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International HR Adviser The Leading Magazine For International HR Professionals Worldwide

FEATURES INCLUDE: The Balancing Act Of The 'Borderless Workforce' Dilemma: Equity For Mobile Employees - Fairness Versus Mobility Realities Flexibility In Motion: Redefining Relocation Benefits For A Changing Workforce UK Government Unveils Landmark Reforms To Legal Immigration Understanding Canada's Evolving Immigration Landscape Global Hiring Is Surging - But Compliance Gaps Are Holding Businesses Back Corporate Travel Policies Must Evolve Amid A Legionella Lottery For Business Travellers China Expands Cross-Border Policies To Boost Exchange Of Talents And International Travel EU Pay Transparency Act The Future Belongs To Leaders Who Trust Their People The Future Of HR Leadership In The Age Of Diversity: Shaping The Next Generation Of HR Leaders ADVISORY PANEL FOR THIS ISSUE:

CONTENTS

In This Issue 3

18 20

The Balancing Act Of The 'Borderless Workforce' Clare Fazal, Global Employer Services, Deloitte LLP

Dilemma: Equity For Mobile Employees - Fairness Versus Mobility Realities Olivier Meier, Mercer

Flexibility In Motion: Redefining Relocation Benefits For A Changing Workforce Kristin White, Sterling Lexicon

UK Government Unveils Landmark Reforms To Legal Immigration James Walters, Smith Stone Walters

Understanding Canada's Evolving Immigration Landscape James Walters, Smith Stone Walters

Global Hiring Is Surging - But Compliance Gaps Are Holding Businesses Back Barbara Matthews, Chief People Officer, Remote

Corporate Travel Policies Must Evolve Amid A Legionella Lottery For Business Travellers Hydrosense

China Expands Cross-Border Policies To Boost Exchange Of Talents And International Travel Vivien Yu & K Lesli Ligorner, Morgan Lewis

The European Union Pay Transparency Directive in 2026 Louise Skinner & Phoebe Fardell, Morgan Lewis

The Future Belongs To Leaders Who Trust Their People Nirit Peled-Muntz, Chief People Officer, HiBob

The Future Of HR Leadership In The Age Of Diversity: Shaping The Next Generation Of HR Leaders Mostafa Sayyadi & Michael J. Provitera

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Helen Elliott • Publisher • T: +44 (0) 20 8661 0186 • E: helen@internationalhradviser.com Ben Everson • T: +44 (0) 7921 694823 • E: ben@internationalhradviser.com International HR Adviser, PO Box 921, Sutton, SM1 2WB, UK In Loving Memory of Assunta Mondello Origination by Debbie Morgan and Printing by Impress Print Services Ltd The International HR Adviser team work with a British planet positive printer, with a commitment to best practice environmental management including achieving the top score in Europe for the Green Leaf Awards, full FSC Certification, and ISO14001. Well managed sourcing of both virgin pulp and recycled papers, in addition to carbon balancing ensures that you can enjoy International HR Adviser with a clear eco conscience. While every effort has been made to ensure accuracy of information contained in this issue of “International HR Adviser”, the publishers and Directors of Inkspell Ltd cannot accept responsibility for errors or omissions. Neither the publishers of “International HR Adviser” nor any third parties who provide information for “Expatriate Adviser” magazine, shall have any responsibility for or be liable in respect of the content or the accuracy of the information so provided, or for any errors or omissions therein. “International HR Adviser” does not endorse any products, services or company listings featured in this issue.

INTERNATIONAL HR STRATEGY

The Balancing Act Of The 'Borderless Workforce' The opportunity to ‘work from anywhere’ remains highly attractive in the talent market and continues to encourage organisations to provide the workforce the flexibility to work when and where they choose, whilst enabling organisations to seek and deploy candidates with the right skills from across the global talent market. Thus, organisations are increasingly exploring the feasibility of a ‘borderless workforce’ as a solution to this challenge. However, this approach should be considered against the backdrop of adherence to a complex and evolving web of international tax, legal, and regulatory requirements. With this in mind, might a ‘border of choice’ approach be more feasible?

Understanding The ‘Why’

Understanding the driving force behind the desire for ‘borderless’ contracts for top talent is key to developing effective solutions. Historically, a period spent working at HQ was considered a crucial stepping stone for future leaders and key talent in large, well-established organisations - almost a prerequisite for climbing the corporate ladder. The pandemic fundamentally shifted practices in the labour market by proving that employees can thrive while working remotely and more flexibly. This realisation fuelled a demand for employee autonomy. Ambitious individuals may still aspire to top HQ roles but now seek to influence or define the terms. For example, declining to relocate to HQ in favour of commuting cross-border from their home country. This represents a significant departure from previous norms. Anecdotally, we have seen an uptick in organisations enquiring whether their workforce can move towards becoming ‘borderless’. We see this desire from both the employees and employers. Drivers typically include: • Responding to the changing expectations of employees who increasingly value location-independence • Attracting and retaining top talent by offering unparalleled flexibility

• Facilitating a truly ‘global workforce’ strategy, enabling talent acquisition from anywhere in the world.

Navigating The Challenges

As all HR, Tax and Mobility professionals know, due diligence is crucial in any location where an employee will work for any period of time. For this reason, several key challenges make a truly ‘borderless workforce’ difficult to manage in a compliant manner. We have outlined some key challenges below. This is not an exhaustive list, many other areas should be considered such as employer duty of care, benefits and insurance cover, cost, longevity, scalability, immigration, transfer pricing and indirect tax.

As all HR, Tax and Mobility professionals know, due diligence is crucial in any location where an employee will work for any period of time 1. Tax And Social Security Obligations Where an employee physically works has implications for both the individual and their employer. For an employer, an employee’s work may potentially trigger tax and social security obligations that can become incredibly complex to manage across multiple locations. Whilst 'global roles' are not new, they traditionally involve close tracking of work activities and associated costs across borders,

with the employee generally remaining tethered to a specific home country. Theoretical ‘borderless’ arrangements without a habitual home base have the potential to significantly increase the complexity of tax and social security obligations, particularly if guardrails are not in place relating to the countries that can be worked from, and for what duration. A parameter could be something as simple as de minimis thresholds which trigger a due diligence review, e.g., ‘X days’ can be worked in a particular country before requiring a compliance review. However, such thresholds are normally based on risk appetite rather than actual tax and social security regulations and do not completely remove non-compliance exposure. Some locations will have a day one withholding obligation. Broad policies like this are typically also only practical from a risk perspective where the individual is remote working for a short period of time and a strong treaty network can be relied upon. Additional considerations apply such as the tracking and monitoring of these individuals. Notwithstanding reputational risk, and the cost of recourse and/or specialist advisor fees to resolve noncompliance and support with tax authority enquiries, failure to address employment tax responsibilities could result in interest and penalties. 2. Employment Law Rights Navigating the diverse landscape of international employment law, with each country's unique regulations including legislation related to minimum wage, working hours, pensions and termination obligations, presents a significant hurdle for organisations managing a globally dispersed workforce. Unlike some other areas of the law, it is typically not possible for the parties to ‘contract out’ of applicable law. Instead, a careful legal assessment should be carried out on a case-by-case basis to determine what laws will apply to the individual for the appropriate contractual documentation to be put in place. In many cases, this will mean putting in place an employment contract which is governed by the laws of the country with which the employee has the strongest connection. Whilst it may be possible to design a core contract that is adaptable for most locations, supplemented by country-specific addenda,

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INTERNATIONAL HR ADVISER WINTER

this would require careful management for each jurisdiction where an employee triggers local employment rights. There is particular risk to organisations where disputes occur, particularly where the organisation has not considered employment protections beyond the employee's contractual home base, including minimum notice periods, enforceability of post termination restrictive covenants and the courts which will have jurisdiction. 3. Permanent Establishment risk Depending on the specific circumstances of an employee’s work in each country, a Permanent Establishment (PE) could be created for the organisation in multiple countries. This could lead to additional corporate tax liabilities and costs of managing these PEs. The OECD published updates to its tax treaty guidance on 19 November, 2025, with additional clarity on where remote workers may create a PE. The new commentary proposes a two-part test: assessing the length of time activities are undertaken in the country, and then, where this is failed, considering if there is a commercial reason for the business to have an operation in that country. Whereas this new guidance is helpful, it is unclear how widely or quickly it will be adopted, or its application to historic cases, and so PE risk should still be reviewed on a country-by-country and role-by-role basis; however, organisations may be able to sign off certain roles as having low PE risk based on the role architecture of the organisation. Even where an organisation can get comfortable that no PE is created, careful management would still be required, with appropriate documented guardrails put in place, and regular monitoring.

Clear Differences In Risk Appetite

There can be widely varying organisational appetite to the idea of borderless work. Some organisations, particularly startups and those less mature businesses, are truly embracing a flexible approach to employee location, demonstrating a high-risk tolerance for potential compliance considerations. This risk-tolerance can be influenced by several factors, one being their early-stage, often pre-profit status, potentially rendering PE corporate tax liabilities immaterial. However, we note that implications such as registration, filing and penalties may not be immaterial. Other organisations are driven by the ethos that the right talent takes priority above all else. Greater potential volumes of remote workers, which can be the case for larger organisations, can further amplify the complexity of managing tax and legal compliance for the workforce.

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What Does Legislation And Guidance Say?

Government legislation and guidance has traditionally lagged behind evolving work practices, and there have to date been limited published views on individuals working outside of countries where they are legally employed or not formally seconded to. Following the November publication of the OECD’s PE guidance, other questions on remote working issues, including employment tax obligations and personal tax and residence questions, are expected to be dealt with in future projects, with the scope of this work due to be agreed in the first half of 2026. Potential government focus in this area and related regulation may therefore be forthcoming over the next couple of years, which will need to be carefully considered in line with global talent strategies. Legislation is rarely issued at a regional or bilateral level, with national laws still generally prevailing. As detailed above, employers are at the mercy of a plethora of national laws when allowing their employees to work freely cross-border. This makes designing contract wording and implementing employment protections unfeasible for a truly borderless work arrangement.

Legislation is rarely issued at a regional or bilateral level, with national laws still generally prevailing ‘Border Of Choice’ As A Pragmatic Approach?

Ultimately, an individual's physical presence will continue to determine and/or influence applicable employment laws, tax, and social security liabilities. Allowing individuals to work under truly ‘borderless’ contracts without any geographical constraints, moving as often as they like to whichever location, may not yet be practically achievable whilst also appropriately and effectively managing compliance and risk. A more practical approach may be a ‘border of choice’ policy and related decision-making process, whereby employees select a ‘home location’ which is their habitual home, while

retaining some flexibility to work elsewhere, which can be varied in line with defined parameters and guardrails. For example, the individual can spend up to 30 days working in a country with which their ’home’ location has a double tax agreement, being able to switch their home country as desired every ‘X months or years’. Whilst still requiring due diligence and monitoring, a potential arrangement like this may be much more manageable from a resource, cost and risk perspective. Here are some of the levers which can help operationalise a ‘border of choice’ instead: • Clear Policy and Decision-Making Process: Establish clear guidelines on work location flexibility considering all cross-function implications (How often can they move? Are there sign off processes? Are there restricted locations?), outlining the process for due diligence and compliance when an employee wants to work from a new location • Robust Tracking and Monitoring: Implement systems to track employee locations to manage tax, social security, and employment law compliance • Global Reward Policies: Develop compensation and benefits structures which can potentially be adapted to local markets whilst remaining fair and competitive • Centralised Control and Management: Establish a centralised oversight of globally mobile employees to ensure consistent policy application and manage compliance effectively, which can extend to the centralisation of employment contracts in one entity i.e. a Global Employment Company structure • Technology Solutions: Leverage HR technology to streamline processes, track employee locations, and manage compliance obligations; and • Core Employment Contracts with Local Addenda: Explore implementation of a core ‘global contract’ with rights and benefits meeting the employment law requirements in the primary location, with an accompanying addendum addressing specific employment law requirements for a secondary country where the employee may trigger employment law rights, if necessary.

Insight From Organisations

In June 2025, we held our GlobalForce2025 Client Forum and were joined by a range of talent and mobility leaders from different sectors. One of the sessions explored further what ‘borderless’ might mean in a world that can feel increasingly isolationist and it was clear that there is a real paradox at play in trying to deliver ‘borderless’ work, reward and movement within a business. Some key themes were agreed upon: • Borders do exist; thus, it’s a case of finding approaches that limit friction in movement (immigration of course being a key factor here)

INTERNATIONAL HR STRATEGY • Mobility can struggle to justify costs associated with borderless work arrangements, highlighting the need for better ROI metrics. Some participants noted that current methods focus too heavily on employee sentiment rather than tangible business results/value. Whilst flexible work can be seen as a potential talent attraction and retention mechanism, this needs to be demonstrably linked to business success; and • The feasibility of ‘borderless’ work varies significantly across industries with sectors like Energy & Resources having a higher proportion of jobs dictated by location/geography. This topic will surely continue to be a hot topic, further debated and explored. While truly ‘borderless’ arrangements may not be wholly feasible in the current landscape, organisations could explore ‘border of choice’ models that balance desired flexibility with corporate responsibility. This requires a strategic approach that includes clear policies, robust processes, monitoring and appropriate decisionmaking processes. By embracing a pragmatic approach and collaborating with experts to navigate the complexities, organisations can create a flexible and compliant work environment that retains and attracts top talent in today's globalised world.

CLARE FAZAL

Director, Global Employer Services, Deloitte LLP T: 020 7007 0284 E: cfazal@deloitte.co.uk With over 15 years of experience working in global mobility compliance and advisory, Clare specialises in cross-border employment strategies, supporting organisations with global expansion, talent deployment and international talent acquisition. Deloitte’s dedicated Global Talent & Mobility practice is a multi-disciplinary group of tax, immigration, talent, HR and digital professionals who support clients as they navigate complex global workforce challenges, developing focused strategies and delivering practical enablement.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited (DTTL), its global network of member firms or their related entities (collectively, the “Deloitte organization”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication. DTTL and each of its member firms, and their related entities, are legally separate and independent entities. ©2025. For information, contact Deloitte Global.

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Dilemma: Equity For Mobile Employees - Fairness Versus Mobility Realities Equity has become more than a moral imperative: it is now a strategic business challenge and in a growing number of countries, a compliance requirement. According to Mercer’s 2025 Worldwide International Assignments Policies and Practices Survey, only 23% of assignees globally are female, signalling a significant under-representation of women in mobile populations. Moreover, fewer than 10% of organisations can demonstrate a reliable link between mobility and career progression, while approximately 41% admit that they do not track promotions post-assignment. On the reward front, Mercer’s research highlights the fragmentation of compensation models: The “homebased” (balance sheet) approach that once dominated is still in use, especially for strategic moves or hardship locations, but the growing complexity of assignment types has led firms increasingly toward “hostbased” or “local plus” compensation models. For example, Mercer found that 96% of organisations have employees on local plus arrangements (host salary plus tailored benefits) and 57% expect this number to grow. These shifts respond to cost pressures, talent supply issues, and a need for flexible mobility. Meanwhile, pay-transparency and equity legislation are tightening globally. The EU Pay Transparency Directive, in particular, reinforces the need for equity and pay explainability, as it requires employers to justify pay differences exceeding 5% based on objective criteria and grants employees the right to request comparator pay information. The directive applies to all workers in EU member states, potentially including expatriates and internationally mobile employees. HR teams must be increasingly prepared to document and articulate the rationale behind various compensation approaches.

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Organisations must, therefore, manage both pay equity (how assignees compare with local and home peers) and career equity (how mobile versus non-mobile employees fare in development and progression) in an environment where transparency expectations are rising.

At the heart of the challenge lies a tension between internal/external fairness and mobility-driven market realism The Dilemma

At the heart of the challenge lies a tension between internal/external fairness and mobility-driven market realism. From the fairness side: • Mobile employees may receive significantly different compensation compared with local peers doing equivalent work. Without a transparent rationale, this breeds perceived unfairness. In jurisdictions implementing pay-transparency rules, such as the EU, unexplained gaps may also invite questions from employees or regulators • Career pathways for mobile employees often diverge from non-mobile colleagues; if mobility becomes the default fasttrack, those unable to move may feel disadvantaged or sidelined • With global pay-equity laws expanding, treating mobile employees as a distinct category without justification could create regulatory risk.

From the mobility realism side: • Many assignments involve valid cost and complexity drivers: relocation expense, tax and social-security burdens, family disruption, risk and hardship, or the need to maintain a link with the home country • Home-based packages, commonly used for international assignees, protect the assignee’s purchasing power and simplify repatriation, ensuring consistency in the standard of living, which may justify higher pay relative to the host market • Talent shortages in certain markets, urgency of business need, and maintaining competitiveness argue for differentiated reward for mobile talent. Beyond pay, there’s the dimension of career equity: the Mercer Worldwide International Policies and Practices Survey shows many organisations don’t track whether mobility leads to promotion or retention, so mobility may inadvertently become a “privilege” or a dead-end, rather than a transparent path. The dilemma then becomes: How do you compensate mobility in a way that is defensible, aligned with business needs, yet does not create unfair pay or career outcomes inside the organisation and remains compliant with evolving equity and transparency mandates?

Resolving The Dilemma: Reconciling Compensation Logic With Equity And Compliance

The most credible path forward is not to insist on one side (fairness or realism), but to build a coherent, equity-aligned mobility reward and career system, anchored in logic, transparency, and segmentation.

1. Segment Assignments By Purpose And Reward Accordingly

Recognise that not all mobility is the same. Assignment types differ: strategic longterm leadership roles, high-risk hardship assignments, short-term developmental rotations, one-way transfers, and virtual international work. Each type brings distinct business value, cost exposures, and career implications. Defining segments allows you to build differentiated reward logic and career pathways that are defendable. Segmentation also

EQUITY FOR MOBILE EMPLOYEES helps organisations explain legitimate pay differences when responding to transparency requirements.

2. Define What “Equity” Means In Your Mobility Context: PayAnd Career-Equity

Pay equity within mobility means comparing assignee pay to both hostmarket peers and home-country peers doing similar work, and justifying differences with a documented rationale. Career equity means ensuring mobile and non-mobile employees have transparent routes to development and reward, so mobility is not the only fasttrack path. Career equity, as such, is not regulated by the EU pay transparency directive. However, career inequities often lead to pay transparency and equity issues.

Pay equity within mobility means comparing assignee pay to both host-market peers and homecountry peers doing similar work, and justifying differences with a documented rationale 3. Construct And Document A Defendable Compensation Logic

The use of home or host-based pay approaches for mobile employees is sometimes based on short-term considerations - such as securing a specific

candidate or, on the contrary, saving costs. Organisations must make these rationales more explicit to meet transparency expectations. For example, the EU directive requires that pay differences are based on objective and measurable criteria. The logic must withstand both internal scrutiny and external compliance.

4. Drive Transparency And Monitoring (With Equity Lens)

Proactively publish internal principles and report equity outcomes: gender composition of assignees, mobile versus local pay comparisons, and promotion and repatriation statistics. For companies operating in the EU, this includes being prepared to respond to employee payinformation requests and participate in pay-gap reporting as required.

5. Create Alternative Career Routes To Mitigate Career Inequity

If some t ypes of international assignment become the privileged route to advancement, those who cannot relocate may feel second class. Provide equivalent development options: regional postings, cross-functional assignments, virtual mobility (working remotely to support another business unit), or short international rotations. This reinforces that mobility takes many forms and that there is no unique path to reward and progression.

6. Review, Iterate, And Align With Evolving Context

T h e d e b ate ove r co m p e n s at i o n approaches is far from over, as new work styles (virtual mobility, remote international work) and evolving employee expectations force fresh thinking. Regularly audit pay and career outcomes and adjust policy. Mobility packages may need to be reassessed or, at the very least, communicated differently to ensure documented fairness and compliance. Organisations that succeed will not choose between fairness and market reality. They will design reward and career systems where both co-exist, and where differences are justified, communicated, and equitable. Equity in mobility is no longer a “nice to have.” It is a driver of trust, talent attraction, mobility ROI, and compliance. The question for mobility and HR leaders isn’t whether mobile employees should be treated differently; it is how that difference is designed, how transparently it’s communicated, how it aligns with career development, and how it holds up under external scrutiny, particularly as global pay-transparency expectations, including those emerging from the EU, continue to expand.

Regularly audit pay and career outcomes and adjust policy. Mobility packages may need to be reassessed or, at the very least, communicated differently to ensure documented fairness and compliance

OLIVIER MEIER

E: Olivier.meier@mercer.com Find out more: Join us at the 2026 Talent Mobility Conference in Budapest on April 23-24 to discuss compensation challenges with your peers.

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INTERNATIONAL HR ADVISER WINTER

Flexibility In Motion: Redefining Relocation Benefits For A Changing Workforce How personalised, agile relocation strategies can attract top talent, support employee well-being, and drive business success in an evolving global landscape. The beginning of a new year is a good time to reflect on the forces that have most significantly shaped the global business landscape over the last twelve months – and what we can expect for the future. Several converging influences are highly likely to continue guiding HR, employee benefit and global mobility decisions: 1. Operating Through Global Uncertainty. Ongoing volatility and the pace of geopolitical, economic and environmental changes don’t show signs of slowing any time soon. This demands a crucial balancing act from business leaders between being able to act fast enough to take advantage of opportunities, while staying agile enough to minimise risks. Containing costs, operating efficiently and ensuring compliance will also remain top priorities. 2. Recognising the importance of shifting employee demographics - and sentiments. Employees increasingly expect flexible benefits designed around their individual needs, life stages, personal values and preferences. McLean & Company’s Future of HR Report, lists employee sentiment and how work gets done as two of the top five drivers of change shaping HR. Traditional benefits like retirement plans, heathcare coverage and paid time off have become standard expectations, so companies are increasingly looking to woo and retain top talent with unique and innovative perks, designed to meet them where they are. With the demographic makeup of the modern workforce being one of the most diverse we’ve ever seen, that calls for some creative thinking. 3. Meeting the demand for new skills. Whether the adoption of AI continues its rapid advancement or eventually reaches a bubble, there’s no question that advancements in technology will continue to require new and specialised skills, and talent demand is accelerating faster than the supply can keep up. Widely varying approaches

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to skilled immigration may prompt many employers to rely even more heavily on local hires, remote work or distributed teams and invest in internal mobility and training to reskill the talent they already have.

If mobility is to remain a key part of an organisation’s talent strategy, then relocation policies and benefits need to keep pace What Does All This Mean For Employee relocation?

If mobility is to remain a key part of an organisation’s talent strategy, then relocation policies and benefits need to keep pace. Building greater levels of customising into benefits is challenging, for sure, but it’s becoming increasingly non-negotiable. A 25-year-old single professional has vastly different needs than a 40-year-old with a family or a 55-year-old empty nester. Employees are not just moving for a job, they are making life decisions. The most successful relocations will support their entire well-being, not just the logistical aspects of the move. At the same time, employers need flexible approaches to meet their unique business needs, too, and support resilience, growth and success.

Just as you would when designing any other type of total rewards offering, developing agile relocation support programmes starts with an internal audit to help you: 1) Understand your greatest talent needs, where you have skill gaps and which operational regions are at greatest risk for disruption, 2) Gain clarity around what your employees want, need and value most, and 3) Identify opportunities where building in more flexibility makes the most sense.

Aligning Benefits With Life Stages

A truly strategic relocation programme will go beyond simple flexibility and embrace personalisation. By aligning benefits with an employee's specific life stage, you can create an experience that feels uniquely supportive and valuable, boosting your chances of higher engagement and retention levels. Some specific examples might be offering tuition reimbursement or student loan payment relief for early career professionals, providing leadership development opportunities, contributing to child or elder care expenses, and financial planning for mid-career professionals, or downsizing assistance, part-time, flexible schedules or spouse or partner support for more senior professionals who may be looking to slowly ease out of the workforce. Leveraging technology can significantly enhance the process. HR and relocation management platforms can help analyse data holistically, including employee feedback, benefits usage rates and exception requests to recommend packages, track progress, and provide a more customised experience for each employee.

Aligning Benefits With External Conditions

In addition to having relocation policies that address some of the more traditional types of moves, such as long- and short-term assignments or permanent transfers, HR and mobility teams are increasingly being called on to manage extended business travel, help design programmes that support voluntary, employee-initiated moves, or solve for visa and

FLEXIBILITY IN MOTION

By investing in strategic and innovative relocation options, you empower your people and business to thrive, no matter where the work gets done

immigration renewal processing delays with short-term moves to neighbouring countries where possible, vs. returning the employees to their home locations. The same levels of attention and care to customising approaches to meet evolving business needs, external forces and market- or region-specific challenges will go a long way toward developing more effective and agile workforce mobility strategies.

life circumstances feel heard and supported, enabling you to build a more diverse and resilient workforce. By investing in strategic and innovative relocation options, you empower your people and business to thrive, no matter where the work gets done.

The Business Case

Building evolved and tailored relocation solutions are not just HR initiatives, they are strategic business decisions with a clear return on investment. The primary benefits directly impact your organisation's bottom line and long-term success. A compelling and flexible relocation package is a powerful differentiator in attracting top talent. In a tight labour market, it can be the deciding factor that convinces a high-value candidate to accept your offer over a competitor's. Second, by providing robust and personal support, you increase employee satisfaction and reduce the stressors associated with moving. A positive relocation experience leads to faster productivity and higher engagement. Finally, a flexible and inclusive relocation strategy supports your broader Diversity, Equity, and Inclusion (DEI) goals. It ensures that employees from all backgrounds and

KRISTIN WHITE

Kristin White is Director, Communications & Thought Leadership with global relocation management company, Sterling Lexicon. She has more than 30 years of experience in the workforce mobility industry, including several as an expatriate. She can be reached at: kristin.white@sterlinglexicon.com

The 2025 Expatriate’s Guide to Living in the UK Please pass on to your expatriate employees

The 2025 Guide contains content covering: Banking • Conversion Charts • Driving Education - Schools & Universities Embassies & High Commissions • Expatriate Clubs • Healthcare Immigration • Legal Issues • Property • Taxation Travel • Wealth Management

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International HR Adviser SAVE THE DATE

The 2026 Global HR Conference will take place on Monday 15th June, 2026 at The Royal Automobile Club, Pall Mall, London from 12pm - 4.30pm Please join us for an afternoon of educational and thought provoking seminars hosted by professionals in their field of global mobility This event is FREE to attend and is for Senior Global HR Professionals only To register your interest for this event please email: helen@internationalhradviser.com We look forward to seeing you then

IMMIGRATION

UK Government Unveils Landmark Reforms To Legal Immigration In a historic move that marks the most significant overhaul of the UK's legal migration system in nearly fifty years, the Home Secretary Shabana Mahmood has announced a series of reforms aimed at reshaping the landscape of immigration in Britain. With a focus on contributions to society and the economy, these changes are set to redefine how migrants achieve permanent residency in the UK, while also addressing the pressing challenges posed by illegal migration.

Key Reforms In Settlement Requirements

One of the most notable proposals is the increase in the qualifying period for permanent residency from five to ten years, with additional reductions available for those who make substantial contributions to society. The Home Secretary highlighted that this shift aims to ensure that settling in the UK becomes a privilege that must be earned rather than a right granted after a predetermined period. Under the new rules, low-paid workers, particularly those who entered through the Health and Social Care visa scheme, could face a baseline qualifying period of fifteen years. This route, which was previously plagued by abuse, has long since been closed to new entrants.

A Shift In Immigration Policy

The announcement comes on the heels of a broader governmental initiative to tackle illegal migration, which has seen record numbers entering the country in recent years. The Home Secretary emphasised that migration has always been a vital part of Britain's identity, but the unprecedented scale of recent arrivals necessitates a re-evaluation of existing policies. In her statement, Shabana Mahmood highlighted, ‘Between 2021 and 2024, we have seen net migration of an additional 2.6 million people. Around one in every 30 people in this country today arrived in these four years’. In the year ending Q2 2025, there were 163,000 grants of settlement, up 18% from the previous year. However, these figures are expected to significantly increase over the next 5 years, with around 1.6 million people forecast to settle between 2026 and 2030. Subject to a consultation, the Home Secretary was at pains to articulate a vision of migration that respects both the contributions of newcomers and the concerns of local communities facing demographic shifts. At the heart of these reforms is the introduction of an "Earned Settlement" model, which prioritises those who demonstrate a commitment to integrating into British society. This model is expected to affect nearly two million migrants who arrived in the UK between 2021 and 2024, marking a significant transition for those who have come to seek a better life.

For migrants who rely on benefits, the waiting period for settlement may quadruple to twenty years, making it the longest in Europe For migrants who rely on benefits, the waiting period for settlement may quadruple to twenty years, making it the longest in Europe. Additionally, those who have entered the UK illegally may be

subjected to an unprecedented thirty-year wait, a measure intended to deter illegal immigration and uphold the integrity of the immigration system.

Fast-Tracking for Key Contributors

In contrast, the government recognises the importance of certain sectors in driving economic growth. Healthcare professionals, such as doctors and nurses employed in the National Health Service (NHS), could therefore retain a five-year path to settlement. Likewise, high earners and entrepreneurs may find their paths accelerated, being eligible for settlement after just three years. The consultation on proposals to reform the current settlement rules therefore seeks views on a number of ideas including the somewhat contentious notion of linking earned reductions to earnings. Specifically, a proposal that applicants should attract a shorter qualifying period for settlement if they have, in the 3 years immediately prior to applying, earned a taxable annual income of above £50,270 (earning a reduction of 5 years) or £125,140 (earning a reduction of 7 years). The government has also proposed penalties for those who exploit the system, ensuring that the settlement process becomes more stringent. The Home Secretary indicated that a clean criminal record will be a prerequisite for settlement, aligning with the government's broader agenda to maintain public safety and uphold community standards. We will need to wait to see if minor indiscretions, like low-level shoplifting and road traffic offences, will put migrants at risk of not meeting the ‘clean’ criminal record requirement.

The Role Of Integration And Contribution

A significant emphasis of the proposed new policy is on integration and contribution. Individuals who engage in community volunteering or provide significant economic contributions could be rewarded with shorter waiting periods for settlement. The Home Office is considering whether giving back to the local community should be recognised as a form of contribution towards earned settlement. It is hoped that the consultation period for these proposals will explore how best

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to implement these changes while ensuring fairness and compassion for those already residing in the UK. Current residents with settled status will not be affected by these new rules, reinforcing the government's commitment to uphold the promises made to individuals who have already established their lives in the UK.

emphasis will be on significantly reducing the number of settlement grants over the coming years. Smith Stone Walters strongly advises that anyone wishing to share their views complete the questionnaire by Thursday 12 February, 2026.

Future Implications And Community Engagement

With change comes complexity. If you are confused by any of the alterations, we

The rapid pace of migration over the past few years highlights the need for a more structured and equitable immigration system that balances the needs of the country. However, in doing so, the government must ensure that the new migration model also reflects the diverse experiences and perspectives of those it will affect. It is hoped that the public will engage in the published consultation process. Stakeholders including community leaders and advocacy groups should not hesitate in providing feedback on how these changes will impact their communities. This consultation is open to anyone who wishes to share their views and runs for 12 weeks. After this period, the government will set out its preferred option, or combination of options. Undoubtedly, the

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A Better Way To Manage Global Immigration

suggest reaching out qualified immigration advisers for clarification. Mistakes can be costly, especially for employees whose relocation depends on securing their visa authorisation on time. If you would like to find out more about the integrated global immigration services offered by Smith Stone Walters and our parent company Envoy Global, please contact us today.

JAMES WALTERS Smith Stone Walters

James Walters is a Director and Co-Founder of Smith Stone Walters, bringing over 30 years of UK immigration expertise across both the public and private sectors. He oversees client relationships, business development, and UK operations, and is widely recognised as a trusted voice in the immigration field. Smith Stone Walters was recently acquired by Envoy Global, a provider of global immigration services, and James continues to lead the UK immigration practice. T: 020 7362 2757 E: james.walters@smithstonewalters.com www.smithstonewalters.com

GLOBAL IMMIGRATION UPDATES

Understanding Canada's Evolving Immigration Landscape Canada is renowned not only for its stunning natural beauty and laid-back lifestyle but also for its welcoming approach to immigration. Over the years, the country has garnered a reputation as a prime destination, thanks to its high quality of life, safety, economic opportunities, and rich cultural diversity. However, recent developments in immigration policy indicate a significant shift in how Canada manages its immigration levels in response to changing public sentiment and economic needs.

Historical Context: Rising Immigration Numbers

From 2000 to 2015, Canada saw a steady increase in immigration at an average annual rate of 4%. This rate surged dramatically to 15% between 2016 and 2024, reflecting the government’s commitment to welcoming a diverse array of immigrants, including temporary foreign workers (TFWs) and international students. By 2024, the total number of immigrants had reached approximately 464,265, with expectations that this number would approach 500,000 annually. However, as the population grew, so did public concern regarding the impact of this unprecedented influx. In late 2024, the federal government therefore introduced the Immigration Levels Plan, marking a decisive pivot towards a more controlled immigration framework.

The Immigration Levels Plan: A New Direction

The Immigration Levels Plan, which outlines the government’s targets for permanent and temporary residents over a three-year horizon, aims to recalibrate immigration numbers to ensure sustainability and balance. Beginning in 2025, the initial three-year plan proposed significant reductions in permanent resident admissions - from 464,265 in 2024 to a projected 395,000 in 2025, and further declines to 365,000 by 2027. This shift represented a notable move away from the previous administration's expansive targets. For temporary residents, the plan also set lower admission targets, with a goal to reduce their share of the population from

7.4% to 5% by 2027. This entailed issuing fewer student visas, decreasing TFW admissions, and applying stricter controls to ensure temporary residents depart upon visa expiration.

For temporary residents, the plan also set lower admission targets, with a goal to reduce their share of the population from 7.4% to 5% by 2027 Key Components Of The New Immigration Strategy

Immigration, Refugees and Citizenship Canada (IRCC) engages with a wide range of stakeholders and partners from across the country to help shape Canada’s Immigration Levels Plan. This engagement process highlights a common consensus that immigrant selection should be strategic and targeted to ensure it contributes to building a stronger economy while also protecting the quality of life and access to services for those already in Canada. Shaping Canada’s immigration planning is also guided by the Government of Canada’s commitments to: • Lower the non-permanent resident population to less than 5% of Canada’s population by the end of 2027 • Stabilise permanent resident admissions at less than 1% of Canada’s population annually beyond 2027 • Establish a 12% target for Francophone immigration outside of Quebec by 2029 to promote the vitality of Francophone communities.

On November 4, 2025, Canada subsequently unveiled its new Immigration Levels Plan for 2026– 2028, outlining a continued balanced approach that focuses on steady economic immigration growth while moderating temporary resident inflows. The key takeaways were: 1. Permanent Resident Admissions: The government aims to stabilise admissions at 380,000 per year from 2026 to 2028, with an increased focus on economic immigrants - rising from 59% to 64% of total admissions. This approach places an emphasis on attracting highly skilled professionals who can contribute significantly to Canada’s economy. 2. Temporary Resident Admissions: The number of new temporary resident admissions is set to decrease sharply, particularly affecting international students, while ensuring that the workforce needs of various sectors are met. By the end of 2027, temporary residents are expected to account for less than 5% of Canada’s population. 3. Talent Attraction Strategy: A $1.7 billion strategy has been introduced to attract top talent globally, signalling Canada’s commitment to remain a destination for innovators and entrepreneurs. The government plans to also facilitate pathways for skilled individuals, including H-1B visa holders from the US. 4. Budgetary Considerations: The Budget 2025 forecasts a 15% savings target for Immigration, Refugees, and Citizenship Canada (IRCC) by 2028, achieved through enhanced efficiency and the hiring of additional border services officers.

Implications For Employers And Businesses

This Immigration Plan underscores the importance of strategic workforce planning in light of a more restrictive immigration environment. Employers must adapt to the new reality of longer lead times for immigration processes and increased scrutiny of applications. With fewer temporary resident options, businesses will also need to align their recruitment strategies with national priorities, focusing on sustainable hiring practices and long-term retention of talent. Industries such as healthcare, technology, construction, and advanced manufacturing will be particularly affected, as the government shifts its emphasis toward sectors facing skill shortages. Companies should remain vigilant about evolving immigration policies to leverage

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Companies should remain vigilant about evolving immigration policies to leverage available pathways effectively available pathways effectively. For example, Provincial Nominee Programmes (PNP), designed to help territories and provinces address their specific labour needs, will receive increased targets to fill regional labour gaps, with a total of approximately 91,500 permanent residents expected through PNP in 2026, compared to 55,000 previously.

A Balanced Approach To Immigration

Canada's Immigration Levels Plan represents a significant shift towards a more balanced approach to immigration, prioritising quality over quantity. By focusing on long-term economic contributions and sustainable growth, the government aims to ensure that immigration policies foster prosperity for both newcomers and existing residents alike. As Canada continues to be a desired destination for those seeking a better quality of life, the government’s commitment to attracting talent that drives innovation and economic stability remains steadfast. Employers who strategically align their hiring practices with these objectives will not only help maintain Canada’s reputation as a welcoming haven but also enhance their own ability to thrive in an evolving landscape. If you’re planning for assignees to temporarily work in Canada or contemplating longer stays, then speak to us about your immigration options. With Smith Stone Walters now part of Envoy Global, we can deliver a complete range of immigration services to meet your travel objectives. To find out more about the enhanced level of global immigration services available, please contact us today.

JAMES WALTERS

Smith Stone Walters James Walters is a Director and Co-Founder of Smith Stone Walters, bringing over 30 years of UK immigration expertise across both the public and private sectors. He oversees client relationships, business development, and UK operations, and is widely recognised as a trusted voice in the immigration field. Smith Stone Walters was recently acquired by Envoy Global, a provider of global immigration services, and James continues to lead the UK immigration practice. T: 020 7362 2757 E: james.walters@smithstonewalters.com www.smithstonewalters.com

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GLOBAL HIRING IS SURGING

Global Hiring Is Surging But Compliance Gaps Are Holding Businesses Back As readers of this publication are already very aware, international recruitment has entered a period of significant expansion. Longestablished patterns of how and where companies source talent are being re-shaped and businesses that once hired almost exclusively within their national borders are now recruiting globally. Global hiring has enabled companies to access a broader, more diverse, and often more specialised talent pool and this has had a profound impact on how many businesses operate. The move to a globally distributed workforce has also delivered significant benefits for employees. Skilled workers who previously felt compelled to relocate to major economic hubs are increasingly able to build high-quality careers in their home countries. This shift is one of the most consequential developments in the modern labour market. Yet, despite its many advantages, it also poses complex challenges for HR professionals. Chief among these is compliance. Still, our research (the 2025 Global Workforce Report which surveyed 3,650 HR and business leaders across 10 countries), shows that reality often tells a different, and more concerning, story.

Why International Recruitment Is Growing So Rapidly

Several structural factors have converged to make cross-border hiring not only more prevalent, but, in many cases, strategically necessary. It addresses the limitations of local markets, especially in advanced economies, where competition to attract top talent can be brutal. The time-to-hire can collapse dramatically, and this can empower businesses to innovate more quickly and speed up the attainment of key business goals. Global recruitment also helps organisations build workforces that better reflect the diversity of the markets they serve. Teams composed of individuals

from different cultural, geographical, and professional backgrounds often demonstrate stronger creativity and problem-solving capabilities. Employees benefit from this shift in ways that would have been unimaginable a decade ago. Historically, the highest-paying and most coveted roles were concentrated in a handful of cities such as New York, San Francisco and London. Professionals seeking those opportunities had to uproot themselves, often leaving behind families, support networks, and communities. They also faced new personal challenges, such as finding accommodation in areas where affordable rental property is scarce and the cost of living is high. The rise of global hiring has loosened that constraint. A software developer in Lagos or a designer in Seville now has the tools and network to access employment opportunities that once required physical relocation. The economic implications of this shift are profound. When skilled workers remain in their home countries, their earnings stay within local economies. They buy homes, use local services, pay taxes, and contribute to community life. In regions that have traditionally experienced brain drain, this creates a powerful countervailing force. The ability to participate in global labour markets while remaining rooted in one’s own country can rejuvenate regional economies and help governments grow their tax revenues.

were never intended to accommodate long-term, cross-border employment enabled through digital platforms. Yet until recently, countries have yet to amend their legislation, and consequently, they continue to shape what companies can and cannot do, often in inconsistent or unclear ways. Taxation and social security obligations introduce further complications. Each jurisdiction has its own approach to payroll, reporting, and contributions to national insurance systems. Even minor mistakes in these areas can trigger financial penalties, audits, or reputational damage. For HR teams managing multiple international employees, the administrative burden can quickly become substantial. With countries enacting legislation to govern remote employment, HR professionals are increasingly finding themselves faced with new challenges. As regulators respond to the realities of digital work and cross-border employment, laws are evolving, and the pace of change means companies sometimes struggle to keep up with new requirements. The internal structures of many HR departments amplify these challenges. The proliferation of digital tools has undoubtedly helped create efficiencies for HR teams, but if they are applied haphazardly or in a piecemeal fashion, this leads to fragmented systems that do not communicate efficiently with one another.

The Compliance Challenge At The Heart Of Global Hiring

Remote’s 2025 Global Workforce Report sought to understand how HR leaders are responding to the compliance demands of international hiring. The results revealed a striking and consistent theme: widespread overconfidence. An overwhelming 98 per cent of HR leaders told us they understood the employment laws in the countries where they hire. Yet almost three-quarters (74 per cent) reported facing international compliance challenges. In the UK, for example, sixty-two per cent of HR leaders described themselves as “very confident”, and a further 36 per cent as “somewhat confident”; yet 75 per cent acknowledged that they had experienced compliance problems abroad. These issues included

Yet the simplicity with which companies can now recruit internationally often masks the complexity that underpins the process. Every country has its own regulations governing employment, taxation, social security, payroll, benefits, data protection, and labour rights. Even within the EU, Germany, for example, has very different employment regulations from those in Greece. Sometimes, as is the case in the US, regulations can vary from one state to another. In many countries, the rules governing employee leasing or labour lending were drafted in the late 20th century, and their primary role was to regulate temporary staffing agencies. These laws

The Scale Of The Problem

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violations of labour laws, misclassification of workers, errors in tax and payroll calculations, and failures to meet statutory benefits requirements. The financial impact of these errors is significant. Our survey respondents reported that each compliance incident cost their organisation an average of $42,000 globally. Not a trivial sum for a smaller or mid-sized organisation, and a single incident can place meaningful pressure on budgets and force difficult trade-offs in other areas.

The financial impact of these errors is significant The data also highlighted differences between regions. European firms reported the highest rates of compliance challenges, with more than 80 per cent of French and German respondents reporting problems. By contrast, only 57 per cent of US companies reported similar difficulties. This disparity reflects the differing regulatory traditions in these regions. Europe, with its strong focus on worker protections and its legacy of industrial-era legislation, often presents regulatory environments that are more complex than those in countries with more flexible labour frameworks, such as the US and Singapore. Another notable finding was the degree to which HR leaders are dissatisfied with their current systems. In the UK, 87 per cent said they would consider switching their HRIS if it offered more integrated global payroll and compliance capabilities. This suggests a growing awareness that fragmented systems are contributing to compliance exposure and that greater integration may be part of the solution.

Why HR Teams Struggle, Even When Expertise Is High

H R p ro fe ss i o n al s a re n av i gat i n g environments that have quickly become more complex. The rapid expansion of global hiring means many organisations are building cross-border employment models on the fly, leaving little time for teams to fully adjust. For example, some organisations start to hire globally as a reactive solution to a lack of local talent. As such, HR teams lack the time or resources to

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map legal and compliance implications, and are now responsible for tracking developments across multiple jurisdictions simultaneously, a problem that was rare even a decade ago. This is even further exacerbated by changing labour laws. Ultimately, HR departments were not traditionally designed for this level of global complexity. Even well-resourced teams can struggle to maintain the detailed, continuous oversight needed to ensure compliance across multiple regulatory systems.

Building a More Resilient Approach to Global Compliance

While regulatory reform is essential in the long-term, there are several practical steps that HR leaders can take to keep global hiring compliant. To start, begin a comprehensive review of the organisation's existing employment arrangements across all jurisdictions in which it operates. This should include territories where their employees currently live or may live in the future. Such a review helps establish a clear picture of potential risks and inconsistencies. Even when conducted internally, it can highlight areas that require additional legal guidance. The second is to work towards consolidating HR systems, reducing fragmentation and if appropriate, rethinking the technology stack. A centralised, integrated approach to storing and managing workforce data lowers the risk of conflicting information and ensures that HR leaders have a single, reliable view of global activity. When paired with AI tools, they are empowered to analyse that data and base decisions on those findings efficiently. In the future, agentic AI may even perform basic tasks automatically, facilitating significant time savings. Close collaboration with legal and finance teams is also critical. Regular cross-functional conversations help HR anticipate regulatory changes and identify emerging risks. Then internal processes can be aligned before issues arise. The objective is not simply to react to compliance problems but to build a structure that identifies and prevents them. In addition, organisations should establish clear pathways for international hiring. Compliance early in the hiring journey enables HR teams to reduce the likelihood of unplanned or rushed decisions that lead to errors. Training is another vital component. While HR professionals do not necessarily need deep expertise in every jurisdiction, they do need an understanding of the key areas where laws diverge. Providing HR business partners with foundational knowledge of international employment norms can significantly improve overall compliance readiness.

Finally, senior HR leaders should participate actively in broader policy discussions. As regulatory systems evolve, governments and unions must engage with the organisations most affected by these changes. HR leaders have valuable insights into how labour laws function in practice, and their involvement can help shape more pragmatic, modernised frameworks.

Conclusion: A New Responsibility for a New Era of Work

The rise of international hiring represents a fundamental transformation of how companies build their workforces and how workers build their careers. Its benefits are substantial, creating opportunities for organisations to access global talent, for employees to secure high-quality roles without relocating, and for local economies to retain valuable skills and spending power. Yet these opportunities come with obligations. HR leaders must ensure that global hiring is conducted responsibly and ethically, in accordance with the laws of each country where people work. Compliance is not a barrier to innovation but a foundation for sustainable growth. When organisations get it right, they build trust with employees, reduce risk, and create conditions in which workers and businesses thrive. The world of work is changing fast. As HR leaders, we must evolve with it, proactively, confidently, and with a clear commitment to compliance as the cornerstone of global workforce strategy.

BARBARA MATTHEWS

Barbara is the Chief People Officer of Remote, focused on leading global teams through planning, implementing and scaling, Remote’s cultural vision, to make opportunities accessible to everyone. In Barbara’s most recent role at Stripe, she built the company’s global HR function as International Head of HR, EMEA & APAC. Prior to Stripe, she spent more than 12 years on the People team at Google. Barbara has over 20 years experience working for fast-paced scale-ups to large enterprise business, with a keen focus of building and nurturing high-performing distributed teams.

CORPORATE TRAVEL

Corporate Travel Policies Must Evolve Amid A Legionella Lottery For Business Travellers A m i d g l o b a l ly i n c re a s i n g Legionella rates, leading rapid testing expert Hydrosense is warning business and HR leaders of the serious implications for employees travelling and staying away with work. Legionnaires’ disease is a potentially fatal lung infection caused by inhaling droplets of water containing Legionella bacteria. It can be found in various man-made water systems, including taps, showers, air conditioning units, spa pools, and hot tubs. Current estimates (1) indicate there are between 4,000 and 6,000 cases of Legionnaires’ disease in the UK each year, with a fatality rate of 7 to 12 per cent among those infected. Experts warn that the UK is facing an increased risk of Legionella, fuelled by climate change and warmer temperatures, which create ideal breeding conditions for the bacteria. Crucially for business and HR leaders, Legionella can pose particular risks for employees travelling for work due to a myriad of reasons. Foremost, buildings that are used less frequently during the colder months - including hotel rooms, which have been found to have a 32 per cent inoccupancy rate(2) - are especially vulnerable to outbreaks when water systems are neglected or left unused for extended periods. Adding to the risk for overseas business travellers, many countries worldwide continue to experience higher-than-usual incidences of Legionnaires’ disease and lack the same level of regulatory oversight as the UK. Additional concerns arise from the use of hotel hot tubs and spa pools, which are particularly prone to Legionella contamination due to their warm water temperatures and aerosolising jets. In light of this, Hydrosense is urging business and HR leaders to carefully review their corporate travel policies to ensure they are doing everything possible to protect employees from exposure to Legionella, especially while travelling for work. Greg Rankin, CEO of Hydrosense, comments: “With a new quarter now upon us, there’s likely to be a lot of business

travel due to an upswing in purchasing power, review meetings, and prospects for the year ahead. While Legionella may not be the first concern when ensuring safe travel for employees, the assumption that hotels will cover this as part of their health and safety strategy is a risk employers can ill afford to take. Indicative of this, just recently two of our employees found Legionella pneumophila in their hotel rooms at two different premises, prompting us to adopt an even more rigorous approach to Legionella detection for our team when they travel on business”.

With a new quarter now upon us, there’s likely to be a lot of business travel due to an upswing in purchasing power, review meetings, and prospects for the year ahead “The fact is that Legionella is increasing globally at an alarming rate, posing a significant risk for hotels given their complex water systems and high-risk exposure points, such as hot tubs, pools, and spas. Fluctuating occupancy rates can exacerbate this risk by leading to stagnation and creating ideal conditions for Legionella bacteria growth. With 32%

of hotel rooms unoccupied, this means that - without proper water management procedures - employees staying in hotels are very much facing a Legionella lottery”. About one in ten people who contract Legionnaires' disease will die due to complications from their illness. Seven in eight survivors will suffer long-term impacts on their quality of life, including fatigue, neurologic and neuromuscular symptoms, and post-traumatic stress disorder. Over the past two decades, reported cases of Legionnaires' disease have been rising worldwide. In 2021, the EU/EEA reported the highest annual notification rate of Legionnaires' disease to date, with 2.4 cases per 100,000 people.(3) More recently, in 2023, Scotland reported the highest number of cases seen since 2012.(4) Greg adds: “The statistics show that the scale and severity of Legionella cases in the UK and all across the world are increasing at concerning levels. As such, there has never been a more appropriate time for HR and business leaders to take a proactive stance by providing employees with the means to better protect themselves from the Legionella risk. By testing hotel water systems, employees can identify potential threats before exposure occurs, ensuring they are not unknowingly placed at risk. Every Legionella test taken is an opportunity to safeguard against what is, unfortunately, becoming an increasing health concern particularly for the business travel community”. Resources: 1) www.britsafe.org /safetymanagement/2020/legionella-risksemerging-from-lockdown 2) www.zoomshift.com/blog /hotelindustry-statistics/ 3) www.pubmed.ncbi.nlm.nih. gov/12060869/ 4) www.ecdc.europa.eu/en/publicationsdata/legionnaires-diseaseannual-epidemiological-report2021#:~:text=In%202021%2C%20the%20 highest%20annual,cases%20per%20 100%20000%20population.

HYDROSENSE

For information please visit: www.hydrosense-legionella.com

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The European Union Pay Transparency Directive in 2026 The EU Pay Transparency Directive (the “Directive”) will take effect in June 2026, and as this deadline approaches, there is much that organisations can be doing to prepare for the obligations focussed on the principle of equal pay for equal work or work of equal value between men and women. The Directive introduces a comprehensive framework of pay transparency measures and reporting requirements that require proactive attention from employers of all sizes, even where pay gap reporting headcount thresholds are not met.

Key Requirements Of The Directive

Employers should be aware of the following key obligations detailed in the Directive which are designed to promote pay transparency: • Equal work and work of equal value: Member States must ensure that employers implement pay structures that guarantee equal pay for equal work or work of equal value, supported by accessible analytical tools, methodologies and structures designed to help assess and objectively compare the value of work, based on gender-neutral criteria • Rights to information: Employers of all sizes must be prepared to provide all workers with written information, upon request, about their individual pay and the average pay levels, broken down by sex, for comparable work or work of equal value. Employers must annually inform workers of this right and respond to a request within two months. Workers can request further clarification if the information is inaccurate or incomplete, and they are entitled to these additional details and a substantiated response. This obligation is important for employers to consider because it means that every employer, even those not subject to formal reporting requirements, will need to consider carrying out analysis of pay levels in order to provide accurate and meaningful pay information • Gender Pay Reporting: Employers must provide information regarding the mean

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and median gender pay gaps, including (a) those based on complementary and variable pay components (such as bonuses), (b) the proportion of men and women receiving these pay components, (c) the gender distribution within each pay quartile, and (d) pay gaps across worker categories broken down by basic salary and complementary or variable pay. (a) – (c) must be reported to the relevant authority and shall be made publicly available. (d) must be provided to workers and workers’ representatives, as well as the labour inspectorate and the equality body upon request. The accuracy of the reported information and methodologies used must be shared and verified in consultation with workers’ representatives. The thresholds are as follows: 1) employers with 100-149 employees must publish the report by 7 June 2031 and every three years after; 2) employers with 150-249 employees must publish the report by 7 June 2027 and every three years after; and 3) employers with >250 employees must publish the report by 7 June 2027 and then annually • Joint pay assessments: Employers subject to the reporting obligation must conduct a joint pay assessment if their report shows a gender pay gap of 5% or more in any worker category that cannot be justified by objective, genderneutral criteria and remains unaddressed six months after reporting. This assessment must include a prescribed analysis and be shared with workers, representatives, and monitoring bodies. Additionally, employers are required to remedy unjustified pay differences promptly in cooperation with workers’ representatives, with possible involvement from the labour inspectorate and equality body.

UK / EU Divergence

Whilst the Directive currently goes considerably further than any existing UK pay reporting obligations, the UK government issued a call for evidence earlier this year seeking opinions on whether introducing legally binding pay transparency measures would be a proportionate and effective way to improve pay equality in the UK. The government’s suggestions mirror some aspects of the Directive. Measures that could be adopted in the UK include requiring employers to provide specific salary ranges in job advertisements before interviews and a prohibition on enquiring as to a candidate’s salary history. We may hear more on new measures being introduced into 2026.

Looking Ahead – Impact On Employers

The new obligations under the Directive will significantly impact employers with operations in the EU, particularly those with populations in countries with limited existing pay transparency requirements. Significantly, the non-gender pay reporting obligations under the Directive will apply irrespective of headcount, and worker’s rights to information regarding their own pay levels and the average pay levels for categories of workers performing the same work as them or work of equal value to theirs means that some form of analysis will need to be considered for those employers to whom the reporting obligations do not apply, in order to obtain the necessary data to comply with such requests. There is much that employers can do now to prepare, including reviewing their pay structures, ensuring accurate data collection, and being ready to respond effectively to both information requests and potential legal challenges. Whilst early 2026 will be a vital period of preparation for employers, looking beyond the deadline, the Directive will likely influence what is perceived as best practice, resulting in an increased volume of work for employers as they take steps to consider and implement the administrative framework required under the Directive (for example, training staff or updating and adapting pay-related policies). There is also expected to be an increase in pay equity litigation, as seen in recent highprofile cases in countries including Belgium, France, and the UK, where access to pay data was crucial for the claimants’ cases. By taking steps now, employers will be better positioned to comply with the Directive, reduce the risk of non-compliance, and demonstrate their commitment to pay equity and transparency across their EU operations.

LOUISE SKINNER (LEFT) PHOEBE FARDELL (RIGHT) Morgan Lewis louise.skinner@morganlewis.com Phoebe.fardell@morganlewis.com

INTERNATIONAL HR ADVISER WINTER

China Expands Cross-Border Policies To Boost Exchange Of Talents And International Travel China continues its efforts to strengthen exchanges and collaborations between Mainland China, special administrative region (SAR) Hong Kong, and overseas countries by further expanding its talent endorsement and visafree transit policies. The expanded policies are effective as of November 5, 2025.

Expansion Of Talent Endorsement Policy For Chinese Citizens Traveling To Hong Kong And Macao

In addition to Beijing, Shanghai, and the Guangdong - Hong Kong - Macao Greater Bay Area, China’s talent endorsement policy will be implemented across the Tianjin, Hebei Province, Jiangsu Province, Zhejiang Province, and Anhui Province, and in all pilot free-trade zones nationwide. With relevant certification issued by competent talent authorities, eligible employers, and other relevant entities, outstanding talents, scientific research talents, cultural and educational talents, healthcare and medical talents, legal talents and other talents working in these areas may apply for a multiple-exit-entry talent endorsement for traveling to and from Hong Kong SAR or Macao SAR. The talent endorsement is valid for one to five years and permits a stay in Hong Kong SAR or Macao SAR for up to 30 days per entry.

Expansion Of 240-Hour VisaFree Transit Entry Policy

The 240-hour visa-free transit policy will be expanded to include five additional ports: Guangzhou Pazhou Ferry Terminal, Hengqin Port, Hong Kong - Zhuhai - Macao Bridge Port, Zhongshan Port (Passenger), and West Kowloon Station Port of Guangzhou Shenzhen - Hong Kong Express Rail Link. Among the additional ports, Guangzhou Pazhou Ferry Terminal, Hong Kong - Zhuhai - Macao Bridge Port, Zhongshan Port (Passenger), and West Kowloon Station Port of Guangzhou-Shenzhen - Hong Kong Express

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Rail Link are easily accessible from Hong Kong. It is expected to attract international travellers to Hong Kong as an entry stop or transit point in their multi-destination travel itineraries to China, fully leveraging Hong Kong's position as an international tourism hub.

In summary, the 240-hour-visafree transit policy applies to citizens of the 55 countries, including Australia, the United Kingdom, the United States, and Canada In summary, the 240-hour-visa-free transit policy applies to citizens of the 55 countries, including Australia, the United Kingdom, the United States, and Canada. Eligible travellers may enter China visa-free from any of the 65 ports with a valid international travel document and an interline ticket (connecting ticket) with the confirmed departure date and seat number leaving for a third country or region within 240 hours (10 days). During their stay, travellers must stay within designated areas for visa-free transit and may engage in tourism, business, visiting, family visits, and other activities. Existing visa requirements for work, study, and news reporting remain unchanged, and travellers must obtain prior approval to engage in such activities.

VIVIEN YU

Consultant Vivien Yu is a registered foreign lawyer in the firm’s labour and employment practice. Vivien advises multinational corporate and individual clients on a wide range of immigration and mobility matters with a focus on Greater China. With more than a decade of immigration law experience in Hong Kong and globally, she is also a qualified solicitor and a registered migration agent in Australia. vivien.yu@morganlewis.com Telephone: +852.3551.8565

K LESLI LIGORNER

Counsel Lesli Ligorner has more than 25 years of experience serving clients on a wide range of labour and employment matters, with more than 15 of those years spent on the ground in China. She advises a broad range of financial services, telecommunications, media, technology, life sciences, and general manufacturing clients on the full suite of employment issues in China, including hiring and termination, discrimination and harassment policies, training, and investigations. Lesli is admitted to practice in New York and New Jersey only. lesli.ligorner@morganlewis.com Telephone: +86.10.5876.3688

THE FUTURE BELONGS TO LEADERS WHO TRUST THEIR PEOPLE

The Future Belongs To Leaders Who Trust Their People Work feels different as we head into 2026. When I speak with HR leaders, there’s often a moment when someone pauses and admits just how heavy the past year has felt – the pace of decision-making, the pressure to support people through change, and the sense that everything is moving faster than the systems designed to manage it. With two thirds (63%) of HR professionals saying they’re leading the biggest workplace shift in decades, often with smaller teams and fewer resources, it’s no surprise that 59% are experiencing higher emotional strain. Yet in the middle of all this pressure, some patterns have become clearer. You can see what’s working, even if the year has been difficult. The organisations staying steady are the ones where leaders create a sense of belonging, and people feel seen and heard. Those themes now feel less like ideas and more like the foundations of the year ahead. Here are my predictions for 2026.

Trust And Clarity Become The Defining Leadership Skills

The leadership behaviours I expect to dominate in 2026 are trust and clarity, to help reduce any uncertainty and fear. Today’s workforce is navigating yet another once-in-a-generation transformation, following the impact of the pandemic on work models. Now AI is changing how people get work done. What hasn’t changed is what people want: to do meaningful work without sacrificing their wellbeing. In practice, that might look like using AI tools to reclaim hours of deep-focus time, structuring weeks around a genuine fourday schedule, or building a career without needing to uproot a whole life just to be closer to an office. In teams that start from trust, this isn’t hypothetical, neither are they perks. They’re the foundations of a healthier, more sustainable way to work in a world that isn’t slowing down.

Our HR Health Check Report reinforced this direction. Around two-thirds (61%) of HR leaders believe trust will matter more than pay in retaining talent. That tells you everything about what people value now. When employees feel trusted, they show more initiative. They solve problems faster. And they stop wasting energy proving they’re “on” and start putting their energy where it belongs – on the work that matters. Next year, trust won’t be a soft leadership trait. It will be the performance engine.

Next year, trust won’t be a soft leadership trait. It will be the performance engine AI And Skills Open New Pathways – If Culture Keeps Up

As we move into 2026, AI is becoming every employee’s most influential teammate. The question for organisations is no longer whether to use AI, but how to integrate it meaningfully into human work. The most forward-thinking companies are redesigning roles, leadership, and culture to ensure that technology enhances human creativity, productivity and empathy, as well as decision-making if they want AI and human collaboration at scale. Organisations that invest in continuous learning, psychological safety, and people-first decision-making will turn AI from a disruptor into a catalyst, opening pathways for every person to develop, contribute, and thrive. Our research shows more than half of HR leaders expect AI to take over administrative work by 2026. If that happens, it frees HR – and everyone else – to focus on strengthening leadership skills for managing and supervising AI agents.

But technology alone won’t unlock this next era of growth, culture has to keep pace. For this to work, transparency is essential. People need to understand how AI is used, what data informs decisions, and how these tools support their growth. In 2026, the organisations that get the most from AI will be the ones that use it to elevate people, not replace them. As work moves faster than traditional job titles can keep up, skills become the common language linking how companies hire, design new roles and set expectations for how work is delivered. Teams that understand their strengths, invest in the right mix of technical, social, and cognitive capabilities, and use AI to open new pathways will be the ones that stay adaptable, confident, and ready for whatever comes next.

Culture Becomes The Difference

With 58% of HR leaders expecting leaner teams next year, culture shifts from backdrop to business strategy. By 2026, people will choose organisations where belonging, fairness, and shared purpose feel real where culture isn’t a poster or a promise, but something lived every day. Experience design goes far beyond perks now. It’s about emotional connection, psychological safety, and meaningful work that helps people feel grounded even as expectations rise. As AI reshapes roles and skills evolve on faster cycles, culture becomes the stabilising force that helps teams stay confident, connected, and ready for what’s next. It shapes how work feels, how people respond to pressure, and whether trust and clarity show up as genuine behaviours. The future belongs to leaders who trust their people, define outcomes clearly, and use technology to open opportunity, not restrict it.

NIRIT PELED-MUNTZ Chief People Office, HiBob

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INTERNATIONAL HR ADVISER WINTER

The Future Of HR Leadership In The Age Of Diversity: Shaping The Next Generation Of HR Leaders The role of HR leadership has expanded to diversity, equity, and inclusion, coupled with a thorough understanding of the conceptual skills of interpersonal relationships. First, leaders must accept that diversity is here to stay, and finding the uniqueness of each employee and accepting them where and how they are is key to future success in any organisation. Conceptual skills used to be found primarily in the upper echelon of organisations. Still, now it is at the forefront of every business, from the front-line staff to the Chief Executive Officer. Everyone needs to use conceptual skills so that they can manage their own job and the expansive reach of the organisation to its vital customers. Peter Drucker once mentioned that a business is not operative without a customer, and reaching each customer where they are is tantamount to an organisation’s success. Drucker also coined the term " knowledge workers as those employees who are engaged in work that requires a high degree of cognitive and analytical abilities. The cognitive ability to not only do a job well but also be capable of leading others through strong interpersonal relationships. Interpersonal relationships between leaders and employees create a positive work environment that promotes trust, collaboration, effective communication, empathy, and teamwork. These qualities enhance employees’ customer orientation, leading to a focus on delivering exceptional service and meeting customer needs.

Diversity, Equity, And Inclusion (DEI) In Future HR Leadership

We have found that the discussion of the challenges and complexities of HR leadership makes some senior managers

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reluctant to develop leaders. This reluctance seems quite logical, as leadership development requires leaders’ personal development and deepening their insights in dealing with complex issues. These issues are sometimes too complex to solve in a short time, or larger and bigger issues must be addressed. Authentic leadership involves an introspection about oneself to develop an authentic leadership persona. Some leaders came up the ranks before the introduction of digital transformation and artificial intelligence began to emerge.

This can lead to increased innovation and greater efficiency in the organisation One way to solve this new phenomenon is found in one of our examples in an international financial company in Australia. After several meetings were held via chatbots with lower-level employees to include their views on the redevelopment of new knowledge management systems, employees became more aware of the possibility of cyber-attacks and how to avoid phishing. Leadership as a circumstance, or an event, may appear as a mode of operation, and in some cases, executives appear to be following predetermined recipes to resolve problems and lead others. Models of leadership are often used in universities and certain organisations. Some leadership models are only used once, while others are only used with certain leaders. Once the leader

moves on, they take the leadership model with them, and that leadership model is not utilised. The key to leadership models is that they are for all people in organisations and, in some cases, reach out to suppliers, vendors, and even customers to build a solid leadership presence - leadership models that reap the largest benefits to the stakeholders. In practice, leadership models set certain roles at all levels of the organisation that not only motivates people within the organisation and instils a sense of ownership into employees but also become a boundaryless model of organisations, creating an Open business system. In an open business system, team members are involved in decision-making and creativity and collaboration are encouraged. This can lead to increased innovation and greater efficiency in the organisation.

New Learning For Future HR Leadership

The new learning also requires upskilling in culture, communications, allyships, and creating an inclusive environment. One way to do this is to train leaders using diversity, equity, and inclusion. We have them develop a positioning statement that reflects how they address DEI, why they do it, what it means to them to understand and develop HR leadership competency, and the importance of this introspective viewpoint as role models for followers. The origins of DEI come from authentic leadership and servant leadership approaches, resulting in extensive participation in programmes promoting self-reflection, building skills, adopting inclusive behaviours, driving systemic change, fostering collaboration, and establishing accountability measures. A possible certification internally by human resources or externally through training providers who train leaders in DEI organisational processes is beneficial. Achieving this personal transformation for leaders requires understanding the impact of assumptions of their past and present behaviours. In fact, leaders must realise that their assumptions will play an essential role in their behaviour.

HR LEADERSHIP Accordingly, leaders should adopt the best assumptions according to the diversity, equity, and inclusion circumstances to provide the best behaviours to meet the followers’ needs. We also distributed a checklist determining their stand on several managerial issues. Once this was diagnosed, we attempted to raise the bar through extensive training and development. At this stage, we asked the organisation to distribute a checklist of the best possible behaviours according to adopting the best assumptions and try to master behaviours separately. This stage is usually challenging, but in training workshops for the managers, we convinced them that it could play an essential role in their personal development. For example, we asked them to hypothesise how humility can play an important role in developing organisational leadership. Then we asked them to write down the best behaviours in performing their duties in a checklist, according to this assumption and regardless of the position of the organisation in which they are located. The results were fantastic, and the feedback received from the managers showed us that the behaviours of these leaders with their employees had improved significantly compared to before these training workshops. We describe HR leadership roles after the deep dive and the personal assessment criteria. The first role emphasises the democratisation of the organisation and away from pyramidal and bureaucratic structures. With the emergence of the complexities of digital transformation and artificial intelligence, leaders need to grasp ways of meeting the needs of employees and stakeholders without them being persuaded by leadership models that are counterproductive not only in the workplace but also in their personal lives. Leaders do not initiate a dialogue about what happens outside the workplace, but what happens outside the workplace sometimes spills over into the organisation. The view of creating a spark of innovation in the mind of a leader should give way to a new view that believes that all employees make the pussle of innovation and each plays a role in it. This new perspective is strongly dependent on democratising the work environment, and leaders should provide as much human power in organisational innovation as possible by expanding the culture of participation and trust and creating flexible and flat structures. In this new role, leaders are not just leaders; they appear as supporters who are full of personal qualities such as patience and humility.

The Training Factor

There are many ways of using DEI executive training. We use DEI training to improve discussion learning quality by enhancing teaching and learning to maximise learning opportunities and experiences for employees and stakeholders. We do it by enhancing the tools and techniques of DEI to explore significant ways of learning and growing with diverse life experiences, different perspectives, and a wide array of backgrounds. We do this with a life story exercise that gets executives to explore their life stories and utilise lessons to help them lead people better.

The unlearning and training activities can be a great way to learn through experience, and we think that “action learning” a concept pioneered in the 1940s, is the best way We shed light on motivational techniques that address inequities in HR leadership and follower relationships by enhancing the authentic styles of leadership to help leaders be more capable of meeting the needs of the people that will follow them, collaborate with them, and communicate with them in our diverse global society. We do this with particular movie scenes and exercises that tap into

the inner core of leadership development. We develop the civil leadership characteristics that enhance organisations’ ability to meet stakeholders’ needs by equipping them with what it takes to have an inclusive community, embracing a society of social justice. We do this while showing how this new phenomenon can enhance leadership development by removing the negative stereotypes of the power and sophistication of artificial intelligence. The next step for our future endeavours will be completing the unlearning processes and connecting them with the learning ones. The unlearning and training activities can be a great way to learn through experience, and we think that “action learning” a concept pioneered in the 1940s, is the best way. Action learning involves actively engaging with real-world challenges and reflecting upon them to gain new knowledge and insights. When combined, people can effectively draw from experience to address complex problems and reflect if they are applicable. They benefit from supportive peers who offer new perspectives to explore emerging issues through novel inquiries and probes. The solutions proposed can be divided into 1- without and 2-with technology.

In Conclusion

Organis ations may f lourish with excitement and freshness in embracing this DEI HR leadership change. Our model with unlearning and learning using scenarios, real-situations is used as a cornerstone of the leadership developmental process. It can help assure that through actions, the learning approach, regardless of the options available, can surface and remove biases, assumptions and mindsets at the base of HR leadership behaviours in Diversity, Equity, and Inclusion. Diversity encapsulates the many differences among people in general and does not exclude any form of human development, experimentation, or references toward socioeconomic status. Inclusion represents both organisational and environmental cultures in which all social classes with diverse characteristics thrive. Inclusive organisations and environments require intentionality toward embracing differences and accepting, recognising, and praising them. Leaders of all organisations are invited to ensure the perspectives and experiences of others. Everyone is welcomed, acknowledged, and respected in inclusive organisations and environments.

MOSTAFA SAYYADI & MICHAEL J. PROVITERA www.internationalhradviser.com