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2026年3月30日

Insights: Employment | Benefits | Mobility – Q1 2026

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Welcome to the Global Employment & Benefits group’s latest issue of Insights, highlighting key employment, benefits and mobility developments.

In our previous edition of Insights, we highlighted what was on the horizon for businesses, including new laws, regulations and standards. With 2026 well underway, this edition covers some of the most pressing challenges and opportunities for businesses operating across Europe–including France, the United Kingdom, and Germany–as well as in Brazil and the United States.

This edition explores a wide range of timely topics, including the EU Pay Transparency Directive; a recent French Supreme Court decision aimed at reducing exposure in collective economic dismissals; forthcoming reforms in the UK under the Employment Rights Act 2025; significant labour and employment developments in Brazil; California’s new restrictions on “stay or pay” clauses; the evolving landscape of UK defined benefit pension scheme endgames; and strategic considerations for US employers navigating the H‑1B process.

We also share the latest news from the Global Employment & Benefits group and highlight key recent global employment, benefits, and immigration updates, in case you missed them.

We are delighted to share this edition of Insights and hope you find it helpful. Please feel free to contact any member of the global Employment & Benefits team if you have questions or would like to discuss any of the issues covered.

 

Andrew Rosenman | Stephanie Vasconcellos | Guido Zeppenfeld
Co-Leaders, Global Employment & Benefits

Hot Off The Press

  • Mayer Brown is pleased to welcome new partners in Houston. The team includes Meghaan Madriz and Jason Huebinger. Read More.
  • Mayer Brown has once again been named Benefits Group of the Year, reflecting the firm’s high profile victories and impactful work defeating high-profile ERISA class action lawsuits over the past year. Read More.
  • Mayer Brown Employment & Benefits partner Miriam Bruce has been named in The Lawyer's Hot 100 list for 2026, which recognises UK-based professionals who demonstrate excellence and relevance in the legal market. Read More.
  • Mayer Brown has once again been named to International Employment Lawyer’s “Global Elite” list. Read More.

EU Pay Transparency Directive: A Well-Governed Implementation Can Become a Competitive Advantage for Employers

By 7 June 2026, all Member States must implement binding transparency rules that will transform how employers recruit, set pay and communicate internally. The EU Pay Transparency Directive imposes detailed requirements across data, systems, processes and documentation. The goal is simple: equal pay for equal work, but the execution is demanding.
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France: Reducing Unfair Damages Exposure in Collective Economic Dismissals - a Key Ruling From the French Supreme Court

The aim of an ex gratia payment provided in a social plan is likely to overlap with the damages for unfair dismissal that a former employee can claim. Providing an ex gratia clause in a social plan could therefore constitute a useful tool to manage litigation risk in the context of collective economic dismissals. Employers should, however, seek advice on how to draft the clause to ensure its enforceability.
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United Kingdom: Employment Rights Act 2025 - Upcoming Changes in 2026 and What Businesses Should Do to Prepare Now

The UK Government has published an updated timeline for the implementation of the Employment Rights Act 2025. The Act will introduce a range of reforms, most significantly to unfair dismissal law, reducing the qualifying period to six months and removing the cap on compensation. With changes due to take effect from April 2026, businesses should begin preparing for the developments now.
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Brazil Labor & Employment: Key Developments for Employers in 2026

Brazil’s labor regulatory landscape continues to evolve. For 2026, three important trends will be relevant for companies with operations in Brazil: (i) the growing importance of psychosocial risk management in occupational health policies; (ii) potential legislative changes affecting working time structures and family-related leave; and (iii) increased transparency and enforcement through digital labor compliance systems.
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UNITED STATES: A DEEPER DIVE INTO CALIFORNIA’S NEW LIMITATIONS ON “STAY OR PAY” CLAUSES AS OF JANUARY 1, 2026

Many jurisdictions have recently enacted, or are considering enacting, legislation limiting “stay-or-pay” compensation structures, which require employees to repay their employers certain amounts either upon or as a result of a termination of their employment relationship. California has implemented one of the most comprehensive bills in this regard, which represents a significant expansion of California’s restrictions on contractual restraints affecting worker mobility.
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UNITED KINGDOM: THE SHIFTING LANDSCAPE OF DB PENSION SCHEME ENDGAMES

Defined benefit pension scheme funding levels in the United Kingdom have improved significantly in recent years. As a result, alternatives to buy-out are now a viable endgame option for many schemes and their employers. These options include scheme “run-on” and alternative forms of pension risk transfer.
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UNITED STATES: H-1B LOTTERY 2026: WAGE-BASED STRATEGY FOR EMPLOYERS

In case you missed it, one of Mayer Brown’s most popular recent podcast episodes was the February episode of The Inside Track, offering an in-depth look at the H-1B Lottery 2026 and practical, wage-based strategies employers can use to stay competitive.
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Our Podcasts

Most Read Thought Leadership

  1. What Employers Need to Know About “Anti-American” Bias in the Workplace
  2. Updates to New York’s Trapped at Work Act
  3. Decision Alert: North American Fire Ultimate Holdings LP v. Doorly
  4. Upcoming Changes Under the Employment Rights Act 2025
  5. Beyond Borders: Labor Law Strategies for Cross-Border Deals
  1. Fifth Circuit is the Latest Federal Appellate Court To Find ERISA Plan Arbitration Clause Unenforceable
  2. ERISA Litigation Targets Voluntary Benefits: What Employers Should Know
  3. The Pensions Brief: March 2026
  4. Pensions Playbook: Investing in the UK
  5. Value for Money: Better Retirement Outcomes and Greater Transparency – Further Consultation on New Framework for DC Pension Schemes
  1. H-1B Lottery 2026: Wage-Based Strategy for Employers
  2. US Issues H-1B Visa Cap Update
  3. The Current Immigration Reality for Academic Institutions: Compliance, Cost, and Continuity
  4. When Business Travel Becomes Business Risk Navigating B1 and ESTA Travel in 2026
  5. Trump Admin Announces Major Immigration Change From New Year’s Eve

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