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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: Germany announces sweeping employment law reform On 2 July 2026, Germany's governing coalition agreed a comprehensive reform package titled "A Programme for Economic Recovery and Employment," containing 34 measures that could reshape key areas of German employment law. Among the most significant proposals: fixed-term contracts without objective justification would be permitted for up to 48 months (with up to six extensions) for employees hired before 31 December 2030. High earners, those paid more than 1.75 times the annual pension insurance contribution ceiling, could face a new termination mechanism allowing employers to end the relationship by paying severance, even if a court would not consider the dismissal socially justified. The coalition also intends to require a medical certificate from day one of sickness absence and abolish telephone sick notes, with increased criminal sanctions for incorrectly issued certificates. None of these proposals is yet law: the measures must still pass through parliament, and amendments remain possible. What to do: No immediate action required, but SME HR teams in Germany should begin reviewing fixed-term contract policies and sickness-absence procedures now, so they're ready to adapt once the legislation is finalised. Also developing Belgium: A package of employment law changes took effect on 1 July 2026. For new employment contracts signed from that date, the statutory notice period on employer-initiated dismissal is capped at 52 weeks. Night-work premium rules have been narrowed: employees hired from 1 July in distribution and related sectors now receive the statutory premium only for work performed between 23:00 and 06:00. Employers also gain more flexibility on working schedules, with the option to replace detailed schedules in work regulations with a general framework indicating when employees may perform work. What to do: Update employment contract templates and payroll settings for the new notice-period cap and night-work premium window. United Kingdom: From 1 July 2026, any new employee is eligible for unfair dismissal protection after six months of continuous service, down from the previous two-year qualifying period under the Employment Rights Act 2025. Separately, a government consultation on restricting the use of non-disclosure agreements (NDAs) in settlement agreements closes on 8 July 2026. What to do: Review probationary and onboarding processes to ensure performance issues are documented within the new, shorter qualifying window. If your organisation uses NDAs, consider submitting a response to the consultation. France: A new paid parental leave scheme became operational on 1 July 2026 for children born or adopted from 1 January 2026 onward. Each parent may take up to two months of additional birth leave, compensated at 70% of net salary for the first month and 60% for the second. Parents of children born or adopted between 1 January and 31 May 2026 may use their entitlement before the end of the year. What to do: Update leave policies and payroll systems to accommodate the new entitlement, and inform eligible employees. Ireland: Two changes landed in quick succession. The Employment (Contractual Retirement Ages) Act 2025 commenced on 29 June 2026, following approval of an updated Code of Practice on Longer Working. Employees now have a clearer right to request to work beyond a contractual retirement age. Separately, the My Future Fund opt-out window opened on 1 July 2026 for employees auto-enrolled on 1 January: they have until the end of August to opt out. What to do: Ensure retirement and pension communications are updated and that HR teams can handle opt-out requests within the window. Norway: From 15 June 2026, parts of the automotive industry are now covered by a generally applicable collective bargaining agreement that sets statutory minimum wages. Rates range from NOK 208 to NOK 237 per hour depending on experience and skill level, covering repair, servicing, maintenance, painting, bodywork, warehouse operations, car care and tyre work. What to do: Employers in the affected sectors should verify that current pay rates meet or exceed the new minimums. On the radar EU Pay Transparency Directive: The 7 June 2026 transposition deadline has passed, but only four member states (Italy, Slovakia, Lithuania and Malta) have complete national legislation in force. Major economies including Germany, France, the Netherlands, Sweden and Denmark missed the deadline, with several targeting 1 January 2027. Commissioner Hadja Lahbib has confirmed infringement proceedings may follow; letters of formal notice are expected later in 2026. Employers in countries that have not yet transposed should still prepare: once national legislation lands, compliance timelines are likely to be tight. Estonia's Economic Affairs Minister has publicly stated the country would rather pay a fine than meet the deadline, citing administrative burden. EU AI Act, high-risk HR tools: The EU AI Act becomes fully applicable in August 2026, classifying software used for CV screening, candidate ranking and performance monitoring as high-risk. Employers using such tools will need to ensure human oversight, transparency and bias-testing requirements are met. Netherlands, self-employment classification: The Wet VBAR bill, which introduces a presumption of employment for workers earning below €36 per hour and a set of indicators for assessing worker status, is expected to enter into force later in 2026. Separately, equal-pay provisions for temporary workers may also take effect from 1 July 2026. Ireland, Platform Workers Directive: Ireland must transpose the EU Platform Workers Directive by 2 December 2026, which will affect how gig and platform workers are classified. Sources Baker McKenzie: Planned significant changes to German employment law Addleshaw Goddard: Germany unveils major employment law reform plans Ogletree Deakins: Germany's 2026 labor law reforms Baker McKenzie: Belgium new legislation on employment law provisions MBM Commercial: UK employment law change from 1 July 2026 GOV.UK: Plan to Make Work Pay timeline update KMH Benefits: French social law 2026 key reforms DAC Beachcroft: Ireland employment updates Q2 2026 DLA Piper: Nordic Employment Law Bulletin, July 2026 Lewis Silkin: EU Pay Transparency Directive 2026 employer compliance Morgan Lewis: EU Pay Transparency Directive, the deadline has passed European Commission: New EU rules on pay transparency explained 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.

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