What’s new in international law and compliance in 2026

Compliance is a moving target. And 2026 just kicked things into high gear. Developments in AI and the gig economy sparked new law changes and labor standards around the world. 

From cybersecurity law amendments in China to immigration reforms in Spain, let's take a look at the biggest compliance shifts in 2026.

India: the labor code transition

India merged 29 federal labor laws into four main codes. The codes replace 29 older laws and introduce new definitions, requirements, and compliance standards for wages, social security, industrial relations, and workplace safety. Employers have to update policies, contracts, and payroll systems to align with the new framework, both at the national and state levels.

Your priority actions:

• Audit payroll: Check that your systems use the new wage standard for benefits and contributions.

• Expand benefits: Give social security to qualifying independent contractors.

• Update documents: Change employment contracts and HR policies to match new legal standards.

G-P pro tip: Transitioning 29 laws is a big lift for any HR team. Partner with an employer of record (EOR) for stress-free global employment. With G-P EOR, you don’t have to worry about changing regulations. We handle payroll, document updates, and state-level tracking so you don't have to.

The Netherlands: IP and ESG

Three changes to employment law are happening in the Netherlands this year. A new copyright contract law took effect on January 1. The law requires explicit, written agreements for copyright transfers. 

As of April 2026, workplace safety regulations are ramping up in the country. A new law will lower exposure limits for hazardous substances. And finally, ESG (environmental, social, governance) reporting requirements are expanding under the EU corporate sustainability reporting directive. This means more companies have to collect, track, and publicly report on their sustainability and social responsibility practices.

Your priority actions:

• Secure IP: Make sure all new and existing IP arrangements are properly documented to avoid legal disputes.

• Check safety: Update safety policies, provide extra training, and set up new controls or equipment to meet the stricter hazardous substances standards.

• Track ESG: Build systems to report the social and environmental data required by the EU.

G-P pro tip: In the Netherlands, an independent contractor — not the hiring company — retains ownership of the IP they create. It's essential to include a clear, written assignment of IP rights in the contract to ensure your company owns the work product. Get contract templates through G-P Contractor™ to stay compliant with the new Dutch copyright contract law.

China: data privacy and AI

China’s updated cybersecurity law took effect on January 1 of this year. The amendment increases penalties for data breaches and strengthens AI governance. The new rules limit data that can be used in background checks and standardize credit information handling. Regional antidiscrimination laws are also expanding regarding fair treatment and equal opportunity.

Your priority actions:

• Boost security: Upgrade your incident response to avoid high fines.

• Refine hiring: Adjust background checks to meet new limits on data and credit handling.

• Train managers: Revise your equality policies to align with regional laws.

G-P pro tip: China's stricter penalties make compliance slip-ups far more expensive. Use G-P Gia™ to get real-time guidance on best practices, legal considerations, and requirements for background checks under these new rules.  

ProtoPie, a leading prototyping software company, wanted to expand into the U.S., U.K., and China, the largest markets for UX design. But managing hiring in new countries without local entities or deep knowledge of labor laws was complex. See how they did it.

Colombia: identity markers and pensions

The right to a non-binary marker on official IDs was enacted in January 2026 (having been first established by the Constitutional Court in 2022). It allows the labels "trans" and "no binario" to appear directly in the "sex" field of the national ID card, rather than just an "X." Under the Labor Reform (Law 2466 of 2025), the Colombian Ministry of Labor established that companies:

• Have to update their HR databases and forms to include the new legal categories (X, NB, or Trans).

• Need to refresh their internal work regulations, including updating antidiscrimination protocols, by June 25, 2026.

Your priority actions:

• Adapt HR systems: Make sure all forms, onboarding documents, and internal communications reflect inclusive gender options.

• Talk to your people: Train HR staff and managers on new gender recognition standards and inclusive practices. 

• Adjust payroll: Update payroll and benefits systems to reflect the reduced pension contribution requirements for women in private funds. 

G-P pro tip: Updating global HRIS systems for new gender markers is labor-intensive. Offload that administrative work to G-P. We manage the inclusive onboarding and precise payroll adjustments on your behalf.

The U.K.: worker rights

The U.K. has major reforms scheduled for phased implementation under the employment rights bill. Changes coming in 2026 include:

• Banning “fire and rehire” practices

• Improving statutory sick pay and family-friendly rights

• Expanding employee entitlements and employer obligations

Your priority actions:

• Renegotiate contract terms legally: Make sure any new contract changes are made through proper consultation and agreement.

• Update processes: Adjust your policies and payroll systems to comply with new statutory sick pay rules and expanded family-friendly rights. 

• Offer training: Provide training for managers on the new entitlements.

G-P pro tip: Use Gia to get real-time guidance on U.K. employment law changes and check your current policies, contracts, and processes for regulatory gaps. 

Spain: faster immigration

Spain introduced new immigration reforms in 2025 to streamline work permits for international workers. This move allows more flexibility in employment and self-employment, and expands family reunification rights. The country’s updated seasonal worker rules were also updated.

Your priority actions:

• Use new visas: Broaden your talent pool with seasonal worker and digital nomad options.

• Review relocation: Adjust your policies to support expanded family rights for international workers.

• Hire faster: Use streamlined permit processes to cut your time-to-hire.

G-P pro tip: Use Gia for instant clarity on which Spanish visas fit your needs.

What’s still to come in 2026

The EU AI act

The EU AI act comes into effect this August. The act aims to create clear rules for AI use across the EU. It introduces new compliance obligations for employers using AI in recruitment, promotion, dismissal, task allocation, and employee monitoring. There will be substantial penalties for noncompliance. Fines can be as high as EUR 35M, or 7% of global annual turnover.

Your priority actions:

• Prioritize data governance: Make sure your AI systems use expert-vetted data and verified sources.

• Store documents long-term: Keep detailed technical documentation and logs for high-risk AI systems, and store records for at least 10 years.

• Prepare for transparency: Inform employees and their representatives before deploying AI systems, and provide clear information about how these systems impact them.

G-P pro tip: Gia can help you stay compliant with the EU AI act in several ways. For instance, it can offer policy templates for data governance and regular data audits, or assist in setting up processes for ongoing data review and documentation.

The EU pay transparency act 

The EU pay transparency act is a new EU-wide law that all member states have to implement by June 2026. The act’s goal is to make sure that equal pay is given for equal work or work of equal value. 

Employers will have new obligations to disclose pay information, both to job applicants and to current employees. Companies with 100 or more employees will be required to report on their gender pay gap. Additionally, employers will no longer be allowed to ask job candidates about their pay history.

Your priority actions:

• Update recruitment practices: State the starting salary or salary range in all job advertisements.

• Review pay structures: Make sure your job evaluation and pay classification systems are based on gender-neutral criteria.

• Prepare access to information: Employees can request information about their individual pay and the average pay for colleagues doing the same work. You have to give them access to this information.

G-P pro tip: Use Gia to get up-to-date guidance on building gender-neutral pay structures and reporting requirements, so you can easily update policies and prepare for EU pay transparency compliance.

Don’t let compliance slow you down

Depending on where your business expands in 2026, you may need to adjust your background checks to meet new limits on data handling, train your HR staff on new gender recognition standards, or rewrite contracts in local languages to make sure they’re legally binding. The common denominator is proactive planning. 

To put compliance into action and gain an edge over your competitors:

• Shift the burden: Partner with an EOR like G-P and leave the HR and legal complexities to us.

• Boost flexibility: Add independent contractors to your workforce to quickly scale your team and adapt to changing business needs while maintaining compliance.

• Use agentic AI: Use tools like our global HR agent Gia to reduce the cost and time of compliance by up to 95%.

• Integrate your systems: Reduce blind spots by moving away from disconnected payroll and HR tools.

Start your 2026 compliance audit now. Sign up for Gia to check for new or updated employment laws across 50 countries and all 50 U.S. states.