Global Labor Law Weekly: US, UK, Indonesia

During the week of October 5–11, 2026, two currents ran through global labor law: the US kept widening the gap between a loosening federal government and tightening states, while Asia-Pacific moved on both wages and worker protections at once. In the US, Keith Sonderling was sworn in on October 9 as the 31st Secretary of Labor, and California signed a package of 2027 laws — most notably the "No Robo Bosses Act" (SB 947), which bans algorithm-only firings. In Asia-Pacific, Indonesia's parliament passed a new labour law raising severance and tightening layoff rules, and Malaysia's Budget 2027 lifted the minimum wage to RM2,000.

For HR and employers running cross-border operations, none of this is "news" — it is a to-do list. Here is the breakdown by region.

1. The Week at a Glance

Three things to act on now: first, California's new AI-employment and layoff-disclosure laws (compliance due by July 1, 2027); second, the severance and layoff thresholds under Indonesia's new labour law; third, the UK's October rules entering their enforcement phase, with right-to-work checks and longer tribunal time limits already live.

2. Europe

2.1 [UK] UK: October Rules Enter Enforcement — Plus Non-Compete Reform Signals

The UK's October changes have moved from "lawmaking" to "enforcement." According to the Greater Birmingham Chambers of Commerce and Mondaq's compliance note, expanded right-to-work liability took effect on October 1, 2026, extending employers' compliance-verification duties further down the chain.

At the same time, the Employment Tribunal time limit for most claims has been extended from three months to six (see ICLG's analysis). On the legislative front, Lewis Silkin reports that the government plans to limit non-compete clauses in new legislation, and a new Acas Code on flexible working requires employers to document requests, meetings and refusal reasons.

For Chinese-owned entities with a UK presence, four lines have risen at once — hiring checks, dispute time limits, post-employment restrictions and flexible-work arrangements — all within a single quarter.

2.2 [EU] EU Pay Transparency Directive: Greece Lands, Cyprus Delays, Spain Drafts

According to Trusaic's member-state transposition monitor, the EU Pay Transparency Directive required national transposition by June 7, 2026. Progress continued to diverge this week: Greece finalised new equal-pay and salary-transparency rules (Greek City Times); Cyprus remained unresolved past the deadline (Cyprus Mail); and Spain published a draft bill (The Lawyer).

Directive 2023/970 sets broadly consistent mechanics across countries: pay ranges in job ads; a ban on asking about salary history; a ban on pay-secrecy clauses; a right to request pay information; and gender pay-gap reporting plus joint pay assessments when the gap for equal work exceeds 5%.

2.3 [NL] Netherlands, Poland, Austria, Switzerland: Notice, Anti-Mobbing and Self-Employment

In the Netherlands, Littler gives practical guidance on giving notice, stressing notice periods, form and a clear record. Polish employers received a six-month window to build anti-mobbing procedures. Austria relaxed rules on employer changes and unemployment benefits, while Switzerland's minimum-wage dispute heads to a nationwide vote.

2.4 [ES][DE] Ireland, Portugal, Spain, Germany: Minimum Wages and Reform Pace

Ireland's 2027 budget raises the minimum wage and funds a roughly €1.2bn public-sector pay deal, while pausing its living-wage push (RTE). Portugal set its 2027 minimum wage at €970 (The Portugal News). Spain's snap election stalled several reforms, though the government still pushes time-registration reform and a minimum-wage rise. In Germany, Deutsche Bank's CEO urged faster reform and more flexible labour laws.

3. Americas

3.1 [US] US Federal: Sonderling Sworn In; DOL/EEOC Rule Shifts

Keith Sonderling was sworn in on October 9 as the 31st US Secretary of Labor, with expectations of a more employer-friendly DOL (US DOL). Other federal moves this week: DOL published a 2027 federal-contractor minimum wage of $14/hour (HR Dive); it dropped its plan to move FLSA interpretations out of the CFR; and the EEOC plans to scrap its criminal-background guidance while intensifying diversity-related probes.

Case law also confirmed that "we didn't know" is no longer an employer defence to Title VII religious-accommodation claims. Separately, DHS proposed a $100,000 fee on the foreign-graduate work program (OPT), and the US removed Microsoft and several Indian firms from parts of a visa program, squeezing cross-border talent pipelines.

3.2 [US] California: The 2027 Package (AI Firings, Layoff Disclosure, Bereavement, Anti-Hate Training)

Governor Newsom signed a slate of employment bills, led by the "No Robo Bosses Act" (SB 947), which bans algorithm-only/AI firing decisions and requires human oversight of automated decisions affecting employment; employers must comply by July 1, 2027 (California Employment Law Report; Crowell & Moring).

Meanwhile, Ogletree Deakins notes that California amended Cal/WARN to require disclosure of AI and automation in layoff notices; the state also broadened the bereavement-leave "designated person" definition and mandated anti-hate-speech training for all employees. On pay, California enacted a law raising some farmworker minimum wages to $19.75/hour, creating a separate agricultural track; the state's 2027 minimum wage is $17.40/hour. Lyft also settled California wage-theft claims for $272.5 million.

3.3 [US] Other US States: New York Records Access + State Wage Rules

The headline is New York's personnel-file access law, which gives current and former employees the right to inspect, review and challenge personnel records, with firm requirements on file scope, retention and response times (Employment Law Worldview; Nixon Peabody). Fisher Phillips flags Florida's new limits on local wage rules, while JD Supra covers Delaware's ban on "captive audience" meetings.

3.4 [CA][MX] Canada, Peru, Colombia, Mexico

Canada's Bill C-39 cleared second reading, proposing to reduce federal labour disruptions and put federal strike rules under review (Norton Rose Fulbright), with CUPE vowing open defiance. Peru raised its minimum living wage and related labour costs (DLA Piper). Colombian business groups keep pressing to reverse the 2026 minimum-wage hike. Mexico's dismissal rules and workweek-cut debate continue.

4. Asia-Pacific

4.1 [ID] Indonesia: Parliament Passes a New Labour Law (Higher Severance, Tighter Layoffs)

Indonesia's parliament passed a new labour law raising severance and tightening layoff rules — widely read as a tilt back toward workers. Per Reuters and Nikkei Asia, employers and unions remain split on minimum wages, outsourcing and layoff thresholds, with businesses worried about flexibility and costs.

For firms operating or hiring in Indonesia, this means recalculating severance exposure, updating layoff procedures and consultation records, and reviewing outsourcing/staffing structures.

4.2 [MY] Malaysia: Budget 2027 Sets RM2,000 Minimum Wage (June 2027)

Malaysia's 2027 Budget raises the minimum wage to RM2,000, effective June 2027, with an exemption for MSMEs with revenue below RM50 million (Malay Mail; The Star). Labour-intensive sectors such as gloves and plantations have flagged earnings headwinds, while the government expands tax relief, skills training and gig-worker protections (Human Resources Online).

4.3 [KR] India, Korea, Taiwan: Labour Codes, AI Work and Minimum Wages

India advanced its new Labour Codes (2026), changing payroll and statutory-compliance calculations (PF, gratuity) (CAclubindia; ICLG). In Korea, AI and robots entering factories fueled debate about work disappearing before jobs do, while Samsung Biologics' union sought bargaining. Taiwan raised its minimum wage, though commentators doubt it will fix structural inequality.

4.4 Southeast & South Asia: Philippines, Cambodia, Vietnam, Bangladesh

The Philippines raised minimum wages in Calabarzon, by up to PHP 45/day (Philstar). Cambodian workers are pushing beyond a "survival wage," and unions urge a review of the 2027 minimum wage. Vietnam's online mutual aid and labour-advocacy crisis continues. Bangladesh's debate over Article 26 labour-law reform intensified, with the ITUC and IOE calling for a unified law covering EPZ workers.

4.5 [AU] Australia, New Zealand, Hong Kong

Australia's Labor government introduced online-safety, trust-tax and gas-reserve bills and adjusted a century-old cruise-ship exemption to expand rights (ABC News). New Zealand's election has opened an employment-law reset debate (Stuff). Hong Kong raised its minimum allowable wage for foreign domestic workers and launched a 2027 elderly-care worker pilot (Lewis Silkin).

5. Middle East & Africa

UAE: Khaleej Times laid out how UAE labour law treats termination while an employee is on leave, including reasons and notice. Syria: US lawmakers welcomed its labour-law reform. Jordan: legal training and stronger unions boosted workers' voice. South Africa: a ruling on "continuous operations" in mining, and a court upheld a dismissal over abusive language. Lesotho: with ILO support, its wage board advanced evidence-based minimum-wage setting; the "Labour Laws in Africa 2026 Guide" also launched this week.

6. Five Signals for the Week

Next week: implementing rules and effective dates for California's SB 947 and Cal/WARN amendment (July 1, 2027); the official texts for DOL's federal-contractor wage and the EEOC background-guidance repeal; more EU member states' pay-transparency transposition; the effective date and severance-calculation details of Indonesia's new labour law; enforcement guidance for Malaysia's RM2,000 minimum wage and its MSME exemption; and the UK's non-compete reform legislation plus employer uptake of the Acas code.

* This article is for informational purposes only and does not constitute legal advice.