The first week of July 2026 saw sweeping labour law reforms across major economies, from Germany’s abolition of remote sick notes to significant minimum wage hikes in Australia and the United States. For UK employers, the changes signal a global tightening of regulatory oversight and employer obligations that mirrors developments closer to home.
Sick Leave and Medical Certification Reforms
Germany has introduced a major shift in employee health management. From July 1, 2026, the government abolished the practice of obtaining medical certificates by telephone — employees must now see a doctor in person on the first day of their sick leave to receive a valid note.
Chancellor Merz announced the reform as part of a productivity-focused agenda, following data showing an average of 19.5 sick days per worker in 2025 and a 6.9% rise in mental health-related absences. The policy change comes as Germany’s 2026 growth forecast was halved to 0.5%. While the government aims to tackle economic stagnation, critics warn the move could strain the national healthcare system.
The UK launched its own fit note pilot projects on July 1, trialling a support-based model in regions including the West Midlands, Cornwall, Lancashire and South Cumbria. The shift moves away from simply certifying absence — under current rules, employees absent for more than seven consecutive days must receive a fit note.
As the UK moves toward a more rigorous approach to employee health management, many companies are finding gaps in their workplace safety documentation. Incomplete or outdated health and safety records can leave your business exposed to significant fines during inspections. A free toolkit offers ready-to-use risk assessments, checklists and templates that help you meet your obligations under UK regulations. Download the free Health & Safety Toolkit
In Malta, the Conditions of Work Regulation Orders took effect on June 30. The reform mandates sick leave from the first day of illness across all regulated sectors and establishes a minimum of three days for both bereavement and marriage leave. The new rules also abolish lower minimum wage rates for minors and require employers to fund all uniforms and personal protective equipment (PPE).
Minimum Wage and Compensation Changes
Australia implemented its 2026 workplace law changes on July 1, raising the National Minimum Wage to $1,004.90 per week ($26.44 per hour), with award wages increasing by approximately 4.75%. New administrative requirements mean employers must pay superannuation within seven days of wage payments, though the super guarantee rate remains at 12%. The high-income threshold was adjusted to $190,100, with the compensation cap set at $95,050.
In the United States, several jurisdictions raised their minimum wage rates on July 1, including Alaska, Oregon and Washington D.C. Economic researchers estimate these changes affect more than 361,000 workers, resulting in an earnings increase exceeding $221 million. While California saw no statewide increase, 11 of its localities raised rates independently. Further increases are scheduled for October 1, 2026, including Saskatchewan (to C$15.70) and Florida.
New York City’s finalized obligations under the Earned Safe and Sick Time Act (ESSTA) will take effect on July 23, introducing a new 32-hour bank of unpaid protected time off available from the first day of employment.
Regulatory Compliance and Safety Enforcement
The U.S. Department of Labor reached a significant regulatory milestone on July 3, with the effective date of a final rule eliminating disparate impact liability from Title VI regulations for federal grants. This follows a broader trend of federal regulatory shifts, including the Equal Employment Opportunity Commission (EEOC) rescinding previous guidance on disparate impact and affirmative action.
In the UK, the Health and Safety Executive (HSE) demonstrated increased scrutiny by issuing its first-ever prohibition notice to an occupational health provider for failing to provide adequate health surveillance. Safety enforcement remains a high financial priority — the HSE recently fined SCS Railways £400,000 following a safety breach in late June.
The HSE’s stepped-up enforcement activity shows that regulators are taking compliance failures seriously. Any UK business that cannot demonstrate compliance with the Health & Safety at Work Act 1974 risks prohibition notices, fines and reputational damage. A free toolkit provides nine practical tools, including risk assessments, compliance checklists and a directors’ liability guide, to help you stay fully compliant. Download the free Health & Safety at Work Act 1974 Toolkit
In Qatar, Law No. (9) of 2026, promulgated on June 25, introduced a modernised labour market framework. The amendments include part-time and freelance work, a two-year maximum for non-compete clauses, and enhanced enforcement powers for the Ministry. The law also establishes new procedural requirements for collective strikes, including advance notice and the potential use of temporary replacement workers.
For Australian employers, the indexing of Workplace Health and Safety (WHS) penalties has increased the maximum fine for industrial manslaughter for body corporates to $21,274,000. These enforcement updates serve as a reminder of the rising cost of non-compliance in the current regulatory environment.
