As the HRM legal landscape continues to evolve, several trends are set to affect businesses and HR departments in 2025. From employee rights to AI regulation, the following developments are expected to reshape HRM law in the coming year and beyond.

Employee Well-being and Rights

In the area of mental health protection, it is expected that stronger laws around mental health support in the workplace, include requirements for employers to provide mental health resources and accommodations. Family Leave is an area of attention, and it is expected that more countries will implement expanded paid family and sick leave policies. Flexible Work Legislation involves legal protection for remote work and flexible working hours, and this is an area where legislation may be introduced or strengthened under the new administration.

Diversity, Equity, and Inclusion (DEI) Laws

Stricter DEI enforcement may be implemented through new laws requiring businesses to meet certain DEI standards in hiring and workplace practices.

Pay Transparency laws mandating pay transparency and equal pay for all demographics may be expanded globally.

Technology and Employee Privacy

Legal frameworks around AI use, particularly in hiring and employee monitoring, will evolve to address privacy concerns about AI and surveillance in the workplace. New regulations may appear to prevent bias in AI hiring processes to address algorithmic bias.

Gig Economy and Worker Rights

Worker Classification laws around defining workers as independent contractors vs. employees will continue to evolve, especially for gig economy workers. Pressure to provide benefits that follow workers (portable benefits) across different employers will grow.

Global Compliance

Remote work will require companies to stay compliant with various international labor laws, including tax and data protection regulations (Cross-Border Labor Laws). A growing trend that favors global labor standards will bring ongoing changes in international labor agreements that will influence HRM law.

Health and Safety Regulations Post-Pandemic

COVID-19 Protocols and HRM laws will continue to emphasize health and safety regulations for contagious diseases. New occupational safety rules will address long-term health risks related to mental health, ergonomics, and workplace safety.

Employment Contracts and Non-compete Agreements

Legal challenges to non-compete agreements may increase, especially in high-skill sectors like technology. Contractor protections may see expanding rights for contractors may be on the horizon.

Anti-Discrimination and Worker Protections

Stronger protections through laws against discrimination based on gender, race, and other factors will continue to be enforced and expanded. Expect tougher laws governing harassment and retaliation to set up more formal harassment policies.

Unionization and Collective Bargaining

Laws may shift to either support or restrict unionization, especially in industries like tech and gig work.

Green Jobs and Environmental, Social, and Governance (ESG Laws)

ESG Regulations may increase demand for companies to integrate Environmental, Social, and Governance (ESG) factors into their HR policies. Legal frameworks for training and hiring in green industries (green jobs) may appear.

Conclusion

In 2025 and beyond, HRM law will reflect societal changes, technological advancements, and evolving global standards. Organizations must stay informed to adapt to these trends and remain compliant while promoting a healthy, inclusive workplace.

Bio:  Dr. McCann serves Purdue University Global as a Course Lead and Graduate Professor of Human Resource Management along with serving as one of the faculty advisors for the Purdue University Global SHRM Chapter. He has an active publishing record in human resources, education, leadership, management, marketing, emerging markets, and strategy topics. He also has many years of management experience in the areas of operations and human resource management, business ownership, and customer service.