Cambodia

Cambodia’s employment law landscape has undergone significant transformation in 2025, reflecting the government’s commitment to align with international labour standards and to enhance protections for both local and foreign workers. The Ministry of Labour and Vocational Training (MLVT) announced a new minimum wage for the garment, textile, footwear, travel goods, and bag sectors, which now stands at USD 204 per month for regular workers and USD 202 for probationary staff. This increase, effective from January 2025, is part of Cambodia’s annual wage review process, which involves tripartite consultations among government, employers, and unions. Employers must conspicuously display the new wage rates at their workplaces and confirm compliance with the MLVT Labour Inspection Department within 45 days of implementation. For further details, see the MLVT official website.

The government has also introduced new rules for overtime and rest days. Overtime is now strictly capped at two hours per day, with exceptions only allowed under written approval from the MLVT. Overtime pay rates have been clarified and increased: 150% of the basic wage for weekday overtime, 200% for Sundays, and 300% for night work on public holidays. These rates are calculated based on the revised minimum wage, ensuring that workers directly benefit from wage increases. Employers are required to maintain detailed records of overtime approvals and payments, which are subject to inspection by labour authorities. This is intended to prevent abuse, ensure fair compensation, and promote better work-life balance.

Payroll documentation requirements have also been strengthened. All enterprises must now maintain a printed, paginated payroll ledger on their premises for at least ten years, certified by a local labour inspector. This requirement applies even if the company uses digital payroll systems. The rationale behind this rule is to ensure transparency and provide reliable evidence in the event of wage disputes or government audits. Non-compliance can result in substantial fines and may affect the company’s ability to renew business licences.

Foreign worker management has also been updated. The deadline for renewing foreign worker permits has been extended to 31 May 2025, and all foreign employees must possess valid Work Permits and Employment Cards. Applications must be processed through the Foreign Workforce Centralised Management System (FWCMS), an online platform designed to streamline applications and improve oversight. Employers who fail to comply with these requirements face fines and possible suspension of permits. The government has also increased inspections and random audits to ensure that foreign workers are properly documented and that their employment terms meet Cambodian legal standards.

In addition to these core changes, Cambodia is also working on draft legislation to strengthen occupational health and safety standards, particularly in the construction and manufacturing sectors, and to expand social security coverage for informal and contract workers. These initiatives are part of Cambodia’s broader strategy to attract foreign investment while ensuring decent work for all. For further reading, see ILO Cambodia and periodic updates from DFDL.

China

China’s employment law reforms in 2025 are largely driven by demographic changes, economic modernisation, and the need to address workforce sustainability. The most significant reform is the gradual extension of the statutory retirement age, which has not been adjusted for decades. From 2025, the retirement age for men will be raised to 63, for women in managerial and professional roles to 58, and for other women to 55. This transition will be phased in over a 15-year period, allowing both employers and employees ample time to adapt. The reform aims to address the challenges posed by an ageing population and to ensure the long-term viability of China’s pension system. Employers are required to update employment contracts, HR policies, and internal communications to reflect these new retirement ages. For more information, see the Ministry of Human Resources and Social Security.

China has also introduced flexible retirement options, allowing employees to retire up to three years earlier or later than the statutory age, subject to mutual agreement between employer and employee. This flexibility is designed to accommodate individual circumstances, such as health issues or family responsibilities, and to provide employers with greater workforce planning options. Employers must document all such agreements in writing and ensure that employees are fully informed of their rights and obligations.

In addition, China is strengthening protections for workers facing illness or disability. New interim measures require employers to provide reasonable accommodations and job security for employees with health challenges, in line with international best practices. These measures are intended to reduce discrimination, support workplace inclusion, and ensure that affected employees can continue to contribute to the workforce. Employers are expected to review and update their policies, provide training for managers, and ensure that any workplace adjustments are properly documented.

China’s government is also focusing on the regulation of digital labour platforms and gig economy workers. Draft regulations propose mandatory social insurance contributions, minimum wage guarantees, and access to collective bargaining for platform workers. These proposals are currently under public consultation and are expected to be finalised later in the year. For updates on these developments, see the China Law Translate and China Labour Bulletin.

India (Karnataka)

Karnataka has become a trailblazer in India by enacting the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2024, which is the country’s first comprehensive social security law for gig workers. This legislation requires all digital labour platforms, including ride-hailing, food delivery, and freelance services, to register with the Karnataka Gig Workers’ Welfare Board. Platforms must contribute a welfare fee of 1–2% per transaction, which is used to fund health insurance, disability benefits, maternity support, and pension schemes for gig workers. The Act also establishes a grievance redressal mechanism, enabling workers to lodge complaints and seek resolution through the Board. For the full text, visit the Karnataka Labour Department.

The Act mandates that platforms provide detailed information about the number of workers engaged, the volume of transactions, and the amount of welfare contributions made. This transparency is intended to prevent under-reporting and to ensure that all eligible workers receive their entitlements. Workers can access an online portal to view their contributions, check benefit eligibility, and file grievances. The Board is empowered to conduct audits and impose penalties for non-compliance, including suspension of platform operations.

In addition to these state-level reforms, Karnataka is also implementing new rules for contract labour and workplace safety. Employers must now provide written contracts, ensure timely payment of wages, and maintain records of working hours and leave. The government has increased inspections and introduced stiffer penalties for violations, particularly in sectors with high rates of informal employment.

These changes are part of a broader movement in India to formalise gig work and extend social security to non-traditional workers. The central government is considering similar reforms at the national level, and other states are expected to follow Karnataka’s lead. For a national perspective, see the Ministry of Labour and Employment and the ILO India.

Indonesia

Indonesia has experienced a pivotal year for employment law, following a landmark Constitutional Court ruling in late 2024 which declared several provisions of the 2023 Job Creation Law unconstitutional. The ruling requires the government to reinstate sectoral wage councils, meaning that minimum wage negotiations must now take place at the local level and reflect regional economic conditions. Employers are required to engage with local unions and government representatives to determine appropriate wage levels, and must document these negotiations for inspection by the Ministry of Manpower. For official updates, see the Ministry of Manpower.

The Court also ruled that employees must remain on payroll until any dismissal disputes are fully resolved, even if the case proceeds to court. This provides greater security for workers and places a greater administrative burden on employers, who must ensure that all termination procedures are fully documented and compliant with due process. Employers are advised to review their HR policies, update dismissal procedures, and provide training for managers on dispute resolution.

The government has also been directed to clarify which job functions may be outsourced. New regulations are expected to limit outsourcing to non-core activities and to require equal treatment for outsourced workers in terms of pay, benefits, and working conditions. Employers must review all outsourcing contracts and ensure compliance with the new rules, as non-compliance can result in fines and contract invalidation.

Indonesia is also moving towards extending social security and collective bargaining rights to gig and platform workers. Draft regulations propose mandatory contributions to the national social security system (BPJS Ketenagakerjaan) and the recognition of platform worker associations. These changes are part of Indonesia’s efforts to modernise its labour market and align with international standards. For further analysis, see SSEK Legal Consultants.

Japan

Japan’s 2025 employment law reforms are focused on promoting work-life balance, supporting families, and extending employment opportunities for older workers. Amendments to the Childcare and Family Care Leave Law, effective April 2025, require employers to offer flexible working arrangements for employees with children under the age of three. This includes options for telework, flexible start and finish times, and the right to request reduced working hours. Employers must provide written information about these options to eligible employees and are required to engage in good-faith discussions to accommodate requests. For official guidance, see the Ministry of Health, Labour and Welfare.

The law also extends short-term leave entitlements for parents caring for sick or injured children, now covering children up to the third grade of primary school. This is a significant expansion from previous rules, which only applied to pre-school children. Employers must update their leave policies, payroll systems, and HR communications to reflect these changes.

Japan is also encouraging employers to extend employment beyond the traditional retirement age. The Act on Stabilisation of Employment of Elderly Persons provides incentives for companies to abolish fixed retirement ages or to offer renewable contracts for employees up to the age of 70. Employers must ensure that any wage reductions for re-employed seniors are objectively justified and non-discriminatory. The government provides subsidies and tax incentives for companies that retain older workers and invest in retraining programmes.

In addition, Japan is strengthening protections for non-regular workers, including temporary, part-time, and dispatch employees. New regulations require equal pay for equal work, improved access to training, and more transparent employment contracts. Employers must review their workforce composition and ensure compliance with these requirements to avoid penalties and reputational risks. For further reading, see the Japan Institute for Labour Policy and Training.

Malaysia

Malaysia’s employment law reforms in 2025 are among the most comprehensive in the region, with a strong focus on wage growth, social security, and inclusivity. The Minimum Wages Order 2024 raises the national minimum wage to RM 1,700 per month for employers with five or more employees from February 2025, and for all employers from August 2025. Employers must issue itemised payslips and maintain wage ledgers for at least six years. Any contract with a lower wage is invalid, and failure to comply can result in fines of up to RM 20,000 or imprisonment for up to five years. For official information, see the Minimum Wages Portal and the Ministry of Human Resources.

The government has also expanded social security coverage for self-employed and gig workers. The Self-Employment Social Security Scheme now covers a wider range of occupations, with government contributions covering up to 70% of the premium. The Employee Provident Fund (EPF) has introduced mandatory contributions for non-citizen workers and increased the i-Saraan matching incentive, which encourages voluntary retirement savings among informal sector workers. Employers must update payroll systems and ensure timely remittance of contributions.

Malaysia’s 2025 Budget introduces further incentives for hiring vulnerable groups, such as persons with disabilities, single parents, and ex-offenders. Employers who hire from these groups are eligible for monthly wage subsidies and tax deductions. The government has also increased funding for workplace safety inspections and introduced new digital reporting systems for labour compliance.

Employers should also prepare for enhanced enforcement, as the government has increased the number of labour inspectors and introduced random audits. This includes stricter penalties for violations of wage, social security, and occupational safety laws. For updates and compliance advice, see TalentCorp Malaysia and Perkeso.

Philippines

The Philippines has introduced substantial reforms to its foreign worker regulation and dispute resolution systems in 2025. The Department of Labor and Employment (DOLE) has replaced the Alien Employment Permit with the Foreign National Employment Permit (FNEP), effective January 2025. The new system features end-to-end online filing, mandatory skills-transfer plans for positions held over 12 months, and quarterly compliance reports. Employers are required to maintain detailed records of all foreign hires and to submit supporting evidence to the DOLE. The Bureau of Internal Revenue is now automatically notified of all FNEP approvals, improving tax compliance and transparency. For official details, see the DOLE.

The DOLE has also reformed the labour dispute resolution process. Department Order No. 249-25, effective February 2025, shortens the conciliation-mediation period and requires employers to attend the first conference in person. Failure to appear results in direct referral to arbitration, increasing the risk of adverse outcomes and costs for non-compliant employers. The new rules are intended to expedite dispute resolution, reduce case backlogs, and ensure timely access to justice for workers.

The government is also considering further reforms to minimum wage, social security, and parental leave. Recent proposals include raising the minimum wage in Metro Manila and expanding the coverage of the Social Security System (SSS) to include gig and platform workers. Employers should monitor developments and be prepared to update payroll and HR policies in response to new regulations. For further reading, see the SSS.

Singapore

Singapore’s 2025 employment law reforms are among the most progressive in Asia, targeting platform workers, parental leave, and workplace fairness. The Platform Workers Act 2024, effective January 2025, requires digital labour platforms to make phased Central Provident Fund (CPF) contributions on behalf of eligible platform workers, including drivers and delivery riders. The Act also mandates statutory work injury insurance and recognises platform worker associations, enabling collective bargaining and dispute resolution. The Ministry of Manpower (MOM) has been granted new powers to inspect and enforce compliance. For the full text, see Singapore Statutes Online and the MOM.

From April 2025, statutory paternity leave is doubled to four weeks, and a new shared parental leave scheme is introduced, allowing parents to allocate leave flexibly between themselves. Employers must update leave policies, payroll systems, and employee handbooks to reflect these changes.

The Workplace Fairness Legislation, passed in early 2025, prohibits discrimination on eleven protected characteristics, including age, nationality, gender, marital status, pregnancy, caregiving responsibilities, race, religion, language, disability, and mental health condition. The law also restricts “fire and rehire” practices and grants zero-hours contract workers the right to request predictable hours. Employers must audit their workforce, review flexibility clauses, and align policies with the Tripartite Guidelines on Fair Employment Practices.

The government is also expanding support for older workers, with enhanced wage subsidies and training grants for companies that retain or upskill employees over the age of 60. For further reading, see Workforce Singapore and SkillsFuture Singapore.

Vietnam

Vietnam’s new Law on Trade Unions (Law No. 50/2024/QH15), effective July 2025, marks a significant step in modernising industrial relations and expanding worker representation. The law allows foreign employees with contracts of twelve months or more to join enterprise-level trade unions, aligning with international labour standards and supporting Vietnam’s commitments under free trade agreements. The law also introduces a three-tier collective bargaining system, covering workplace, sectoral, and national levels. Employers must file collective agreements with provincial authorities, and these agreements are now legally enforceable as civil contracts. For the official text, see the Vietnam Law Database and the Ministry of Labour, Invalids and Social Affairs.

The law enhances protections for union organisers, prohibiting discrimination and retaliation against employees who participate in union activities. Employers are required to establish internal protocols for union engagement, provide training for managers, and ensure that union representatives have access to necessary information and facilities.

Vietnam is also updating its regulations on working time, rest periods, and occupational safety. New rules require employers to provide written contracts, maintain accurate records of working hours, and implement workplace safety programmes. The government has increased inspections and introduced stiffer penalties for violations, particularly in high-risk industries such as construction and manufacturing.

These reforms are part of Vietnam’s broader strategy to attract foreign investment, improve working conditions, and promote stable industrial relations. For further analysis, see ILO Vietnam and Vietnam Briefing.