Global Workforce Compliance in 2025: Part Two – Challenges
Amy Diehl, Chief Operating Officer, EPG Group
Amy Diehl is a workforce solutions expert with extensive experience in staffing, compliance and global workforce management. As the COO of EPG Group, she helps businesses scale while navigating complex regulatory landscapes. Her expertise in applicant tracking systems, cloud computing and technical recruiting makes her a trusted voice in workforce compliance.
As a guest contributor, Amy will share insights on managing compliance risks when leveraging an external workforce globally.
Part Two – The landscape is changing
Our three-part blog series will equip you with essential knowledge to navigate and mitigate compliance risks when leveraging an external workforce globally. In part one, we demonstrated how to identify and understand your specific compliance risks. In Part two we will explore the evolving landscape of global workforce regulations and its implications.
We will showcase how EPG Group is your trusted partner in this intricate journey. By staying abreast of regulatory changes, offering expert advice and providing actionable strategies, EPG Group empowers you to remain compliant and competitive. Learn how their expertise can help you mitigate risks, streamline operations and secure your business’s future in the dynamic global market.
Future Compliance Challenges for Global Employers in 2025
The landscape of global workforce compliance in 2025 is rapidly evolving and by 2025, global employers will face unprecedented challenges. Staying ahead of these changes is crucial not only to avoid costly fines but also to maintain a reputable business standing. As regulatory environments become more complex, proactive strategies and innovative solutions will be key to navigating the intricate web of international laws. Embrace the future with confidence and ensure your company remains compliant and competitive on the global stage.
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Changing Tax and Labor Regulations
In 2025, the tax and labor regulations in different countries will continue to vary, posing challenges for global employers. Regulations can differ significantly between jurisdictions and compliance in one country may not equate to compliance in another. Companies operating internationally need to constantly monitor changes to tax rates, withholding requirements and local labor laws to remain compliant.
In 2023, Uber encountered legal issues in the Netherlands due to non-compliance with local labor laws. The Dutch courts determined that Uber drivers were employees rather than independent contractors, resulting in the company being required to pay back wages and benefits. This case highlights the importance of keeping up with changing labor regulations.
Amy Diehl, Chief Operating Officer at EPG Staffing, emphasizes the necessity of staying informed about these changes. “Tax and labor compliance is often a significant concern for global employers,” she states. “Having the necessary infrastructure and processes to ensure alignment with local laws in each region is crucial, as it helps minimize the risk of penalties and audits.”
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Data Privacy and Protection
With today’s increased reliance on technology, robust data protection is essential. Ensuring the proper use of personal employee data, such as contact information and salary details, must strictly comply with local data privacy laws. Certain jurisdictions mandate local data storage and adherence to specific reporting standards.
Consider this: in 2021, Amazon faced a staggering €746 million ($887 million) fine under GDPR for failing to obtain user consent for targeted advertising. This case highlights that even industry giants are not immune to severe penalties for non-compliance.
EPG Group strongly advises businesses to align their data protection practices with both global and local regulations. “Compliance with GDPR, CCPA and similar regulations is not just advisable but imperative for global employers,” stresses Diehl. “The financial repercussions from data breach fines are immense and the resulting reputational damage can be irreversible and long-lasting.”
By prioritizing data protection, businesses safeguard not only their finances but also their reputation and trust with clients and employees alike.
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Employment Classification and Misclassification
Misclassifying employees as Independent Contractors can lead to significant legal challenges. The gig economy has blurred these boundaries, making compliance even more complex. To avoid hefty penalties, back taxes and costly legal disputes, companies must adhere strictly to worker classification rules.
Consider the case of Uber and Lyft – back in 2020, the California Labor Commission determined they had misclassified their drivers, leading to lawsuits and a staggering $100 million settlement in 2023. Clearly, improper classification carries severe financial and legal risks.
Looking ahead to 2025, ensuring accurate worker classification across various countries poses a substantial compliance challenge for global employers. Suna offers a crucial solution by providing tailored guidelines and comprehensive compliance resources for different regions, helping businesses navigate this intricate landscape with confidence.
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Cross-Border Payroll Compliance
Managing payroll across multiple countries presents a significant compliance challenge for global employers, due to diverse payroll requirements, tax obligations and benefits packages. Ensuring timely, accurate and compliant payments is not just important; it’s essential for maintaining trust and avoiding costly errors. For instance, in 2018, IBM faced a lawsuit in Australia over payroll errors that led to underpayments, forcing them to provide compensation and update their systems.
EPG Group underscores the necessity of unified payroll systems to streamline operations. According to Diehl, integrated payroll solutions with real-time compliance updates can greatly simplify processes and mitigate risks, making them indispensable for any global enterprise aiming for efficiency and reliability.
If you’re a global employer aiming to minimize compliance risks in 2025, the time to act is now. Contact Suna for effective compliance strategies and connect with EPG Group to ensure your workforce remains compliant and secure. Don’t wait until it’s too late – take decisive action today to protect your business and its future in global workforce compliance in 2025.