Europe HR Compliance Pulse: 10 July 2026

A daily briefing on European HR, labour law and compliance developments for SME HR teams across the EU, UK, Switzerland and the Nordics.

Top story: EU defers high-risk AI obligations for HR tools to December 2027

On 29 June 2026, the Council of the EU gave final approval to the Digital Omnibus package on AI, following the European Parliament’s endorsement on 16 June. The package defers the high-risk compliance obligations under the EU AI Act by 16 months: stand-alone high-risk AI systems, including those used in recruitment, CV screening, candidate ranking, performance monitoring and termination decisions, now face a compliance deadline of 2 December 2027 instead of 2 August 2026. AI systems embedded in regulated products have until 2 August 2028. The obligations themselves (risk management, technical documentation, bias testing, human oversight and transparency disclosures) remain unchanged; only the timeline has shifted. The legislative act will be published in the Official Journal shortly and enters into force three days after publication.

What to do: If your organisation uses AI tools in hiring, screening or performance management, you now have until December 2027 to comply with the high-risk requirements rather than August 2026. Use the extra time to audit which tools qualify as high-risk, document your risk assessments and establish human-oversight procedures. Do not treat the deferral as a reason to stop preparing: the requirements are unchanged and the timeline is still fixed.

Also developing

Denmark: The Danish Supreme Court clarified the scope of temporary agency work in a judgment on 18 June 2026. In two cases, the Court held that workers covered by the Danish Act on Temporary Agency Work cannot simultaneously claim protections under the Salaried Employees Act. In the first case, two IT workers assigned for 25 months with seven extensions were found to be genuinely temporary because the user company’s IT function was being phased out. In the second, a supply chain analyst assigned for 3.5 years with four extensions was found not to be genuinely temporary: the agency was ordered to pay notice-period salary and compensation under the Fixed-Term Employment Act. What to do: Employers using temp agencies in Denmark should ensure each extension has a documented, objective justification. Assignments exceeding two to three years without clear grounds now carry significant legal risk.

Italy: The Italian Supreme Court issued two notable employment rulings reported in July. First, it confirmed that an employee who is a caregiver to a person with a disability is exempt from the obligation to perform night work, regardless of the degree of disability of the person being cared for. Second, the Court held that temporary agency workers are entitled to performance bonuses paid to directly hired employees of the user company, as the principle of equal overall economic treatment extends to variable remuneration. What to do: Italian employers should review night-shift rosters and bonus policies to ensure caregivers are exempt from mandatory night work and that agency workers receive equivalent variable pay.

Belgium: Beyond the 1 July reforms covered in recent editions, a further change takes effect on 1 August 2026: a shortened notice period of one week will apply during the first six months of employment for contracts concluded on or after that date. Separately, flexi-jobs are now permitted across all sectors (private and public) since 1 July, though each sector may request a full or partial exclusion on a quarterly basis during the 2026 transitional period. Employers engaging flexi-job workers must have an electronic time registration system in place. What to do: Update contract templates ahead of 1 August for the one-week notice period. If considering flexi-job workers, verify whether your sector has opted out and confirm your time-registration systems are compliant.

United Kingdom: The government’s consultation on restricting the use of non-disclosure agreements in cases of workplace harassment and discrimination closed on 8 July. The proposed regulations would void NDAs that prevent workers from speaking about harassment, discrimination or an employer’s response, with limited exceptions requiring independent legal advice, written consent and a cooling-off period. The measures are expected to take effect in 2027 and will not apply retrospectively. Separately, a consultation on ending one-sided flexibility in zero-hours and similar contracts remains open until 25 August, seeking views on guaranteed-hours thresholds, reasonable notice of shifts and payment for cancelled shifts. What to do: Review any standard NDA clauses in settlement agreements now to anticipate the 2027 changes. Employers using zero-hours contracts should consider responding to the consultation before the August deadline.

On the radar

Germany, employment reform package (previously covered): The Bundestag is expected to vote on the 34-measure reform package, including day-one sick-note requirements, extended fixed-term contracts and a new high-earner termination mechanism, before the summer recess. Monitor parliamentary proceedings for the final wording.

EU Pay Transparency Directive (previously covered): Only four member states have transposed the Directive; infringement proceedings are expected later in 2026.

EU Platform Workers Directive: Member states must transpose by 2 December 2026, introducing a presumption of employment for platform workers meeting certain criteria.

Sources

Europe HR Compliance Pulse is an informational summary of publicly reported legal and regulatory developments. It is not legal advice. Always confirm obligations for your specific situation and market with a qualified adviser.