labor and union relations in the UK and EU.

Asia: Southeast Asian nations are slow to recover from massive job losses stemming from the pandemic. India’s delayed implementation of labor reforms brings more uncertainty to the already fragile labor market. In China, the U.S. Uyghur Forced Labor Prevention Act will impact many multinational employers forcing a review of human rights concerns and abuses throughout their global supply chains. On the employee relations front, 2022 might present unique challenges to global employers operating in China due to aggravated relations between China and the U.S.

Latin America: In addition to the pandemic, Latin America is suffering from the world’s worst inflation which will significantly impact compensation practices in the region. Mexico remains a top concern as the 2019 labor law reform implementation is "completed" in early 2023 and USMCA Rapid Response Mechanism is expected to present pressures and risks to employers.