Worker classification

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: Switzerland's minimum wage map expands as courts and voters back new pay floors Switzerland's patchwork of cantonal and municipal minimum wages grew significantly in recent weeks, with two landmark developments that employers across the country need to track. On 12 May 2026, the Federal Supreme Court ruled in decisions 2C_28/2025 and 2C_30/2025 that the cities of Zurich and Winterthur may lawfully set their own minimum wages. The Court overturned earlier Administrative Court decisions and confirmed that municipal minimum wage ordinances fall within the cities' constitutional autonomy and do not infringe the legislative powers of the Canton of Zurich. Zurich's minimum wage is set at CHF 23.90 per hour, while Winterthur's stands at CHF 23 per hour, both approved by substantial voter majorities (69% and 65% respectively). Separately, on 14 June 2026, voters in the canton of Vaud approved a constitutional initiative to introduce a cantonal minimum wage. The initiative passed with 49.1% in favour against 45.8% opposed (with over 5% blank ballots), while a competing legislative proposal setting the rate at CHF 23 per hour and a government counter-proposal both failed narrowly. The cantonal government must now draft implementing legislation to give effect to the new constitutional provision. With Geneva (CHF 24.59/hr), Neuchâtel (CHF 21.35/hr), Jura, Ticino and Basel-Stadt already operating cantonal minimums, and Zurich and Winterthur now validated at the municipal level, at least seven Swiss jurisdictions have statutory pay floors. The trend is clear: more of Switzerland's workforce is being brought under minimum wage protection, and the rates vary considerably by location. What to do: Employers operating across multiple Swiss cantons and municipalities should audit current pay rates against all applicable local minimums. The variation between jurisdictions (from roughly CHF 21 to CHF 25 per hour) means that a compliant rate in one location may fall short in another. Watch for Vaud's implementing legislation, which will set the specific rate and any sector exceptions. Payroll teams should build location-specific minimum wage checks into their processes. Also developing Sweden: The work permit reform that took effect on 1 June 2026 is now fully operational, and employers hiring non-EU/EEA nationals face materially higher salary requirements. The minimum monthly salary for a work permit has risen from SEK 29,680 to SEK 33,390, reflecting a shift from 80% to 90% of the Swedish median wage. Employers' own compliance history now matters: previous sanctions, criminal offences or tax penalties can lead to permit refusal. Permits are no longer tied to a specific employer or profession, and EU Blue Card validity has been extended to four years. A transitional rule applies to extensions: employees holding permits granted before 1 June who apply for extensions between now and 1 December 2026 remain subject to the old 80% threshold. From 2 December 2026, the 90% threshold applies to all extensions. Exemptions cover 152 shortage occupations, including healthcare, IT and metalworking roles. What to do: Swedish employers with non-EU staff should check that all current and planned salary offers meet the new SEK 33,390 threshold, or confirm that the role falls within an exempt shortage occupation. Note the 2 December deadline for the transitional period on extensions. Austria: Freelancers (freie Dienstnehmer) have been working under significantly strengthened protections since 1 January 2026. The reform grants freelance employees access to applicable collective bargaining agreements and introduces statutory notice periods of four weeks, increasing to six weeks from the second year of service, with notice effective only on the 15th or last day of a month. The changes aim to curb the misuse of freelance contracts and establish fairer minimum standards for pay and working conditions. Separately, targeted amendments to the Working Time Act (Arbeitszeitgesetz) have clarified the conditions under which extended working time limits apply in hybrid and remote work arrangements, and documentation obligations for employers have been tightened. What to do: Austrian employers engaging freelancers should review all freie Dienstnehmer contracts to confirm they comply with the new notice period requirements and any applicable collective bargaining provisions. Companies with hybrid or remote workers should check that their working time documentation meets the updated standards. Netherlands: The deadline for publishing the Wet invoering rechtsvermoeden van arbeidsovereenkomst (legal presumption of employment act) in the Staatsblad is 31 August 2026. This deadline is critical: publication by that date is required for the law's planned 1 January 2027 commencement to hold. Once in force, any contractor earning below approximately €38 per hour (projected to reach roughly €39 after 2027 indexation) will be able to invoke a legal presumption that their relationship with the hiring company is employment, shifting the burden of proof to the employer. Only the worker or their representative (such as a trade union) can trigger this presumption. The Tweede Kamer adopted the bill on 21 April 2026. What to do: Dutch employers engaging independent contractors below the threshold rate should prepare for the presumption taking effect on 1 January 2027. Review contractor arrangements, assess whether relationships would withstand reclassification, and document the genuine independence of each engagement. The 31 August publication date will confirm the timeline. On the radar Netherlands Platform Work Act consultation (previously covered): Closes 24 August 2026. UK electronic union balloting (previously covered): Takes effect 25 August 2026. UK zero-hours contracts consultation (previously covered): Closes 25 August 2026. Spain flexible retirement (previously covered): Royal Decree 416/2026 takes effect 28 August 2026. Ireland My Future Fund opt-out (previously covered): Window closes at the end of August 2026. EU Platform Workers Directive (previously covered): Member states must transpose by 2 December 2026. Sources Bär & Karrer: Swiss Federal Supreme Court upholds the municipal minimum wage regulations in the cities of Zurich and Winterthur The Local: Zurich and Winterthur's minimum wages get green light from top court MME: Minimum wage in Switzerland on the rise SWI swissinfo.ch: Vaud introduces a minimum wage into its Constitution Zalaris: New salary thresholds for Swedish work permits in 2026 Newland Chase: Sweden work permit reform in force from 1 June 2026 Swedish Migration Agency: New rules for work permits come into force Global Legal Insights: Employment and Labour Laws, Austria 2026 Eurofound: Austria extends stronger labour rights to freelancers Van Doorne: Dutch employment law legislative update, July 2026 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.