European Union: 2025, Looking Ahead

The following are changes in the labour landscape expected to affect employers and employees alike within the European Union.

1. New European Works Council Directive

In January 2024, the Commission put forward a proposal to revise the EWC Directive. The Council agreed on its position in June 2024. This proposal is currently under discussion in the EU Parliament, but the discussions are proving to be more difficult than was expected. As soon as (and if) the EU Parliament can streamline its position, the negotiations between the parliament and council can start. Depending on the political process, it is possible that the revision will be approved in 2025. For more information about the revision of the EWC Directive, we refer to our previous article.

 

2. Regulating the digital impact in the world of work

The Commission wants to address the impact of digitalisation in the world of work. The Commissioner of Jobs, Roxana Minzatu, was asked to take an initiative on algorithmic management and to possibly introduce a proposal for new legislation on AI in the workplace, following consultation with social partners. For now, it remains to be seen whether this will lead to actual new legislation, as workers are also protected by the rules of the new AI Act (but not every algorithm is based on AI). Minzatu was also asked to introduce a right to disconnect, meaning a right for workers to not answer any calls, texts or e-mails in their private time. Several member states already have such a right in their national legislation (e.g. France, Belgium and Portugal).

 

3. Social dialogue

The strengthening of social dialogue remains a priority of the Commission. After the Val Duchesse Summit of 2024, in 2025, the Commission will, together with the employers and trade unions push for a new Pact for European Social Dialogue.  The ambition is to strengthen and improve the conditions for trade unions to engage in cross-industrial and sectoral social dialogue at both EU and national levels, establishing opportunities not only for consultation but also for negotiation and agreement. The Pact will identify concrete actions which can support a better involvement of the social partners at the EU level (mostly by the Commission) and also create the necessary support and tools to negotiate and conclude collective bargaining agreements at the European level. In the last decade, EU cross-industry negotiations have remained unpopular and unsuccessful, and EU sector-level negotiations were also met with some resistance. It remains to be seen whether a new pact can give a new impetus to EU social dialogue. In any case, the pact will take the form of a road map, rather than new EU legislation.

 

4. Transposition of recast Asbestos Directive

The EU Member States should transpose Directive (EU) 2023/2668 by 21 December 2025. This directive amends Directive 2009/148/EC on the protection of workers from the risks related to exposure to asbestos at work.

 

5. Partial entry into force of AI Act

As from 2 February 2025, the AI Act prohibits AI practices deemed to pose an “unacceptable risk” (prohibited AI techniques) such as subliminal manipulation or exploitation of vulnerabilities. To read more about the AI Act, we refer to our previous article.

 

6. Other Directives with significant impact in 2025

The EU Member States should have transposed the Corporate Sustainability Reporting Directive (CSRD) (Directive 2022/2464/EU) into national law by 6 July 2024. Several EU Member States are currently still working on the transposition. In 2025, the First reports under the CSRD are due for companies already subject to the Non-Financial Reporting Directive (NFRD), covering the financial year 2024.

Although the Minimum Wage Directive should have been transposed by 15 November 2024, many EU Member States seem to have difficulties with (or are actively working against) its transposition. The annulment case before the CJEU against the Directive is still pending.

Furthermore, EU Member States will start to prepare the transposition of the following Directives in 2026:

• Pay Transparency Directive (Directive (EU) 2023/970): 7 June 2026
• Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) (Directive (EU) 2023/1237): 26 July 2026
• Platform Work Directive (Directive (EU) 2024/2831): 2 December 2026

This also means that employers will need to be ready to adapt their policies and compliance in the coming years.